Stock Price for Coal is Still Enticing Until the Year's End 31 May 2012
Jakarta (IFT) - The performance of issuers stock for coals are still good to be collected until the year's end, after several companies have reported their performance report during the Quarter 1 of 2012.
Jakarta (IFT) - The performance of issuers stock for coals are still good to be collected until the year's end, after several companies have reported their performance report during the Quarter 1 of 2012. Three issuers that reported their performance Report on Quarter 1 2012 experienced an increase in revenue that is also supported by the increase of price and sales volume.
Three Issuer Producers that has given their performance report for Quarter 1 2012 are PT Adaro Energy Tbk (ADRO), PT Bukit Asam (Persero) Tbk (PTBA) and PT Berau Coal Tbk (BRAU). Adaro booked 11.25 million tons in sales volume on Quarter 1 2012, an increase of 3.1% from 10.91 million tons during the same period 2011. The average sales price for Adaro's coal had increase by 17.9%
Likewise with the coal sales volume for Bukit Asam that was increased by 287% to 3.86 million tons from 3 million tons. The average coal sales price from Bukit Asam had also increased by 4% to Rp 781,142 per ton. Export sales from Bukit Asam increased by 84% to Rp 1.41 trillion from Rp 770.3 Billion. As well as with the export coal sales for Berau Coal that was increased by 24% to US$241 million. The main market for Berau's coal export is to China that could go up to 36.4%
The IFT research department has predicted that the issuer revenue for coals will increase from 2011's revenue until the end of this year. This is supported by the increase of sales volume, especially from the export market. Countries that are classified as main export target are the Asian Region countries such as China, India and Taiwan.
The high demand is caused by power plant construction activities in those countries. Power plant construction in those countries are done to increase energy supply in supporting their economical activities.
In domestic stock market, the issuer price for coal is currently being pushed. The year to year market index for mining sector only grew to 2.21% until last week. Whereas the mining sector on Quarter I 2012 has the fourth highest increase among the nine sectors in Indonesian's stock market.
Viviet S. Putri, PT BNI Securities analyst, stated that in terms of coal stock price's performance with relatively stable price until the end of the year belongs to Bukit Asam's share. The production of coal in Bukit Asam is mostly used to fulfill local demands. So it does not get affected much by the price volatility and demand of the International Market.
The Issuer Coal Performance could potentially be upset because there are a number of subsidiaries that have not finish administer the transfer of mining licenses to mining permits. This could cause disturbance in productions for a number of subsidiaries.
Goldman Sach in his report stated that the evaluation of Indonesian coal's stock price is in the mid-cycle. Goldman Sachs has put the level of Coal sector back into the neutral level from previously in cautious.
Jeffrosenberg Tan, Head of Research for PT Sinarmas Sekuritas, projected that the coal price's performance will be neutral until the year's end. The deceleration in world's economy is predicted to affect the demand for coals that are being produced by local coal companies. "I project that the performance of issuer stock price for mining will be neutral because of the deceleration in the global economy." he said.
Issuer is predicted to hold of on selling the coal until the price improves. Issuer is estimated to increase the production volume to cope with the slowdown of demands from China. In term of evaluation, the price for issuer's stock price is relatively cheap. However, market participants do not see any strong stimulus that could encourage the growth in performance of issuer's coal.
Arief Sagita, Equity Sales PT Panin Sekuritas, said that another point to take note of by investors on the performance of Coal's stock price is the price in global market. There is a possibility that the global price for coal could go down because of the decelerating global economy especially in Europe and China. Eventhough China is one of the biggest coal importer in the world.
By:David Halomoan Manurung, Houtman P. Saragih, Tika Rochmawatie