ANTM
Contact our analyst Revita
35% upside, Buy
21st February 2022
Current price Rp2090
Target price Rp2815
21st February 2022
Current price Rp2090
Target price Rp2815
Gold sales up again
In 4Q21, ANTM gold sales increased 46% YoY. Total gold sales volume in 2021 was 29,385 Kg an increase of 35% compared to gold sales in 2020FY of 21,797 Kg and 41% above our estimate of 20,778 Kg. In 2021, ANTM focused on developing the domestic market customer base with increased public awareness of the benefits of investing in gold and thus growing demand. We estimate that this year gold prices will still be positively affected by market volatility, threats to the US dollar as a safe haven, the development of Covid-19 cases.
Srategies to maintain a positive performances
ANTM is focusing on the development of domestic market sales, inline with positive demand. In 2021, ANTM’s unaudited ferronickle production was 25,818 Tni with unaudited sales volume of 25,992Tni. ANTM unaudited nickle ore production was 11,01 million wmt (wet metrict ton) with unaudited sales of 7,64 million wmt which was used as ore feed for ANTM’s ferronickle plant as well s being sold into the domestic market. ANTM’s unaudited bauxite production volume was 1,67 million wmt which was used as ore feed for alumina production as well as being sold to 3rd party customers. The unaudited bauxite sales volume was 1,42 million wmt. ANTM alumina production volume reached 95,000 tons, a 3% increase compared to 93,000 in 2020FY. The increase in volume is in line with ANTM’s strategy to optimmize the operations of its Tayan CGA Plant as well as prioritizing alumina marketing through subsidiary PT Indonesia Chemical Alumina. In addition, other ANTM strategies are to keep production costs low, and preserve cash through negotiations with creditors, banks and suppliers. ANTM is also improving internal efficiencies in both business units and the head office.
Valuation: 35% upside
We adjust our valuation based on 9M21 audited results, based on EV/EBITDA , we have a one year target price of IDR.2,815/share or trading at 12x EV/EBITDA and PER 27x. With 35% upside, we recommended BUY.
In 4Q21, ANTM gold sales increased 46% YoY. Total gold sales volume in 2021 was 29,385 Kg an increase of 35% compared to gold sales in 2020FY of 21,797 Kg and 41% above our estimate of 20,778 Kg. In 2021, ANTM focused on developing the domestic market customer base with increased public awareness of the benefits of investing in gold and thus growing demand. We estimate that this year gold prices will still be positively affected by market volatility, threats to the US dollar as a safe haven, the development of Covid-19 cases.
Srategies to maintain a positive performances
ANTM is focusing on the development of domestic market sales, inline with positive demand. In 2021, ANTM’s unaudited ferronickle production was 25,818 Tni with unaudited sales volume of 25,992Tni. ANTM unaudited nickle ore production was 11,01 million wmt (wet metrict ton) with unaudited sales of 7,64 million wmt which was used as ore feed for ANTM’s ferronickle plant as well s being sold into the domestic market. ANTM’s unaudited bauxite production volume was 1,67 million wmt which was used as ore feed for alumina production as well as being sold to 3rd party customers. The unaudited bauxite sales volume was 1,42 million wmt. ANTM alumina production volume reached 95,000 tons, a 3% increase compared to 93,000 in 2020FY. The increase in volume is in line with ANTM’s strategy to optimmize the operations of its Tayan CGA Plant as well as prioritizing alumina marketing through subsidiary PT Indonesia Chemical Alumina. In addition, other ANTM strategies are to keep production costs low, and preserve cash through negotiations with creditors, banks and suppliers. ANTM is also improving internal efficiencies in both business units and the head office.
Valuation: 35% upside
We adjust our valuation based on 9M21 audited results, based on EV/EBITDA , we have a one year target price of IDR.2,815/share or trading at 12x EV/EBITDA and PER 27x. With 35% upside, we recommended BUY.
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