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

Economic Reports

Jul 13, 2025

Company Reports

Jul 11, 2025

Technical Stock Analysis

Jul 11, 2025

Morning Briefs

Jul 11, 2025

Technical Stock Analysis

Jul 10, 2025

Company Reports

Jul 10, 2025

Economic Reports

Jul 9, 2025

Technical Stock Analysis

Jul 9, 2025

Morning Briefs

Jul 9, 2025

Economic Reports

Jul 8, 2025

Company Reports

Jul 8, 2025

Technical Stock Analysis

Jul 8, 2025

Economic Reports

Jul 7, 2025

Morning Briefs

Jul 7, 2025

Technical Stock Analysis

Jul 7, 2025

Economic Reports

Jul 6, 2025

Technical Stock Analysis

Jul 4, 2025

Morning Briefs

Jul 4, 2025

Economic Reports

Jul 3, 2025

Technical Stock Analysis

Jul 3, 2025

Economic Reports

Jul 2, 2025

Technical Stock Analysis

Jul 2, 2025

Morning Briefs

Jul 2, 2025

Economic Reports

Jul 1, 2025

Economic Reports

Jul 1, 2025

Economic Reports

Jul 1, 2025

Technical Stock Analysis

Jul 1, 2025

Morning Briefs

Jul 1, 2025

Economic Reports

Jul 1, 2025

Technical Stock Analysis

Jun 30, 2025

Morning Briefs

Jun 30, 2025

Economic Reports

Jun 29, 2025

Technical Stock Analysis

Jun 26, 2025

Morning Briefs

Jun 26, 2025

Economic Reports

Jun 25, 2025

Technical Stock Analysis

Jun 25, 2025

Morning Briefs

Jun 25, 2025

Economic Reports

Jun 24, 2025

Technical Stock Analysis

Jun 24, 2025

Morning Briefs

Jun 24, 2025

Economic Reports

Jun 23, 2025

Technical Stock Analysis

Jun 23, 2025

Morning Briefs

Jun 23, 2025

Technical Stock Analysis

Jun 20, 2025

Morning Briefs

Jun 20, 2025

Economic Reports

Jun 19, 2025

Economic Reports

Jun 19, 2025

Technical Stock Analysis

Jun 19, 2025

Morning Briefs

Jun 19, 2025

Economic Reports

Jun 18, 2025

Economic Reports

Jun 18, 2025

Technical Stock Analysis

Jun 18, 2025

Economic Reports

Jun 17, 2025

Technical Stock Analysis

Jun 17, 2025

Morning Briefs

Jun 17, 2025

Economic Reports

Jun 16, 2025

Technical Stock Analysis

Jun 16, 2025

Morning Briefs

Jun 16, 2025

Technical Stock Analysis

Jun 13, 2025

Morning Briefs

Jun 13, 2025

Economic Reports

Jun 13, 2025

Technical Stock Analysis

Jun 12, 2025

Morning Briefs

Jun 12, 2025

Economic Reports

Jun 11, 2025

Technical Stock Analysis

Jun 11, 2025

Company Reports

Jun 11, 2025

Economic Reports

Jun 10, 2025

Technical Stock Analysis

Jun 10, 2025

Economic Reports

Jun 10, 2025

Technical Stock Analysis

Jun 5, 2025

Economic Reports

Jun 4, 2025

Technical Stock Analysis

Jun 4, 2025

Morning Briefs

Jun 4, 2025

Economic Reports

Jun 3, 2025

Company Reports

Jun 3, 2025

Technical Stock Analysis

Jun 3, 2025

Economic Reports

Jun 3, 2025

Economic Reports

Jun 2, 2025

Economic Reports

Jun 2, 2025

Economic Reports

Jun 2, 2025

Technical Stock Analysis

Jun 2, 2025

Morning Briefs

Jun 2, 2025

Economic Reports

Jun 1, 2025

Company Reports

May 28, 2025