Indonesia

Initiating Coverage

25 October 2012

J Resources Asia Pasifik

HOLD

The Lustre Remains

Share price:
Target price:

IDR5,700
IDR5,950

Lucky Ariesandi, CFA

Lucky.Ariesandi@maybank-ke.co.id
(62 21) 2557 1127

Junior gold producer with good quality assets. J-Resources (J-Res)

is the only listed pure gold producer in Indonesia following its
successful takeover of Avocet Minings Southeast Asian assets and a
backdoor listing in January this year. The company has two operating
assets: Penjom in the state of Pahang, Malaysia, and North Lanut in
North Sulawesi, Indonesia. It also has six other assets which are under
different stages of development before they commence production in
2013-2015.

Stock Information

Strong production growth until 2016. A major expansion plan is

underway that will see J-Res more than triple its gold production to
350k oz by 2016 from 99k oz in 2012. Capex of USD326m has been
budgeted to expand the production capacity of Penjom and develop
new mines. Admittedly, execution risks exist, but we believe the
company can deliver as it is managed by seasoned mining
professionals.

Description: J Resources Asia Pasifik Tbk explores for and

produces gold. The Company operates in the Australasian
region.
Ticker:
PSAB.IJ
Shares Issued (m):
756
Market Cap (US$ m):
448
3-mth Avg Daily Turnover (US$ m):
0.6
IDX index:
4335
Free float (%):
5.4
%
94.6

Major Shareholders:
J&Partners Asia Ltd

Key Indicators
ROE annualised (%)
Net cash (IDR b):
NTA/shr (IDR):
Interest cover (x):

49
157
1,478
7.6

Historical Chart
(IDR)
7,250

Close (UnAdjusted)

(Million shares)
8

Close

6,250
5,250
4,250

J Resources Asia Pasifik Summary Earnings Table

FYE Dec (IDR b)

Revenue
EBITDA
Recurring Net Profit
Recurring Basic EPS (USD)
EPS Growth (%)
DPS (IDR)

2,250

1,250

250

24-Oct-11 8-Dec-11 26-Jan-12 13-Mar-12 1-May-12 20-Jun-12 6-Aug-12 26-Sep-12

Performance:
52-week High/Low

Absolute (%)
Relative (%)

1-mth
39.0
35.8

IDR6,000/IDR1,940
3-mth
41.6
33.0

6-mth
57.2
53.3

1-yr
193.8
176.9

Valuation looks stretched after strong rally. J-Ress share price has
done especially well since its transformation into a gold producer,
posting a 140% jump since early February. The company currently is
valued at USD557m, more than double the price it paid to acquire
Avocets assets (USD260m) just 15 months ago. Valuation, however,
looks stretched, especially on an EV-to-reserves basis, with the stock
trading at a 40% premium over the average multiple of other junior gold
producers. Using a blended valuation approach based on LoM DCF
(WACC of 11.6%), EV/EBITDA target of 4.4x, and EV/reserves target of
USD442/oz (evenly weighted), we arrive at a fair value of
IDR5,950/share. We initiate coverage on J-Res with a HOLD
recommendation.

4
3,250

Gold price outlook the brightest among commodities. While prices

of other commodities are under pressure from the weak global
economic outlook, gold prices have bucked the trend as central banks
around the world become net buyers of gold in a bid to diversify their
currency reserves away from the USD. Golds status as a safe haven is
strengthening amid rising uncertainties and gold buying for investment
purposes might increase in the near future.

YTD
193.8
180.0

PER (x)
EV/EBITDA (x)
Div Yield (%)
P/BV (x)
Net Gearing (%)
ROE (%)
ROA (%)
Consensus Net Profit (USDm)
Source: Kim Eng

2012A
1,496
750
331
438
N/M
0

2013F
1,756
909
266
351
(78)
0

2014F
3,011
1,406
388
513
46
0

2015F
4,284
2,267
1,018
1,346
163
0

2016F
6,277
4,383
2,636
3,486
159
1,046

3.5
7.2
0
1.6

16.2
7.0
0
1.5

11.1
4.4
0
1.3

4.2
2.4
0
1.0

1.6
0.7
18
0.7

39
44
22
229

72
9
4
389

55
13
6
673

26
27
14
912

net cash
50
32

SEE APPENDIX I FOR IMPORTANT DISCLOSURES AND ANALYST CERTIFICATIONS

J Resources Asia Pasifik

Junior gold producer with good quality assets

J-Ress venture into the lucrative gold business began in 2011 when it
acquired Avocets gold mining assets in Southeast Asia for USD200m,
and minority interests in some of the assets for an additional USD60m
(ie, altogether USD260m). These assets comprise two operating mines
Penjom in Pahang, Malaysia, and North Lanut in North Sulawesi,
Indonesia and six other concessions. Avocet sold these assets to
realign its business to focus on its gold mining assets in Africa.
J-Res was chosen as the preferred bidder for Avocets assets on 24
Dec 2010 and the transaction was completed in June the following
year. After a lull of about six months, J-Res injected the assets into a
listed company, Pelita Sejahtera Abadi, with the latter acquiring the gold
mine assets in exchange for J-Res taking majority ownership in Pelita.
The process was completed in January 2012.
Figure 1: J-Res venture into gold business

Q310
Late Stage
negotiation with
Avocet

24 Dec 10
Announced as
preferred bidder
Pay USD10m

1Q11
Pay second
tranche
USD100m

Q2 11
Pay third tranche
USD60m

Q311
Pay last
installment
USD30m

Jan 12
Completed
backdoor listing

Source: Avocet and J-Res data

The assets J-Res bought are of good quality, in our view. Penjom, for
instance, is Malaysias largest gold mine and still has seven years of
remaining mine life despite having started production since 1996. Its
gold production is set to peak in 2016. The North Lanut mine will be
closed next year as the mine is exhausted after almost 10 years in
production but the Bakan mine that is in the same CoW area is
expected to commence production in 2013 and will compensate for the
lost output. As for the currently non-operating assets, they are in
various stages of development when they were bought. Bakan and
Seruyung will commence production in 2013, followed by Doup in 2014
and Pani in 2015. In all, J-Res controls 904k oz of reserves and 3.68m
oz of resources in its portfolio.
Figure 2: J-Res asset portfolio

Source: Company data

25 October 2012

Page 2 of 16

J Resources Asia Pasifik

Quick results in a short time

Without waiting for too long, J-Res has already made notable
improvements to its assets. First, the company managed to increase
gold production to 51.0k oz in 1H12 from 48.1k oz in 1H11 when the
mines were still under Avocet. It also successfully lowered overall cash
production cost to USD921/oz from USD1,203/oz during the same
period. This is because the company is now processing ores with
higher gold grade than last year (2.9g/t vis--vis 2.7g/t in 2011).
We believe J-Res has also conducted major exploration works and
thorough mine planning during 2H11 when the gold assets were off the
radar of investors. After the completion of the acquisition and the
obtained its listing status as J-Res, its JORC reserves has been
doubled to 904k oz as of Jun 2012 from theoretical reserves of 420k oz
as of Dec 2011 (based on Avocets 2010 reserves less depletion in
2011).
The bulk of the additional reserves came from Penjom, which is
expected to produce 43%, or around 146k oz, more gold, throughout its
remaining mine life after undergoing a new design. This will be
achieved by increasing its fleet size by purchasing 8 90-tons excavators
and 52 50-tons haul trucks to increase the mining rate to 50 Mtpa from
15Mtpa currently. In addition, the company will need to expand the
plant, including installing additional crusher, to raise plant throughput to
1.29Mtpa from 0.74Mtpa currently.
Figure 3: Improved performance under the new regime
Production growth

