Back on track Quick Note

研报英文原文证据摘录

Back on track Quick Note

Nomura Securities Malaysia Sdn Bhd

Arwana Citramulia ARNA.JK ARNA IJ 30 July 2026

EQUITY: CONSTRUCTION MATERIALS

RatingBack on track Remains Buy

Target price IDR 820 RemainsQuick Note

Closing price IDR 484 28 July 2026New capacity and resuming operations

ARNA posted record quarterly revenue and NPAT in 2Q26, at IDR899bn (+23% y-y) and

IDR137bn (+39% y-y), respectively, taking 1H26 revenue to IDR1.5tn (+8% y-y) and NPAT

to IDR221bn (+8% y-y) – both at 46% of our FY26F estimates, in line adjusting for Research Analysts

seasonality. The strong quarter reflects the reversal of 1Q26'ssupplyconstraint: Indonesia Research Team

rejuvenation works at plants 2C and 5C (estimated 11-15% of capacity) are now complete, Ahmad Maghfur Usman - NSM

while the newly commissioned plant 4D (white body, 5mn sqm) adds ~7% to capacity. ahmad.maghfurusman@nomura.com

+603 2027 6892

Robust demand continues

The record result was driven by both price and volume. ASP grew 14% y-y, reflecting Onshore expert

hikes to offset rising gas costs as well as a richer white body sales mix, while volume

Gerald hugo (Gerald.hugo@verdhana.id)posted a record quarter (+7% y-y, +27% q-q), confirming the reversal of 1Q26's supply

constraint. By product, rectified red body remains the main growth driver, with sales Felix Justin (Felix.wirianto@verdhana.id)

strongest in Java and Sumatra on the back of an improved B2C distribution channel.

Theonshoreexperts,whoare

Prudent cost management employedbyPTVerdhanaSekuritas

Blended cash costs rose just +10% y-y/+9% q-q despite the non-subsidized gas Indonesia(“Verdhana”)andarenot

benchmark (12.5% x ICP) surging +56% y-y/+31% q-q, reflecting prudent cost licensedoutsideIndonesia,have

management and subsidized gas allocation, in our view.