Tunas Baru Lampung Buyback shares program (TBLA, Not Rated, Rp640) The company plan to set aside Rp300bn for its shares buyback program. The shares purchased would be at least 10% from total shares outstanding. The period of buyback shares would be 18 months. Currently, Tunas Baru Lampung has 4.2bn of shares outstanding. Based on the maximum number of shares to be purchased, the buyback price is Rp720 per share.
Budi Acid Jaya Buyback shares program (BUDI, Rp315, Buy, TP: Rp410) - The company plan to set aside Rp75bn for its shares buyback program. The shares purchased would be at least 5% from total shares outstanding. The period of buyback shares would be 18 months. Currently, Budi Acid Jaya has 3.7bn of shares outstanding. Fully- diluted, the company would have 4.1bn of shares outstanding. Based on the maximum number of shares to be purchased (from total current number of shares outstanding), the buyback price is Rp406 per shares. We maintain our Buy recommendation for the company, with target price of Rp410. The company is currently trading at PER08F of 10.4x.
