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| Indo Tambangraya (ITMG IJ; NR), Termination Of Analyst Coverage |
Amidst internal reallocation of resources, we
are ceasing coverage on Indo Tambangraya (ITMG) effective immediately. Our
previous forecasts, valuations and recommendations should no longer be relied
upon for further investment decisions.
¨ In the near term, ITMG could sustain
low operating costs and maintain high dividend payout aided by low capex and
strong balance sheet, making it a defensive play. However, over the long-term,
large cash outflows as dividend payouts could limit its ability to replenish
the falling coal reserve without increasing borrowings amid the weak coal price
environment.
Source : RHB OSK Indonesia Research Institute
Source : RHB OSK Indonesia Research Institute
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