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.