In today’s briefing:
- ITMG: Coal Softer, Cash ~50% of Mkt Cap, Yield to Remain >20% in 2023
ITMG: Coal Softer, Cash ~50% of Mkt Cap, Yield to Remain >20% in 2023
- Indo Tambangraya Megah (ITMG IJ) dividend yield at an assumed 150 USD/ton price in FY23e ( FY22 px: 192 USD/ton) is over 20% (FY22 yield 25-28%).
- Investors staying over FY22/FY23e will get 45-48% of the share price returned in dividends assuming a 70% payout ratio, and the company’s cash pile will be >1.5 bn USD.
- Coal prices have been softer recently, but the recent mining incident threatens a slower rebound in coal production from China. The company looks cheap at 3-3.5x PE FY23e.
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