External broker reports(aggregated public sources), BRI Danareksa Research

BRI Danareksa Research

External broker reports(aggregated public sources)

As a one-stop financial solution with the vision to be the most valuable securities house, BRI Danareksa Sekuritas (BRIDS) has maintained an excellent track record and extensive experience in the capital market as an underwriter, broker, and financial advisor for individual, institutional, foreign and domestic, private and government clients. Established in 1992, PT Danareksa Sekuritas is a securities company that performs activities as a securities broker, underwriter, or arranger and financial advisor.

Equity Bottom-Up

<ul><li>1Q24 net profit miss (4.5/4.9% of our/ cons. FY24F) was caused by lower cash margin due to unexpectedly higher fuel costs and lower ASP</li><li>We cut FY24-25F net profit est. by -31.3%/-21.9% to account for lower matte output, ore grade, and a higher fuel consumption</li><li>We maintain Buy rating with a lower SOTP-based TP of Rp5,700. Key risks to our call include lower nickel prices and a lower utilization rate</li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

1Q24 net profit miss (4.5/4.9% of our/ cons. FY24F) was caused by lower cash margin due to unexpectedly higher fuel costs and lower ASPWe cut FY24-25F net profit est. by -31.3%/-21.9% to account for lower matte output, ore grade, and a higher fuel consumptionWe maintain Buy rating with a lower SOTP-based TP of Rp5,700. Key risks to our call include lower nickel prices and a lower utilization rateContent is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Vale Indonesia - Lowering Our FY24-25F Post 1Q24 Earnings Miss

External broker reports(aggregated public sources), MNC Sekuritas

MNC Sekuritas

MNC Sekuritas, the first wholly-owned subsidiary established by the Group back in 1989, provides a complete range of services, from equity, fixed income, investment banking to providing research to optimize clients’ investments. Thus far, the company has more than 140 points of sales with over 100,000 clients. Content available is external broker reports authored by a third party outside the Smartkarma network and has been aggregated by an online aggregator through publicly available sources and is displayed by Smartkarma in this format for user's convenience and general informational purposes only. Content does not constitute investment or financial advice and Smartkarma makes no representation or warranty regarding its accuracy or contents. Original third party author retains all copyright and other proprietary rights in the content. Access or use of third party links not controlled by Smartkarma are at the user's own risk.

<ul><li>INCO’s revenue throughout FY23 stood in-line with our estimates of USD1,209.7mn, coming in at USD1,232.3 (reflecting 101.9% of MNCS' estimate), growing by +4.5% YoY on solid production performance.</li><li>Production jumped +17.7% YoY to 70.7k tons, credits due to their impeccable maintenance implementation throughout the year.</li><li>The bottom-line stood at USD274.3mn, overshooting our estimate of USD221.2mn for the year (reflecting 124.0%), growing by +36.9% YoY despite ASP slump (-10.4% YoY to USD17.3k/ton in FY23).</li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

INCO’s revenue throughout FY23 stood in-line with our estimates of USD1,209.7mn, coming in at USD1,232.3 (reflecting 101.9% of MNCS' estimate), growing by +4.5% YoY on solid production performance.Production jumped +17.7% YoY to 70.7k tons, credits due to their impeccable maintenance implementation throughout the year.The bottom-line stood at USD274.3mn, overshooting our estimate of USD221.2mn for the year (reflecting 124.0%), growing by +36.9% YoY despite ASP slump (-10.4% YoY to USD17.3k/ton in FY23).Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

INCO IJ - MNC Sekuritas Equity Report February 20, 2024

<ul><li>We expect INCO’s FY24F production volume to be sustained similar as FY23F at 70k tons. </li><li>We trim our FY24F earnings forecast by 28% due to our lower LME price assumption of US$17k/t (prev. US$19k/t).</li><li>Maintain Buy but with a lower DCF-based TP of Rp6,500 due to our lower FY24F earnings forecast given lower ASP assumptions.</li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

We expect INCO’s FY24F production volume to be sustained similar as FY23F at 70k tons. We trim our FY24F earnings forecast by 28% due to our lower LME price assumption of US$17k/t (prev. US$19k/t).Maintain Buy but with a lower DCF-based TP of Rp6,500 due to our lower FY24F earnings forecast given lower ASP assumptions.Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Vale Indonesia (INCO.IJ) - Weak Nickel Price to Hit FY24 Margin