Cash cost

Source: Company data

Strong production growth profile

J-Res is embarking on a major expansion plan that will see its gold
production more than triple to 350k oz in 2016. This involves a
combination of production ramp-up at Penjom and contributions from
new mines slated to commence operations shortly. However, the
improvement will be visible only in 2014 as we expect almost flat
production growth in 2013 due to the closure of North Lanut.
For next year, J-Res is counting on the contributions from two mines to
compensate for falling production at North Lanut. Bakan should be
ready to mine its first gold bullion in late 1Q13, followed by Seruyung in
2Q13. Together the two mines will be able to produce slightly less than
half of their nameplate capacity, or 34k oz, in 2012. This should be
sufficient to more than offset the falling production at North Lanut, which

25 October 2012

Page 3 of 16

J Resources Asia Pasifik

will produce just 11k oz, a 71% YoY down from an anticipated 2012F
production of 39k oz.
We are quite comfortable with developments at Bakan, which already
has a JORC reserves (265k oz) number published. Its location near
North Lanut (around 30km) also means that it can access whatever
equipment and crew the latter can spare. But Seruyung is a different
story. J-Res has not announced the mines reserves and is expecting it
to produce around 150k oz of gold throughout its mine life. This
appears aggressive to us, based on the mines inferred JORC
resources figure of just 161k oz, although the companys in-house
JORC geologists have estimated resource of 381k oz.
The true value of J-Res will only be unlocked in 2016 when Doup and
Pani run at full capacity. Each mine boasts around 1m oz of gold
resources, and combined, will produce around 160k oz of gold pa.
Coupled with peak production at Penjom, the company is set to
produce around 350k oz of gold by 2016. This will put the company in
the league of top junior gold producers, as well as give it the
ammunition to shop for other gold assets in the region, which the
company said is on its priority list.
Figure 4: Reserves and resources at a glance
JORC reserves (June 2012)

JORC resources (June 2012)

Tonnes

Tonnes
Au g/t

Au k oz

Au g/t

(k tonnes)

Au k oz

(k tonnes)

Penjom

Penjom

Proven

1,342

1.21

52.21

Measured

1,342

1.21

52.21

Probable

9,492

2.04

534.53

Indicated

15,688

1.67

842.30

3,495

1.42

159.56

Inferred
N Lanut
Proven

N Lanut
1,079

1.29

44.75

Measured

5,874

1.06

200.18

220

1.15

8.13

Indicated

1,657

1.05

55.94

Inferred

1,695

2.08

113.35

20,876

0.80

536.93

3,908

0.54

67.85

3,440

1.46

161.47

Probable

Bakan
Probable

Bakan
7,460

1.10

263.82

Indicated
Inferred

Total reserves
Proven

Seruyung
2,421

1.25

96.96

Inferred

Probable

15,830

1.58

806.48

Doup

TOTAL

18,251

1.54

903.44

Measured

4,752

1.28

195.55

Indicated

22,885

1.20

882.90

8,919

1.10

315.42

2,400

0.90

69.44

940

1.02

30.83

Measured

11,968

1.16

447.94

Indicated

63,506

1.17

2,387.51

Inferred

22,397

1.18

848.47

TOTAL

97,871

1.17

3,683.92

Inferred
Pani
Indicated
Inferred
Total resources

Source: Company data

25 October 2012

Page 4 of 16

J Resources Asia Pasifik

Figure 5: Production growth forecast

Source: Company data, Kim Eng

J-Ress expansion plan calls for timely delivery of new mining

equipments to Penjom, a smooth learning curve for the crew to use the
equipments, and timely start to production at the new mines. This looks
very ambitious to us because the plan requires everything works like
clockwork. But we take comfort in the fact that the company is run by
seasoned mining professionals with an average of 22 years experience
in the industry.
The majority shareholder, the mining focused private equity fund
J&Partners LP (J&Partners), also has a strong mining background.
J&Partners is established by the Johan Lensa family, the founder of
Bukit Makmur (BUMA). Since 1998, BUMA, under the guidance and
leadership of Mr Johan Lensa, had grown to become the secondlargest mining contractor in Indonesia as of 2009. The family
subsequently exited the mining contracting business through a sale of
its entire BUMA shareholding to Delta Dunia (DOID) which was
subsequently acquired by a private equity consortium led by TPG and
GIC. Since then, the family has re-aligned its focus to becoming a
owner-operator of mines, in the form of J-Res.
Having an experienced team is especially important in a country where
issues involving the government and the neighbouring societies can
prove extremely challenging. G-Resources experience with its mine at
Martabe, where it has to stop mining operation due to protests from the
surrounding people over its tailing, is a testament to this. The skillsets
possessed by the management team of J-Res is also very wellbalanced consisting mining and exploration specialists who have
strong operational and development understanding of the assets, as
well as local talents who understand regional issues.
Figure 6: Profile of key executives
Position

Experience

Credentials

CEO

12 years

Founding family of Buma

Colin J Davies

VP - New BD and Exploration

30 years

Prior positions with Leighton, Laing O'Rourke, and Austindo

Budikwanto Kuesar

VP - Operations

30 years

Former CEO of Buma

Edi Permadi

VP External Relations

15 years

Former director of Vale Indonesia

Jimmy Budiarto

Specializes in managing government relations

John Rasmussen

VP - Technical Services

24 years

Former GM of Penjom

Jim Sweeney

GM of Exploration

17 years

Former exploration head for Avocet

Source: Company data

25 October 2012

Page 5 of 16

J Resources Asia Pasifik

Exponential growth in 2013-2016

We expect J-Res to see revenue growing at 53% CAGR in 2013-2016
to IDR6.27t. Meanwhile, cash costs (including royalties) will drop
significantly to around USD650/oz from USD879/oz. This is because
the company should have completed the bulk of the waste stripping at
Penjom prior to 2016 and it will be also be paying lower royalties for
every ounce of gold produced in Indonesia compared to that in Penjom.
In our view, the company should be ready to pay most of its profits as
dividends starting 2016 as its capex needs would moderate after 2015.
At the current price level, we expect an average annual dividend yield
of 24% throughout the companys entire mine life until 2025, assuming
100% dividend payout starting 2017.
Figure 7. Strong revenue and net profit growth
(IDR b)
7,000

