PT Hillcon Tbk ( HILL ) said it is focusing on developing its business in the nickel sector by targeting potential clients.
Director of PT Hillcon Tbk Jaya Angdika said, HILL had just added a new client in Konawe, Southeast Sulawesi. Jaya said that he had set a target of around 1.5 million WNT nickel ore per year.
“We are continuing to develop our business in the nickel sector by increasing production from existing clients and also we have just added one new client located in Konawe with a target of around 1.5 million WMT nickel ore per year,” he told Kontan.co.id recently.
The issuer, which is engaged in the nickel mining contracting business, said it was quite optimistic about this year’s nickel development. Jaya said this was due to the rapidly growing capacity of nickel smelters.
Not only that, HILL sees the development of nickel as more promising with the use of electronic vehicle (EV) batteries, aka electric vehicles in the future.
The company, which listed on the Indonesia Stock Exchange (IDX) this year, targets HILL’s revenue growth this year to reach 1.5 times to 2 times from the previous year. From a bottomline perspective, HILL is expected to generate a net profit of around Rp 700 billion.
Jaya revealed, Hillcon managed to generate around Rp 3.2 trillion in revenue by December 2022, with a main profit of around Rp 300 billion.
“The nickel business in Indonesia is quite efficient, so the prospects for the future, especially with its utilization as a raw material for electric vehicle batteries, are very bright,” he continued.
Furthermore, Jaya explained Hillcon’s geographical reach allows the company to meet the needs of its customers in diverse locations, and gives HILL a competitive advantage in winning projects across the country. Currently HILL operates in a number of locations, namely in Kalimantan, Sulawesi and North Maluku.
Regarding the performance picture in the second quarter of 2023, HILL is reluctant to disclose more. However, Jaya hopes that revenue in the first half of 2023 and this year’s revenue target which is set at around IDR 6 trillion can be achieved.
Meanwhile, for information, HILL in the first quarter of 2023 posted revenue of IDR 930.51 billion, up 32.6% from IDR 701.74 billion in the same period last year. The company recorded a cost of revenue of IDR 649.66 billion, an increase from IDR 489.46 billion. Gross profit also grew from Rp 212.28 billion to Rp 235.84 billion.
Net profit for the period attributable to owners of the parent entity was IDR 115.99 billion, up 20.5% from IDR 96.20 billion in the first 3 months last year.
As of March 31 2023, Hillcon’s assets were IDR 4.12 trillion. Up from 31 December 2022 which amounted to IDR 3.45 trillion. Meanwhile, liabilities decreased slightly from Rp 2.47 trillion to Rp 2.46 trillion. Equity jumped from IDR 979.91 billion to IDR 1.66 trillion.
“We hope that our operating income will grow quite well and reach IDR 6 trillion. We also hope that HILL’s performance in the second quarter will grow from last year’s period,” he said.
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