<ul><li>While INCO’s 3Q23 net profit fell to USD52.6 mn (-25.3% qoq/ +193% yoy), its 9M23 net profit of USD221mn (+31.3% yoy) is broadly in-line with ours and above consensus forecast (at 77.1%/ 82.3% of 2023F).</li><li>We maintain our 2023-24F earnings forecasts, which are already based on conservative nickel price outlook, and retain Buy rating with an unchanged DCF-based TP of IDR7,000</li><li>9M23 earnings were broadly in-line with our 2023F but above consensus. INCO’s 3Q23 net profit fell to USD52.6mn (-25.3% qoq/ 193% yoy), reflecting the drop in nickel prices, with ASP falling to USD16,204/ton (-9.8% qoq/ -9.2% yoy).</li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

While INCO’s 3Q23 net profit fell to USD52.6 mn (-25.3% qoq/ +193% yoy), its 9M23 net profit of USD221mn (+31.3% yoy) is broadly in-line with ours and above consensus forecast (at 77.1%/ 82.3% of 2023F).We maintain our 2023-24F earnings forecasts, which are already based on conservative nickel price outlook, and retain Buy rating with an unchanged DCF-based TP of IDR7,0009M23 earnings were broadly in-line with our 2023F but above consensus. INCO’s 3Q23 net profit fell to USD52.6mn (-25.3% qoq/ 193% yoy), reflecting the drop in nickel prices, with ASP falling to USD16,204/ton (-9.8% qoq/ -9.2% yoy).Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Vale Indonesia (INCO IJ) - Lower 3Q23 Profit, but In-Line 9M23

<ul><li>INCO’s performance was robust in 1H23 amid normalizing nickel prices, with earnings reaching USD168 mn, up 12% yoy, which was above our estimate (63.7%) and the consensus (62.7%).</li><li>INCO was able to maintain production at 16,922 tons (+0.9% qoq), bringing the 1H23 production volume to 33,691 tons (+27.6% yoy) or reaching 48.1% of INCO’s FY23 target of 70k tons. Maintain BUY.</li><li>1H23 earnings above our estimate and the consensus. INCO’s performance was robust in 1H23 amid normalizing nickel prices, with earnings reaching USD168 mn, up 12% yoy, thanks to improving revenues from higher sales volume during this period</li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

INCO’s performance was robust in 1H23 amid normalizing nickel prices, with earnings reaching USD168 mn, up 12% yoy, which was above our estimate (63.7%) and the consensus (62.7%).INCO was able to maintain production at 16,922 tons (+0.9% qoq), bringing the 1H23 production volume to 33,691 tons (+27.6% yoy) or reaching 48.1% of INCO’s FY23 target of 70k tons. Maintain BUY.1H23 earnings above our estimate and the consensus. INCO’s performance was robust in 1H23 amid normalizing nickel prices, with earnings reaching USD168 mn, up 12% yoy, thanks to improving revenues from higher sales volume during this periodContent is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Vale Indonesia (INCO IJ) - Down but Still Impressive

Indonesia

Aneka Tambang Persero Tbk PT is a diversified mining and metals company. The Company produces ferronickel, nickel ore, gold, silver, bauxite and coal. Aneka Tambang is currently building a chemical grade alumina smelter and is looking to build  a smelter grade alumina smelter as well as a nickel pig iron smelter.

PT Merdeka Copper Gold Tbk is a mineral and mining company.  The Company mines for gold and copper.

Bumi Resources Minerals Tbk PT is an exploration and exploitation mining company.

PT Cita Mineral Investindo Tbk is a mineral exploration company. The Company mines for and produces bauxite.

PT Timah (Persero) Tbk operates tin mines on Indonesian islands such as Bangka and Karimun, and coastal areas of Sumatra. The Company, through its subsidiaries, also provides consultancy, shipping dockyard and workshop, transportation, exploration, and research and development services.

PT Archi Indonesia Tbk operates as a mining company. The Company explores and develops silver and gold projects. Archi Indonesia serves customers worldwide.

PT J Resources Asia Pasifik Tbk explores for and produces gold.  The Company operates in the Australasian region.

