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Strength
Strong 2Q24 earnings growth driven by higher sales volumes of 8.86 million tons of gold (+24.6% QoQ) and 2.36 million wmt of nickel (+136% QoQ), increased ASPs (gold +16% QoQ, nickel +7.2% QoQ), and FX gain of IDR 316 billion (+22% QoQ), 20% of pre-tax profit
Weakness
1H24 EBITDA margin dropped to 5.6% (-880 bps YoY) due to lower YTD nickel ore sales of 3.4 million wmt (-46% YoY) and ASP of USD 36.3/wmt (-29.5% YoY); bauxite export ban and higher legal provisions on 1H24 amounting to IDR 244.3 billion further hurt profitability
Opportunity
Three main projects on the horizon: 1) RKEF NPI smelter (production target: 88k tpa, expected operating date: 2Q25; 2) HPAL project with CBL (target: 55k tpa of MHP), expected to commence post the finished RKEF NPI project; 3) 1 million tpa bauxite capacity joint smelter-grade alumina refinery with Inalum
Threat
Downward trend in nickel ore prices, driven by global economic slowdown and oversupply concerns, along with potential decline in gold prices due to possibility of short-term global selloff after reaching its 52-week high, could adversely impact earnings
Samuel Sekuritas Indonesia is a leading Indonesian securities brokerage firm. Established in 1997, the firm has grown to become one of the most respected and trusted financial services companies in the country. With a wide range of services and products, Samuel Sekuritas Indonesia has become a trusted partner to many investors, both institutional and individual.
The company offers a variety of financial services, including equity, debt and derivative securities brokerage services, research and portfolio management, asset management and capital market services, as well as a range of other investment solutions. Samuel Sekuritas Indonesia is also a leader in providing financial education and training, and has established itself as a leading provider of investor relations services.
The company has a strong research capability and is committed to providing its clients with up-to-date and reliable market analysis and recommendations. It also has a team of experienced and knowledgeable professionals who are dedicated to providing quality service to its clients. As a result, Samuel Sekuritas Indonesia has become a preferred partner for many investors in Indonesia.
In addition to its financial services, Samuel Sekuritas Indonesia also offers a range of other services, such as corporate finance and advisory services, mergers and acquisitions, and venture capital.
