Kiwoom Research | 1H26 Equity Update - 12 October 2026 PT. Hartadinata Abadi Tbk. (HRTA) Stellar Wholesaler Surge Amidst Margin Normalization Pressures Key Takeaways: - Stellar Wholesaler Performance. This segment has become the backbone of the company's profitability and revenue, contributing an absolute 89.33% to total corporate revenue, with revenue expansion reaching 149% y/y. - Margin Normalization. The company faced pressure on relative profitability levels, with GPM declining to 3.69%. This was primarily compressed by a 127.60% y/y surge in the COGS as well as a shift in the company's product mix, which now leans more heavily toward gold bars rather than retail jewelry. - Bullion Bank Ecosystem Ambitions. Management continues to strengthen its long-term strategic vision by positioning HRTA as a key enabler in Indonesia's Bullion Bank ecosystem. This strategic move is supported Recommendation: "BUY” We are revising our target price downward but maintaining a BUY recommendation with a 12-month target price of IDR 2,900. This target price is constructed using a Blended Valuation method, assigning a 50% weight to P/E valuation and 50% to DCF. This target represents a potential upside of 33.03% from the last closing price of IDR 2,180 (as of 09 Oct 2026). This valuation implies the company's shares are trading at a 2026F P/E of 9.6x and a P/BV of 3.0x. Downside risks include: 1) Gold price fluctuations; 2) Weakening domestic purchasing power; 3) Slower-than-expected progress in obtaining LBMA certification. Adrian Djie Equity Research KIWOOM SEKURITAS INDONESIA