Research

What's Next for Indonesian Coal Stocks?

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Algo Research Team

Market | Sep 23, 2024 | Views: 2202

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Key Summary:

  • Sector is more profitable due to higher price
  • But, coal stocks valuations are much lower
  • Who's the next to divest/spin-off?

The Indonesian coal sector was astounded by perhaps one of the most interesting potential corporate actions, whereby ADRO plans to sell up to 100% of its coal business to focus more on green investment.


Such a move took the market by a surprise, especially given that coal segment contributes the majority of ADRO's net profit, leaving one to wonder if it is taking a big gamble.

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