Research & Stock Picks

Company Reports

26 November 2024

By

NCKL: 3Q24 Results – BUY, SSI TP: IDR 1,200

Our take on the results (Bottom-line SSI: In-line, Cons: Above)

  • On 3Q24 top-line, strong nickel mining segment (17.5% of revenue) of IDR 1.3tn (+60.2% QoQ, +71.4% YoY) was supported by higher limonite sales of 5.08mn wmt (+69.3% QoQ, +103.2% YoY) amidst declining nickel prices (3Q24 avg: USD 16,259/ton, -20.1% YoY).
  • On the cost front, NCKL manage to improve its margins across the board with 3Q24 EBITDA margin having expanded to 39.1% (+510 bps QoQ, +150 bps YoY) on higher FeNi cash margin of USD 3,990/ton (+19.8% QoQ, +14.3% YoY) due to improved efficiencies, helped by raised FeNi production to 32.4 kton (+3.0% YoY), bringing 9M24 volumes to 95.8 kton (+39% YoY), 6.5% above NCKL’s name-plate capacity.
  • Looking ahead, NCKL is advancing its operations with the construction of a new RKEF plant, featuring four production lines and FeNi capacity of 60 ktons/year. The project is 77% complete, with operations expected to commence in 1Q25.
  • Supported by strong nickel ore sales and significant capacity expansion from RKEF projects, we retain our positive view on NCKL, particularly given that consensus will be revising up earnings. Our TP of IDR 1,200 reflects 8.6x P/E FY25F and 44% upside potential. BUY. Risks to our call: declining LME nickel prices due to over supplies and global economic slowdown, negatively affecting cash margins and earnings.

Share This:

Download PDF

Download PDF

TR_NCKL 3Q24

Download PDF

TR_NCKL 3Q24

More Related

Technical Stock Analysis

Dec 12, 2024

Morning Briefs

Dec 12, 2024

Morning Briefs

Dec 11, 2024

Technical Stock Analysis

Dec 11, 2024

Economic Reports

Dec 10, 2024

Technical Stock Analysis

Dec 10, 2024

Economic Reports

Dec 10, 2024

Morning Briefs

Dec 9, 2024

Technical Stock Analysis

Dec 9, 2024

Tantangan Batu Bara di Akhir 2024

Company Reports

Dec 6, 2024

tekan harga tembaga

Company Reports

Dec 6, 2024

pertumbuhan solid oil n gas

Company Reports

Dec 6, 2024

Company Reports

Dec 6, 2024

Technical Stock Analysis

Dec 6, 2024

Economic Reports

Dec 6, 2024

Morning Briefs

Dec 5, 2024

Technical Stock Analysis

Dec 5, 2024

Economic Reports

Dec 5, 2024

tren harga CPO

Company Reports

Dec 4, 2024

Morning Briefs

Dec 4, 2024

Technical Stock Analysis

Dec 4, 2024

Economic Reports

Dec 3, 2024

Technical Stock Analysis

Dec 3, 2024

Company Reports

Dec 2, 2024

Company Reports

Dec 2, 2024

Economic Reports

Dec 2, 2024

Economic Reports

Dec 2, 2024

Morning Briefs

Dec 2, 2024

Technical Stock Analysis

Dec 2, 2024

Morning Briefs

Nov 29, 2024

Technical Stock Analysis

Nov 29, 2024

Economic Reports

Nov 28, 2024

Company Reports

Nov 28, 2024

Technical Stock Analysis

Nov 28, 2024

Morning Briefs

Nov 28, 2024

Technical Stock Analysis

Nov 26, 2024

Company Reports

Nov 26, 2024

Economic Reports

Nov 25, 2024

Economic Reports

Nov 25, 2024

Technical Stock Analysis

Nov 25, 2024

Morning Briefs

Nov 25, 2024

Company Reports

Nov 22, 2024

Technical Stock Analysis

Nov 22, 2024

Morning Briefs

Nov 22, 2024

peluang aces ditengah gejolak ekonomi

Company Reports

Nov 21, 2024

Economic Reports

Nov 21, 2024

laba bni

Company Reports

Nov 21, 2024

Morning Briefs

Nov 21, 2024

Technical Stock Analysis

Nov 21, 2024

Economic Reports

Nov 20, 2024

Morning Briefs

Nov 20, 2024

Technical Stock Analysis

Nov 20, 2024

Economic Reports

Nov 20, 2024

Morning Briefs

Nov 19, 2024

Technical Stock Analysis

Nov 19, 2024

Economic Reports

Nov 19, 2024

pertumbuhan bbca

Company Reports

Nov 18, 2024

Company Reports

Nov 18, 2024

Company Reports

Nov 18, 2024

PGAS bukukan laba bersih

Company Reports

Nov 18, 2024

laba bersih alfamart

Company Reports

Nov 18, 2024

Economic Reports

Nov 18, 2024