May 01, 2025
Sevenfold Growth

Market Commentary
0 comments
DEWA delivered a stunning +763% YoY earnings growth amounting IDR 68.9bn (+763% yoy / +901% qoq), beating our full year estimate by 224%. This was primarily driven by margin expansion as it leveraged its own equipment for overburden removal. 

Amidst the current situation, these kinds of catalysts are very likely to drive the stock price through the roof, as investors are desperate for positive sentiment.
 
DEWA's Share Price Performance


Revenue increased by 9% YoY to IDR 1.6tn, in line with our projections, while gross profit rose sharply by 75% YoY, resulting in a higher gross margin of 15.6% compared to 9.7% in 1Q24. This improvement was driven by enhanced operational efficiency and reduced input costs.

Operating profit grew significantly by 208% YoY to IDR 185bn, supported by a 24% YoY decline in operating expenses. Consequently, the operating margin expanded to 11.7%, up from 4.1% in 1Q24, indicating improved cost management.
 


We maintain our positive outlook on DEWA’s multi-year turnaround, backed by expanding margins, a healthier balance sheet, and growing scale in in-house contracting. Reiterate BUY, TP Rp300/share.

Comments


Contact Us
We are happy to answer any questions you may have
Address
Sahid Sudirman Center
Jalan Jend. Sudirman Kav.86, Lantai 12
Karet Tengsin, RT.10/RW.11
Daerah Khusus Ibukota Jakarta
10220