JPM Indo: Research call - Adaro Energy (ADRO)

Stevanus Juanda (analyst) publishes in-depth report on Adaro with O/W rating and price target of Rp2400 (28% upside). Page 7 of the report contains comparison with China Shenhua, showing that while ADRO has stronger top growth profile (2010-2012) (top line cagr of 27% for ADRO vs. 14% for Shenhua, net profit cagr of 33% for ADRO vs. 20% for Shenhua), the stock trades on lower P/E multiple of 15.4x FY10 for ADRO vs. 19.1x for Shenhua. In terms of P/E, ADRO is most expensive among Indo coal names (offset by superior trading liquidity and corporate governance perception), but comparison with Shenhua highlights the relative attractiveness of Indo coal complex.