Banpu

Banpu Plc 

Banpu’s coal volume downside from transport disruption due to the bridge collapse should be limited. The 2% reduction in Indonesia coal supplies could push coal prices higher in the near-term and benefit Banpu’s coal sales from its other Indonesia sites as well as Australia. The negative impact from shipment disruption could be mitigated by the potentially higher coal price on lower supply from Indonesia by up to 5m t. Any share price weakness is a buying opportunity. OUTPERFORM and SOP-based target price are maintained.