JAKARTA – Just debuted via IPO on the Indonesia Stock Exchange (BEI) last January 9, PT Adhi Kartiko Pratama Tbk (NICE) has experienced a contraction in its operational profit due to fluctuating nickel prices, which tend to be negative.

Until Q1 2024, the company's nickel sales volume actually increased 30% year-on-year (yoy) to 350,815 wet metric tons (wmt). However, the unfavorable average selling price for nickel hampered its financial performance.

Sales value fell 24% yoy to IDR 136.3 billion in Q1 2024, which was followed by a movement of minus 30% yoy in gross profit to IDR 49.55 billion, and a drop in operating profit of 80% yoy to IDR 5.26 billion.

Facing this, NICE admits that it is still optimistic about achieving its nickel production and sales target of up to 18 thousand metric tons in 2024.

"From the company's perspective, the impact of slowing demand for electric vehicles, as well as weakening or fluctuating nickel prices, reaching US$16,000-20,000 per ton, is only temporary," said Hendra Prawira, Director of NICE, at the company's 2024 Annual Public Expose today (20/ 6).

Even though they admit that these price fluctuations will affect NICE's performance in 2024, management still hopes that nickel prices will be able to recover as demand for nickel for stainless steel and electric vehicles is projected to increase.

"So, we at the company see that this price weakening is temporary and not long term, and will return as demand increases in the industry," continued Prawira.

It is known that NICE is targeting revenue in 2024 to reach US$50 million, or around IDR 820 billion, while its profit will reach the level of US$4 million, or the equivalent of IDR 65-70 million. (ZH/LM)