Friday, April 29, 2011
Borneo Lumbung Energi (BUY): 1Q11 result below expectation
Borneo posted 1Q11 net profit of Rp426b, significantly increased from the low base Rp10b in 1Q10.
Revenue grew by 224% to Rp1,202b, while gross and operating profits grew by 271% and 304% to Rp691b and Rp426b, respectively.
Analyst comment:
We are reviewing our forecast but likely to maintain our BUY recommendation with lower target price (from previously Rp2025)
Revenue growth was driven by higher selling price, ASP in 1Q11 was US$254/ton, vs. ASP in FY10 of US$186/per ton. We assume blended ASP of US$238/per ton for FY11.
Sales volume was reported at 532.6k tons. Coal production was 753k tons, below our expectation, which becomes our main concern.
Overall, the result is below our expectation.
source: Equity daily KIM ENG dated: 29 April 2011
Revenue grew by 224% to Rp1,202b, while gross and operating profits grew by 271% and 304% to Rp691b and Rp426b, respectively.
Analyst comment:
We are reviewing our forecast but likely to maintain our BUY recommendation with lower target price (from previously Rp2025)
Revenue growth was driven by higher selling price, ASP in 1Q11 was US$254/ton, vs. ASP in FY10 of US$186/per ton. We assume blended ASP of US$238/per ton for FY11.
Sales volume was reported at 532.6k tons. Coal production was 753k tons, below our expectation, which becomes our main concern.
Overall, the result is below our expectation.
source: Equity daily KIM ENG dated: 29 April 2011
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