After experiencing a significant correction, CUAN has started to show exactly why the market continues to place massive expectations on its trajectory. Its Q1 2026 performance provided undeniable evidence of this momentum, with revenue climbing 73.6% YoY to USD 371 million and net profit surging an impressive 232.7% YoY. Driven by these stellar numbers, our analyst has confidently initiated coverage with a BUY recommendation and a target price of Rp2,030, representing a massive 182% upside from the current price level.
 

What makes CUAN’s story so compelling is that its future growth is no longer solely at the mercy of global coal prices. Management is taking aggressive operational steps, aiming to ramp up production to 16 million tons by 2028, bolstered by the strategic development of a new hauling road and the activation of several fresh mining projects. Alongside this volume expansion, its mining contractor subsidiary, PTRO, is perfectly positioned to deliver robust earnings growth, fueled by higher operational work volumes and significant margin expansion.
 

Beyond the aggressive expansion in coal, CUAN is strategically building out highly lucrative, recurring revenue streams. The 680 MW power plant in East Halmahera, now in its final commissioning stage, is projected to inject around USD 328 million in annual revenue with an exceptional EBITDA margin of roughly 40%, offering a solid diversification anchor for the entire group.

The nearest catalyst comes from the potential increase in ownership of SINI through a rights issue scheduled for June–July 2026. If this transaction materializes, CUAN could join the ranks of Indonesia’s largest coal producers while significantly expanding its reserves. Notably, SINI’s contribution has not yet been included in our analyst’s base-case projections, leaving room for additional upside amid increasingly attractive valuations.