Tuesday, August 28, 2012
BUMI TP Rp1,200
JPM: BUMI reported 1H12 net loss of US$313MM; a swing from US$222MM profit in 1H11. The reported 1H12 net income is significantly below consensus’ FY12E forecast of US$242MM profit and JPM’s US$151MM loss. Despite some sizable pre-tax non-cash forex and derivative losses amounting to US$196MM, we estimate 1H12 core net loss of US$192MM compared to US$57MM in profit in 1H11, indicating a poor results outcome. In 2H12, there could be additional quarterly loss which could pose a downside risk to our current US$151MM loss forecast for FY12E. Refinancing costs could be higher than expected. We expect BUMI’s shares to de-rate on the back of this result and development. New TP of Rp1,200/sh
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Disclaimer ON.