Net profit skyrocketed 492.87%, see recommendation of Aneka Tambang (ANTM) shares

ILLUSTRATION. PT Aneka Tambang Tbk (ANTM) has shown impressive performance throughout 2020.

Reporter: Akhmad Suryahadi | Editor: Khomarul Hidayat

KONTAN.CO.ID – JAKARTA. PT Aneka Tambang Tbk (ANTM) showed impressive performance throughout 2020. This state-owned company posted a net profit attributable to the owners of the parent entity amounting to Rp 1.15 trillion. This profit skyrocketed 492.87% of the 2019 net profit which was only IDR 193.85 billion.

However, the increase in net profit is not in line with the increase in ANTM’s income. The Kompas100 Index constituent posted revenues of IDR 27.37 trillion or a decrease of 16.34% from the net income at the end of 2019 which reached IDR 32.72 trillion.

NH Korindo Sekuritas Indonesia analyst Maryoki Pajri Alhusnah assessed that ANTM’s performance in 2020 was above the expectations set, both for net profit and revenue. NH Korindo Sekuritas itself expects ANTM’s revenue to be IDR 23 trillion with an estimated net profit of IDR 875 billion in 2020.

Also Read: Aneka Tambang’s (ANTM) net profit shot up 492% to Rp 1.15 trillion in 2020

Maryoki assessed that ANTM’s net profit which tends to increase when income decreases is the result of decreasing ANTM expenses, such as cost of revenue and other expenses.

Launching the financial report, ANTM’s cost of goods sold decreased by 19.01% from the original Rp 28.27 trillion to Rp 22.89 trillion. General and administrative expenses decreased by 6.69% from Rp2.04 trillion to Rp 1.91 trillion. Meanwhile, sales and marketing expenses also decreased, from Rp 1.44 trillion to Rp 533.07 billion.

Meanwhile, the cost of purchasing precious metals last year was still quite high, reaching Rp. 17.44 trillion, equivalent to 76% of the total cost of goods sold. However, the cost of purchasing this precious metal decreased by 16.41% from last year’s Rp 20.86 trillion.

Maryoki said that the purchase of this precious metal would certainly burden ANTM’s finances. Moreover, the margin generated in the gold segment is still considered quite thin. On the other hand, if ANTM acquires the mine to obtain its own gold reserves, Maryoki considers that this is not the right solution for this state-owned company.

“Because the acquisition itself requires a lot of money and a big risk, where ANTM has to run the mining operation itself,” said Maryoki to Kontan.co.id, Monday (15/3).

Also Read: This is the reason why Aneka Tambang’s (ANTM) net profit has shot up even though revenue has decreased in 2020