Mansek Indotambang :1H10 net income 46.8%of our FY10F,and 41.7%of consensus (ITMG, Rp38,800,Neutral,TP: Rp34,920)

1H10 achievements was 46.8%of our FY10 net income estimate.Despite stronger operating margin in 2Q10 (25.6%)Vs 1Q10 of 22.9%,derivative losses of US$13.4mn eased the gain,with 2Q net income equally match the achievement of 1Q10.ITMG has contracted 18.4Mt of their coal,with revenue of US$1.34bn and ASP of 72.8/ton.Another 14%is contracted priced to index-linked,and 6%spot.The contracted volume was 81%of our forecast and 82.7%of nominal value.Our FY10 volume assumption is 22.7Mt with ASP of US$71.7/ton.At Rp38,800,ITMG is trading at 16.4x,and 13.6x PER10F and PER11F,respectively,with EV/EBITDA10F and 11F of 8.7x and 7.0x respectively.

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.