Risk factor
Very poor trading liquidity
Profitability factor
Greatly undervalued vs peers
About
PT ABM Investama Tbk is an Indonesian corporation with extensive operations spanning the energy sector, encompassing energy resources, services, and infrastructure. Its business is structured into three primary divisions: Mining Contractors and Coal Mining, Services, and Fabrication. The company holds concessions for coal mining and produces low calorific thermal coal. It also plays a vital role in supporting mining activities by supplying fuel and providing specialized engineered products and manufacturing services. Within its diverse services portfolio, ABM Investama offers comprehensive logistics and management solutions. These include port management, covering technical oversight, handling, storage, loading, unloading, and stevedoring. The company also manages warehousing, freight, and specialized transportation for heavy and oversized cargo like industrial machinery, power generation equipment, and heavy-duty vehicles. Furthermore, it delivers integrated logistics and material management tailored for the resource and energy industries, from exploration to production. Beyond its core offerings, the company trades petroleum, provides electricity solutions, and manufactures equipment for heavy machinery and material transport. It also offers business management consulting, assisting in the strategic planning and development of frameworks for industries such as mining, energy, engineering, and oil and gas. Additional services include the rental of office and residential properties, as well as heavy equipment for various industrial applications. Established in 2006, the company was initially known as PT Adiratna Bani Makmur before rebranding to PT ABM Investama Tbk in August 2009. Based in South Jakarta, Indonesia, it operates as a subsidiary of Valle Verde Pte. Ltd.
Company Valuation
Based on key historical and expected multiples, the stock is greatly undervalued relative to its peers. Specifically, the stock is 'cheap' on P/E, neutral on EV/EBITDA, u