Mandiri Sekuritas Bayan Resources: 1Q10 net profit up 26.8%yoy (BYAN, Rp6050, Under-review)

Bayan reported net profit grew by 26.8%yoy to Rp144bn, as operating margin improve for almost double compare with 1Q09. Company booked revenue up by 7.7%yoy which seems came from higher coal prices, meanwhile operating profit up by 100.5%yoy as significant negative growth came from operating expenses. Barging cost down by 40%yoy and salaries expense down by 34%yoy compare with 1Q09. We have Sell recommendation on stock and currently we are reviewing our valuation due to 1Q10 results.