CIMB Tambang Batubara Bukit Asam

Tambang Batubara Bukit Asam
Quick takes - A rather positive air - by Rania Rahmundita
(PTBA IJ / PTBA.JK, OUTPERFORM - Maintained, Rp7,100 - Tgt. Rp9,100, Basic Resources)

PTBA's Finance Director gave an upbeat presentation during our recent road show to the US. Feedback from investors was rather positive, as PTBA provided a breath of fresh air to the usual coal exporter names. Most investors were keen on its high production growth potential, scale and niche in the domestic market. However, most were concerned about Indonesian macros such as rupiah volatility. We maintain Outperform and DCF-based target price of Rp9,100 (WACC 14-18%, LTG 2%). Improved Indonesian macros could be catalysts, in our view.