$HRTA IJ MNC Sekuritas Equity Report

Leveraging Bullion Bank Tailwinds to Sustain Double-Digit Growth

Key Takeaways :
- FY24 Performance: HRTA posted a strong net profit of IDR442.2 billion (+44.6% YoY), reaching 128.4% of the full-year target. Revenue grew +41.8% YoY to IDR18.2 trillion, driven by a +59% YoY increase in gold sales volume. Net profit margin held steady at 2.4% thanks to an -8.1% YoY drop in OPEX.
- Strategic Partnerships: HRTA’s subsidiary, PT Emas Murni Abadi (EMA), secured gold refining and trading contracts totaling 9.3 tons/year with BRMS subsidiaries and PT Agincourt Resources (UNTR Group). Refining capacity expanded to 12 tons/year in FY24, with 22% capacity still available—opening room for further growth.
- Gold Industry Outlook: Indonesia’s planned bullion bank is expected to boost national gold demand by +9–19% YoY (to 58–63 tons/year). Gold-backed financial products like BRIS’s “Cicil Emas” are surging (+174% YoY), offering a new revenue stream for HRTA.
- FY25 Projections: Gold price estimates were revised up to USD3,305/oz (from USD2,900) due to trade war concerns and inflation. HRTA is expected to benefit from a +20% increase in ASP and +33% rise in volume, pushing revenue and net profit up +59.6% and +33.8% YoY.
- Recommendation: Maintain BUY with a higher target price of IDR740/share (FY25F PE: 5.8x, PBV: 1.2x). Risks include potential increases in mining royalties or tariffs, which may affect raw material costs and selling prices.

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