PT Merdeka Battery Materials: SCM strength drives recovery yet outlook hinges on RKAB

Research evidence excerpt

PT Merdeka Battery Materials: SCM strength drives recovery yet outlook hinges on RKAB

Accessible version

PT Merdeka Battery Materials

SCM strength drives recovery yet outlook

hinges on RKAB

Maintain Rating: NEUTRAL | PO: 580.00 IDR | Price: 494.00 IDR

1Q26: results broadly in-line 29 June 2026

PT Merdeka Battery Materials (MBM) reported 1Q26 results with revenue of US$455mn Equity

(+24% YoY), driven by higher nickel ore volumes and ASPs. EBITDA rose 361% YoY to

US$143mn, supported by stronger NPI margins. NPATMI came in at US$30mn, reversing Jessie Lo >> Research Analyst

from a US$3.5mn attributable loss in 1Q25. Despite the earnings recovery, the outlook Merrill Lynch (Singapore)

remains contingent on RKAB approval, implementation of the HPM pricing mechanism, +65jessie.lo@bofa.com6678 1134

and cost pressure from higher diesel and B50 adoption. Maintain Neutral. Mcrid Wang >>

Research Analyst

SCM Mine: production remain key driver Merrill+65 6678Lynch5603(Singapore)

SCM continues to anchor earnings. Despite typical 1Q seasonality, saprolite sales grew mcrid.wang@bofa.com

42% YoY and limonite rose 126% YoY. Cash margins improved on better pricing. SCM’s

strategic value should increase under tighter Indonesian ore policies and the revised

HPM framework, which enhances upstream pricing discipline and ore self-sufficiency. Stock Data

However, margins may see pressure from higher diesel costs/B50 rollout in 2Q/3Q.

Price 494.00 IDR

Price Objective 580.00 IDRNPI margin expansion, HGNM resumed

NPI profitability improved YoY, supported by post-maintenance normalization, higher Date Established 29-May-2026

ASPs and greater use of self-supplied ore. MBM recorded NPI sales of ~20kt, with ASP Investment Opinion C-2-9

of US$13.4k/t and cash margin of US$4.0k/t.