Apple's Commitment Investment in Indonesia

Apple's Commitment Investment in Indonesia
Apple signed an MoU with Indonesia's Ministry of Industry, securing the TKDN certificate for iPhone 16. The agreement includes: (1) Commitment to the "scheme three" investment model; (2) Settlement of a USD 10mn investment obligation from 2020-2023; (3) New USD 150 mn investment by ICT Luxshare in Batam for AirTags production; (4) AirPods Max component production in Bandung through Long Harmony; (5) A new investment scheme worth at least USD 160mn; (6) An R&D center in KEK BSD, Tangerang, Apple's first in Asia; (7) A manufacturing roadmap until 2029; (8) Third-party monitoring; (9) TKDN certification for iPhone 16 to be issued soon. (Bloomberg Technoz)

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BCAS: ITMG – FY24 results –Missed ours but beat street estimates

- FY24 earnings decreased by 25.2% YoY to USD374mn, we deemed the result below ours but above Consensus as it formed 92%/102% respectively. 4Q24 earnings changed by -29.8.7% QoQ and +7.0% YoY to USD101mn. The result was missed due to FX loss of USD11mn in FY24 vs. USD6.2mn FX gain in 9M24.
- FY24 revenue decreased by 2.9% YoY to USD2.3bn, forming 98% of our forecast and 101% of consensus. 4Q24 revenue increased by 6.5% QoQ and 18.2% YoY to USD647mn.
- FY24 sales Volume increased by 14.8% YoY to 24Mt, but ASP declined by 3.4% to USD95/t. 4Q24 sales volume increased by 9.5% QoQ and 23.2% YoY to 6.9Mt.4Q24 ASP decreased by 3.1% QoQ and 4% YoY to USD93/t.
- FY24 cash cost decreased by 10.5% YoY to USD73/t. 4Q24 cash cost decreased by 7.7% QoQ and 11.5% YoY to 66Mt.