Company Coverage
Archi Indonesia (ARCI IJ): 2Q26: Net Profit Surges On Higher Sales Volume
BUY (Maintained)
Current price:
Target price:
Upside:
Previous TP :
Rp1,390
Rp2,200
+58.3%
Rp2,750
Analyst
Highlights
- ARCI booked 2Q26 net profit of US$50.5m (+69.4% qoq), mainly driven by recognition of deferred inventory, bringing 1H26 net profit to US$80.3m.
- Maintain BUY with a lower target price of Rp2,200 based on 2026F 10x EV/EBITDA, or a four-year mean.
Analysis
Earnings surged by 69.4% qoq on higher sales volume. Archi Indonesia (ARCI) reported 2Q26 net profit of US$50.5m (+105.2% yoy; +69.4% qoq). The strong qoq growth was primarily driven by higher gold sales volume (+39% qoq) at about 32,000 oz reflecting deliveries that were deferred from 1Q26. As a result, 1H26 net profit reached US$80.3m (+130.1% yoy). The result was in line with consensus, accounting for 50% of full-year estimates, but below our forecast at 39.3% of 2026F earnings.
Expect a stronger 3Q26 performance, supported by higher gold sales volumes of 33,000-36,000oz as production ramps up at both Araren and Marawuwung. Given the anticipated earnings uplift versus 2Q26, we believe ARCI is well positioned to deliver a solid quarterly result, which could drive upward revisions to consensus earnings forecasts.
Highlights
- ARCI booked 2Q26 net profit of US$50.5m (+69.4% qoq), mainly driven by recognition of deferred inventory, bringing 1H26 net profit to US$80.3m.
- Maintain BUY with a lower target price of Rp2,200 based on 2026F 10x EV/EBITDA, or a four-year mean.
Analysis
Earnings surged by 69.4% qoq on higher sales volume. Archi Indonesia (ARCI) reported 2Q26 net profit of US$50.5m (+105.2% yoy; +69.4% qoq). The strong qoq growth was primarily driven by higher gold sales volume (+39% qoq) at about 32,000 oz reflecting deliveries that were deferred from 1Q26. As a result, 1H26 net profit reached US$80.3m (+130.1% yoy). The result was in line with consensus, accounting for 50% of full-year estimates, but below our forecast at 39.3% of 2026F earnings.
Expect a stronger 3Q26 performance, supported by higher gold sales volumes of 33,000-36,000oz as production ramps up at both Araren and Marawuwung. Given the anticipated earnings uplift versus 2Q26, we believe ARCI is well positioned to deliver a solid quarterly result, which could drive upward revisions to consensus earnings forecasts.
BUY (Maintained)
Current price:
Target price:
Upside:
Previous TP :
Rp1,390
Rp2,200
+58.3%
Rp2,750
Analyst
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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.
