Company Coverage
Singaraja Putra (SINI IJ): Transforming Into A Mid-tier Coal Player
NOT RATED
Current price:
Target price:
Upside:
Rp18,300
n.a.
n.a.
Analyst
Analyst
Highlights
- Coal pivot completed with the exit from wood processing. SINI sold its 54% stake wood business for Rp31.8b on 15 Sep 26, after acquiring Kemilau Mulia Sakti (KMS) on 30 Jun 26. SINI now holds five coal concessions across East and Central Kalimantan.
- Rights issue restored positive equity. The Rp3.61t rights issue on Jul 26 at Rp5,000/share reversed the Rp687b negative equity position at end-25, restoring equity to Rp3.6t at end-Jul 26.
- Coal production is set to grow from 2.4mt in 2026 to 14.4mt in 2031 at a five-year CAGR of 43.1%, driven by ramp-ups across CEP, PBC and CBP.
Analysis
- A Rp3.6t rights issue has rebuilt the balance sheet. Singaraja Putra’s (SINI) legacy business comprises wood processing and trading, property rental and short-term accommodation, operating out of Bekasi since 2005 and exporting to markets including the Netherlands, China, Canada, the US, Australia and Korea. The legacy business has never been highly profitable. SINI's pivot into coal began in 2023 and has been funded almost entirely by debt, which pushed shareholders' equity into negative territory. SINI raised Rp3.6t in Jul 26 through the issuance of 721.5m new shares at Rp5,000/share, allocating Rp1.53t to the acquisition of Kemilau Mulia Sakti (KMS), Rp900b to early debt repayment and the balance to working capital. Shareholders' equity stood at negative Rp676b as of 1Q26, but turned positive on a pro forma basis following the transaction. The IDX lifted the trading suspension on 7 Jul 26 after a six-day halt.
- Production outlook up to 14mtpa. SINI acquired a 99.995% stake in KMS from Petrosea (PTRO) for Rp1.73t, 6% below the independent valuation of Rp1.84t, resulting in a bargain purchase gain in 1H26. PTRO's disclosure cites 164.1mt of resources and 82mt of mineable reserves across 4,776ha, with a long-term stripping ratio of 6.7x and a mining business license for production operation (IUP-OP) valid until Jul 38. Cristian Eka Pratama (CEP) targets 2.2mt of production in 2026, ramping up to 3.6mtpa in 2027 and eventually 5mtpa by 2028. Persada Kapuas Prima (PKP) is expected to produce 1.5mt in 2026, while Pasir Bara Prima (PBP) targets 0.9mt. Pesona Bara Cakrawala (PBC) targets 6mt of production by 2031, while Cakrawala Bara Persada (CBP) targets 1mtpa from 2027. Total production is expected to reach 14.4mt by 2031, assuming PKP and PBP remain flat while CEP, PBC and CBP follow management's guidance which implies a five-year CAGR growth of 43.1%. SINI estimates KMS revenue at Rp119b (US$6.6m) in 3Q26, its first quarter of consolidation. The Apr 26 transaction disclosure projected KMS revenue of US$52m for 2026.
Highlights
- Coal pivot completed with the exit from wood processing. SINI sold its 54% stake wood business for Rp31.8b on 15 Sep 26, after acquiring Kemilau Mulia Sakti (KMS) on 30 Jun 26. SINI now holds five coal concessions across East and Central Kalimantan.
- Rights issue restored positive equity. The Rp3.61t rights issue on Jul 26 at Rp5,000/share reversed the Rp687b negative equity position at end-25, restoring equity to Rp3.6t at end-Jul 26.
- Coal production is set to grow from 2.4mt in 2026 to 14.4mt in 2031 at a five-year CAGR of 43.1%, driven by ramp-ups across CEP, PBC and CBP.
Analysis
- A Rp3.6t rights issue has rebuilt the balance sheet. Singaraja Putra’s (SINI) legacy business comprises wood processing and trading, property rental and short-term accommodation, operating out of Bekasi since 2005 and exporting to markets including the Netherlands, China, Canada, the US, Australia and Korea. The legacy business has never been highly profitable. SINI's pivot into coal began in 2023 and has been funded almost entirely by debt, which pushed shareholders' equity into negative territory. SINI raised Rp3.6t in Jul 26 through the issuance of 721.5m new shares at Rp5,000/share, allocating Rp1.53t to the acquisition of Kemilau Mulia Sakti (KMS), Rp900b to early debt repayment and the balance to working capital. Shareholders' equity stood at negative Rp676b as of 1Q26, but turned positive on a pro forma basis following the transaction. The IDX lifted the trading suspension on 7 Jul 26 after a six-day halt.
- Production outlook up to 14mtpa. SINI acquired a 99.995% stake in KMS from Petrosea (PTRO) for Rp1.73t, 6% below the independent valuation of Rp1.84t, resulting in a bargain purchase gain in 1H26. PTRO's disclosure cites 164.1mt of resources and 82mt of mineable reserves across 4,776ha, with a long-term stripping ratio of 6.7x and a mining business license for production operation (IUP-OP) valid until Jul 38. Cristian Eka Pratama (CEP) targets 2.2mt of production in 2026, ramping up to 3.6mtpa in 2027 and eventually 5mtpa by 2028. Persada Kapuas Prima (PKP) is expected to produce 1.5mt in 2026, while Pasir Bara Prima (PBP) targets 0.9mt. Pesona Bara Cakrawala (PBC) targets 6mt of production by 2031, while Cakrawala Bara Persada (CBP) targets 1mtpa from 2027. Total production is expected to reach 14.4mt by 2031, assuming PKP and PBP remain flat while CEP, PBC and CBP follow management's guidance which implies a five-year CAGR growth of 43.1%. SINI estimates KMS revenue at Rp119b (US$6.6m) in 3Q26, its first quarter of consolidation. The Apr 26 transaction disclosure projected KMS revenue of US$52m for 2026.
NOT RATED
Current price:
Target price:
Upside:
Rp18,300
n.a.
n.a.
Analyst
Analyst
IMPORTANT NOTICE - DISCLOSURES AND DISCLAIMERS
This report is provided subject to, and must be read together with, the full Disclosures / Disclaimers available at this link, which are incorporated by reference into this report. In particular, this report is intended for general circulation and informational purposes only and does not constitute personal investment advice or a recommendation to buy or sell any investment product or security. You should independently evaluate the information and, where necessary, seek advice from a qualified financial adviser regarding the suitability of any investment. Analyst certifications required under applicable regulations, including SEC Regulation AC (where relevant), are included in this report. By accessing, receiving or using this report, you acknowledge that you have read, understood and agreed to be bound by the Disclosures / Disclaimers, as may be amended, supplemented or updated from time to time.
