Stock Name: Sakari
Company Name: SAKARI RESOURCES LIMITED
CIMB in a Nov 1 research report says:"Firm coal prices bode well for SAR, whose 3Q11 earnings were lifted by higher ASPs. 3Q11 ASP rose 32% y-o-y, boosting revenue by 21%. We believe volume and margin expansion will power its earnings in the next two years.
"3Q11 and 9M11 meet consensus and our expectations, at 23%/73% of FY11. We cut FY12-13 EPS by 7% to incorporate management's lower production targets. In view of economic uncertainties, Jembayan's expansion may be delayed.
"Nevertheless, value is emerging after the stock's 13% underperformance vs. Indonesian peers over the past month. At 9.8x CY12 P/E, SAR is trading in line with its peers. Target price of $2.48. NEUTRAL."
Company Name: SAKARI RESOURCES LIMITED
| Research House: CIMB | Price Call: HOLD | Target Price: 2.48 |
CIMB in a Nov 1 research report says:"Firm coal prices bode well for SAR, whose 3Q11 earnings were lifted by higher ASPs. 3Q11 ASP rose 32% y-o-y, boosting revenue by 21%. We believe volume and margin expansion will power its earnings in the next two years.
"3Q11 and 9M11 meet consensus and our expectations, at 23%/73% of FY11. We cut FY12-13 EPS by 7% to incorporate management's lower production targets. In view of economic uncertainties, Jembayan's expansion may be delayed.
"Nevertheless, value is emerging after the stock's 13% underperformance vs. Indonesian peers over the past month. At 9.8x CY12 P/E, SAR is trading in line with its peers. Target price of $2.48. NEUTRAL."
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