Sakari

Sakari / Indonesian Coal: UBS has coal report. Note that weather risk looming over coal producers. La Nina conditions strengthening and heavy rains could disrupt production. Expect buyers to return in the near-term. Over all house like Sakari Resources and Adaro Energy continue to prefer coal miners with the highest production growth as the bases of superior earnings growth, such as Adaro Energy and Sakari Resources. Given the high operating leverage, still see room for attractive earnings momentum.