Bayon Financial

Graeme Cunningham

Mr. Cunningham is a CFA Charterholder with over 15 years of experience as an equity research analyst, mostly on the sell side at investment banks, including Goldman and Jefferies, and with some time on the buy side. He has covered the consumer, telecoms, financials, energy and mining sectors, with a focus mainly on Southeast Asia, including Thailand and Vietnam.

The Week That Was in ASEAN@Smartkarma - Bank Rakyat's Turn, Sido Muncul, and BFI Finance Indonesia

Vale Indonesia: Potential Lull Before Big Transition For Pure Nickel Play

Independent Insight Provider

Bayon Financial provides industry and company analysis focusing on mid and small cap equity research coverage across a range of sectors including mining, financials and telecoms.

Equity Bottom-Up

<ul>
<li>Vale Indonesia's Q3/24 results came in below expectations with net income -8.1% below consensus, although there was a slight 0.4% beat for revenue </li>
<li>Revenue dropped -17.6% yoy, hit by a -20.1% decline in the nickel matte price as volume rose 3.1%, which offset a -0.6% decline in cost of revenue </li>
<li>We expect short-term pressure on the shares, with ROE and P/B near two decade lows, as nickel could remain weak and new projects could be a H2/25 driver </li>
</ul>


Vale Indonesia's Q3/24 results came in below expectations with net income -8.1% below consensus, although there was a slight 0.4% beat for revenue 
Revenue dropped -17.6% yoy, hit by a -20.1% decline in the nickel matte price as volume rose 3.1%, which offset a -0.6% decline in cost of revenue 
We expect short-term pressure on the shares, with ROE and P/B near two decade lows, as nickel could remain weak and new projects could be a H2/25 driver 


Vale Indonesia - Q3/24 Nickel Price Slide Offsets Cost Decline

Vale Indonesia Tbk

Vale Indonesia - Q3/24 Nickel Price Slide Offsets Cost Decline