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

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