{"id":331412,"date":"2025-02-06T00:04:55","date_gmt":"2025-02-05T16:04:55","guid":{"rendered":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/?p=331412"},"modified":"2025-02-06T00:05:00","modified_gmt":"2025-02-05T16:05:00","slug":"stock-in-focus-nickel-asia-corp-nikl-6-feb-2025-by-regina-capital-development-corp","status":"publish","type":"post","link":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/stock-in-focus-nickel-asia-corp-nikl-6-feb-2025-by-regina-capital-development-corp\/","title":{"rendered":"Stock in Focus: Nickel Asia Corp. (NIKL) – 6 Feb 2025 by Regina Capital Development Corp."},"content":{"rendered":"\n

Summary of Broker’s Recommendation<\/h2>\n\n\n\n
Stock Code<\/strong><\/td>NIKL<\/td><\/tr>
Company Name<\/strong><\/td>Nickel Asia Corp.<\/td><\/tr>
Broker<\/strong><\/td>Regina Capital Development Corp.<\/td><\/tr>
Opinion Issued on<\/strong><\/td>6 Feb 2025<\/td><\/tr>
Recommendation<\/strong><\/td>Buy<\/td><\/tr>
1-Year Target Price<\/strong><\/td>PHP 4.12<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n
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We have a Buy rating on NIKL with a target price of P4.12\/share.<\/p>\n\n\n\n

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Analysis and Opinion<\/h2>\n\n\n\n

Nickel Asia Corp. (NIKL) reported a decline in earnings in 9-months (9M) 2024, primarily due to lower nickel prices despite an increase in sales volume. Revenues fell by to P16.98 billion, down 12% year-on-year (y\/y), as the average realized price of nickel ore dropped by -18% y\/y. <\/p>\n\n\n\n

Net income softened to P3.69 billion, while net income attributable to parent equity holders stood at P2.55 billion. Total costs rose marginally rose by single-digit due to higher contractor and material movement expenses, while the GPM got impacted by pricing pressures.<\/p>\n\n\n\n

The global nickel market continues to face challenges, driven by supply growth, particularly from Indonesia, and shifting demand patterns. Slower battery electric vehicle (BEV) sales outside China have led to a more cautious outlook on long-term nickel demand, though China\u2019s strong EV production and increasing exports to ASEAN and South America may support continued demand for nickel ore. Regulatory developments, including potential changes in mining taxes and environmental policies, could also influence the operating environment for Philippine nickel producers.<\/p>\n\n\n\n

To adapt to market conditions, NIKL is focusing on optimizing operations, increasing ore shipments, and improving logistics efficiency, with projects such as the Dinapigue causeway aimed at reducing transport costs. <\/p>\n\n\n\n

While long-term demand for nickel remains linked to the expansion of the EV industry, near-term market conditions suggest continued price pressures. NIKL\u2019s strategy of managing costs and exploring potential value-added processing could play a role in mitigating the impact of price fluctuations on profitability.<\/p>\n\n\n\n

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Check how many brokers recommend this stock<\/h2>\n\n\n\n
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All Stock Rankings<\/a><\/blockquote>