Revenues

Net profit

90%
80%
70%
60%
50%
40%
30%
20%
10%
0%

Net profit margin (RHS)

6,000
5,000
4,000
3,000

Extraordinarygain
onpurchase of
assets

2,000
1,000
0
2012F

2013F

2014F

2015F

2016F

Source: Company data, Kim Eng

Huge capex calls for some external financing

To achieve the production target, the company has earmarked capex of
USD411m from 2012-2015. In 2012-2013 alone the company budgets
USD171m, mostly for new heavy equipments for Penjom site and
construction costs at Bakan and Seruyung. In addition to that, the
company also needs to do a pit optimization at Penjom, which will see
stripping ratio surging to 62x in 2013 from 20x in 2012, translating into
additional USD50m of deferred stripping costs based on LoM stripping
ratio of 23x.
J-Res currently does not have the balance sheet ability to finance the
capex as its operating cash flow will be sufficient to cover capex only in
2014 when Bakan and Seruyung have reached its nameplate capacity.
The company is planning to fund the shortfall by a combination of heavy
equipment financing and bank loans, which J-Res has already secured.
Given the low free float, the company will also have to consider tapping
into the capital market in the near term. This will result in greater
liquidity in the stock, and if structured as private placement, will result in
additional proceeds to the company to fund future capex and
expansion.

25 October 2012

Page 6 of 16

J Resources Asia Pasifik

Figure 8. J-Res capex schedule

m USD

Penjom

North Lanut

Bakan

Seruyung

Doup

Pani

140.0
120.0
100.0
80.0
60.0
40.0
20.0
0.0
2012F

2013F

2014F

2015F

Source: Company data

Gearing will remain manageable

We calculate that the company needs to raise around IDR1.7t in debt
over FY12-14. Net gearing will climb from 39% in FY12 to 72% in FY13
before declining to 42% in FY14. In our view, gearing level looks
reasonable even at the peak. We expect the company to turn into net
cash position by FY16, and completely debt-free in FY19, all else equal.
Figure 9. Projected net gearing
Int bearing debt

IDR b

Net gearing (RHS)

2,500

80.0

2,000

60.0
40.0

1,500

20.0

1,000

0.0

500

(20.0)

(40.0)
2012

2013

2014

2015

2016

Source: Company data, Kim Eng

Gold price outlook the brightest among commodities

Gold is unique compared to other commodities in that it can be used as
a store of value. Gold is also not widely consumed for industrial
purposes, with less than 10% of annual gold purchase comes from the
industrial sector. This results in a low correlation between gold price
and economic cycles.
Gold tends to perform well in periods of high inflation as it has relatively
maintained its value in real terms over a long period. Also, gold has
historically performed well in the event of rising volatility and worsening
economic condition; while prices of other asset classes fall, gold offers
some degree of stability due to its low correlation with other assets and
general economic climate. Gold prices are also negatively correlated
with the level of interest rates; low interest rate translates into low
opportunity cost for holding gold, which does not have a yield of its own.
There is also a major shift in the gold market nowadays. Central banks
around the world, which were net suppliers of gold over 1970-2010,
have now become net buyers of the commodity. Based on data from
World Gold Council, gold reserves of central banks have climbed for six
25 October 2012

Page 7 of 16

J Resources Asia Pasifik

consecutive quarters. Official gold holdings stood at 31,142 tonnes as

of 2Q12, a 4.6% increase from end of 2007 level of 29,779 tonnes
when the global economy was in its heyday.
Figure 10. Official gold reserves
(k tonnes)
34.00

Official gold reserves

33.00
32.00
31.00
30.00
29.00

Q3 2011

Q1 2012

Q1 2011

Q3 2010

Q1 2010

Q3 2009

Q1 2009

Q3 2008

Q1 2008

Q3 2007

Q1 2007

Q3 2006

Q1 2006

Q3 2005

Q1 2005

Q3 2004

Q1 2004

Q3 2003

Q1 2003

Q3 2002

Q1 2002

Q3 2001

Q1 2001

Q3 2000

Q1 2000

28.00

Source: World Gold Council

The changing trend may have something to do with US fall from grace
resulting in more people challenging the status of USD as a reserve
currency. Central banks might feel that they need to diversify their
currency reserves away from USD, even more so because the Fed is
aggressively expanding its balance sheet which should be bearish for
the USD in the long term.
The predicament faced by the central banks is there are not too many
available alternatives to USD. Eurozone is even in a greater mess than
the US today and Chinese Yuan is not a freely traded currency. This
leaves gold as the only reasonable alternative. That said, we believe
there will be even more gold demand from this particular sector,
because many of the countries with the largest reserves hold only a
relatively small portion of their reserves in gold.
Figure 11. Gold reserves as % of total reserves
Gold holding is prevalent in European countries
tonnes

tonnes

% of reserves

10,000

80
70
60
50
40
30
20
10
0

8,000
6,000
4,000
2,000
0
United States Germany

Italy

France

United
Kingdom

but not in US trading partners in the Pacific and Saudi

ECB

tonnes

tonnes
1,200

% of reserves

12

1,000

10

800

600

400

200

0
China

Russia

Japan

India

Saudi Indonesia Korea

Arabia

Brazil

Source: World Gold Council

Against this backdrop, we expect gold price will perform well in the near
future as we expect a tepid global economic growth in 2013 and believe
there is a strong possibility of an extended period of sub-par growth
thereafter. We maintain our belief that it will take some time for the US
and Eurozone to solve the structural problems caused by too much
deficit spending and over-leveraging economy.

25 October 2012

Page 8 of 16

J Resources Asia Pasifik

We assume that gold price will average USD1,900/Toz over the next
four years before stabilising at USD1,550/Toz. In addition to strong
demand from central banks, we also expect some appetite for gold by
individuals and ETFs for investment purposes.
Figure 12. Sentiment on gold price rises and falls

Figure 13. but gold price is clearly trending up due to its

safe haven status
USD/Toz
2000

Gold price

1700
1400
1100
800
500
Oct-07

Jun-08

Feb-09

Oct-09

Jun-10

Feb-11

Oct-11

Jun-12

Source: Bloomberg

Figure 14. Our assumption on gold price

USD/Toz
2,500

Gold price assumption

2,000
1,500
1,000
500
0
2012F

2013F

2014F

2015F

2016F

Source: Kim Eng

Valuations look stretched after recent rally

J-Res share price has done especially well since its transformation into
a gold producer, having risen by 140% since early February and 38% in
the last one month. The company is now trading at an enterprise value
of USD557m, more than double the price J-Res paid to acquire
Avocets assets (USD260m) just 15 months ago on a cash free debt
free basis. Admittedly, the company deserves some credit for the value
appreciation as it has done some exploration works, which coupled with
a strong gold price, has doubled its reserves base.
Valuations appear a little demanding, especially on the EV-to-reserves
basis, where it is trading at 40% premium compared to the average for
junior gold producers. We use a blended valuation approach using a
LoM DCF (WACC of 11.6%), 2013F EV/EBITDA target of 4.4x, and
EV/reserves target of USD442/oz, all evenly weighted. We take some
liberty in our EV/EBITDA valuation; we apply a discount based on
WACC on FY14F EBITDA because the companys potential is not
apparent until 2014 when Bakan and Seruyung are producing at closeto full capacity.

