ANTM - 9M24 outperformance amid strong gold segment growth

ANTM - 9M24 outperformance amid strong gold segment growth Aneka Tambang (ANTM) posted a strong 3Q24 revenue of IDR20 tn (+37.4% qoq, +116.6% yoy), bringing 9M24 revenue to IDR43.1 tn (+39.8% yoy), mainly driven by growth in the Gold Segment (83.1% of revenue), with sales volume reaching 405,035 t oz. Domestic demand and effective marketing fueled this increase, while the nickel segment faced ongoing permit issues. The 3Q24 net profit was IDR651 bn (-50.4% qoq), with 9M24 net profit at IDR2.2 tn, surpassing expectations (KBVS: 86.16%; Cons: 88.12%). Net profit was impacted by foreign exchange losses, which, if excluded, would have brought 9M24 profit to IDR2.6 tn (-7.7% qoq; 9M24/24F KBVS: 102.89%). Preliminary exploration expenses reached IDR 125.89bn as ANTM explores new gold sources. (Source : Company, KBVS Research) Comment : Maintain BUY, with a TP of IDR 1,865 (10.3x ‘24F EV/EBITDA) based on a robust production outlook for the nickel ore sector, expected cost savings in the ferronickel business, sustained strong gold prices ahead, and the company’s engagement in the EV ecosystem.