ANTM
Contact our analyst Revita
77% upside, Buy
25th May 2023
Current price Rp1945
Target price Rp3435
25th May 2023
Current price Rp1945
Target price Rp3435
Gold sales up 10% in 1Q23
Although in 1Q23, ANTM gold production volume decreased -18% YoY to 304Kg, gold sales volume increased +10% YoY to 7,223 Kg. During 2023, ANTM remains focused on their domestic customer market development which is inline with the increase in public awarness of investing in gold and growing demand for gold in the domestic marklet. We believe ANTM’s startegy to focus on developing the customer base will increase gold sales volume in the future.
Maintaining doube digit production growth
ANTM unaudited nickel ore production volume reached 3.41 mn wmt, an increase of 41% QoQ or 17% YoY. The strengthening of nickel ore production resulted in higher 1Q23 nickle ore sales of 3.44 mn wmt, up +48% YoY or +57% QoQ. The growth in 1Q23 production was also influenced by a demand recovery despite lower nickel prices. With higher future demand for nickle from electric vehicles, we estimate nickel production and sales volume to grow 70% YoY and 62% YoY respectively in 2023 and 2024.
Targeting 15% profit growth
ANTM recorded a positive net profit in 1Q23 of IDR. 1,66 trillion, up by 13% YoY. This was supported by ANTAM's efforts to optimize the performance of its production and sales of nickel, gold and bauxite-based products amidst the global economic recovery and a positive outlook for metal and precious metal commodities. Within the next two years (2023-2024), we estimate ANTM’s net profit will grow by an average 15% CAGR compared to 2022A as ANTM continues with their strategies to keep production costs low and preserve cash through negotiations with creditors, banks and suppliers. ANTM is also improving internal efficiencies in business units and the head office.
Valuation: 77% upside
We adjust our valuation based on 1Q23 audited results. We revise our one year target price to IDR 3,435/share or trading at 16x PER. With 77% upside, we maintain our recommendation to BUY.
Although in 1Q23, ANTM gold production volume decreased -18% YoY to 304Kg, gold sales volume increased +10% YoY to 7,223 Kg. During 2023, ANTM remains focused on their domestic customer market development which is inline with the increase in public awarness of investing in gold and growing demand for gold in the domestic marklet. We believe ANTM’s startegy to focus on developing the customer base will increase gold sales volume in the future.
Maintaining doube digit production growth
ANTM unaudited nickel ore production volume reached 3.41 mn wmt, an increase of 41% QoQ or 17% YoY. The strengthening of nickel ore production resulted in higher 1Q23 nickle ore sales of 3.44 mn wmt, up +48% YoY or +57% QoQ. The growth in 1Q23 production was also influenced by a demand recovery despite lower nickel prices. With higher future demand for nickle from electric vehicles, we estimate nickel production and sales volume to grow 70% YoY and 62% YoY respectively in 2023 and 2024.
Targeting 15% profit growth
ANTM recorded a positive net profit in 1Q23 of IDR. 1,66 trillion, up by 13% YoY. This was supported by ANTAM's efforts to optimize the performance of its production and sales of nickel, gold and bauxite-based products amidst the global economic recovery and a positive outlook for metal and precious metal commodities. Within the next two years (2023-2024), we estimate ANTM’s net profit will grow by an average 15% CAGR compared to 2022A as ANTM continues with their strategies to keep production costs low and preserve cash through negotiations with creditors, banks and suppliers. ANTM is also improving internal efficiencies in business units and the head office.
Valuation: 77% upside
We adjust our valuation based on 1Q23 audited results. We revise our one year target price to IDR 3,435/share or trading at 16x PER. With 77% upside, we maintain our recommendation to BUY.
Previously
