Bumi Resources (BUMI.IJ) - Equity Daily

Mining: Bumi Resources (BUMI.IJ) posted 1H11 net profit of US$274m, up 9% y/y, driven by higher ASP. Revenue grew by 24% y/y to US$1792m, while gross and operating profits rose by 37% and 42% to USD$740m an US$549m, respectively. The company gained US$212m from derivative transactions in 1H11 or additional US$107m in 2Q11. Bumi also recorded forex gain of US$74m (+81% y/y) and lower amortization expenses of US$14m (‐76% y/y).


Bumi Resources (BUMI.IJ, HOLD): Higher gain from derivative helped
bottom line
􀂃 Bumi Resources posted 1H11 net profit of US$274m, up 9% y/y, driven by
higher ASP.
􀂃 Revenue grew by 24% y/y to US$1792m, while gross and operating profits
rose by 37% and 42% to USD$740m an US$549m, respectively.
􀂃 The company gained US$212m from derivative transactions in 1H11 or
additional US$107m in 2Q11. Bumi also recorded forex gain of US$74m
(+81% y/y) and lower amortization expenses of US$14m (‐76% y/y).

Analyst comment:
􀂃 We maintain our target price of Rp3100, pegging the stock at 12.7x FY12 PER. HOLD.
􀂃 The company sold coal at ASP of US$91.3 per ton, up 312% y/y. Coal output declined by 2% y/y, but sales volume increased by 6% y/y to 31m tons.
􀂃 On q/q basis, 2Q11 net profit grew by 45% to US$166m, while revenue grew by 11% to US$942m.
􀂃 Up to operating profit, 1H 11 result is in line with our estimate. 1H11 operating profit accounts for 48% of our FY11 estimate of US$1147m. Net profit is higher than our expectation.

source: KIM ENG dated 19 August 2011