Aneka Tambang Tbk (ANTM) might record net profit of IDR 248 billion in 2017 if the government realized the relaxation of nickel export. The policy will avoid the excess of nickel supply in the country.
Samuel Sekuritas Indonesia said that ANTM recorded net loss for the last few years when the export was prohibited. Its revenue besides gold, fell 40% yoy on the first semester 2016. If ANTM get the permission to export, there will be an opportunity to increase its earnings.
ANTM is still predicted to record net loss. The positive performance will appear in 2017 with higher contribution from CGA Tayan, a strong price of nickel commodity to US$ 15.000 per ton, increasing ferronickel production, and the change in curve from loss to profit. Samuel projects a net profit of IDR 248 billion
by next year.
Samuel recommended from HOLD to BUY for ANTM with a target price of IDR 860. The valuation might change, depends on the fluctuation of nickel price and Ministry of Energy and Mineral Resources decision about the relaxation in 2017. (*)
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