Sakari Resources ( former Straits Asia )

Re: Sakari Resources ( former Straits Asia )

Postby winston » Tue Nov 01, 2011 10:34 am

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RESEARCH ALERT-DMG upgrades Sakari to buy

SINGAPORE, Nov 1(Reuters) - DMG & Partners has upgraded Singapore-listed Indonesian coal mining firm Sakari Resources Ltd to buy from neutral, but lowered its target price to S$2.90 from S$3.08 previously.

STATEMENT: Sakari Resources said its third quarter net profit rose 46 percent to $33.8 million from a year ago, which came in below DMG's expectations.

DMG cut its net profit forecast for Sakari in 2011 and 2012 by 7 and 5 percent respectively to factor in higher costs.

However, the brokerage said that it sees resilient coal prices and expects a 23 percent increase in production output at Sakari's Jembayan mine to boost its share price in future.

DMG also said Sakari currently trades at 13.6 times its 2011 price-to-earnings ratio, which is attractive given its 70-90 percent earnings growth potential over the next two years.

At 0135 GMT, shares of Sakari Resources Ltd were down 3 percent at S$2.31, and have fallen about 6 percent since the start of the year.

Source: Reuters
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Re: Sakari Resources ( former Straits Asia )

Postby winston » Tue Nov 22, 2011 10:28 am

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Our analyst visited Sakari Resources’ mines at Sebuku in East Kalimantan recently and returned more confident about the volume growth prospects.

However, he lowers Jembayan ASP assumptions for FY12 as sub-bituminous
market loses steam.

As a result, he cuts FY12 EPS estimate by 6.3% and lowers TP to S$2.20 (Maintain HOLD) as earnings remain vulnerable to coal price changes amid
macro uncertainties.

However, we might turn buyers of the stock at levels below S$1.80.

Source: DBS
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Re: Sakari Resources ( former Straits Asia )

Postby winston » Mon Nov 28, 2011 9:31 am

not vested. What does this mean ? Production is normal but they cant ship stuff out ?

SAKARI RESOURCES - Coal miner Sakari Resources said a bridge that lies over the Mahakam river in Indonesia had collapsed on Saturday.

The river is a major conduit of coal barge trafflic and supplies to and from upstream mines, including the firm's Jembayan mine.

However, Sakari said production at the mine is continuing as normal.

Source: Reuters
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Re: Sakari Resources ( former Straits Asia )

Postby Musicwhiz » Mon Nov 28, 2011 9:35 am

Production no problem, logistics got problem. :P
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Re: Sakari Resources ( former Straits Asia )

Postby winston » Tue Apr 24, 2012 9:19 am

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Risks to our assumptions.

Our call is based solely on near‐term earnings performance. We expect to re‐rate Sakari upwards after rolling forward forecasts to FY13F.

Additionally, higher than expected coal prices and coal production volumes, along with lower than expected cash costs can raise our earnings estimates significantly.


Valuation of S$1.65 based on PER methodology.

By ascribing a 12x PER on our projected FY12F EPS, we derive a 1‐year price target of $1.65.

Based on our FY12F EPS, Sakari currently trades at 14.3x forward PER, against a peer average of 9.0x.


Source: AmFraser
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Re: Sakari Resources ( former Straits Asia )

Postby winston » Wed May 02, 2012 9:51 am

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Coal miner Sakari Resources said its first quarter net profit plunged 65 percent to S$14.5 million from a year ago, hurt by lower production and sales.

It said margins were also pressured by strong inflationary factors in Indonesia and higher fuel prices.


Source: Reuters
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Re: Sakari Resources ( former Straits Asia )

Postby winston » Fri Jun 01, 2012 1:14 pm

not vested. Were they too aggresive in the first place ?

OCBC cuts Sakari to 'hold' OCBC Investment Research downgraded its rating on Singapore-listed Indonesian coal mining firm Sakari Resources Ltd to 'hold' from 'buy,' citing lower coal prices.

Shares of Sakari fell 1.38 percent to S$1.42 and have fallen 22.3 percent so far this year.

