{
    "success": true,
    "data": {
        "id": 1670618,
        "msgid": "drma-recommended-as-buy-strong-performance-in-second-half-of-2025-and-more-attractive-prospects-for-2026-1775847040",
        "date": "2026-04-10 18:49:50",
        "title": "DRMA Recommended as BUY, Strong Performance in Second Half of 2025 and More Attractive Prospects for 2026",
        "author": " ",
        "source": "GALERT",
        "tags": "",
        "topic": "Business",
        "summary": "PT Dharma Polimetal Tbk (DRMA), a manufacturer of automotive components, reported solid 2025 performance with revenue reaching Rp5.9 trillion, up 7.8% year-on-year, driven primarily by a 12.5% growth in the two-wheeler segment amid a recovering four-wheeler market. The company is expanding through acquisitions, joint ventures boosting exports, and diversification into renewable energy via battery recycling for electric vehicles, targeting double-digit organic revenue growth in 2026 with stable profit margins. Analysts have upgraded the stock recommendation to BUY with a target price of Rp1,250 per share, citing attractive valuation at 8.3x P\/E and positive catalysts from market share gains and EV opportunities.",
        "content": "<p>PT Dharma Polimetal Tbk (DRMA), an issuer in the manufacture of motor\nvehicle components, recorded solid performance throughout 2025 with\nrevenue reaching Rp5.9 trillion, up 7.8% year-on-year. This growth was\nprimarily driven by the two-wheeler (2W) segment, which rose 12.5%\nyear-on-year, far exceeding the industry\u2019s growth of just 1.3%. This\nperformance reflects an increase in market share as well as improving\noperational efficiency. The 2W segment itself contributes around 62% of\ntotal revenue, making it the main pillar of DRMA\u2019s growth. Segmen 4W\nExperienced Pressure but is Starting to Recover On the other hand, the\nfour-wheeler (4W) segment experienced a 6.5% year-on-year decline to\nRp1.3 trillion in 2025, due to weak industry sales in the first half of\nthe year. However, conditions began to improve in the second half of\n2025. Component sales rose 15.6% compared to the first half of 2025,\nhelping to contain the deeper decline and serving as an early signal of\nrecovery in this segment. Business Expansion and Profit Boost To\nstrengthen its business, DRMA acquired PT Mah Sing Indonesia to enhance\nOEM supply capabilities and enter the aftermarket. In addition, the DKI\njoint venture also recorded an increase in exports to 132 containers\n(from 86 in 2024). This combination of strategies drove net profit\ngrowth of 13% year-on-year in FY25. Entering Renewable Energy, Capturing\nEV Opportunities DRMA is also beginning to diversify into the renewable\nenergy sector through its subsidiary PT Dharma Energy Resources (DER).\nThe main focus is on recycling lithium-ion batteries for the automotive\nindustry, covering processes from pre-treatment to hydrometallurgy, with\noutputs such as black powder, aluminium, and copper. The company has\nalso partnered with PT Bestindo Car Utama for managing BMW battery waste\nin Indonesia, and is exploring collaborations with Korean partners. This\ninitiative was introduced at the Indonesia International Motor Show\n2026. 2026 Targets: Double-Digit Growth with Stable Margins Entering\n2026, DRMA targets organic revenue growth of around 10% year-on-year,\ndriven by market share expansion and product line strengthening. Net\nprofit margins are expected to remain stable in the low double-digit\nrange. Additionally, the company will expand SKUs for components and\nspare parts variations for ICE, HEV, and BEV vehicles. Attractive\nValuation, Recommendation Upgraded to BUY With strong performance and\nimproving prospects, the recommendation for DRMA shares has been\nupgraded to BUY with a target price of Rp1,250 per share. The current\nvaluation is around 8.3x P\/E, which is still considered attractive. The\ncontinued growth in the 2W segment and recovery in 4W serve as the main\ncatalysts for future performance improvement. Risks to Watch Out For\nSome risks that investors need to monitor include: - 2W sales weaker\nthan expected - Slowdown in the 4W segment - Unsupportive macroeconomic\nconditions Conclusion DRMA demonstrates increasingly strong\nfundamentals, supported by growth in the main segment, business\nrecovery, and expansion into the renewable energy sector. With an\nattractive valuation and future growth potential, this stock is one\nworth watching in the automotive sector.<\/p>",
        "url": "https:\/\/jawawa.id\/newsitem\/drma-recommended-as-buy-strong-performance-in-second-half-of-2025-and-more-attractive-prospects-for-2026-1775847040",
        "image": ""
    },
    "sponsor": "Okusi Associates",
    "sponsor_url": "https:\/\/okusiassociates.com"
}