The Indonesia Stock Exchange has halted trading in PT Pelat Timah Nusantara Tbk (NIKL) shares. This suspension comes in light of a significant increase in cumulative prices.
For context, NIKL's stock price skyrocketed by 136.74% in the month leading up to the suspension. NIKL shares soared to 625 on March 19, 2024, from 264 on February 21, 2024.
The CEO of PT Pelat Timah Nusantara Tbk (NIKL), Jetrinaldi, stated that he was unaware of and had not received any information regarding rumors about the company.
He attributed the surge in stock prices to market mechanisms related to supply and demand dynamics on the Indonesia Stock Exchange.
Regarding the suspension, NIKL's stock price remains untradeable until further notice from the Exchange.
"The suspension initiated by the Exchange aims to mitigate risks for market participants or investors," he said during an ad-hoc Public Expose, quoted on Friday (22/3/2024).
Meanwhile, the company's stock price movement contrasts with its performance. The company incurred a reversal to a loss of US$3.66 million throughout 2023. This is despite recording a profit of US$7.12 million the previous year.
According to financial reports, NIKL also experienced a decrease in sales to US$171.08 million throughout 2023, plummeting by 33% year-on-year.
Jetrinaldi explained that the profit decline aligned with a decrease in domestic demand. "Demand dropped by around 21.12%, causing prices to fall," he said.
NIKL has endeavored to diversify its segments into general cans to maximize production utility and market share. However, the margin from the general cans segment is lower compared to the food segment.
Looking ahead, Jetrinaldi stated that the board has been tasked with ensuring that the conditions of 2023 do not recur this year. Therefore, NIKL consistently seeks guidance from the Ministry of Industry, as the industry regulator, to improve performance in 2024.
Furthermore, various efficiency efforts have been undertaken by NIKL, including in packaging and transportation. Additionally, good cooperation and relations with the Indonesian Canned Packaging Manufacturers Association (APKKI) are sought to improve joint performance in the future.