Analysts See Singaraja Putra Deal as CUAN Bet on Diversified Holding

JAKARTA, Investortrust.id — Petrindo Jaya Kreasi or CUAN has entered talks to acquire Singaraja Putra or SINI on Monday, Dec 29, 2025 in Jakarta as part of a strategy to reduce reliance on coal and reposition itself as a more diversified holding company, a move analysts say could stabilize earnings and support premium valuations.

Market analysts said the planned acquisition went beyond simple expansion and reflected CUAN’s effort to broaden its business base from a commodity focused miner into a multi sector holding structure.

In a disclosure to the Indonesia Stock Exchange on Monday, management said CUAN, through its subsidiary PT Kreasi Jasa Persada and affiliated entities, already held an indirect 19.99 percent stake in SINI, providing a foothold for takeover negotiations.

Nafan Aji Gusta, senior investment information analyst at Mirae Asset Sekuritas, said the move aimed to cut CUAN’s dependence on a single commodity that had long dominated its revenue base.

“This is a transformation from a mining holding into a more diversified holding,” Nafan said. “The goal is to reduce dependence on certain commodities that have been CUAN’s core business, so the company can be more diversified.”

He added that a stronger focus on non commodity businesses could help smooth earnings volatility. “If CUAN can focus on non commodity segments, it can better maintain revenue stability, and that is crucial for stabilizing net profit,” he said.

On CUAN’s premium valuation, Nafan said market pricing already reflected expectations of business transformation. “CUAN’s valuation is very premium, and that means the transformation from a mining holding into a more diversified holding has largely been priced in,” he said.

A similar view was shared by Wahyu Laksono, a capital market analyst at Traderindo, who said the SINI acquisition marked a new phase in CUAN’s evolution from a coal producer into a diversified energy and infrastructure group.

“This transformation is not just about moving away from commodities, but about building an integrated ecosystem,” Wahyu said. “With portfolios spanning metallurgical coal, gold, mining services, and now infrastructure and accommodation through SINI, CUAN is building stronger operational leverage.”

He said the addition of SINI could reduce CUAN’s exposure to thermal coal price swings, as SINI’s lodging and supporting assets near industrial and mining zones could generate synergies across the Prajogo Pangestu group’s large scale projects.

From a cash flow perspective, Wahyu said hospitality and services businesses tended to offer more predictable income than cyclical coal prices, making SINI a potential buffer during commodity downturns.

“In the medium term, service based revenue from SINI and PTRO is expected to balance group income so it is no longer dominated by a single entity,” he said. “In theory, a more balanced revenue structure reduces net profit volatility.”

Wahyu added that companies with recurring income streams typically commanded higher valuation multiples than pure commodity plays, opening the door for sustained premium valuation if CUAN executed well.

However, analysts also warned of execution risks, including cultural integration between mining operations and hospitality services, management focus dilution from over diversification, and the risk of overpaying for assets if expected synergies failed to materialize.

“Overall, this is CUAN’s attempt to shed its coal only label and become an infrastructure and energy issuer,” Wahyu said. “The stability of cash flows from SINI will depend on how effectively those assets are integrated for internal group needs and the external market.”