Company Coverage
AKR Corporindo (AKRA IJ): 3Q26: T&D Margin Recovery Supports Earnings Upside
BUY (Maintained)
Current price:
Target price:
Upside:
Rp1,390
Rp1,600
+15.1%
Analyst
Highlights
- 9M26 earnings ahead of expectations. Net profit rose 34% yoy to Rp2.2t, reaching 83% of our 2026 forecast and 77% of consensus. T&D gross margin recovered to 6.9% in 3Q26 from 4.6% in 2Q26, supporting earnings despite lower sequential revenue.
- JIIPE land sales on target; utilities gaining momentum. Land sales reached 93ha in 9M26, meeting management's 90-100ha 2026 target range. Utilities revenue grew 46.6% qoq to Rp305b in 3Q26, bringing 9M26 revenue to 73% of the 2026 target.
- Maintain BUY with unchanged target price of Rp1,600. Strong 9M26 results suggest earnings upside, although we retain conservative 2027 assumptions. Our BUY call is supported by JIIPE's growth potential, stable T&D business, Rp1.67t net cash and a 7.2% dividend yield.
Analysis
- 3Q26 net profit was flat qoq but 9M26 net profit was up 34% yoy. AKR Corporindo (AKRA) booked net profit of Rp780b, flat qoq but jumping 66% yoy, bringing 9M26 net profit growing 34% yoy to Rp2.2t. 9M26 net profit was above market expectations, accounting for 83% of our full-year estimates while slightly above market’s (77%). At the current rate, AKRA is closer to achieving the upper end of its Rp2.9t net profit guidance for 2026. The strong earnings are supported by: a) strong trading and distribution business momentum, b) 93ha of land sales (1H26: 58ha), and c) rising utilities income.
Highlights
- 9M26 earnings ahead of expectations. Net profit rose 34% yoy to Rp2.2t, reaching 83% of our 2026 forecast and 77% of consensus. T&D gross margin recovered to 6.9% in 3Q26 from 4.6% in 2Q26, supporting earnings despite lower sequential revenue.
- JIIPE land sales on target; utilities gaining momentum. Land sales reached 93ha in 9M26, meeting management's 90-100ha 2026 target range. Utilities revenue grew 46.6% qoq to Rp305b in 3Q26, bringing 9M26 revenue to 73% of the 2026 target.
- Maintain BUY with unchanged target price of Rp1,600. Strong 9M26 results suggest earnings upside, although we retain conservative 2027 assumptions. Our BUY call is supported by JIIPE's growth potential, stable T&D business, Rp1.67t net cash and a 7.2% dividend yield.
Analysis
- 3Q26 net profit was flat qoq but 9M26 net profit was up 34% yoy. AKR Corporindo (AKRA) booked net profit of Rp780b, flat qoq but jumping 66% yoy, bringing 9M26 net profit growing 34% yoy to Rp2.2t. 9M26 net profit was above market expectations, accounting for 83% of our full-year estimates while slightly above market’s (77%). At the current rate, AKRA is closer to achieving the upper end of its Rp2.9t net profit guidance for 2026. The strong earnings are supported by: a) strong trading and distribution business momentum, b) 93ha of land sales (1H26: 58ha), and c) rising utilities income.
BUY (Maintained)
Current price:
Target price:
Upside:
Rp1,390
Rp1,600
+15.1%
Analyst
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