NISP ITM is on track to achieve volume target (ITMG, Rp38,500, Hold)

ITM aims for 5.2mn tons of coal production in 2Q10 or 6.1% YoY higher from
4.9mn tons in 2Q09. Compared to 1Q10, the company’s production target is
13.1% lower due to heavy rainfall season.

The company’s target translated into 11.2mn tons of coal production for 1H10,
48.6% of the company’s internal target for 2010F of 23mn tons.

We view this full year target is achievable as in 2H10, contribution from Jorong
and Bharinto of around 1mn tons and 0.2mn tons will start to kick in.

ITM has not shared any details on its financial performance that is scheduled to
be released next week.

Currently ITMG is trading at 2010F PER of 18.6x and EV/EBITDA of 11.3x, Hold.