INKP - Karawang turns on, earnings step up

KBVS Update
Friday, 12 June 2026

INKP – Karawang turns on, earnings step up
(Initiate BUY; TP at IDR11,200)

■ INKP's Karawang facility (2.4mn MT; phase 1 scheduled to commence operations in 1Q26) should generate substantial boost for the company's operatiional and financial performances.

■ Furthermore, more favorable pricing environment amid tighter supply and solid demand prospects for packaging and tissue paper may generate additional support.

■ We project INKP to book revenues of USD3.5 bn in FY26F and USD3.8 bn in FY27F, with EBITDA reaching USD968 mn and USD1.09 bn. Furthermore, net profit is forecast to reach USD521 mn in FY26F and USD570 mn in FY27F.

■ Initiate BUY with DCF-based TP of IDR11,200/share, implying 48.3% upside and 7.8x FY26F EV/EBITDA.

Regards,
Adolf R B Setiadi – KBVS Research Team