by Etrading : BULL
The addition of six ships from ships leased from the parent company (BLTA) as of January 2011, and re-operation of FPSO / FSO after experiencing the process of upgrading and conversion in 2010, became the driving company revenue in 2011. We estimate the company's revenue growth in 2011 could reach 78% compared to 2010. However some BULL expansion plans in 2011 was little resistance due to some technical issues, including changes to specifications by the charterer on a tender boat which followed. This resulted in not obtaining the procurement of new ships, so that the various development plans BULL become a little stagnant and accumulated for the year 2012.
Ditahun 2012, the company will continue to actively participate in various tenders, especially procurement VLGC ships, FPSO, LNG, FSO, and Floating Offshore Coal Terminal and Storage. Some of the tender which was followed almost finalized and the company has a substantial chance to win the tender.
Meanwhile, the company has prepared for the purposes of conversion to Floating Offshore Coal Terminal and Storage and negotiations with the charterer has entered the final stage. Floating offshore coal terminal and storage will operate at a coal mine located in South Sumatra. Furthermore Floating Coal Terminal will be a good alternative in the mining industry due to great savings and do not take a long time. Operation of Offshore Floating Coal Terminal and Storage This will encourage the growth of corporate earnings.
Use of IPO Proceeds
Company shares began trading on the secondary market on May 23, 2011. Based on the results of a public offering, the company managed to collect Rp trillion 1:03. Net funds received after deducting the cost of a public offering is $ 966.19 billion. Until 9M11, the company had executed the use of funds amounting to Rp. 958.7 billion with the remaining unused funds amounting to Rp 7.5 billion.
Based on our calculations using the DCF method, assuming a WACC 9.94% to 2% terminal growth and the risk free rate of 7.5% then the fair price of the company's stock is $ 177/saham, but due to lack likuidnya factor shares in the market, then we set a target price for Rp 132, - or a 25% discount from the price reasonable. The target price reflects 2012F PER 6.83x with a potential upside of 32%. We recommend a BUY.