Darma Henwa Stock Target Raised, Upside Potential Hits 114.7%
Key Takeaways
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JAKARTA, Indonesia – PT Darma Henwa Tbk, a publicly listed mining services contractor (IDX: DEWA), is expected to deliver significantly improved earnings this year, prompting Sucor Sekuritas to revise its financial forecasts and stock target upward.
In a research report released Tuesday, May 27, 2025, Sucor Sekuritas raised its net profit projections for DEWA to Rp 247 billion ($15.4 million) in 2025 and Rp 475 billion ($29.6 million) in 2026. The brokerage also raised its 12-month price target to Rp 350 per share, maintaining a "buy" recommendation. Based on Monday’s closing price of Rp 163, the revised target implies a potential upside of 114.7%.
“DEWA is entering the early phase of a stronger operational cycle. Its strategic shift from subcontracted heavy equipment operations to in-house project execution is a key driver,” wrote Ahmad Yoga Gifari, analyst at Sucor Sekuritas.
Strong Q1 Earnings Support Revisions
Darma Henwa posted robust earnings in the first quarter of 2025, with revenue rising 9% year-on-year to Rp 1.58 trillion ($98.4 million), up from Rp 1.45 trillion in the same period last year. Net profit surged by 763%, from Rp 8 billion to Rp 68.9 billion ($4.3 million).
This performance is seen as an early result of the company’s ongoing business transformation and recent capital investments.
Strategic Heavy Equipment Deal
The company previously announced a strategic investment deal worth Rp 942.21 billion ($58.6 million) to acquire heavy equipment from PT XCMC Group Indonesia. This procurement is aimed at supporting future in-house project execution and expanding internal production capacity.
According to company management, the investment will help improve project efficiency and scale, while enhancing revenue, profit margins, and cost structure over the medium to long term.
As of 10:00 a.m. local time on Tuesday, shares of DEWA had gained 5.52% to trade at Rp 172 on the Indonesia Stock Exchange (IDX), reaching an intraday high of Rp 176.