Optimism for the future of the nickel market will grow positively in line with increased market demand, giving confidence to PT Hillcon Tbk (HILL) that this year's performance will be better than the previous year. Where the company is targeting revenue of IDR 6 trillion in 2023, an increase of 87.5% compared to the 2022 revenue target which was recorded at IDR 3.2 trillion. "Net profit is targeted at IDR 1 trillion compared to the projected net profit of IDR 300 billion which is supported by revenue of IDR 3.2 trillion," said HILL Director Jaya Angdika in Jakarta yesterday.
Meanwhile, capital expenditure or capex for 2023 is targeted at IDR 1 trillion. Later, the capex will be mixed with institutional loans, around IDR 800 billion-IDR 1 trillion. Until September 2022, Hillcon posted revenue of IDR 2.17 trillion as of September 2022, or an increase of 68.22% compared to the same period in 2021 which was recorded at IDR 1.29 trillion. Hillcon's gross profit shot up 10.39% from IDR 524.6 billion as of September 2021 to IDR 579.1 billion as of September 2022.
Meanwhile, Hillcon's total assets increased by 28.75% from IDR 2.40 trillion in 2021 to IDR 3.09 trillion as of September 2022. On the same occasion, HILL Main Director, Hersan Qiu said, Hillcon was the first nickel commodity contractor to conduct an IPO. "The nickel industry is currently developing, so Hillcon's IPO is the right momentum for us," he said.
He emphasized that Hillcon's geographic reach allows the company to meet the needs of its customers in diverse locations, and gives Hillcon an advantage in winning projects across the country. Currently, Hillcon operates in a number of locations, namely in Kalimantan, Sulawesi and North Maluku.
This enables the company to meet customer needs in diverse locations across Indonesia. ,” he said.
To note, world nickel consumption will increase by 17.2% in 2021 to 2.8 million tons compared to 2020 which grew only 0.6%. A total of 1.96 million tonnes of nickel metal (69%) is consumed by the stainless steel industry. Indonesia as the world's largest nickel producer will have 950 thousand tonnes of nickel metal in 2021 or 35% of the world's total nickel production.
Indonesia also has the world's largest proven nickel reserves or 22% of proven nickel reserves (21 million tonnes of nickel metal). According to ESDM, estimated reserves are 41 million tons of nickel metal. For information, Hillcon itself is currently preparing for an IPO by offering 442.3 million common shares with a nominal value of IDR 100. The price offered for this IPO is in the range of IDR 1,250 – IDR 2,000 per share and the hope is to reap as much fresh funds as possible IDR 884.6 billion.
About 55% of all proceeds from the IPO will be used by the company for working capital of its subsidiary PT Hillconjaya Sakti (HS) for mining production costs, including fuel costs, overhead and maintenance of all equipment. Meanwhile, the remaining 45% will be used for capital expenditure or capex to purchase heavy equipment such as main fleets and supporting fleets that will support HS' operational activities in the nickel sector.
Source: https://www.neraca.co.id/article/174404/permintaan-pasar-nikel-menjanjikan-hillcon-targetkan-pendapatan-rp-6-triliun
