WED 28 NOV 2018

Nickel Asia Corporation

NIKL board approves share buyback

program

NIKL board approves share buyback program

BUY
NIKL announced yesterday that its Board of Directors has approved a share buy-back program. TICKER: NIKL
The term of the program will be for be for 24 months from December 03, 2018 to December 02, PHP3.20
2020, and the amount is up to Php1.5Bil worth of common shares. This will be done using NIKL’s
existing cash on hand. The objectives of the buy-back program are to enhance shareholder
value and manifest confidence in the company’s inherent value and long term prospects.

Assuming the average buy-back price of Php2.20/sh, the Php1.5Bil program will allow the
company to acquire 682Mil common shares equivalent to 5% of the company’s outstanding
shares. We believe that this will be able to enhance shareholder value as NIKL’s current market
price is trading at a steep 31% discount to its fair value.

Maintaining BUY rating

We have a BUY rating on NIKL with a FV of Php3.20/sh. While the relaxation of Indonesia’s ore
export ban will likely continue to put a downward pressure on negotiated contract prices, we
believe that NIKL’s earnings could remain resilient given its ability to increase production volume
and shift its focus to higher value ore. At its current price of Php2.2/sh, upside to our FV estimate
is significant at 42%.

GEORGE CHING
SENIOR RESEARCH MANAGER
george.ching@colfinancial.com

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 ALERT I NIKL: NIKL BOARD APPROVES SHARE BUYBACK PROGRAM

WED 28 NOV 2018

IMPORTANT RATING DEFINITIONS

BUY
Stocks that have a BUY rating have attractive fundamentals and valuations based on our analysis. We expect the share price to outperform the market in the next six to
12 months.

HOLD
Stocks that have a HOLD rating have either 1) attractive fundamentals but expensive valuations 2) attractive valuations but near-term earnings outlook might be poor
or vulnerable to numerous risks. Given the said factors, the share price of the stock may perform merely in line or underperform in the market in the next six to twelve
months.

SELL
We dislike both the valuations and fundamentals of stocks with a SELL rating. We expect the share price to underperform in the next six to12 months.

IMPORTANT DISCLAIMER
Securities recommended, offered or sold by COL Financial Group, Inc. are subject to investment risks, including the possible loss of the principal amount invested.
Although information has been obtained from and is based upon sources we believe to be reliable, we do not guarantee its accuracy and said information may be
incomplete or condensed. All opinions and estimates constitute the judgment of COL’s Equity Research Department as of the date of the report and are subject to change
without prior notice. This report is for informational purposes only and is not intended as an offer or solicitation for the purchase or sale of a security. COL Financial and/
or its employees not involved in the preparation of this report may have investments in securities of derivatives of the companies mentioned in this report and may trade
them in ways different from those discussed in this report.

COL RESEARCH TEAM

APRIL LYNN TAN, CFA

VP & HEAD OF RESEARCH
april.tan@colfinancial.com

CHARLES WILLIAM ANG, CFA GEORGE CHING RICHARD LAÑEDA, CFA

DEPUTY HEAD OF RESEARCH SENIOR RESEARCH MANAGER SENIOR RESEARCH MANAGER
charles.ang@colfinancial.com george.ching@colfinancial.com richard.laneda@colfinancial.com

ANDY DELA CRUZ JOHN MARTIN LUCIANO FRANCES ROLFA NICOLAS

SENIOR RESEARCH ANALYST SENIOR RESEARCH ANALYST RESEARCH ANALYST
andy.delacruz@colfinancial.com john.luciano@colfinancial.com rolfa.nicolas@colfinancial.com

JUSTIN RICHMOND CHENG ADRIAN ALEXANDER YU

RESEARCH ANALYST RESEARCH ANALYST
justin.cheng@colfinancial.com adrian.yu@colfinancial.com

COL FINANCIAL GROUP, INC.

2402-D EAST TOWER, PHILIPPINE STOCK EXCHANGE CENTRE,
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