25 October 2012

Page 9 of 16

J Resources Asia Pasifik

Using this approach, we arrive at a fair value of IDR5,950 for J-Res,

implying FY13-14F PER of 16.9x and 11.6x and EV/EBITDA of 7.2x
and 4.5x, respectively. We think the company has tremendous
potential, but we need to see more concrete evidence of its ability to
deliver. Announcing JORC reserves for its non-producing assets would
be a good start, especially if followed by the timely commencement of
production at Bakan and Seruyung. All in all, we initiate coverage on JResources with a HOLD recommendation and IDR5,950 TP.
Figure 15 Valuation table
DCF

EV/EBITDA

EV/Reserves

Assumptions
Cost of equity

13.9%

Cost of debt

6.5%

WACC

11.6%

2014F EBITDA (IDRb)

1,406

Reserves (k Toz)

904

Discounted EBITDA

1,259

Target multiple (USD/Toz)

443

EV in USD (USDm)

400

Target multiple (x)

4.4

Terminal growth

0.0%

PV of FCF (IDR b)

6,952

Less debt (IDR b)

(1,058)

Less debt

(1,058)

Less debt

(1,058)

Add cash (IDR b)

159

Add cash

159

Add cash

159

Equity value (IDRb)

EV

6,053

No of shares (m)

Equity value (IDRb)

756

Equity value per share (IDR)

5,479

4,580

No of shares (m)

8,007

Blended valuation

9,433
3,773

Equity value (IDRb)

756

Equity value per share (IDR)

USD/IDR
EV

3,773

No of shares (m)

6,058

756

Equity value per share (IDR)

3,802

5,950

Source: Kim Eng

Figure 16 Peer Comparison

Net income
2012

EV

PER

2012

2013

2012

Reserve
figure

EV/EBITDA

EV/reserve

2013

2012

2013

Gold (Moz)

Senior producers
Barrick

4,005

55,652

55,672

10.4

8.3

7.0

5.9

139.9

Newmont

2,041

34,888

34,893

13.6

10.9

7.5

6.3

98.8

357

Anglogold

1,516

14,950

14,921

8.7

6.7

4.9

3.8

75.6

199

Gold Fields

398

972

10,875

10,858

9.5

6.3

4.2

3.3

85.1

128

Goldcorp

1,550

36,882

36,876

24.0

15.1

12.7

8.8

64.7

574

Newcrest

1,082

25,022

25,032

20.8

15.3

10.8

8.4

79.1

316

Kinross Gold

794

12,357

12,353

15.1

9.0

6.3

4.9

62.6

198

Polyus Gold

827

10,143

10,149

12.6

11.5

7.5

6.7

90.4

112

Harmony Gold

314

3,526

3,524

11.1

8.0

4.9

3.8

41.6

85

3,086

39,971

40,044

12.2

8.2

5.6

4.0

33.9

1,179

876

15,063

15,068

14.2

12.8

9.1

8.0

33.5

449

12.6

9.0

7.0

5.9

Freeport
Zijin Mining
Average

316

Intermediate producers
Petropavlovsk

203

2,691

2,692

6.3

4.4

4.8

4.0

10.3

Agnico-Eagle

284

9,671

9,672

32.2

23.3

12.2

10.6

18.8

516

Randgold

516

11,199

11,196

22.3

16.7

13.9

10.4

16.3

688

Golden Star
Eldorado
Aurico

263

33

555

556

15.7

10.7

3.6

2.6

4.1

134

345

10,891

10,895

31.2

20.6

16.5

11.6

19.0

572

64

2,175

2,175

30.6

11.9

11.8

6.2

6.5

337

New Gold

187

5,896

5,896

30.8

17.5

13.7

8.6

7.9

750

High River

145

1,198

1,199

8.1

5.8

4.2

3.4

3.6

336

Coeur D'alene

127

2,498

2,502

20.4

11.1

5.6

4.0

2.3

1,097

64

1,106

1,106

19.2

10.3

5.8

4.5

2.7

417

21.4

11.5

8.8

5.3

Semafo
Average

466

Source: Bloomberg

25 October 2012

Page 10 of 16

J Resources Asia Pasifik

Figure 16 Peer Comparison contd
Net income
2012

EV
2012

PER

Reserve
figure

EV/EBITDA

EV/reserve

2013

2012

2013

2012

2013

Gold (Moz)

Junior producers
Imperial

28

954

955

34.7

30.3

12.3

8.5

0.9

1,058

Medusa

122

1,131

1,131

9.4

5.0

8.4

4.8

0.6

1,991

Resolute

147

1,158

1,158

8.6

9.6

4.0

4.2

4.5

259

B2gold

69

1,591

1,593

24.1

7.5

13.1

4.7

0.8

1,899
442

Dundee

44

1,177

1,178

27.4

7.4

9.0

4.4

2.7

Oceana

1,039

1,039

346.8

9.0

8.0

3.6

3.7

285

Avocet

15

216

217

20.0

11.9

4.3

3.3

1.7

130

24.1

9.0

8.4

4.4

Average

442

Source: Bloomberg

Risks to our assumption

Less than expected reserves in the mines
So far, the company has only announced reserves figure for Penjom,
North Lanut, and Bakan according to the JORC code. The reserves
stood at 904k oz as of end of 2011, but Bakans reserves of 265k oz
have not been independently verified by a third party consultant. Our
projections are based on the data supplied by the company, which
assumes that some part of the resources can be economically
extracted. Actual reserves figure following further exploration might turn
out to be less than our estimate, significantly impacting our DCF-based
valuation.

Gold price volatility

Our assumption on gold price is USD1,900/oz in average over 20132016 period, 10% above current level. It is possible that gold prices
might actually fall in the future, especially if the US economy manages
to grow faster which would result in reduction in the size of the Feds
balance sheet. This would restore some confidence in the USD and
bring the gold buying momentum of central banks to a halt, we believe.

On-time and on-budget development of new mines

J-Res value lies predominantly on the mines currently being developed.
Any delays in execution, or any cost overruns in the construction of the
mines would greatly impact our valuation of the company.

