Jakarta. Sinarmas Sekuritas has issued its initiation coverage on PT RMK Energy Tbk (RMKE) with a BUY call and a 12-month target price of Rp 6,700, offering about 100 percent upside from current levels.

In its report, “Seamless Coal Flows, Explosive Earnings,” the brokerage underscores RMKE’s strength as an integrated coal-logistics operator in South Sumatra, supported by low operating costs and a clear path for significant volume growth through 2030.

Key Investment Highlights

1. Fully Integrated Logistics Infrastructure
RMKE stands out for its robust competitive edge, supported by its hauling road network, Gunung Megang loading station, and Simpang unloading station, both directly connected to state-owned KAI’s railway line.
This synchronized system, aligned with port capacity, is projected to boost coal-logistics volume from 8 million tons per year (mtpa) in 2025 to 35 mtpa by 2032.

2. Long-Term Growth Driven by Dual Revenue Streams
RMKE benefits from a dual-revenue model across its loading and unloading services. Every ton of coal loaded at Gunung Megang must also be unloaded at Simpang, creating a recurring income cycle.
As a result, RMKE’s revenue is expected to grow at a 30 percent compound annual growth rate (CAGR), reaching nearly Rp 6.5 trillion by 2030.

3. A Transformational Shift Toward High-Margin Logistics Services
With RMKE’s revenue mix shifting toward logistics services that deliver ~40 percent gross margins, this segment is projected to account for 90 percent of the company’s total gross profit.
Net profit is forecast to surge with a 45 percent CAGR, jumping from an estimated Rp 200 billion in 2025 to Rp 1.5 trillion by 2030.

Valuation and Strategic Outlook

Isfhan Helmy, Head of Institutional Research at Sinarmas Sekuritas, noted that RMKE’s fundamentals justify a premium valuation compared with global peers.

“We view a PE ratio of 27x as reasonable for RMKE. While this is slightly above global peers like Aurizon—the largest freight rail operator in Australia, which trades around 20x—RMKE’s superior profitability fully supports the premium,” Isfhan said, adding that RMKE’s net margin is expected to reach nearly 20% in 2026, far above Aurizon’s low-teen levels.

Isfhan emphasized that RMKE’s promising earnings trajectory is a major pillar of the bullish call.

“The Rp 6,700 target price reflects RMKE’s explosive earnings path, with a projected 45% CAGR from 2025 to 2030. This growth is underpinned by strategic logistics-capacity expansion and rising throughput at the company’s port,” he explained.

He also highlighted the strategic impact of RMKE’s newly operational coal-hauling road, which is central to sustaining long-term volume growth.

“Just a year after its 2021 listing, RMKE successfully launched the Gunung Megang loading station, located near 19 coal producers holding almost 7 billion tons of combined reserves. RMKE’s dedicated hauling routes—spanning 30–50 km to these mines—are the backbone of the station’s current 5-million-ton annual loading capacity,” Isfhan concluded.

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