Strong Nickel Market Supports NCKL’s Consistent Positive Growth

The first half of 2025 will be a crucial milestone for PT Trimegah Bangun Persada Tbk (NCKL) in solidifying its position as a key player in the Indonesian nickel industry. Established on September 6, 2004, and officially listed on the Indonesia Stock Exchange on May 3, 2023, NCKL has demonstrated a strong business foundation, primarily through synergies between the mining sector and its growing industrial estates.Based in Jakarta and fully operational since February 2011, NCKL is controlled by PT Harita Jayaraya and its ultimate parent, PT Harita Guna Dharma Bakti. The company divides its operations into two main segments: open-pit nickel ore mining and nickel processing, which encompasses the entire process from ore drying to granule production.NCKL relies on a network of subsidiaries across the value chain. PT Gane Permai Sentosa (GPS), the mining permit holder, still held reserves of 46.49 million WMT as of June 2025 after producing 8.05 million WMT in the past year. GPS's assets decreased slightly to IDR 2.25 trillion, with a comprehensive profit to non-controlling interest (NCI) of IDR 4.66 billion and dividends to NCI of IDR 6.50 billion.The consulting segment is operated by PT Obira Mitra Jaya (OMJ), which controls PT Halmahera Jaya Feronikel (HJF). This entity recorded revenue of IDR 8.64 trillion and profit of IDR 1.64 trillion. Its assets decreased slightly to IDR 22.73 trillion, and its comprehensive profit to NCI was IDR 610.41 billion.PT Megah Surya Pertiwi (MSP), a 60%-owned nickel processing entity, recorded revenue of IDR 2.46 trillion and profit of IDR 250.02 billion. MSP's assets rose to IDR 5.42 trillion, with dividends to NCI of IDR 130.15 billion. Meanwhile, PT Gane Tambang Sentosa (GTS) recorded a 172.10% increase in assets to IDR 868 billion after producing 0.89 million WMT from total reserves of 31.81 million WMT.Other entities, such as PT Jikodolong Megah Pertiwi (JMP) and PT Obi Anugerah Mineral (OAM), are focused on production mining permits (IUPs), with assets of IDR 75 billion and IDR 7 billion, respectively. JMP has not yet started production, while OAM's performance is stable.HJF, which manages the processing facility, recorded assets of IDR 22.73 trillion. Meanwhile, its overseas subsidiary, HJF International Trading in China, had assets of IDR 62 billion. Meanwhile, PT Kreasi Kemakmuran Tambang (KKT), a subsidiary of GTS, saw a 136.36% increase in assets to IDR 26 billion.In the first half of 2025, consolidated revenue reached IDR 14.10 trillion. The processing segment remained dominant, contributing IDR 11.10 trillion, while mining contributed IDR 2.99 trillion. NCKL's integrated business model enables it to maximize its upstream and downstream value chain.The mining business permit is valid until February 8, 2030, and the forest area utilization permit is valid until May 15, 2027, and for a different location, February 7, 2030. The company has a total of 11,068 employees, consisting of 6,318 permanent employees and 4,750 contract employees.Nickel ore production rose sharply to 10.88 million WMT compared to 6.28 million WMT in the same period last year. Total cumulative production since the start of operations reached 60.08 million WMT. Downstream, long-term contracts with key customers such as HPL (5 million MT/year) and KPS (3 million MT/year) ensure stable supply.Export markets supported revenue, with Lygend Resources (China) contributing 53.05%, or IDR 7.48 trillion, and Glencore (Switzerland) contributing 15.28%, or IDR 2.15 trillion. Revenue grew 10.08%, while the mining segment saw a nearly 2.3-fold increase.Gross margin increased from 29.85% to 33.63%. SG&A expenses decreased 14.53% to IDR 613.35 billion. Operating profit rose 18.76% to IDR 4.05 trillion, and net profit surged 48.35% to IDR 5.25 trillion. EPS also rose 46.28% to IDR 65.05 per share.Total assets as of June 2025 reached IDR 56.66 trillion, an increase of 8.43%. Investments in associated entities surged to IDR 21.69 trillion. Cash decreased to IDR 4.31 trillion due to significant investment spending. Inventories rose to IDR 5.77 trillion.Liabilities rose 7.29% to IDR 16.95 trillion. Equity grew 8.92% to IDR 39.70 trillion. Operating cash flow remained strong at IDR 3.88 trillion, with investment cash outflows of IDR 4.70 trillion and financing cash outflows of IDR 1.38 trillion.Free cash flow remained positive at IDR 3.47 trillion, while the capital structure remained healthy. Der (Dereko) stood at 0.25 and net DER at 0.14. Business risks include exposure to USD and CNY, as well as fluctuating global nickel prices.Recent regulations, such as Minister of Finance Regulation 136/2024 and Government Regulation 19/2025, have increased royalty expenses to IDR 502.12 billion. However, the company's strength in cash flow, improved margins, and supply chain integration remain key strengths.A market capitalization of Rp 51.39 trillion reflects a PER of only 6.26x. With annual profit of Rp 8.20 trillion, EPS is Rp 130.09 per share. PBV is 1.29x, or 1.36x if using tangible BV. An EV/EBITDA ratio of 6.42x indicates a moderate valuation.The 2024 fiscal year dividend of Rp 30,357 per share yielded 3.72% with a payout ratio of 30.00%. The PEG ratio of just 0.14x underscores its undervalued position.

Source https://djakarta-miningclub.com