PT Energi Mega Persada Tbk (ENRG) Building for Growth: Funding Secured, EPS Diluted Key Takeaways • 1Q26 remained resilient, with revenue rising 17% y/y despite lower production, supported by higher oil ASP • Profitability improved, as gross margin expanded to 42.6% and EBIT grew 60% y/y, although higher finance costs limited net profit growth. • Funding secured, with a IDR 339 billion private placement completed and a IDR 4.1 trillion Rights Issue approved, backed by a standby buyer. • FY26 forecasts revised lower on weaker oil price assumptions, while EPS is expected to decline 29% y/y due to dilution from the private placement and Rights Issue. Recommendation “BUY” Based on our blended valuation (NAV Reserve and DCF) and revised earnings outlook, we downgrade ENRG's target price to IDR 1,390 /share (previously IDR 2,100, target achieved). The lower target price mainly reflects weaker oil price assumptions and the larger post-transaction share base following the private placement and Rights Issue. Our target price implies a 2026F P/E of 31x (2027F: 29x) and a 2026F P/BV of 2.7x (2027F: 2.5x). Key downside risks include energy transition, regulatory uncertainty, commodity price volatility, competition, and technological disruption. Sukarno Alatas Equity research KIWOOM SEKURITAS INDONESIA