TOTL - 6M25

Earnings Update 6M25

Overview

With over 50 years of experience in the Indonesian construction business, particularly specializing in the construction of high-rise buildings, PT Total Bangun Persada Tbk. (TOTL) is now one of the biggest construction companies in the country boasting a significant role and contribution for the growth of national economy. TOTL also has a solid financial strength with no outstanding interest-bearing debts as well as notable for being a consistent dividend-payer. As of the end of June 2025, TOTL has contractual commitments amounting to Rp4.84 trillion with its customers, up from Rp4.76 trillion and Rp4.58 trillion at the end of Q2/25 and FY24, respectively.

Financial Highlights

TOTL posted a robust performance in 6M25 as its revenues climbed 16.6% (yoy) whilst its core net profit soared by 54.9% (yoy). The Company’s total assets and total liabilities grew by 3.7% (ytd) and 9.1% (ytd), respectively as of the end of June 2025 vs. the end of FY24. Core equity however, slipped by 6.8% (ytd), particularly as the Company paid a hefty sum of dividend worth Rp255.75 billion which reduced its retained earnings. In 2025, TOTL had paid Rp75 per share in dividend to its shareholders, representing 96% of FY24 net income and almost double its dividend per share paid in the previous year (Rp40 per share).

In line with its robust bottom line, TOTL’s ROA (TTM) and ROE (TTM) have also improved modestly to 9% and 29.5%, respectively as of the end of June 2025 compared to their respective standings at the end of FY24. A quick glance at the profitability margins also showed improving margins with gross profit margin, core operating profit margin and core net profit margin increasing to 22.5%, 15.3%, and 10.4%, respectively.

Valuation

Better performance in 6M25 has helped pushed TOTL higher and off this year’s trough at Rp520, surpassing its prior peak of Rp735. Currently, at Rp800 per share, TOTL is being traded at PRR (TTM), PER (TTM), and PBV (MRQ) of 0.8x, 8.3x, and 2.5x, respectively. Our valuation on TOTL is based on price multiples, dividend discount model (DDM) and DCF, resulting in the blended target price of Rp962 per share. This target price implies PRR, PER and PBV of 1.0x, 10.0x and 3.0x, respectively based on TTM and MRQ figures which, at the same time representing 20% upside potential from the current price. Key risks associated with our valuation include delays in project executions and anaemic domestic GDP growth.