Indika Energy, Craving Consolidation, CLSA

Energy investment house, Indika Energy, will finally achieve its long held
dream of consolidating a producing coal asset at the top line. The group is
wasting no time deploying cash raised from the 29% sell down of mining
contractor Petrosea buying an 85% stake in privately held Multi
Tambangjaya Utama at what we believe is fair value. The group continues
to look attractive on a sum-of-the-parts basis and downside share price
risk is looks limited at 7x PE. Retain BUY with target price Rp3,450.