Sakari

Sakari: CIMB maintains Outperform with TP$2.73. High costs and low volumes were unsurprising though higher ASPs were a pleasant surprise read as pricing power despite falling coal prices. Costs rose mainly due to groundwork for future growth which was the opening of 2 new pits in Jembayan and developing pit infrastructure at Sebuku's Northern Leases. Co has stated it is seeing a bottoming of thermal coal mkts and house is of view that stock is cheap at 7x CY13 P/E vs peers' avg of 8.6x