Friday, November 2, 2012

Adaro Energy (ADRO.IJ, HOLD) – Focus on Margin Conservation


Adaro reported a 9M12 net profit of USD348m, down 7% YoY. Revenue also dropped 6% YoY to USD2.76b, as the company sold 10% less coal during the period. We downgrade our TP to IDR1,300, but maintain our HOLD recommendation as downside is limited. At our TP, the stock is trading at an FY13F PER of 12.0x.
source: KIMENG dated 1 Nov 2012