In today’s briefing:
- ITMG – Div Yield >28%, Net Cash 40% of Mkt Cap, Deep Value with High Coal Price
ITMG – Div Yield >28%, Net Cash 40% of Mkt Cap, Deep Value with High Coal Price
- We expect a 10,000-12,000 Rph dividend for FY22 (div yield 28%-33%) from Indo Tambangraya Megah (ITMG IJ) as earnings are set to improve >70% HoH (H1 dividend – 4128 Rph/share).
- With coal prices remaining elevated, if volumes remain flat YoY, we could see >50% of the stock price returned in dividends throughout FY22e/23e.
- There is an excellent margin of safety, with almost 40% of the market capitalization in net cash. With a >65% payout ratio, we will see cash levels build further.
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