Darma Henwa Stock Revised Higher as KPC Mine Operations Start in 2026

JAKARTA, Investortrust.id — PT Darma Henwa Tbk or DEWA prepares to take over full mining operations at KPC’s Bengalon site on Monday, Dec 22, 2025 in East Kalimantan as its subcontractor contract expires, a move expected to lift production visibility and earnings from 2026 onward. The transition supports a stronger contract pipeline and has prompted analysts to revise the stock’s target price higher.

Henan Putihrai Sekuritas raised its target price for DEWA to Rp 750 from Rp 500 and reiterated a buy recommendation, implying upside of more than 28 percent from the recent close. The brokerage cited clearer earnings visibility following the Bengalon takeover.

Analyst Irsyady Hanief said DEWA planned capital expenditure of about Rp 1 trillion in 2026 to procure 30 to 35 new trucks and reorganize the Bengalon site to support an electric vehicle based mining fleet. The transition was expected to take around six months, including site clearing and rebuilding, before reaching full operations with about 790 additional workers.

Beyond Bengalon, DEWA pursued additional contracts, including one from Arutmin and two other opportunities outside the KPC Arutmin ecosystem. Management estimated each additional 50 million bcm of overburden removal capacity would require equipment capex of around Rp 3.4 trillion to Rp 4.0 trillion.

To support expansion, DEWA evaluated short term debt instruments and explored forming a loan syndication to strengthen liquidity for working capital and capital spending. The effort was backed by improving balance sheet flexibility following an ongoing equity reclassification process.

Henan Putihrai raised its overburden removal forecast to around 158 million to 164 million bcm for 2026 to 2027, lifting revenue projections by 10.9 percent for 2026 and 16.5 percent for 2027. However, large equipment capex was expected to limit margin expansion, keeping profit growth more moderate.

The brokerage estimated DEWA’s 2026 EBITDA would be 31.7 percent below consensus, while net profit would be 18.4 percent lower, despite revenue estimates broadly in line. The gap reflected higher depreciation and financing costs during the expansion phase.

DEWA’s equity reclassification related to retained losses had received in principle approval and was under review with the Financial Services Authority and external auditors. The adjustment involved Rp 2.2 trillion linked to foreign exchange differences previously recognized as gains, even though operations were domestic, with final approval targeted alongside completion of non productive asset impairment in the fourth quarter of 2025.

Separately, Mandiri Sekuritas lifted its 2026 to 2027 earnings estimates by 10.1 percent to 11.7 percent and raised its target price to Rp 700 per share while maintaining a buy rating. DEWA shares closed at Rp 560 in the latest session, supported by expectations of stronger production and contract growth from 2026.