Singapore-listed coal producers enjoying stellar growth

SINGAPORE (Aug 28): Phillip Capital is positive on Singapore’s coal sector with expectations of the coal producers under its coverage to report production growth of 60% in the current financial year – which is much faster than their listed peers in Indonesia, whose production is set to grow by 8%.

In a Thursday report, investment analyst Chen Guangzhi opines that the locally listed coal producers are “enjoying stellar growth”, while their valuations also prove much cheaper than others in the region on a price-earnings (P/E) and enterprise value (EV) reserve basis.

The analyst has initiated coverage on Golden Energy & Resources (GEAR) with a target price of 59 cents for FY18E, representing an implied upside of 32.6% from the stock’s closing price of 45 cents last week on Friday.

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