Menu
In the last 5 trading days, avg. coal prices slipped to USD 125.3/ton (-0.3% WoW), with Newcastle coal futures nearing USD 125/ton in Jan (lowest in 10 months), as abundant supply offset demand. China's coal inventories surged +12% in 2 months (Sept – Oct), adding pressure on prices.
China’s coal output hit record 14.3 million tons/day in Nov, up sharply from 12.28 million tons/day in Oct. However, the country’s demand softened due to Beijing’s ineffective economic stimulus, while heavy rainfall in manufacturing hubs increased reliance on hydroelectric power over coal.
In FY24, average coal price reached USD 136.4/t (SSI: USD 136/t). For FY25, we set our forecast at USD 125/t (YTD: USD 126.6/t), down 8.3% YoY, due to economic uncertainties and oversupply pressures. On the stock front, ADRO (TP IDR 3,400; FY25 P/E of 12.8x) is our top pick, primarily due to its initiative to venture towards green business as well as ADMR and SIS’ contributions to earnings.
Samuel Sekuritas Indonesia is a leading Indonesian securities brokerage firm. Established in 1997, the firm has grown to become one of the most respected and trusted financial services companies in the country. With a wide range of services and products, Samuel Sekuritas Indonesia has become a trusted partner to many investors, both institutional and individual.
The company offers a variety of financial services, including equity, debt and derivative securities brokerage services, research and portfolio management, asset management and capital market services, as well as a range of other investment solutions. Samuel Sekuritas Indonesia is also a leader in providing financial education and training, and has established itself as a leading provider of investor relations services.
The company has a strong research capability and is committed to providing its clients with up-to-date and reliable market analysis and recommendations. It also has a team of experienced and knowledgeable professionals who are dedicated to providing quality service to its clients. As a result, Samuel Sekuritas Indonesia has become a preferred partner for many investors in Indonesia.
In addition to its financial services, Samuel Sekuritas Indonesia also offers a range of other services, such as corporate finance and advisory services, mergers and acquisitions, and venture capital.
