Adaro Andalan Distributes US$250 Million Interim Dividend, Analysts See Double Digit Upside
Key Takeaways
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JAKARTA, Investortrust.id — Coal miner PT Adaro Andalan Indonesia Tbk, or AADI, has approved the distribution of an interim cash dividend totaling US$250 million for the 2025 fiscal year, following a board meeting held on Friday, Nov. 7, 2025.
The company emphasized that the dividend is a pure cash payout, with no equity-linked component or convertible instruments. The decision was backed by AADI’s strong financial position as of Sept. 30, 2025, with net profit attributable to the parent entity reaching US$587.32 million and unrestricted retained earnings of US$972.16 million.
AADI recorded revenue of US$3.60 billion for the first nine months of 2025, down from US$4.04 billion a year earlier. Operating profit also declined to US$810.55 million from US$1.24 billion, while profit for the period fell from US$1.16 billion to US$654.86 million.
Despite the contraction, the company maintained a robust cash position of US$1.41 billion at the end of the period, ensuring liquidity to fund dividends and ongoing operations.
According to Mandiri Sekuritas analysts Ariyanto Kurniawan and Vanessa Taslim, AADI’s net profit of US$587.3 million for the nine-month period remained in line with company and consensus expectations, even amid lower coal prices and rising production costs.
“The earnings decline was mainly driven by a lower average selling price and a higher stripping ratio that pushed up mining costs. Nevertheless, performance remains within the company’s target range,” they wrote in their latest note.
Reflecting continued confidence in the miner’s fundamentals, Mandiri Sekuritas maintained its buy recommendation on AADI with a target price of Rp 10,500 per share, citing the company’s competitive cost structure and disciplined production strategy as key drivers for medium-term strength.
Valuation Overview
Based on InvestingPro data, PT Adaro Andalan Indonesia Tbk (AADI) is currently trading at Rp 8,525 per share, reflecting a 1.73% decline on the latest trading day. The stock has moved within a 52-week range of Rp 5,575 to Rp 11,375, suggesting a resilient price floor despite market volatility in the energy sector.
The platform’s average fair value estimate stands at Rp 11,163.66, implying an upside potential of about 31% from the current market price, with a medium level of uncertainty. Consensus data compiled from 10 analysts places the target price at Rp 10,605, with projections ranging between Rp 7,531 and Rp 15,212, indicating broad optimism toward AADI’s medium-term prospects.
Twelve independent valuation models on InvestingPro yield a range between Rp 5,862 and Rp 16,608, reinforcing the view that the stock remains undervalued relative to its intrinsic worth. The company’s financial profile also appears solid, as it holds more cash than debt, maintains liquid assets exceeding short-term obligations, and demonstrates consistent profitability.
Disclaimer: The valuation data and fair-value estimates referenced above are sourced from InvestingPro, as of the time of publication on November 9, 2025. Figures, analyst targets, and valuation ranges may have changed since that time. Investors should verify current market data before making any investment decisions.
On the health metrics, AADI scores 4 out of 5 for overall financial performance, reflecting strong profitability, cash-flow health, and relative value within Indonesia’s energy sector. Its peers include PT Indo Tambangraya Megah Tbk (ITMG), PT ABM Investama Tbk (ABMM), and PT Bayan Resources Tbk (BYAN), placing AADI among the leading integrated coal players with diversified logistics operations.
While near-term earnings may fluctuate in line with global coal prices and operational stripping ratios, the company’s strong balance sheet and steady cash generation support continued dividend capacity and potential re-rating toward analyst target levels.