DIGIVESTASI - The prices of coal stocks such as ADRO and PTBA are expected to fall throughout 2023 due to falling coal prices. So what stocks should investors watch out for? Felix Darmawan, an analyst at Panin Sekuritas, said that he still gives a neutral assessment of the prospects for coal supplies this year.

Indeed, there is potential for increased production from major coal producing countries such as India, China, and India. However, demand is still strong, especially from power plants in China and India, said Félix, Tuesday (1/9/2023). However, he said coal stocks in both countries have been at safe levels for more than 10 days and domestic production is increasing, which could reduce import demand.

According to Felix, the drop in demand was marked by the Chinese government imposing tariffs on imported coal imports last week. He said this has the potential to increase global coal supply. He said the impact of increased coal production will also be felt in 2024, with dry weather expected to continue. 

"We estimate coal prices to be around 110 USD/ton," he said. Panin Sekuritas has chosen PT Adaro Energy Indonesia Tbk (ADRO) to top the list with a target price of IDR 2,600/share. Felix explained that ADRO is a coal company that is quite efficient compared to other emission companies in its sector.

He also appreciates ADRO's efforts in diversifying management, which has become a driving force to overcome the decline in the coal segment, which is the company's core business. In addition to ADRO, Panin Sekuritas also chose PTBA shares with a hold recommendation as the top choice with a TP of IDR 2,700 and ITMG shares with a hold recommendation and TP of IDR 24,000.