Adaro Andalan Profits Surge Past Estimates, Setting Up Stock for a 24% Rally
Key Takeaways
|
JAKARTA, Investortrust.id — Coal producer PT Adaro Andalan Indonesia Tbk (AADI) delivered a forecast-beating first-half earnings surge, setting the stage for institutional brokers to project an aggressive 24% upside in the stock.
The mining heavyweight saw shares surge 19.07% over the past month to Rp 10,925 ($0.69), tracking bottom-line strength that blew past consensus expectations. Consolidated revenue for the first six months of 2026 expanded to $2.54 billion from $2.39 billion in the prior-year period, pushing operating income up 9.4% to $666.54 million.
Global resource investors are closely tracking whether Indonesian thermal producers can protect cash flow against softer export volumes. Adaro Andalan demonstrated that resilient benchmark realized prices can safeguard operating spreads, offering high-dividend regional exposure while mining operators pivot capital into balance-sheet affiliate lending.
Pricing Power Trumps Volume Slump
Net profit attributable to equity holders advanced 10.51% to $473.76 million, proving that commercial contract pricing shielded the enterprise from marginal volume declines across regional shipping lanes.
"The rise in average selling price was the primary factor supporting AADI's earnings performance throughout the first half of 2026," Mandiri Sekuritas analysts Ariyanto Kurniawan and Vanessa Taslim wrote in an equity research report. "AADI's average selling price gained 10% year-on-year, counteracting a 1% decline in sales volume and lifting net profit beyond our forecasts."
Street Eyes Extended Bull Run
Brokerage house Mandiri Sekuritas reaffirmed its top-tier "Buy" recommendation on the ticker, locking in a target price of Rp 13,500 ($0.85) per share.
The projection leaves room for an additional 23.56% upside from its midday closing mark on the Indonesia Stock Exchange. Total net income for the operational period advanced 8.96% to $524.43 million, reinforcing dividend sustainability as institutional desks lift earnings multiples for the second half of the year.