PTBA 9M09 Results : Maintain BUY with TP of Rp18.600

Among listed coal mine companies under our coverage, in terms of profitability, end of all measures, PTBA excels (Graph 1). Meanwhile, expansion plan to achieve 47mn ton production in 2015 is in progress ( Graph 3). Valuation wise ( Table 6), PTBA is trading at a proper level, still below that of the market. 9M09 results is in-line with our estimates and that will take a stellar 74% earnings growth this year. We have made several adjustments to our basically-unchanged estimates, and at WACC 14.3% and LTG2%, we get an equivalent of target price of Rp18.600 per share. Maintain BUY recommendation