ITMG - 9M24 bottom line hit by lower ASP

ITMG - 9M24 bottom line hit by lower ASP Indo Tambangraya Megah (ITMG) reported 3Q24 revenue of USD608 mn (+8.5% qoq, +15.2% yoy), bringing 9M24 revenue to USD1.7 bn (-9.3% yoy), below our expectations but exceeding consensus. The 9M24 decline was driven by lower ASP (-19.3% yoy) amid coal price normalization, despite a 12.5% yoy increase in sales volume. Production benefited from two newly operational mines, GPK and TIS. A positive note was a lower stripping ratio of 9.2 Bcm/tonne in 3Q24 (-12.4% qoq, -21.4% yoy) and 10.1 Bcm/tonne for 9M24 (-15.1% yoy. ITMG's 3Q24 net income reached USD144 mn (+113.3% qoq, +45.2% yoy), with 9M24 net income of USD273 mn (-32.7% yoy), missing our forecast (70.7%) but surpassing consensus (82.6%). Given the results, we are adjusting our target price due to lower coal prices, maintaining a HOLD rating with a target price of IDR23,300. We await further details from the earnings call. (Source : Company, KBVS Research)