Darma Henwa (DEWA) Shares Poised for Recovery, SSC Contract Seen as Main Catalyst
The prospects for PT Darma Henwa Tbk (DEWA) through the end of 2026 are considered fairly positive. Expansion of its mining services business and the commencement of a new contract with PT Sebuku Sejaka Coal (SSC) are the main catalysts with the potential to drive performance.
For context, DEWA has budgeted capital expenditure (capex) of Rp 2.4 trillion this year. As of the first half of 2026, Rp 1.6 trillion of the capex has been realised.
Management said the capex is mainly used to support ongoing mining services projects at PT Kaltim Prima Coal (KPC) and PT Arutmin Indonesia.
Senior Market Analyst at Mirae Asset Sekuritas Indonesia, Nafan Aji Gusta, said DEWA is now entering a volume expansion phase through strengthening its mining services business. According to Nafan, this condition shows that the company’s equipment capacity expansion and operational readiness are already underway.
“Interestingly, in addition to maintaining the main projects at KPC and Arutmin, the commencement of the new contract with Sebuku Sejaka Coal (SSC) in the second half is a new growth catalyst,” Nafan told Kontan on Monday (31/8/2026).
Nafan noted that the SSC contract is worth around Rp 22 trillion, with potential overburden removal work of up to 55 million bank cubic metres (bcm) and coal production of up to 5 million tonnes per year.
In terms of volume, the contract has the potential to make a material contribution to DEWA’s revenue going forward. In fact, SSC’s overburden removal volume is estimated to be equivalent to around 40% of DEWA’s volume in 2025.
From a fundamental perspective, DEWA’s performance in the first half of 2026 also showed improved profitability. The company’s revenue rose 3.1% year-on-year to Rp 3.21 trillion, while net profit soared 89% to Rp 354.3 billion. EBITDA also grew 20.2% year-on-year.
“Therefore, I see the second half of 2026 as potentially a stronger period for DEWA. The condition is that the SSC project ramp-up process proceeds according to target, equipment utilisation increases, and operational efficiency can be maintained,” Nafan continued.
One of the main risks to monitor is the report regarding the freezing of SSC’s mining business permit (IUP) by the government. The issue is linked to a land acquisition dispute with local communities that has been ongoing since February 2026.
Jeremy said that, based on field checks, the area affected by the dispute is said to be different from the mine location that is part of DEWA’s contract. The dispute is also said to have been resolved. However, there has been no independent confirmation regarding the resolution of the matter to date.
“It should be noted that the mining permit is at the corporate level of SSC, not at each individual pit. Thus, the difference in location between the disputed area and the contracted pit may not necessarily fully protect operational activities if the issue resurfaces,” Jeremy explained.
Meanwhile, Samuel Sekuritas Indonesia analyst Juan Harahap estimates that DEWA is beginning to enter an operating profit recovery phase in the third quarter of 2026. There are three main catalysts that could potentially drive a turning point in DEWA’s operating profit starting from the third quarter of 2026.
First, the full contribution from the 26 million bank cubic metres (bcm) work portion belonging to PT Pamapersada Nusantara (PAMA) at PT Kaltim Prima Coal (KPC), which will begin to be fully booked.
In terms of financial performance, Jeremy projects DEWA’s revenue in 2026 to reach Rp 7.17 trillion, up around 12.2% year-on-year compared to the realised 2025 revenue of Rp 6.39 trillion.
However, this revenue growth has not been able to drive an increase in net profit. Jeremy projects DEWA’s net profit in 2026 to reach only Rp 414 billion, plunging around 90.4% compared to the realised 2025 net profit of Rp 4.31 trillion.
Considering the above factors, Jeremy maintains a buy recommendation on DEWA shares, but lowers the target price to Rp 600 from the previous Rp 850 per share.
Juan also recommends a buy on DEWA shares with a target price of Rp 600 per share. Meanwhile, Nafan recommends accumulation buy on DEWA with a target price of Rp 635 per share.