25 October 2012

Page 11 of 16

J Resources Asia Pasifik

INCOME STATEMENT (IDR b)

BALANCE SHEET (IDR b)

FY Dec

2012

2013F

2014F

2015F

FY Dec

2012

2013F

2014F

2015F

Revenue
EBITDA
Depreciation & Amortisation
Operating Profit (EBIT)
Interest Exp/(Inc)
Associates
One-offs
Pre-Tax Profit
Tax
Minority Interest
Net Profit
Recurring Net Profit

1,496
750
324
426
(89)
0
933
1,269
(60)
10
1,219
331

1,756
909
379
530
(121)
0
0
409
(102)
(41)
266
266

3,011
1,406
586
820
(151)
0
0
669
(205)
(76)
388
388

4,284
2,267
644
1,623
(116)
0
0
1,506
(413)
(76)
1,018
1,018

Fixed Assets
Other LT Assets
Cash/ST Investments
Other Current Assets
Total Assets

1,111
3,890
159
356
5,517

1,725
4,244
138
536
6,643

2,687
3,822
73
541
7,123

3,467
3,515
63
567
7,611

ST Debt
Other Current Liabilities
LT Debt
Other LT Liabilities
Minority Interest
Shareholders' Equity
Total Liabilities-Capital

250
292
999
865
343
2,768
5,517

490
337
1,709
856
378
2,873
6,643

529
612
1,379
821
454
3,327
7,123

529
748
660
788
542
4,345
7,611

N/M
N/M
N/M
N/M
N/M
5

17
21
24
(78)
(20)
25

71
55
55
46
46
31

42
61
98
163
163
27

Share Capital (m)

Gross Debt
Net Debt/(Cash)
Working Capital

756
1,249
1,090
224

756
2,199
2,061
336

756
1,909
1,835
2

756
1,189
1,126
(118)

2012

2013F

2014F

2015F

FY Dec

2012

2013F

2014F

2015F

1,269
324
(89)
0
(60)
(3,013)
(1,569)
(805)
0
0
(805)
1,243
1,374

409
379
(121)
(142)
(102)
66
490
(811)
0
(464)
(1,275)
950
0

669
586
(151)
232
(205)
27
1,157
(1,198)
0
0
(1,198)
(290)
0

1,506
644
(116)
72
(413)
(7)
1,687
(1,065)
0
0
(1,065)
(720)
0

EBITDA Margin %
Op. Profit Margin %
Net Profit Margin %
ROE %
ROA %
Net Margin Ex. EI %
Dividend Cover (x)
Interest Cover (x)
Asset Turnover (x)
Asset/Debt (x)
Debtors Turn (days)
Creditors Turn (days)
Inventory Turn (days)

50
28
82
44
22
22
N/M
8.4
0.3
2.0
4
54
7

52
30
15
9
4
15
N/M
7.3
0.3
1.8
4
50
6

47
27
13
13
6
13
N/M
9.1
0.4
1.9
4
42
8

53
38
24
27
14
24
N/M
19.2
0.6
2.3
4
50
10

0
(90)
0
2,528

0
(124)
(187)
639

0
(154)
267
(177)

0
(118)
87
(750)

Net Gearing %
Debt/EBITDA (x)
Debt/Market Cap (x)

39
1.7
0.3

72
2.4
0.5

55
1.4
0.4

26
0.5
0.3

Revenue Growth (%)

EBITDA Growth (%)
EBIT Growth (%)
Net Profit Growth (%)
Recurring Net Profit Growth (%)
Tax Rate %

CASH FLOW (IDR b)

FY Dec
Profit before taxation
Depreciation
Net Interest receipts/(payments)
Working capital change
Cash tax paid
Others
Cash flow from operations
Capex
Disposal/(purchase)
Others
Cash flow from investing
Debt raised/(repaid)
Equity raised/(repaid)
Dividends (paid)
Interest payments
Others
Cash flow from financing

RATES & RATIOS

Source: Company, Kim Eng estimates

25 October 2012

Page 12 of 16

J Resources Asia Pasifik

RESEARCHOFFICES
REGIONAL
P K BASU
Regional Head, Research & Economics
(65) 6432 1821 pk.basu@maybank-ke.com.sg
WONG Chew Hann, CA
Acting Regional Head of Institutional Research
(603) 2297 8686 wchewh@maybank-ib.com
THAM Mun Hon
Regional Strategist
(852) 2268 0630 thammunhon@kimeng.com.hk

ECONOMICS
Suhaimi ILIAS
Chief Economist
Singapore | Malaysia
(603) 2297 8682 suhaimi_ilias@maybank-ib.com
Luz LORENZO
Economist
Philippines | Indonesia
(63) 2 849 8836 luz_lorenzo@maybank-atrke.com

ONG Seng Yeow

Regional Products & Planning
(852) 2268 0644 ongsengyeow@maybank-ke.com.sg

MALAYSIA
WONG Chew Hann, CA Head of Research
(603) 2297 8686 wchewh@maybank-ib.com
Strategy
Construction & Infrastructure
Desmond CHNG, ACA
(603) 2297 8680 desmond.chng@maybank-ib.com
Banking - Regional
LIAW Thong Jung
(603) 2297 8688 tjliaw@maybank-ib.com
Oil & Gas
Automotive
Shipping
ONG Chee Ting
(603) 2297 8678 ct.ong@maybank-ib.com
Plantations
Mohshin AZIZ
(603) 2297 8692 mohshin.aziz@maybank-ib.com
Aviation
Petrochem
Power
YIN Shao Yang, CPA
(603) 2297 8916 samuel.y@maybank-ib.com
Gaming Regional
Media
Power
WONG Wei Sum, CFA
(603) 2297 8679 weisum@maybank-ib.com
Property & REITs
LEE Yen Ling
(603) 2297 8691 lee.yl@maybank-ib.com
Building Materials
Manufacturing
Technology
LEE Cheng Hooi Head of Retail
chenghooi.lee@maybank-ib.com
Technicals

HONG KONG / CHINA

Edward FUNG Head of Research
(852) 2268 0632 edwardfung@kimeng.com.hk
Construction
Ivan CHEUNG
(852) 2268 0634 ivancheung@kimeng.com.hk
Property
Industrial
Ivan LI
(852) 2268 0641 ivanli@kimeng.com.hk
Banking & Finance
Jacqueline KO
(852) 2268 0633 jacquelineko@kimeng.com.hk
Consumer Staples
Andy POON
(852) 2268 0645 andypoon@kimeng.com.hk
Telecom & equipment
Alex YEUNG
(852) 2268 0636 alexyeung@kimeng.com.hk
Industrial
Anita HWANG, CFA
(852) 2268 0142 anitahwang@kimeng.com.hk
Consumer Discretionaries
Special Situations

INDIA
Jigar SHAH Head of Research
(91) 22 6623 2601 jigar@kimeng.co.in
Oil & Gas
Automobile
Cement
Anubhav GUPTA
(91) 22 6623 2605 anubhav@kimeng.co.in
Metal & Mining
Capital goods
Property
Ganesh RAM
(91) 226623 2607 ganeshram@kimeng.co.in
Telecom
Contractor

