ITMG - 1Q24 net profit plunged 66.3% yoy; Below Expectation

ITMG - 1Q24 net profit plunged 66.3% yoy; Below Expectation In 1Q24, Indo Tambangraya Megah (ITMG) booked USD61.6 mn of earnings (-66.3% yoy; -34.8% qoq). Lower earnings is mainly due to significant decline in revenue by 28.6% yoy to USD489.2 mn (still in-line street and our expectation). Despite 11% yoy increase in sales volume compared to the previous year, the decrease in revenue was primarily influenced by a 36% yoy decline in coal ASP to USD97 per ton in 1Q24. On the other hand, surged in mining cost by 38% due to 31% yoy growth in sales volume has hindered the reduction in COGS. (Source : Company) Comment : The earnings performance in the 1Q24 below both our internal estimates and street projections, representing 16.0% (USD385.3 mn) of our and 16.8% (USD367.6 mn) of the street estimate, respectively. On the other hand, we foresee a potential improvement in 2Q24 in qoq basis due to higher Newcastle coal price.