DEWA - From Repair to Re-rating: Unlocking 285% Earnings CAGR

KBVS Update
Thursday, 21 August 2025

DEWA - From Repair to Re-rating: Unlocking 285% Earnings CAGR
(Initiate BUY; TP: IDR400/share, +69.5% upside)

■ Resetting the Future: Balance Sheet Revived, In-house Capacity Doubled DEWA is transforming with balance sheet repair and a 60 mbcm own fleet expansion, backed by IDR2.6 tn loans, USD83 mn debt swap, and equity clean-up that restored retained earnings to positive.

■ Fleet Internalization Unlocks 285% Earnings CAGR DEWA’s shift from subcontractors to in-house fleets is set to transform profitability, with fleet share rising to 89.3% by 2027F, lifting EBITDA margin to 40.9% and net profit from USD16 mn in 2024 to USD936 mn in 2027F (285% CAGR), while ROAE improves to 19.3% despite high leverage.
■ * Initiation BUY: Re-rating Story with TP IDR400/share* We initiate coverage with a BUY and DCF-based TP of IDR400/share (+69.5% upside), valuing DEWA at 8.5x FY26F EV/EBITDA vs sector 3.0x, a premium supported by +132.4% EPS growth.

Regards, 
Laurencia Hiemas - KBVS Research