ADRO - Solid Profit Generation; Above Expectation

ADRO - Solid Profit Generation; Above Expectation In 1Q24, ADRO booked solid net profit generation in midst of lower coal price of USD364 mn (-18.3% yoy, -11.4% qoq). The solid net profit generation stems from a combination of factors, including a 5% yoy growth in sales volume and a significant 29% reduction in indicative cash costs. This achievement is notable in the face of a challenging 24% yoy decline in ASP. (Source : Company) Comment : The performance in 1Q24 exceeded both our internal estimates and street projections, representing 42.4% of our estimate (USD374 mn) and 34.9% (USD1.04 bn) of the street estimate, respectively. Given this robust performance, we may need to revisit our 2024F earnings and recommendation.