Indo Tambangraya (ITM IJ) is one of the companies attending our CLSA Corp Access Forum in Singapore (20-22 May 09) and they will have a workshop session today. ITMG is Olie’s favorite stock in the resource sector. In fact, ITMG is the only BUY in his coverage universe. This stock is also my entry in our internal stock picking competition for 2Q09.
ITMG is the 4th biggest coal company in Indonesia, producing 17.7mn tonnes in 2008. It has sizeable resources totaling 1.7bn tonnes, and decent reserves of 312mt. The company has built a reputation as a reliable supplier to customers and as a company with credible CG.
ITMG’s earnings are highly sensitive to the price movements of thermal coal. Export portion and cost structure are high, hence the operating leverage (and btw, the other coal name that is highly sensitive to thermal coal price is BUMI).
Tidak ada komentar:
Posting Komentar