Stock Recommendations Today: ELSA, MDIA, to SOCI

The Jakarta Composite Index (IHSG) ended trading on Wednesday (22/7) with a slight decline of 0.09% to 6,334.48. Gains in BREN (6.00%), CASA (6.94%), and VKTR (10.32%) supported the index, while declines in BBRI (-1.63%), AMMN (-3.26%), and BMRI (-1.34%) weighed on the IHSG. Foreign investors recorded a net sell of Rp1.11 trillion in the regular market and Rp920.34 billion across all markets. Sectorally, four out of eleven sectoral indices closed in the red, led by the transportation sector which fell 1.73%, while the technology sector posted the highest gain of 1.58%. In global markets, US stock indices closed mixed with a downward bias. The Dow Jones edged down 0.01%, the S&P 500 weakened 0.14%, and the Nasdaq corrected 0.57%. Profit-taking by foreign investors was reflected in significant capital outflows after three consecutive days of net buying, amid an IHSG strengthening of around 12.25% month-to-date. In line with this, the EIDO ETF fell 0.24% and the MSCI Indonesia index weakened 0.88%. A key highlight was PT Singaraja Putra Tbk. (SINI) officially acquiring 99.99% of shares in Kemilau Mulia Sakti (KMS), a subsidiary of Petrosea (PTRO), for Rp1.73 trillion. The value is equivalent to 110.26% of the company’s total assets and is part of a portfolio expansion into the coal mining sector. The acquisition price was approximately 5.98% below the market value of Rp1.84 trillion, thus within the provisions of POJK No. 35 Year 2020. Based on public disclosures, the transaction has an estimated internal rate of return (IRR) of 19.58%. Through its ownership of KMS, SINI indirectly controls 99% of shares in Cristian Eka Pratama (CEP), which holds an IUP for Production Operations until July 2038 in East Kalimantan. This acquisition adds coal reserves of approximately 69.25 million to 89.25 million tonnes and expands the company’s operational area, which was previously concentrated in Central Kalimantan. In the initial phase, the mine is targeted to produce around 1 million tonnes of coal per year, gradually increasing to an optimal capacity of 5 million tonnes per year. The company estimates this new asset will contribute approximately 21.40% to consolidated revenue in 2026, increasing to 27.06% in 2027. Meanwhile, PT Elnusa Tbk. (ELSA) reported the implementation of Chemical Enhanced Oil Recovery (CEOR) technology based on polymer flooding at the Rama Field pilot project owned by PHE Offshore Southeast Sumatra (PHE OSES). The company also applied Dual Completion technology at the Adera Field with Pertamina Hulu Rokan (PHR) Zone 4, which allows two reservoirs to be produced through a single well without drilling a new well for each layer. Through its Well Intervention & Completion and Engineering Services capabilities, the application of this technology on the BNG-D14 well resulted in additional production of approximately 480 barrels of oil per day (BOPD) and 3.30 million standard cubic feet of gas per day (MMSCFD), exceeding the initial targets of 186 BOPD and 1.09 MMSCFD respectively. This success will serve as a reference for similar applications on the GNK-PD80 and BNG-B7 wells as part of optimising mature oil and gas fields. Separately, PT Harta Djaya Karya Tbk. (MEJA) plans to conduct a Rights Issue to support the acquisition of coal mining company Trimata Coal Perkasa (TCP). This is part of the company’s transformation into a holding company in the coal mining sector. The company has obtained OJK approval to hold an Extraordinary General Meeting of Shareholders (RUPSLB) on 21 August 2026. The meeting agenda includes approval of the TCP acquisition, granting authority to the board of directors to increase the company’s authorised capital as the basis for the rights issue, and changing the business activities from decoration and building construction to a holding company. TCP is known to have a mining concession of approximately 11,640 hectares in South Sumatra with coal resources reaching around 693.70 million tonnes.