Risk factor
Very high price volatility
Profitability factor
Very poor margins and returns
About
Established in 2007 and headquartered in Jakarta, PT TBS Energi Utama Tbk, formerly known as PT Toba Bara Sejahtra Tbk, operates as a subsidiary of Highland Strategic Holdings Pte. Ltd. This diversified company engages in various sectors both domestically in Indonesia and on the global stage, primarily focusing on coal mining, palm oil production, and power generation. Its coal mining operations include significant stakes in three mines located in Sangasanga, Kutai Kartanegara, East Kalimantan: Adimitra Baratama Nusantara (2,990 hectares), Trisensa Mineral Utama (3,414 hectares), and Indomining (683 hectares). Beyond mining, the company also actively trades coal and handles the wholesale and retail distribution of vehicles. In the agricultural sector, it manages an extensive palm oil cultivation area totaling 8,633 hectares across the Muara Jawa, Sangasanga, and Loa Janan Districts within Kutai Kartanegara Regency, East Kalimantan. Additionally, PT TBS Energi Utama Tbk functions as an independent power producer.
Company Valuation
Based on key historical and expected multiples, the stock is slightly undervalued relative to its peers. Specifically, the stock is 'cheap' on P/E, neutral on EV/EBITDA,