Menu
Hafar-Group midstream acquisitions raising 2025-26F net earnings by 12-22%. On the back of Aug-25’s 49% stake acquistions in two Hafar Group entities, PT Hafar Daya Konstruksi and PT Hafar Daya Samudera (PTRO: the remaining 51%), RAJA strategically expanded its midstream portfolio while adding incremental 12-22% higher 2025-26F net earnings amounting to USD 4mn and USD 12mn. This strategic acquisiton not only strengthens RAJA’s sectoral exposure to oil and gas construction and logistics, but also cements further synergistic link between Hapsoro Group and Prajogo Pangestu’s listed PTRO, echoing RATU’s previous partnership with CDIA, 4.99% owner of RATU.
Potential new growth engine stemming from upstream expansion via M&A. According to RAJA’s management, the company is in advanced discussions to acquire a minority stake in one of Indonesia’s high-value oil and gas blocks, with the transaction to be finalized in 2025. The upstream move aligns with RAJA’s short- to medium-term strategy of acquiring interests in large PSCs without taking operatorship, while directly managing smaller PSCs. Assuming characteristics similar to Jabung Block, we estimate incremental net profit of ~USD 6mn from the potential acquisition to bolster 2026F growth.
Mid-to-downstream new projects to strengthen integrated energy positioning. In midstream segment, RAJA continues to broaden its gas value chain through the planned acquisitions of a gas trading company in Banten, LNG shipping assets (two LNGCs and one VLGC), and feasibility studies for LNG terminals in Banten as well as LNG plant in Kalimantan. At the same time, RAJA is enhancing its midstream portfolio through upcoming projects such as East Kalimantan fuel pipeline (4Q27) and compressor facility in Sengkang (4Q25). These midstream initiatives are expected to generate 2026F additional revenue of approximately USD 10-11mn, reinforcing RAJA’s long-term earnings base and integrated energy positioning.
Raise TP to IDR 7,000 on 2025–27F earnings CAGR of 23.3%. Supported by contributions from recent and upcoming acquisitions and projects, RAJA is poised to achieve strong 2025–27F earnings CAGR of 23.3%. We upgrade our TP to IDR 7,000 (from IDR 2,200), implying 2026F EV/EBITDA of 22.9x (peers: 6.3x) and reflecting upside potential of 51.5% from current levels. Downside risks to our call include lower-than-expected oil prices, potential project delays, and regulatory changes.
Samuel Sekuritas Indonesia is a leading Indonesian securities brokerage firm. Established in 1997, the firm has grown to become one of the most respected and trusted financial services companies in the country. With a wide range of services and products, Samuel Sekuritas Indonesia has become a trusted partner to many investors, both institutional and individual.
The company offers a variety of financial services, including equity, debt and derivative securities brokerage services, research and portfolio management, asset management and capital market services, as well as a range of other investment solutions. Samuel Sekuritas Indonesia is also a leader in providing financial education and training, and has established itself as a leading provider of investor relations services.
The company has a strong research capability and is committed to providing its clients with up-to-date and reliable market analysis and recommendations. It also has a team of experienced and knowledgeable professionals who are dedicated to providing quality service to its clients. As a result, Samuel Sekuritas Indonesia has become a preferred partner for many investors in Indonesia.
In addition to its financial services, Samuel Sekuritas Indonesia also offers a range of other services, such as corporate finance and advisory services, mergers and acquisitions, and venture capital.
