XA Initiation Report | PT Total Bangun Persada Tbk. (TOTL) — Demonstrating Excellence At A Fair Value 

 

 

 

By Ezaridho Ibnutama (Head of Research), Graceline Melinda (Associate), Sri Bintang Radhya (Associate)

4-May-2026

 

 

We initiate coverage with a BUY rating and a TP of 2,251, supported by strong earnings momentum, rising exposure to data center projects, solid execution backed by digitalization, and a debt-free balance sheet enabling further project expansion. 

 

 

 

🔹 Balance Sheet Comparative Amongst Construction Companies

 

• Fixed Assets Either Stagnating Or Declining Amongst SOE Construction Companies. In contrast, TOTL’s fixed asset has only recently increased substantially by 45% to IDR 163 bn. However, the company has the lowest fixed asset holding amongst its SOE groups. As of FY25, WIKA has IDR 5,043 bn followed by WSKT (IDR 4,080 bn), PTPP (IDR 2,140 bn), and ADHI (IDR 2,084 bn).

 

 

• High Fixed Asset Turnover Compared to SOE. TOTL’s fixed asset turnover reached 10x despite the spike in its fixed asset. All SOE Construction companies are  currently below TOTL with ADHI, PTPP, and WKST at 5x fixed asset turnover. WIKA faired better with 7x because of its declining trend for fixed asset.

 

 

• Prudency Reflected From Higher Efficiency On Managing Client Payments. TOTL has the highest accounts receivable turnover as of FY25 with 10x. This translates to the company having the lowest receivable days at 36.5 followed by WIKA with 52 days; WSKT and ADHI (73 days); and PTPP (121 days)

 

 

 

🔹 Cash Flow Comparative Amongst Construction Companies

 

• SOE Construction Companies Indicate Prolonged Reliance On Financing. Since 2014, SOE Construction Peers have been relying mainly on cash from financing activities. TOTL, on the other hand, had operational cash flow retained above water during the same period and maintained financing cash flow below water. This reflects the company’s good governance in becoming self-sustaining through its construction contract revenue and does not rely on issuing financial instruments to raise cash for operations unlike its peers

 

 

 

🔹 Building Expenses Outlook Stable As Cement Industry Still Faces Oversupply

 

• Stagnant Domestic Cement Production Capacity. According to the Ministry of Industry (MoI), the cement production capacity will have no change at 120.8 mn tons / year, but the domestic utilization will show improvement from 52% to 60% in the period of 2025E—2030E.

 

 

• Mild Domestic Growth Within A Mature Industry. MoI places the domestic demand expected to have a 3.01% CAGR 2025E—2030E. However, Modor Intelligence has a more optimistic view by placing a 4.88% CAGR 2026E—2030E boosted by resilient demand for residential housing construction taking up 54.9% of cement end-users; this may also be boosted by the government’s subsidized housing development programs targeting 3 million homes (2 million rural/coastal homes and 1 million urban units). The centra government has allocated IDR 117 trillion for the program.

 

 

 

🔹 FY25 Posting New All Time High Performance

 

• TOTL turned in a record FY25, with revenue rising 26.4% YoY to IDR 3,901 bn, fueled by a ramp-up in project rollouts—especially data center builds—and smoother on-site execution as digitalization tools gained traction; GPM widened to 19.3% (vs. 17.7% in FY24) on tighter cost discipline and more efficient use of materials and labor, while EBIT reached IDR 519 bn with margin expanding to 13.3% as higher project throughput drove operating leverage; EBITDA came in at IDR 520 bn (13.3% margin). Net profit jumped 56.1% YoY to IDR 415 bn, translating to NPM of 10.6%, with returns strengthening (ROE 31.2%, ROA 10.3%). The balance sheet stays clean with zero debt and no default risk, leaving the company well-positioned to take on new contracts and scale its project pipeline

 

 

 

🔹 Initiating with a BUY Rating at a TP 2,251

 

• We are initiating TOTL with a BUY Rating at a TP of IDR 2,251 due to its peak performance in achieving new all time high revenue of IDR 4.41 tn and net profit consecutively in the past two years. Despite its achievements, valuation metric is still trading at a discount of 9.25x P/E compared to its construction peers WSKT (-1.73x P/E), WIKA (-0.84x), PTPP (-0.27x), and ADHI (-0.35x). We also favor the stock because of its comparatively prudent management when compared to its SOE peers.

 

 

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NH Korindo Sekuritas Indonesia berizin dan diawasi Otoritas Jasa Keuangan (OJK). Untuk informasi lebih lanjut, anda dapat menghubuni CS kami via email CSO@nhsec.co.id