UOB Kay Hian raises target for Adaro Andalan Indonesia stock to IDR 14,300

Published on 10/12/2026 at 10:53 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWS

UOB Kay Hian sees 48.00 percent profit growth for Adaro Andalan Indonesia in 2026. A special dividend may exceed IDR 1,450 per share.

Key points in brief

UOB Kay Hian raised its target for Adaro Andalan Indonesia to IDR 14,300 on October 5, 2026.
The analyst expects 48.00 percent net profit growth in 2026 and a potential special dividend above IDR 1,450 per share.
Adaro received USD 734.83 million after tax from the Kestrel divestment completed on October 1, 2026.
The company reported USD 2.54 billion of revenue and USD 473.77 million of attributable profit in the first half of 2026.

Adaro Andalan Indonesia, ID1000207509, Illustration mit AI erstellt.

UOB Kay Hian raised its target for Adaro Andalan Indonesia stock to IDR 14,300 on October 5, 2026, according to IDX Channel. The research house also projected 48.00 percent net profit growth for 2026 and a special dividend above IDR 1,450 per share.

Three dated corporate milestones

On April 14, 2026, Yancoal Australia agreed to acquire Kestrel from Adaro in a transaction valued at USD 1.85 billion, as Jakarta Globe reported. On October 1, 2026, Adaro completed the sale of its Kestrel holding, receiving USD 814.12 million before tax and USD 734.83 million after tax, according to Bloomberg Technoz. On October 5, 2026, UOB Kay Hian lifted its target to IDR 14,300 and retained its buy recommendation, as IDX Channel reported.

What does the divestment change?

The Kestrel proceeds give Adaro three quantified uses for capital: domestic expansion, shareholder distributions and partial repayment of group borrowings. The transaction covered 720.39 million shares, equal to 47.99 percent of Kestrel, while Yancoal became the mine's 100 percent owner, according to Bloomberg Technoz.

The analyst case rests on both earnings and cash distribution. UOB Kay Hian estimated a dividend yield above 12.00 percent if the company distributes the initial USD 640 million cash proceeds, while its 2025 regular payout ratio was 59.20 percent, according to IDX Channel. The counter-factor is execution: the same report identified possible coal supply disruption from El Niño and weaker-than-expected coal prices as risks.

First-half figures set the base

Adaro reported USD 2.54 billion of revenue in the first half of 2026, up from USD 2.40 billion in the first half of 2025. Attributable profit reached USD 473.77 million, versus USD 428.68 million a year earlier, according to Kabar Bursa. The revenue increase was 5.83 percent, while attributable profit rose 10.52 percent on the same comparison basis.

Next dated milestone

Yancoal planned to send a shareholder document by November 23, 2026, with further acquisition and valuation details, according to Jakarta Globe. For Adaro, the next valuation question is whether the Kestrel cash conversion and the projected 2026 earnings growth translate into the expected shareholder distribution.