KimEng Market Highlights ANTM

Aneka Tambang: FY09 net profit dropped 56% y/y

§ Aneka Tambang reported FY09 result today. Sales dropped 9% y/y to Rp8.71t while net profit plunged 56% y/y to Rp604b (Rp63.5/share).
§ On a quarterly basis, Antam booked Rp312b net profit, 352% q/q higher compared to 3Q09 and a reversal from Rp256b loss from corresponding figure a year earlier.

Analyst comment:
§ The result is 9% and 14% above consensus estimate for sales and net profit, respectively.
§ The decline was caused by lower nickel sales volume for both ferronickel (-17% y/y) and nickel ore (-8% y/y) with ASP for nickel in ferronickel plunged 33% y/y to US$6.6/lbs.
§ Gold trading business cushioned the decline as gold sales volume rose 31% y/y to 12.9 tons. However, gold production declined by 7% y/y to 2.6 tons as Pongkor mine aged and Cibaliung has not commenced production.