CIMB Tambang Batubara Bukit Asam Result note - Stellar 1Q09, but still rich

(PTBA IJ / PTBA.JK, NEUTRAL - Maintained, Rp8,700 - Tgt. Rp9,800, Basic Resources)

We remain Neutral on PTBA, although we have increased our FY09-11 EPS estimates by 7-10% and DCF-based target price to Rp9,800 from Rp9,300 (WACC 14%, LTG 0%). 1Q09 net profit grew 221% yoy to Rp921bn, making up 35% and 30% of consensus and our FY09 expectations respectively. Domestic ASP and sales volumes should remain solid, but its spot export ASP and sales volume carry downside risks. Valuations remain the highest among peers, even on our 23-39% more optimistic forecasts than consensus.