PT Krakatau Steel Persero Tbk is the iron and steel producer in Indonesia. The Company is a  state-owned enterprise and located in Cilegon, Indonesia. Krakatau Steel consists of production plants that produce hot rolled coils, plates and sheets.

PT Steel Pipe Industry Of Indonesia Tbk manufactures steel pipes. The Company produces ERW pipes, spiral welded pipes, stainless steel welded pipes, electric poles, lighting poles, scaffolding and other related products.

Steel Pipe Industry of Indonesia (ISSP IJ)

PT Darma Henwa Tbk is a coal mining company. The Company also provides machinery leasing and energy consultancy services.

Angang Steel Company Limited produces steel products which include cold rolled sheets, steel rail, pipe billets, wire rods, thick plates, and other steel products.

Maanshan Iron and Steel Company Limited manufactures and markets iron and steel products which can be divided into four categories, wire rods, steel section, medium or thick steel plates, and train wheels and tires.  The production process mainly comprises coking, sintering, iron smelting, steel smelting, and steel rolling.

IGO Limited operates as an exploration company. The Company explores and mines copper, ore, nickel, gold, and other mineral resources. IGO serves customers worldwide.

Alumina Limited is an Australian resource company that produces alumina.  The Company owns about 40% of Alcoa World Alumina and Chemicals through a joint venture with Alcoa.

Hyundai Steel Company is an electric furnace steel maker.  The Company manufactures concrete reinforcing bars, H beams, stainless steel sheets, cast steel, and other steel products.  Hyundai Steel sells its products to the domestic and overseas markets.

Sandfire Resources Limited is an Australian copper and gold producer. The Company's key asset is the DeGrussa Copper-Gold Mine located in Western Australia. Sandfire also has exploration assets targeting a range of commodities throughout Australia.

Shanxi Taigang Stainless Steel Co., Ltd. manufactures and markets stainless steel ingots and billets.  The Company also processes and produces other steel products including hot rolled steel plates and tandem steel plates.

Ta Chen Stainless Pipe Co., Ltd. manufactures and markets various types of stainless steel pipes, butt-welded fittings, casting fittings, and stainless steel ball valves.  The Company primarily sells its products to the United States, Canada, Europe, South East Asia, South Africa, Australia, New Zealand, South America, and the Middle East.

Coeur Mining, Inc., through its subsidiaries, explores, develops, operates, and/or owns silver and gold mining properties and companies.  The Company's properties are located primarily in the United States, Australia, and South America.

Shandong Humon Smelting Co., Ltd. is mainly engaged in mining, concentration and smelting of gold, and the manufacture of chemical industry.

PT Vale Indonesia Tbk produces nickel in matte, an intermediate product, from lateritic ores at its integrated mining and processing facilities near Soroako, Sulawesi

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Vale Indonesia Tbk (INCO IJ)

Vale Indonesia - Lowering Our FY24-25F Post 1Q24 Earnings Miss

We maintain Buy rating with a lower SOTP-based TP of Rp5,700. Key risks to our call include lower nickel prices and a lower utilization rate

BRI Danareksa Research

INCO IJ - MNC Sekuritas Equity Report February 20, 2024

INCO’s revenue throughout FY23 stood in-line with our estimates of USD1,209.7mn, coming in at USD1,232.3 (reflecting 101.9% of MNCS' estimate)

MNC Sekuritas

Vale Indonesia (INCO.IJ) - Weak Nickel Price to Hit FY24 Margin

We expect INCO’s FY24F production volume to be sustained similar as FY23F at 70k tons. We trim our FY24F earnings forecast by 28% due to our lower...

BRI Danareksa Research

Vale Indonesia (INCO IJ) - Lower 3Q23 Profit, but In-Line 9M23

While INCO’s 3Q23 net profit fell to USD52.6 mn (-25.3% qoq/ +193% yoy), its 9M23 net profit of USD221mn (+31.3% yoy) is broadly in-line with ours...

BRI Danareksa Research

Vale Indonesia (INCO IJ) - Down but Still Impressive

INCO’s performance was robust in 1H23 amid normalizing nickel prices, with earnings reaching USD168 mn, up 12% yoy, which was above our estimate...

BRI Danareksa Research

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