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Friday, November 25, 2011

Bukit Asam Tbk - BATR signed funding deal from China Bank

by Mandiri Securities : PTBA

Bukit Asam Transpacific Railway (BATR) announced it has signed financing deal for the construction of 307-km railway project with China Development Bank and China Railways Group Ltd during the East Asia Summit (EAS) in Nusa Dua, Bali last week.

There is no detail yet on the financing framework agreement from the company. But this is a positive signal for the running setup of the JV between PTBA, Rajawali Group and China Railway Engineering as it has become top priority for Goverment of Indonesia (GoI) in MP3EI (Master Plan for Acceleration and Expansion of Indonesia Economic Development). In a parallel discussion, company is still waiting a good progress on the goverment efforts to resolve regulatory problems that holding up the JV setup in term of presidential decree or goverment decree.

We still have buy rating on the counter, PTBA trades at 12.6x-9.9x PER11F-12F.

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