Wednesday, August 15, 2012

Antam (ANTM.IJ, BUY) – Meeting its guidance

Antam (ANTM.IJ, BUY) – Meeting its guidance

         Antam’s 1H12 operating metrics was good, and the company is still on track to meet its guidance for FY12. The only negative is weaker than expected nickel price, which prompt us to cut our earnings forecast for the company by 32-33% in 2012 and 2013.
       We firmly believe that nickel price will stage a minor rebound later as many of Indonesian nickel miners are impacted. To date, only 32 miners have been given export license out of more than 600.
   We cut our TP to IDR1,710 (2013F PER of 12.8x) to reflect our lower nickel price assumption, but maintain our BUY call.

source: KIMENG dated 13 August 2012