MDKA - FY23 Earnings below with our and street’s forecast

MDKA - FY23 Earnings below with our and street’s forecast In 4Q23, MDKA booked USD3.1 mn of net profit (-87.8% qoq; a turnaround from losses in 4Q22). This led to a net loss of USD20.7 mn for FY23 (-239.1% yoy). While revenue experienced a strong 120% yoy in the 4Q23, it faced a 17.5% qoq decline, leading to a gross profit growth of 31.7% yoy but a sharp decline of 62.6% qoq to USD27.1 mn due to lower commodity prices during the quarter. Opex efficiency was evident in the decrease of G&A expenses by 37.6% yoy in 4Q23. Moreover, MDKA completed a private placement, raising IDR785.1 bn in cash at an executed price of IDR2,168 per share. Comment : In 2023, MDKA booked US$20.7 mn of net losses which represented 457.2% of our estimate (net losses of US$4.5 mn) and 132.4% of the street estimate (net loss of US$15.6 mn) of the net loss. In 2024, we expect a stronger performance of MDKA mostly driven by higher nickel ore sales.