Indocement Tunggal Prakarsa (INTP IJ/Maintain) - In-line Results, Cost Efficiency Intact

INTP reported 2Q26 revenue of IDR4.6tr (+13.6% YoY, +19.8% QoQ), PATMI of IDR374bn (+31.8% YoY, +74.0% QoQ), and EBITDA of IDR815bn (+13.9% YoY, +24.6% QoQ). 1H26 revenue, PATMI, and EBITDA grew 5.2%, 19.2%, and 8.8% YoY, at 47%/33%/39% of our 2026F and 46%/33%/41% of consensus, which we read as in line. 2Q26 GPM widened to 30.6% (+0.4ppt YoY, +1.9ppt QoQ), NPM to 8.1% (+1.1ppt YoY, +2.5ppt QoQ), and EBITDA margin to 17.7% (+0.1ppt YoY, +0.7ppt QoQ).

Sales volume reached 5.12mn tons (+13.1% YoY, +32.6% QoQ) and 9.56mn tons in 1H26 (+7.6% YoY), on government programs (Sekolah Rakyat, village cooperatives, SPPG kitchens, Sumatra reconstruction) for bulk and a favorable harvest plus higher CPO and coal prices for bag. COGS/ton fell to IDR583,899 (-1.6% YoY, -17.8% QoQ), led by energy cost/ton of IDR243,575 (-5.8% YoY, -11.3% QoQ) on a 33.1% alternative fuel rate (+5.4ppt YoY), wider solar use, and operating leverage, while delivery cost/ton rose to IDR123,188 (+11.3% YoY, +8.5% QoQ).

Management raised 2026 industry consumption growth guidance to 4-5% from 1-2% and plans a 3Q price adjustment to pass through higher coal, fuel, and craft paper costs and a weaker IDR. We leave forecasts unchanged, as the in-line first half is potentially offset by decelerating consumption and margin pressure in 2H26. We reiterate Buy with an unchanged TP of IDR6,500, based on EV/EBITDA at 1.25 S.D. below the five-year mean. Key risks: lower-than-expected cement consumption, tighter competition limiting price adjustment room, and higher input costs.