Tri Putra, CNBC Indonesia
Market
Saturday, 05/08/2023 17:15 WIB
Photo: PT Bumi Resources Minerals Tbk (BRMS) (Doc. BUMI)
Jakarta, CNBC Indonesia – Coal issuer PT Bumi Resources Tbk (BUMI) has paid off debts that have long burdened the company’s pockets. Now, the issuers controlled by the Salim Group and the Bakrie Group are looking at new potentials.
BUMI shares had jumped from Rp. 50-Rp. 60/share in June 2022 to Rp. 246/share in early September 2022 following the entry of the Salim Group as controllers in an effort to pay off the company’s debts.
Now, as of August 4, 2023, BUMI shares are traded at Rp. 133/share.
Even though coal prices have decreased, BUMI has been able to survive well thanks to the good performance of its subsidiaries, Arutmin and KPC.
In terms of valuation, BUMI looks relatively expensive compared to other stocks (closest peers) in the coal sector. BUMI’s price-to-earnings (P/E) ratio is 20.10 times, above the general rule of 10-15 times and the price-to book value (PBV) ratio is 2.04 times, above rule of thumb 1 kali.
However, the proper valuation calculation needs to consider the potential growth in future performance. BUMI, which includes issuers turnaroundhas the opportunity to record good performance due to high coal resources and reduced financial burden.
Currently, investors need to wait for further improvements from BUMI’s financial report while waiting for the next coal cycle which can be a major catalyst for the company’s shares going forward.
Currently, coal prices have also shown rebound from recent lows in mid-July around US$127 per ton to around US$140 per ton.
CNBC INDONESIA RESEARCH
research@cnbcindonesia.com
Watch the video below:
Video: Bayan and the Future of Indonesia’s Coal Business
(trp/trp)
2023-08-05 10:15:37
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