Sakari's share price has plunged about 32 percent since it reported first quarter results on April 30, underperforming the Straits Times Index's <.FTSTI> 8.6 percent fall in the same period.

Sakari's share price drop was partly due to its poor earnings in January-March and a continued fall in coal prices, said OCBC, and lowered its target price on the stock to S$1.45 from S$2.29.

The broker cut its coal price assumption by 10 percent to $76 per tonne, resulting in a 48 percent fall in its 2012 earnings forecast for Sakari.

"If coal prices continue to remain depressed or drift lower, this would further jeopardise the company's targeted average selling price of around $85-$90 per tonne for this year," OCBC said.

Source: Reuters
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Re: Sakari Resources ( former Straits Asia )

Postby winston » Fri Jun 29, 2012 2:50 pm

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SINGAPORE-DBS Vickers lowers Sakari target DBS Vickers cut its target price on coal mining firm Sakari Resources to S$1.80 from S$2.40, on lower coal price assumptions, but kept its buy rating.

Sakari shares were up 2.6 percent at S$1.37. The stock has fallen around 25.5 percent so far this year, underperforming the FTSE ST Mid Cap Index's <.FTFSTM> 14.5 percent gain.

DBS cut its earnings estimates for Sakari's 2012/2013 fiscal year by 25-28 percent as it revised downwards its average coal price assumptions for 2012/2013 fiscal year by about 10-15 percent to $100 per tonne.

But coal prices are expected to have a mild rebound in the second half of 2012, DBS said, adding downside risk is limited at Sakari's current share price and the firm offers a "healthy" dividend yield of 6 percent

Source: Reuters
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Re: Sakari Resources ( former Straits Asia )

Postby winston » Thu Jul 12, 2012 12:26 pm

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STOCKS NEWS SINGAPORE-Sakari falls to two-week low

Shares of Sakari Resources Ltd fell as much as 5.6 percent to a two-week low, after Credit Suisse slashed its 2013 earnings forecast for the coal miner by 34 percent to reflect lower coal price assumptions.

By 0314 GMT, shares of Sakari were down 4.5 percent at S$1.375 on volume of 26.9 million shares, 1.5 times its average daily volume over the last five sessions.

Credit Suisse cut its coal price assumptions for benchmark Newcastle grade to $98 per tonne for 2012 and to $100 per tonne for next year. It now expects earnings per share for Sakari this year to be $0.11 and $0.14 in 2013.

"Though we remain optimistic on thermal coal demand strength, we continue to believe that prices will remain under pressure until significant supply cuts begin to emerge," said Credit Suisse.

The brokerage, which expects earnings momentum to be weak starting from the second quarter, also cut its 2013 earnings forecast for other Southeast Asian coal companies such as PT Tambang Batubara Bukit Asam Tbk and PT Harum Energy Tbk .

Sakari has still outperformed its global peers over the past four weeks, up 12 percent compared with a 2.8 percent fall in the Thomson Reuters Asia Pacific and Russia Coal Index <.TRXFLDASPUCOAL>.


Source: Reuters
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Re: Sakari Resources ( former Straits Asia )

Postby winston » Tue Jul 24, 2012 9:35 am

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STOCKS NEWS SINGAPORE-CIMB cuts Sakari Resources

CIMB Research downgraded Singapore-listed coal producer Sakari Resources Ltd to underperform from neutral and cut its target price to S$1.01 from S$1.96, citing prolonged coal price weakness.

Sakari shares were up 0.8 percent at S$1.265 on Tuesday. The stock has fallen about 31 percent so far this year versus the 17 percent gain in the FT ST Midcap Index <.FTFSTM>.

CIMB slashed its earnings per share estimates for Sakari's 2012-2014 fiscal years by 16-51 percent on lower average selling price and volume assumptions.

It also trimmed its 2012-2013 volume projections by 3-4 percent as it expects Sakari to scale back on production amid weak market pricing.

"Today, the industry grapples not only with a cyclical pullback in demand but also a structural shift in energy consumption patterns given the emergence of cheap shale gas. A shift towards shale gas threatens to marginalise demand for thermal coal."


Source: Reuters
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