Report by Churchill Research

Mike Churchill begins a 3-part series on Indonesia’s overlooked value stocks, starting with heavy equipment, mining and steel names - these stocks all feature in his long-running Classical Insights portfolio (up an extraordinary +5556% since 2002). United Tractors offers the most upside (~75%), trading at 0.8x book and offering a near-10% dividend yield, while coal pricing tailwinds could support a rebound into year-end. Despite a tough 2025, Hexindo Adiperkasa stands out as a 15% dividend-yielding cash machine with 30%+ historical ROEs, trading at 1.5x book. PT Steel Pipe has built a lot of value over the years, looks very cheap and has performed well so far in 2025 with the shares up over 20% YTD.

Report by Churchill Research

The Indonesian stock market is priced for bad times, but CPI has fallen sharply and the central bank should start cutting benchmark rates soon. While some companies are suffering cost creep and margin contraction, Mike Churchill continues to find plenty of stocks that are posting good earnings and decent top-line growth. Stocks recently added to his Classical Insights portfolio include: Bank Danamon, Bumi Serpong, Delta Dunia Makmur, Indofood, Jaya Konstruksi, Kobexindo Tractors, Mulia Industrindo, Surya Semesta and United Tractors.