Research & Stock Picks

Company Reports

07 August 2024

By

INCO: 2Q24 Results – HOLD, TP at IDR 4,000

  • In 2Q24, nickel production grew +6.3% YoY to 17,505 mt, thanks to improved furnace productivity, shorter maintenance, and stable ore grade of 1.74%; Solid quarterly EBIT margin of 31% (+690 bps YoY) on the back of 40.9% QoQ increased cash margin.
  • 2Q24 earnings plummeted to USD 31 million (-55.8% YoY) due to lower 2Q24 nickel ASP of USD 14,214/mt (-21% YoY, +12% QoQ), leading to significant drops in cash margin to USD 4,624/mt (-39.7% YoY) and EBITDA margin to 14.3% (-1,240 bps YoY).
  • INCO is banking on two nickel-related projects in its pipeline: 1) Bahodopi project (44% completed) is expected to deliver 7 Mt of saprolite and 11 Mt of limonite by 4Q25, and 2) Pomalaa project expected to sell 7 Mt of saprolite and 21 Mt of limonite by 1Q26.
  • Our transfer coverage of INCO has prompted us to revise our FY24F earnings estimate to USD 102 million (up from USD 54.6 million), reflecting stronger cash margin trends and more promising future nickel projects. We recommend a BUY with TP of IDR 4,000, reflecting FY24F P/E of 25.8x. Downside risks include lower LME nickel prices due to potential global economic slowdown and industry oversupply issues.

Share This:

Download PDF

Download PDF

Result INCO 2Q24

Download PDF

Result INCO 2Q24

More Related

Morning Briefs

Dec 12, 2025

Economic Reports

Dec 12, 2025

Economic Reports

Dec 11, 2025

Morning Briefs

Dec 11, 2025

Economic Reports

Dec 11, 2025

Morning Briefs

Dec 10, 2025

Economic Reports

Dec 10, 2025

Company Reports

Dec 9, 2025

Economic Reports

Dec 9, 2025

Morning Briefs

Dec 8, 2025

Company Reports

Dec 5, 2025

Morning Briefs

Dec 5, 2025

Economic Reports

Dec 5, 2025

Morning Briefs

Dec 4, 2025

Economic Reports

Dec 4, 2025

Morning Briefs

Dec 3, 2025

Economic Reports

Dec 3, 2025

Company Reports

Dec 2, 2025

Economic Reports

Dec 2, 2025

Economic Reports

Dec 1, 2025

Economic Reports

Dec 1, 2025

Economic Reports

Dec 1, 2025

Morning Briefs

Dec 1, 2025

Economic Reports

Nov 30, 2025

Morning Briefs

Nov 28, 2025

Economic Reports

Nov 28, 2025

Morning Briefs

Nov 27, 2025

Economic Reports

Nov 27, 2025

Morning Briefs

Nov 26, 2025

Economic Reports

Nov 26, 2025

Economic Reports

Nov 25, 2025

Morning Briefs

Nov 24, 2025

Economic Reports

Nov 24, 2025

Morning Briefs

Nov 21, 2025

Economic Reports

Nov 21, 2025

Economic Reports

Nov 20, 2025

Economic Reports

Nov 20, 2025

Morning Briefs

Nov 20, 2025

Economic Reports

Nov 20, 2025

Morning Briefs

Nov 19, 2025

Economic Reports

Nov 19, 2025

Company Reports

Nov 18, 2025

Economic Reports

Nov 18, 2025

Morning Briefs

Nov 17, 2025

Economic Reports

Nov 16, 2025

Morning Briefs

Nov 14, 2025

Company Reports

Nov 13, 2025

Economic Reports

Nov 13, 2025

Morning Briefs

Nov 13, 2025

Economic Reports

Nov 12, 2025

Morning Briefs

Nov 12, 2025

Economic Reports

Nov 11, 2025

Economic Reports

Nov 10, 2025

Morning Briefs

Nov 10, 2025

Morning Briefs

Nov 7, 2025

Economic Reports

Nov 6, 2025

Morning Briefs

Nov 6, 2025

Economic Reports

Nov 5, 2025

Economic Reports

Nov 5, 2025

Morning Briefs

Nov 5, 2025

laba bumi

Company Reports

Nov 5, 2025

Economic Reports

Nov 4, 2025

Economic Reports

Nov 3, 2025

Economic Reports

Nov 3, 2025

Economic Reports

Nov 3, 2025

Economic Reports

Nov 3, 2025

Morning Briefs

Nov 3, 2025

Company Reports

Oct 31, 2025

Morning Briefs

Oct 31, 2025

Economic Reports

Oct 30, 2025

Company Reports

Oct 30, 2025