Bukit Asam ($PTBA)’s strong 3Q17 net profit is above consensus expectations. We think the strong earnings should continue, as high coal prices are likely to be sustained. Based on our discussion with its CFO, the firm is confident that PLN’s request to use a cost-plus margin formula for determining the coal selling price to domestic power plants is unlikely to be implemented. We maintain our assumptions and reiterate BUY with an unchanged IDR17,400 TP (58% upside). Bukit Asam’s FY17F-18F P/Es of 6.8x and 5.8x respectively are the cheapest among our coal universe.