Remember when Chagee went viral? Crowds were lining up in malls, everyone was posting their cups on social media, and suddenly it became the drink everyone had to try. What many people don’t realize is that behind this hype is Erajaya (ERAA), a company most of us used to think of as just a phone retailer.

That picture has changed completely. Today ERAA is no longer only about gadgets. The company has been transforming itself by stepping into lifestyle, F&B, and even electric vehicles (EVs). This move matters because lifestyle and F&B businesses naturally offer fatter margins, while EVs open the door to one of the most exciting growth markets in Indonesia.

 

Through its subsidiary ERAL, ERAA is now the exclusive distributor of Xpeng. The market reaction has been huge. More than 800 units have already been pre-ordered, which is almost the full-year 2025 target achieved in advance. With six showrooms already operating and more expansion in the pipeline, this segment has the potential to become a powerful new growth engine.

On the lifestyle side, brands like Chagee and Bacha Coffee are proving how consumer trends can translate into higher margins and stronger brand equity. These products pull in customers, build traffic, and deliver profitability that handset sales alone cannot. With these pillars combined, ERAA is building a business model that is more resilient and much more exciting for the long run.

Our analyst highlights that ERAA is still trading at only 6.3x forward PE, well below the retail sector average. The target price has been raised to IDR 700 per share, reflecting the stronger growth outlook from these new businesses.

 

From a viral cup of tea to the fast-growing EV market, ERAA is reshaping its story into a lifestyle and innovation play. This is the kind of transformation that investors usually want to get on board with early, before the market fully catches up.