25 October 2012

SINGAPORE
Stephanie WONG Head of Research
(65) 6432 1451 swong@maybank-ke.com.sg
Strategy
Small & Mid Caps
Gregory YAP
(65) 6432 1450 gyap@maybank-ke.com.sg
Technology & Manufacturing
Telcos - Regional
Wilson LIEW
(65) 6432 1454 wilsonliew@maybank-ke.com.sg
Hotel & Resort
Property & Construction
James KOH
(65) 6432 1431 jameskoh@maybank-ke.com.sg
Logistics
Resources
Consumer
Small & Mid Caps
YEAK Chee Keong, CFA
(65) 6433 5730 yeakcheekeong@maybank-ke.com.sg
Healthcare
Offshore & Marine
Alison FOK
(65) 6433 5745 alisonfok@maybank-ke.com.sg
Services
S-chips
Bernard CHIN
(65) 6433 5726 bernardchin@maybank-ke.com.sg
Transport (Land, Shipping & Aviation)
ONG Kian Lin
(65) 6432 1470 ongkianlin@maybank-ke.com.sg
REITs / Property
Wei Bin
(65) 6432 1455 weibin@maybank-ke.com.sg
S-chips
Small & Mid Caps

INDONESIA
Katarina SETIAWAN Head of Research
(62) 21 2557 1125 katarina.setiawan@maybank-ke.co.id
Consumer
Strategy
Telcos
Lucky ARIESANDI, CFA
(62) 21 2557 1127 lucky.ariesandi@maybank-ke.co.id
Base metals
Coal
Oil & Gas
Rahmi MARINA
(62) 21 2557 1128 rahmi.marina@maybak-ke.co.id
Banking
Multifinance
Pandu ANUGRAH
(62) 21 2557 1137 pandu.anugrah@maybank-ke.co.id
Auto
Heavy equipment
Plantation
Toll road
Adi N. WICAKSONO
(62) 21 2557 1130 adi.wicaksono@maybank-ke.co.id
Generalist
Anthony YUNUS
(62) 21 2557 1136 anthony.yunus@maybank-ke.co.id
Cement
Infrastructure
Property
Arwani PRANADJAYA
(62) 21 2557 1129 arwani.pranadjaya@maybank-ke.co.id
Technicals

THAILAND
Sukit UDOMSIRIKUL Head of Research
(66) 2658 6300 ext 5090
Sukit.u@maybank-ke.co.th
Maria LAPIZ Head of Institutional Research
Dir (66) 2257 0250 | (66) 2658 6300 ext 1399
Maria.L@maybank-ke.co.th
Consumer/ Big Caps
Andrew STOTZ Strategist
(66) 2658 6300 ext 5091
Andrew@maybank-ke.co.th
Mayuree CHOWVIKRAN
(66) 2658 6300 ext 1440 mayuree.c@maybank-ke.co.th
Strategy
Suttatip PEERASUB
(66) 2658 6300 ext 1430 suttatip.p@maybank-ke.co.th
Media
Commerce
Sutthichai KUMWORACHAI
(66) 2658 6300 ext 1400 sutthichai.k@maybank-ke.co.th
Energy
Petrochem
Termporn TANTIVIVAT
(66) 2658 6300 ext 1520 termporn.t@maybank-ke.co.th
Property
Woraphon WIROONSRI
(66) 2658 6300 ext 1560 woraphon.w@maybank-ke.co.th
Banking & Finance
Jaroonpan WATTANAWONG
(66) 2658 6300 ext 1404 jaroonpan.w@maybank-ke.co.th
Transportation
Small cap.
Chatchai JINDARAT
(66) 2658 6300 ext 1401 chatchai.j@maybank-ke.co.th
Electronics
Pongrat RATANATAVANANANDA
(66) 2658 6300 ext 1398 pongrat.R@maybank-ke.co.th
Services/ Small Caps

VIETNAM
Michael KOKALARI, CFA Head of Research
+84 838 38 66 47 michael.kokalari@kimeng.com.vn
Strategy
Nguyen Thi Ngan Tuyen
+84 844 55 58 88 x 8081 tuyen.nguyen@kimeng.com.vn
Food and Beverage
Oil and Gas
Ngo Bich Van
+84 844 55 58 88 x 8084 van.ngo@kimeng.com.vn
Banking
Nguyen Quang Duy
+84 844 55 58 88 x 8082 duy.nguyenquang@kimeng.com.vn
Rubber
Dang Thi Kim Thoa
+84 844 55 58 88 x 8083 thoa.dang@kimeng.com.vn
Consumer
Nguyen Trung Hoa
+84 844 55 58 88 x 8088 hoa.nguyen@kimeng.com.vn
Steel
Sugar
Macro

PHILIPPINES
Luz LORENZO Head of Research
+63 2 849 8836 luz_lorenzo@maybank-atrke.com
Strategy
Laura DY-LIACCO
(63) 2 849 8840 laura_dyliacco@maybank-atrke.com
Utilities
Conglomerates
Telcos
Lovell SARREAL
(63) 2 849 8841 lovell_sarreal@maybank-atrke.com
Consumer
Media
Cement
Kenneth NERECINA
(63) 2 849 8839 kenneth_nerecina@maybank-atrke.com
Conglomerates
Property
Ports/ Logistics
Katherine TAN
(63) 2 849 8843 kat_tan@maybank-atrke.com
Banks
Construction
Ramon ADVIENTO
(63) 2 849 8842 ramon_adviento@maybank-atrke.com
Mining

