Live Chat Software
Berita Dan Riset Terbaru
Consumer Confidence
Company Update: BIRD
January 14, 2015 10:21

The slump in crude oil prices coupled with the government’s new policy on fixed fuel subsidies will be a windfall for BB. Fuel costs are BB’s second-largest cost component, comprising 28% of BB’s total direct costs, or 18% of BB’s net revenues. Hence, post the taxi tariff increase in December 2014, we believe that BB can enjoy margins expansion from lower fuel costs. In our new estimate, BB will deliver 30% earnings CAGR in FY13-16F, assuming a gasoline fuel price of Rp7,000/ltr. All in all, utilizing our DCF-based valuation with 11.2% WACC and 4.0% terminal growth rate, we raise our Target Price to Rp12,200, implying FY15F/16F PE of 24.3/19.6x. Maintain BUY.