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ACCORD CAPITAL EQUITIES CORPORATION

COMPANY REPORT: NICKEL ASIA CORPORATION - IPO


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PRICE (trade date) Price Range (Offer) PHP PE Ratio (TTM) Dividend Payout (3 yr average) Outstanding Shares % Free Float

989,656,828 common
N/A 14.95 – 23.00 n/a 34.12% N/A
720,000,000 preferred

COMPANY PROFILE:
The Company resulted from the February 2009 merger of Nickel Asia Corp BVI and Nickel Asia Corporation (Parent) with the latter as the surviving entity. The
Parent is primarily engaged in “investing in and holding of assets of every kind and description and wherever situated.” The acquired company meanwhile was
incorporated to “acquire and hold the nickel mining and processing assets of members of the founding shareholders.” The Parent's authorized capital stock is divded
into 1,585,600,000 common shares at php0.50 par and 720,000,000 preferred at par php0.01. Of these, 989,656,828 common and 720M preferred are outstanding
while 132,991,182 common shares are held in Treasury.

OVERVIEW: % OF TOL % OF TOL SHARES


OWNER SHARES HELD
COMMON OUT OUT
The Company boasts of being one of the largest global suppliers of
laterite nickel ore and the largest nickel miner in the Philippines, Manuel B Zamora Jr 303,976,910 30.72% 17.78%
accounting for over half of last year's exports of nickel ore. It utilizes a
low-cost open pit mining method in its four (4) sites – Rio Tuba Sumitomo Metal Mining 243,658,910 24.62% 14.25%
(Batarza, Palawan), Taganito (Claver), Cagdianao(Brgy. Valencia, Co. Ltd
Cagdianao) and Taganaan (Hinatuan Island) (all in Surigao del Norte).
Luis JL Virata 176,381,559 17.82% 10.32%
Its principal customers for its produce are Pacific Metals Co. Ltd
(PAMCO), a stockholder; Coral Bay Nickel Corporation (CNBC), an Philip T. Ang 152,933,704 15.45% 8.95%
affiliate and certain Chinese customers. Sales to “related parties”
accounted for an average of 70% of the total over the last two years.
Nickel Asia Corporation owns 60% of Rio Tuba with PAMCO holding PER SHARE DATA
36% and Sojitz the remaining 4%. It owns 65% of Taganito (PAMCO
33.5%, Sojitz 1.5%) and 100% of both Cagdianao and Taganaan. 2010 (1h) 2009 2008 2007

Even as 2009 revenues was -19.5% lower than the preceding period, a BOOK VALUE 28.780 29.820 34.740 380.160
doubling of net margins on sales resulted to a 69% net income growth. EARNINGS 1.6800 0.7700 0.4400 13.5600
This has enabled the Company's management to increase ROE to
7.74% from 1.26%, despite consistently lower asset utilization Dividend Payout (% of Net Income) 64.53% 144.82% 34.38% 28.37%
(turnover) ratio over through 1h 2010. Asset leverage has been kept at
manageable levels, with Long-Term Debt to Assets at only between 2- PE (based on trailing year EPS) n/a n/a n/a n/a
3%. n/a n/a n/a n/a

INCOME DATA ( in millions PHP)

Year Ended Revenues/ Sales EBIT Net Income NPM %

2010 (1h) 4,686.726 629.773 302.887 33.55%

2009 4,686.726 629.773 302.887 6.46%

2008 5,827.077 1,922.015 179.208 3.08%

2007 16,572.344 9,666.961 5,318.756 32.09%

BALANCE SHEET DATA ( in millions PHP)

Year Ended Current Ratio Quick Ratio Debt Ratio Basic Earning Power ROA ROE

2010 (1h) 9.100 7.730 0.180 8.69% 6.34% 7.74%

2009 9.640 8.160 0.130 3.85% 1.82% 2.12%

2008 7.720 6.200 0.150 11.41% 1.00% 1.28%

2007 3.460 2.830 0.270 50.83% 55.93% 76.65%

Considerations: Based on its presentations in its preliminary prospectus, demand for primary nickel in stainless steel worldwide is seen to grow 6.2% and 1.2% in the
next two years. For non-stainless steel primary nickel, demand is estimated to grow 9.0% and 6.6% in 2011 and 2012, respectively. The Philippines exported 9.971M
wet metric tonnes of nickel ore and concertrates last year and the Company claims at least half of this trade. Nickel prices are anticipated to hold steady through the
next two years, marginally rising to the $11.00 per pound from 2009's $6.7/lb and 2010 estimate of $9.8/lb. Its strategic partnership with its shareholders-customers,
presents it with an assured market covered by long-term supply agreements – not to mention its expanding relationship with the Chinese market to which it began
selling to in 2005. The fact that the Company has several operating mines which have produced a consistent revenue stream makes the issue an attractive proposition,
both as a “traditional” IPO-play and/or a long-term investment.

DISCLAIMER: THE MATERIAL CONTAINED IN THIS PUBLICATION IS FOR INFORMATION PURPOSES ONLY. IT IS NOT TO BE REPRODUCED OR COPIED OR
MADE AVAILABLE TO OTHERS. UNDER NO CIRCUMSTANCES IS IT TO BE CONSIDERED AS AN OFFER TO SELL OR A SOLICITATION TO BUY ANY
SECURITY. WHILE THE INFORMATION HEREIN IS FROM SOURCES WE BELIEVE RELIABLE, WE DO NOT REPRESENT THAT IT IS ACCURATE OR COMPLETE
AND IT SHOULD NOT BE RELIED UPON AS SUCH. IN ADDITION, WE SHALL NOT BE RESPONSIBLE FOR AMENDING, CORRECTING OR UPDATING ANY
INFORMATION OR OPINIONS CONTAINED HEREIN. SOME OF THE VIEWS EXPRESSED IN THIS REPORT ARE NOT NECESSARILY OPINIONS OF ACCORD
CAPITAL EQUITIES CORPORATION ON THE CREDIT-WORTHINESS OR INVESTMENT PROFILE OF THE COMPANY OR THE INDUSTRIES MENTIONED.
ACCORD CAPITAL EQUITIES CORPORATION
COMPANY REPORT: NICKEL ASIA CORPORATION - IPO
Outlook: Subscribe

SUMMARY OF THE OFFER:

DISCLAIMER: THE MATERIAL CONTAINED IN THIS PUBLICATION IS FOR INFORMATION PURPOSES ONLY. IT IS NOT TO BE REPRODUCED OR COPIED OR
MADE AVAILABLE TO OTHERS. UNDER NO CIRCUMSTANCES IS IT TO BE CONSIDERED AS AN OFFER TO SELL OR A SOLICITATION TO BUY ANY
SECURITY. WHILE THE INFORMATION HEREIN IS FROM SOURCES WE BELIEVE RELIABLE, WE DO NOT REPRESENT THAT IT IS ACCURATE OR COMPLETE
AND IT SHOULD NOT BE RELIED UPON AS SUCH. IN ADDITION, WE SHALL NOT BE RESPONSIBLE FOR AMENDING, CORRECTING OR UPDATING ANY
INFORMATION OR OPINIONS CONTAINED HEREIN. SOME OF THE VIEWS EXPRESSED IN THIS REPORT ARE NOT NECESSARILY OPINIONS OF ACCORD
CAPITAL EQUITIES CORPORATION ON THE CREDIT-WORTHINESS OR INVESTMENT PROFILE OF THE COMPANY OR THE INDUSTRIES MENTIONED.