Page 13 of 16

J Resources Asia Pasifik

APPENDIX I: TERMS FOR PROVISION OF REPORT, DISCLAIMERS AND DISCLOSURES
DISCLAIMERS
This research report is prepared for general circulation and for information purposes only and under no circumstances should it be considered or intended as
an offer to sell or a solicitation of an offer to buy the securities referred to herein. Investors should note that values of such securities, if any, may fluctuate
and that each securitys price or value may rise or fall. Opinions or recommendations contained herein are in form of technical ratings and fundamental
ratings. Technical ratings may differ from fundamental ratings as technical valuations apply different methodologies and are purely based on price and
volume-related information extracted from the relevant jurisdictions stock exchange in the equity analysis. Accordingly, investors returns may be less than
the original sum invested. Past performance is not necessarily a guide to future performance. This report is not intended to provide personal investment
advice and does not take into account the specific investment objectives, the financial situation and the particular needs of persons who may receive or read
this report. Investors should therefore seek financial, legal and other advice regarding the appropriateness of investing in any securities or the investment
strategies discussed or recommended in this report.
The information contained herein has been obtained from sources believed to be reliable but such sources have not been independently verified by Maybank
Investment Bank Berhad, its subsidiary and affiliates (collectively, MKE) and consequently no representation is made as to the accuracy or completeness of
this report by MKE and it should not be relied upon as such. Accordingly, MKE and its officers, directors, associates, connected parties and/or employees
(collectively, Representatives) shall not be liable for any direct, indirect or consequential losses or damages that may arise from the use or reliance of this
report. Any information, opinions or recommendations contained herein are subject to change at any time, without prior notice.
This report may contain forward looking statements which are often but not always identified by the use of words such as anticipate, believe, estimate,
intend, plan, expect, forecast, predict and project and statements that an event or result may, will, can, should, could or might occur or be
achieved and other similar expressions. Such forward looking statements are based on assumptions made and information currently available to us and are
subject to certain risks and uncertainties that could cause the actual results to differ materially from those expressed in any forward looking statements.
Readers are cautioned not to place undue relevance on these forward-looking statements. MKE expressly disclaims any obligation to update or revise any
such forward looking statements to reflect new information, events or circumstances after the date of this publication or to reflect the occurrence of
unanticipated events.
MKE and its officers, directors and employees, including persons involved in the preparation or issuance of this report, may, to the extent permitted by law,
from time to time participate or invest in financing transactions with the issuer(s) of the securities mentioned in this report, perform services for or solicit
business from such issuers, and/or have a position or holding, or other material interest, or effect transactions, in such securities or options thereon, or other
investments related thereto. In addition, it may make markets in the securities mentioned in the material presented in this report. MKE may, to the extent
permitted by law, act upon or use the information presented herein, or the research or analysis on which they are based, before the material is published.
One or more directors, officers and/or employees of MKE may be a director of the issuers of the securities mentioned in this report.
This report is prepared for the use of MKEs clients and may not be reproduced, altered in any way, transmitted to, copied or distributed to any other party in
whole or in part in any form or manner without the prior express written consent of MKE and MKE and its Representatives accepts no liability whatsoever for
the actions of third parties in this respect.
This report is not directed to or intended for distribution to or use by any person or entity who is a citizen or resident of or located in any locality, state, country
or other jurisdiction where such distribution, publication, availability or use would be contrary to law or regulation. This report is for distribution only under
such circumstances as may be permitted by applicable law. The securities described herein may not be eligible for sale in all jurisdictions or to certain
categories of investors. Without prejudice to the foregoing, the reader is to note that additional disclaimers, warnings or qualifications may apply based on
geographical location of the person or entity receiving this report.
Malaysia
Opinions or recommendations contained herein are in the form of technical ratings and fundamental ratings. Technical ratings may differ from fundamental
ratings as technical valuations apply different methodologies and are purely based on price and volume-related information extracted from Bursa Malaysia
Securities Berhad in the equity analysis.
Singapore
This report has been produced as of the date hereof and the information herein may be subject to change. Maybank Kim Eng Research Pte. Ltd. (Maybank
KERPL) in Singapore has no obligation to update such information for any recipient. For distribution in Singapore, recipients of this report are to contact
Maybank KERPL in Singapore in respect of any matters arising from, or in connection with, this report. If the recipient of this report is not an accredited
investor, expert investor or institutional investor (as defined under Section 4A of the Singapore Securities and Futures Act), Maybank KERPL shall be legally
liable for the contents of this report, with such liability being limited to the extent (if any) as permitted by law.
Thailand
The disclosure of the survey result of the Thai Institute of Directors Association (IOD) regarding corporate governance is made pursuant to the policy of the
Office of the Securities and Exchange Commission. The survey of the IOD is based on the information of a company listed on the Stock Exchange of
Thailand and the market for Alternative Investment disclosed to the public and able to be accessed by a general public investor. The result, therefore, is from
the perspective of a third party. It is not an evaluation of operation and is not based on inside information. The survey result is as of the date appearing in the
Corporate Governance Report of Thai Listed Companies. As a result, the survey may be changed after that date. Maybank Kim Eng Securities (Thailand)
Public Company Limited (MBKET) does not confirm nor certify the accuracy of such survey result.
Except as specifically permitted, no part of this presentation may be reproduced or distributed in any manner without the prior written permission of MBKET.
MBKET accepts no liability whatsoever for the actions of third parties in this respect.
US
This research report prepared by MKE is distributed in the United States (US) to Major US Institutional Investors (as defined in Rule 15a-6 under the
Securities Exchange Act of 1934, as amended) only by Maybank Kim Eng Securities USA Inc (Maybank KESUSA), a broker-dealer registered in the US
(registered under Section 15 of the Securities Exchange Act of 1934, as amended). All responsibility for the distribution of this report by Maybank KESUSA in
the US shall be borne by Maybank KESUSA. All resulting transactions by a US person or entity should be effected through a registered broker-dealer in the
US. This report is not directed at you if MKE is prohibited or restricted by any legislation or regulation in any jurisdiction from making it available to you. You
should satisfy yourself before reading it that Maybank KESUSA is permitted to provide research material concerning investments to you under relevant
legislation and regulations.
UK
This document is being distributed by Maybank Kim Eng Securities (London) Ltd (Maybank KESL) which is authorized and regulated, by the Financial
Services Authority and is for Informational Purposes only. This document is not intended for distribution to anyone defined as a Retail Client under the
Financial Services and Markets Act 2000 within the UK. Any inclusion of a third party link is for the recipients convenience only, and that the firm does not
take any responsibility for its comments or accuracy, and that access to such links is at the individuals own risk. Nothing in this report should be considered
as constituting legal, accounting or tax advice, and that for accurate guidance recipients should consult with their own independent tax advisers.

25 October 2012

Page 14 of 16

J Resources Asia Pasifik

DISCLOSURES
Legal Entities Disclosures
Malaysia: This report is issued and distributed in Malaysia by Maybank Investment Bank Berhad (15938-H) which is a Participating Organization of Bursa
Malaysia Berhad and a holder of Capital Markets and Services License issued by the Securities Commission in Malaysia. Singapore: This material is issued
and distributed in Singapore by Maybank KERPL (Co. Reg No 197201256N) which is regulated by the Monetary Authority of Singapore. Indonesia: PT Kim
Eng Securities (PTKES) (Reg. No. KEP-251/PM/1992) is a member of the Indonesia Stock Exchange and is regulated by the BAPEPAM LK. Thailand:
MBKET (Reg. No.0107545000314) is a member of the Stock Exchange of Thailand and is regulated by the Ministry of Finance and the Securities and
Exchange Commission.Philippines:MATRKES (Reg. No.01-2004-00019) is a member of the Philippines Stock Exchange and is regulated by the Securities
and Exchange Commission. Vietnam: Kim Eng Vietnam Securities Company (KEVS) (License Number: 71/UBCK-GP) is licensed under the
StateSecuritiesCommission of Vietnam.Hong Kong: KESHK (Central Entity No AAD284) is regulated by the Securities and Futures Commission. India: Kim
Eng Securities India Private Limited (KESI) is a participant of the National Stock Exchange of India Limited (Reg No: INF/INB 231452435) and the Bombay
Stock Exchange (Reg. No. INF/INB 011452431) and is regulated by Securities and Exchange Board of India. KESI is also registered with SEBI as Category 1
Merchant Banker (Reg. No. INM 000011708) US: Maybank KESUSA is a member of/ and is authorized and regulated by the FINRA Broker ID 27861. UK:
Maybank KESL (Reg No 2377538) is authorized and regulated by the Financial Services Authority.

