Thursday, July 14, 2016

Geo Energy

Geo Energy (S$0.125): Thermal coal price surge suggest earnings upside​
- Thermal coal prices have jumped 11% YTD on renewed Chinese buying fervour
- This comes as Chinese domestic thermal coal surged 41% YTD, forcing Chinese buyers to seek out cheaper coal
- We adjust Geo Energy's FY16 earnings to factor in higher coal prices
- It is currently trading at 16.6x FY16 P/E vs 19x blended forward P/E of Chinese and Indon peers.

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