ESSA - Earnings Momentum Intact; Turnaround Now Behind Us

KBVS update
Monday, 31 August 2026

ESSA - Earnings Momentum Intact; Turnaround Now Behind Us
(Maintain BUY: TP at IDR940)

1H26 Results In Line; Turnaround Impact Temporary
ESSA delivered a strong 1H26, with revenue up 35.5% YoY to USD186.5 mn and net profit surging 103.3% YoY to USD30.2 mn, reaching 52.0% and 47.0% of our FY26F estimates, respectively.

Strong Operating Leverage Drives Broad-Based Margin Expansion
ESSA’s  margin expanded , gross margin 35.2% in 1H26 (1H25: 27.7%), operating margin  26.7% (1H25: 18.8%) and EBITDA margin to 39.7% (1H25: 35.9%)

Ammonia Prices Tracking Our Forecasts, with Resilient Far East Exposure
ESSA’s sales to South Korea and Taiwan accounted for 81.0% of 1H26 volumes, providing exposure to the relatively resilient CFR FE benchmark.

Maintain BUY with TP of IDR940/share +52.8% upside from current share price at IDR615 based on DCF valuation.

Regards,
Atikah Tri Adriyanti - KBVS Research team