Disclosure of Interest
Malaysia: MKE and its Representatives may from time to time have positions or be materially interested in the securities referred to herein and may further
act as market maker or may have assumed an underwriting commitment or deal with such securities and may also perform or seek to perform investment
banking services, advisory and other services for or relating to those companies.
Singapore: Maybank KERPL and the covering analyst do not have any interest in any companies recommended in this research report.
Thailand: MBKET may have a business relationship with or may possibly be an issuer of derivative warrants on the securities /companies mentioned in the
research report. Therefore, Investors should exercise their own judgment before making any investment decisions. MBKET, its associates, directors,
connected parties and/or employees may from time to time have interests and/or underwriting commitments in the securities mentioned in this report.
Hong Kong: KESHK may have financial interests in relation to an issuer or a new listing applicant referred to as defined by the requirements under
Paragraph 16.5(a) of the Hong Kong Code of Conduct for Persons Licensed by or Registered with the Securities and Futures Commission.
KESHK and the authoring analyst do not have any interest in any companies recommended in this research report.
MKE may have, within the last three years, served as manager or co-manager of a public offering of securities for, or currently may make a primary market in
issues of, any or all of the entities mentioned in this report or may be providing, or have provided within the previous 12 months, significant advice or
investment services in relation to the investment concerned or a related investment.

OTHERS
Analyst Certification of Independence
The views expressed in this research report accurately reflect the analysts personal views about any and all of the subject securities or issuers; and no part
of the research analysts compensation was, is or will be, directly or indirectly, related to the specific recommendations or views expressed in the report.
Reminder
Structured securities are complex instruments, typically involve a high degree of risk and are intended for sale only to sophisticated investors who are
capable of understanding and assuming the risks involved. The market value of any structured security may be affected by changes in economic, financial
and political factors (including, but not limited to, spot and forward interest and exchange rates), time to maturity, market conditions and volatility and the
credit quality of any issuer or reference issuer. Any investor interested in purchasing a structured product should conduct its own analysis of the product and
consult with its own professional advisers as to the risks involved in making such a purchase.
No part of this material may be copied, photocopied or duplicated in any form by any means or redistributed without the prior consent of MKE.

Definition of Ratings
Maybank Kim Eng Research uses the following rating system:
BUY

Total return is expected to be above 10% in the next 12 months

HOLD

Total return is expected to be between -10% to +10% in the next 12 months

SELL

Total return is expected to be below -10% in the next 12 months

Applicability of Ratings
The respective analyst maintains a coverage universe of stocks, the list of which may be adjusted according to needs. Investment ratings are only
applicable to the stocks which form part of the coverage universe. Reports on companies which are not part of the coverage do not carry
investment ratings as we do not actively follow developments in these companies.

Some common terms abbreviated in this report (where they appear):

Adex = Advertising Expenditure
BV = Book Value
CAGR = Compounded Annual Growth Rate
Capex = Capital Expenditure
CY = Calendar Year
DCF = Discounted Cashflow
DPS = Dividend Per Share
EBIT = Earnings Before Interest And Tax
EBITDA = EBIT, Depreciation And Amortisation
EPS = Earnings Per Share
EV = Enterprise Value

25 October 2012

FCF = Free Cashflow

FV = Fair Value
FY = Financial Year
FYE = Financial Year End
MoM = Month-On-Month
NAV = Net Asset Value
NTA = Net Tangible Asset
P = Price
P.A. = Per Annum
PAT = Profit After Tax
PBT = Profit Before Tax

PE = Price Earnings
PEG = PE Ratio To Growth
PER = PE Ratio
QoQ = Quarter-On-Quarter
ROA = Return On Asset
ROE = Return On Equity
ROSF = Return On Shareholders Funds
WACC = Weighted Average Cost Of
YoY = Year-On-Year
YTD = Year-To-Date

Page 15 of 16

J Resources Asia Pasifik

Malaysia

Maybank Investment Bank Berhad

(A Participating Organisation of
Bursa Malaysia Securities Berhad)
33rd Floor, Menara Maybank,
100 Jalan Tun Perak,
50050 Kuala Lumpur
Tel: (603) 2059 1888;
Fax: (603) 2078 4194
Stockbroking Business:
Level 8, Tower C, Dataran Maybank,
No.1, Jalan Maarof
59000 Kuala Lumpur
Tel: (603) 2297 8888
Fax: (603) 2282 5136

Philippines

Maybank ATR Kim Eng Securities

Inc.
17/F, Tower One & Exchange Plaza
Ayala Triangle, Ayala Avenue
Makati City, Philippines 1200
Tel: (63) 2 849 8888
Fax: (63) 2 848 5738

Singapore

London

Maybank Kim Eng Securities

(London) Ltd
6/F, 20 St. Dunstans Hill
London EC3R 8HY, UK

Maybank Kim Eng Securities

USA Inc
777 Third Avenue, 21st Floor
New York, NY 10017, U.S.A.

Tel: (65) 6336 9090

Fax: (65) 6339 6003

Tel: (44) 20 7621 9298

Dealers Tel: (44) 20 7626 2828
Fax: (44) 20 7283 6674

Tel: (212) 688 8886

Fax: (212) 688 3500

Hong Kong

Indonesia

PT Kim Eng Securities

Plaza Bapindo
Citibank Tower 17th Floor
Jl Jend. Sudirman Kav. 54-55
Jakarta 12190, Indonesia

Kim Eng Securities India Pvt Ltd

2nd Floor, The International 16,
Maharishi Karve Road,
Churchgate Station,
Mumbai City - 400 020, India

Tel: (852) 2268 0800

Fax: (852) 2877 0104

Tel: (62) 21 2557 1188

Fax: (62) 21 2557 1189

Tel: (91).22.6623.2600
Fax: (91).22.6623.2604

Thailand

Vietnam

Maybank Kim Eng Securities Pte Ltd

Maybank Kim Eng Research Pte Ltd
9 Temasek Boulevard
#39-00 Suntec Tower 2
Singapore 038989

Kim Eng Securities (HK) Ltd

Level 30,
Three Pacific Place,
1 Queens Road East,
Hong Kong

Maybank Kim Eng Securities

(Thailand) Public Company
Limited
999/9 The Offices at Central World,
20th - 21st Floor,
Rama 1 Road Pathumwan,
Bangkok 10330, Thailand
Tel: (66) 2 658 6817 (sales)
Tel: (66) 2 658 6801 (research)

South Asia Sales Trading

Connie TAN
connie@maybank-ke.com.sg
Tel: (65) 6333 5775
US Toll Free: 1 866 406 7447

New York

India

Saudi Arabia

In association with

In association with

Maybank Kim Eng Securities JSC

1st Floor, 255 Tran Hung Dao St.
District 1
Ho Chi Minh City, Vietnam

Anfaal Capital
Villa 47, Tujjar Jeddah
Prince Mohammed bin Abdulaziz
Street P.O. Box 126575
Jeddah 21352

Tel : (84) 844 555 888

Fax : (84) 838 38 66 39

Tel: (966) 2 6068686

Fax: (966) 26068787

North Asia Sales Trading

Eddie LAU
eddielau@kimeng.com.hk
Tel: (852) 2268 0800
US Toll Free: 1 866 598 2267

www.maybank-ke.com | www.kimengresearch.com

25 October 2012

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