ASEAN Insight Provider, CrossASEAN Research

Angus Mackintosh

In Equity Sales and Research for more than 25 years covering Asian markets. Possesses in-depth knowledge of a wide range of companies, economies, and markets in Asia. Over his career, he has specialised in HK/China and ASEAN markets at various different Investment Banks, most recently heading equities in Indonesia for Bank of America Merrill Lynch in Jakarta for more than three years. Whilst in Jakarta, he produced a well-read daily and weekly product on the Indonesian market, which included company visits, as well as political, economic and sector commentary. A former racing skier, who enjoys ultra-marathons and surfing in his spare time.

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Smartkarma

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Equity Bottom-Up

Eagle High Plantations Tbk PT / Equity Bottom-Up

I dialed into <a href="https://www.smartkarma.com/entities/4421" target="_blank" data-smartkarma-citation="entities:4421:1">Eagle High Plantations Tbk P (BWPT IJ)</a> post results call last night. In 3Q16, the company still registered a net loss (Rp96bn loss versus Rp139.7bn loss in 2Q16)) but it saw a significant increase in EBITDA (Rp145bn +47% QoQ and +19% YoY). This was on the back of a surge in production , which doubled in the last two months of the quarter.Preliminary numbers for October suggest a record month, with production rising to above 150,000 tons for the month. This trend looks set to continue for November and December and bodes well for a very strong finish for the year. Debt levels remained stable for the 3Q16. The company is committed to reducing debt in 2017, through rising profits and FCF.There will be very little new planting over the next two years, which means mature area should increase to 90% of total in 2017 (84% now). This also means that CapEx will remain low, apart from one new mill this year and next. Eagle High is now at the end of its investment phase and is on the cusp of a more profitable future. The share price has historically followed the company's EBITDA and that is on the up.

I dialed into Eagle High Plantations Tbk P (BWPT IJ) post results call last night. In 3Q16, the company still registered a net loss (Rp96bn loss versus Rp139.7bn loss in 2Q16)) but it saw a significant increase in EBITDA (Rp145bn +47% QoQ and +19% YoY). This was on the back of a surge in production , which doubled in the last two months of the quarter.Preliminary numbers for October suggest a record month, with production rising to above 150,000 tons for the month. This trend looks set to continue for November and December and bodes well for a very strong finish for the year. Debt levels remained stable for the 3Q16. The company is committed to reducing debt in 2017, through rising profits and FCF.There will be very little new planting over the next two years, which means mature area should increase to 90% of total in 2017 (84% now). This also means that CapEx will remain low, apart from one new mill this year and next. Eagle High is now at the end of its investment phase and is on the cusp of a more profitable future. The share price has historically followed the company's EBITDA and that is on the up. 

Eagle High Plantations - Changing up a Gear - 3Q16 Results