Sunindo Pratama (SUNI) Maintains Strong Profitability Despite Lower Q3 Revenue
Key Takeaways
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JAKARTA, Investortrust.id — PT Sunindo Pratama Tbk, or SUNI, one of Indonesia’s key oil and gas equipment distributors and manufacturers, has maintained solid profitability in the third quarter of 2025 even as revenue and profit slightly declined year-on-year.
The company booked a net profit of Rp146 billion, down 13% YoY, primarily due to lower sales volumes of oil country tubular goods (OCTG) casing. Still, this figure already represents 85% of the revised full-year net profit target, reflecting resilience amid market headwinds.
SUNI posted operating revenue of Rp715 billion, falling 11% YoY from the same period last year and achieving 75% of its revised annual target. The company said demand for OCTG tubing remained stable, offsetting part of the casing decline. OCTG sales volume in Q3 was stronger than in the first half, supporting overall 2025 performance.
From 2021 to 2024, SUNI delivered a compound annual growth rate (CAGR) of 63% in net profit and 35% in revenue, underscoring strong growth momentum prior to this year’s normalization.
Solid Financial Position and Ongoing Expansion
Despite distributing dividends and conducting share buybacks, SUNI’s equity rose 5% YoY to Rp817 billion as of the third quarter. While total bank debt increased in line with progress on its second manufacturing facility, the company kept its Debt-to-Equity Ratio (DER) at 0.46x, well below the 2.5x maximum covenant threshold.
SUNI generated positive operating cash flow of Rp105 billion, though this was 57% lower YoY, mainly due to inventory advances. Investment spending reached Rp164 billion, up 2% YoY, primarily to continue the construction of Plant 2 of PT Rainbow Tubulars Manufacture (RTM) in Batam.
From financing activities, the company booked a net cash outflow of Rp53 billion, marking a 318% YoY increase as a result of active share buybacks.
Expansion Through RTM and Joint Venture with China’s JMP
President Director Willy Johan Chandra said SUNI remains on track to meet its strategic targets. “Although Q3 results declined from last year, SUNI is still on its expected growth trajectory and delivering solid profitability. Average sales and profit in recent years remain healthy and aligned with our strategic plan,” he said.
Willy added that most casing shipments from previously awarded tenders were completed last year. “We are now focusing on winning new tenders while expanding our in-house production capacity through RTM,” he said.
The second RTM plant is targeted to begin operations in 2026. Physical construction is nearly complete, with machinery installation already underway and preparations for API certification in progress. This expansion is expected to enhance operational and financial performance while ensuring the national availability of OCTG tubing.
Operations Director Bambang Prihandono noted that SUNI has begun developing new products to capitalize on upcoming capacity expansion. “At the end of 2024, we completed a workshop for wellhead and x’mas tree products under a joint venture with Jiangsu Jinshi Machinery Group (JMP), forming PT Petro Sinergy Manufacturing (PSM),” he said.
PSM has started commercial operations and will serve as SUNI’s second strategic asset, producing wellhead and x’mas tree systems that meet local content (TKDN) and international API standards at competitive prices. “After receiving API and TKDN certifications, PSM is expected to further strengthen its capabilities and contribute to SUNI’s performance,” Bambang added.
Capital Expenditure and Profit Target
Finance Director Freddy Soejandy said the strong Q3 results helped SUNI reach 85% of its 2025 profit target. “The company spent Rp164 billion in capital expenditure during Q3 2025 for the completion of RTM’s second plant, out of a total planned Rp205 billion capex for the year,” he said.
Disclaimer: This valuation is derived from InvestingPro models and analyst consensus as of late October 2025. It is provided for informational purposes only and does not constitute investment advice or a recommendation to buy, hold, or sell any security. Market prices and financial data are subject to change without notice.
Valuation and Outlook
Based on InvestingPro data, SUNI’s fair value averages Rp847 per share, implying a 7.2% upside from its current market price of Rp790. The model range spans Rp539 to Rp1,235, with low uncertainty and 13 analyst-based valuation models supporting the projection.
The company also shows a strong balance sheet, with more cash than debt, and has raised dividends for three consecutive years. SUNI trades at a low earnings multiple relative to peers.
Management’s active share buyback program and consistent reinvestment in production capacity reflect confidence in long-term fundamentals. With the oil and gas sector’s local content push and the 2030 production target, SUNI is positioned as a key domestic supplier of OCTG tubing and related components.
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