MBSS, Barging through, CLSA

MBSS is a coal transportation and logistics provider servicing the coal industry predominantly in Kalimantan. It is 51% owned by energy investment group Indika Energy with the founding family still in charge of day to day operations. MBSS has a diversified customer base and strong track record in growing operations on stable margins. It is not a shipping company and is leveraged to coal production growth. We initiate coverage with a BUY recommendation and target price of Rp2,000/sh