In today’s briefing:
- Harita Nickel IPO – The Negatives – Reliant on JVs and with Lygend Group. Market Is About to Shift
- Harita Nickel IPO: The Bull Case
- 3Q23 Results: Revenue Grows 51.7% Y/Y as Order Activity and Gross Margin Shoot Up
- Morning Views Asia: Vedanta Resources
Harita Nickel IPO – The Negatives – Reliant on JVs and with Lygend Group. Market Is About to Shift
- PT Trimegah Bangun Persada Tbk (Harita Nickel) (2230010D IJ) is looking to raise about US$650m in its Indonesian IPO.
- PT Trimegah Bangun Persada Tbk (Harita Nickel, HN) is a vertically integrated pure-play nickel company operating on Obi Island, Indonesia.
- In this note, we will talk about the not so positive aspects of the deal.
Harita Nickel IPO: The Bull Case
- PT Trimegah Bangun Persada Tbk (Harita Nickel) (2230010D IJ), an Indonesian nickel play, has launched an IDX IPO to raise US$650 million. Book building ends on 21 March.
- Harita is expected to become Indonesia’s largest pure nickel producer based on volume expectations of Harita’s nickel mining production in 2022.
- The key elements of the bull case rest on good underlying revenue growth, near-term capacity expansion, high profitability, capex nearing the peak and manageable leverage.
3Q23 Results: Revenue Grows 51.7% Y/Y as Order Activity and Gross Margin Shoot Up
- Revenue grew 51.7% Y/Y to $0.7 million, compared with $0.5 million in 3Q22.
- Growth in the top-line figure was primarily driven by sales of WAM-V autonomous vehicles and better margins derived from Strategic Consulting Services.
- A key driver of the revenue trajectory is the order activity, which is up 111% to $3.8 million YTD, with significant additional order activity in various stages of negotiation.
Morning Views Asia: Vedanta Resources
Lucror Analytics Morning Views comprise our fundamental credit analysis, opinions and trade recommendations on high yield issuers in the region, based on key company-specific developments in the past 24 hours. Our Morning Views include a section with a brief market commentary, key market indicators and a macroeconomic and corporate event calendar.
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