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Strength
Higher sales volumes of 5.8 Mt (+7.4% YoY, +16% QoQ) and robust cash margin growth of +27% QoQ; the drop in stripping ratio to 10.5x (-16% YoY, -0.9% QoQ) led to EBITDA margin improvement to 20.8% (+200 bps QoQ)
Weakness
YoY decline in 2Q24 earnings driven by lower ASP of USD 94/ton (-17.2% YoY, -3.1% QoQ), higher mining costs of USD 17 million (+25% QoQ, +280% YoY), and elevated freight costs of USD 12 million (+12% QoQ, +241% YoY), resulting in lower 2Q24 cash margin of USD 19/ton (-43.3% YoY)
Opportunity
Production commencement at Graha Panca Karsa (1.0 Mt) and Tepian Indah Sukses (0.4 Mt) may raise FY24F output to 19.85 Mt, may boost 2H24 sales volumes; buying opportunity may arise if further recent market underperformance persists, pricing in 2Q weak results
Threat
Global shipping shortage drives up coal export costs, affecting 78% of ITMG’s sales volumes; worldwide economic slowdown and the emergence of cheaper alternative natural resources may affect 2H24 coal prices, further pressuring 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.
