Operating Margin - Barito Renewables Energy PT Tbk (IDX:BREN)

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Price: 9 725 IDR -0.77%

Market Cap: 1 301.1T IDR

72.1%

Current

74%

Average

13.8%

Industry

Operating Margin represents how efficiently a company is able to generate profit through its core operations.

Higher ratios are generally better, illustrating the company is efficient in its operations and is good at turning sales into profits.

Operating Margin

72.1%

Operating Profit

441.8m

Revenue

612.9m

Operating Margin Across Competitors

Country		Company	Market Cap	Operating Margin
ID	B	Barito Renewables Energy PT Tbk IDX:BREN	1 301.1T IDR	72%
CN		China Yangtze Power Co Ltd SSE:600900	684.4B CNY	53%
CN		Huaneng Lancang River Hydropower Inc SSE:600025	169.6B CNY	50%
CN		China Longyuan Power Group Corp Ltd HKEX:916	145.4B HKD	36%
IN		Adani Green Energy Ltd NSE:ADANIGREEN	1.7T INR	57%
CN		China Three Gorges Renewables Group Co Ltd SSE:600905	117.8B CNY	34%
ES	E	EDP Renovaveis SA ELI:EDPR	12.4B EUR	24%
CN		Sichuan Chuantou Energy Co Ltd SSE:600674	69.9B CNY	31%
NZ		Meridian Energy Ltd NZX:MEL	14.6B NZD	16%
IN	N	Ntpc Green Energy Ltd NSE:NTPCGREEN	761.1B INR	51%
IN		NHPC Ltd NSE:NHPC	756.4B INR	40%

Barito Renewables Energy PT Tbk
Glance View

Market Cap

1 301.1T IDR

Industry

Utilities

Barito Renewables Energy PT Tbk emerged on the energy scene as part of the diversification and sustainability push by Indonesia's Barito Pacific Group. Situated in a region rich in natural resources, the company has adeptly transformed its operations to focus on clean energy solutions, leveraging the opportunities that arise from the global shift toward sustainable practices. Barito Renewables primarily engages in the development and management of renewable energy assets, with a focus on harnessing geothermal energy—a fitting choice given Indonesia's geothermal potential as one of the largest reserves globally. Through strategic partnerships and utilizing advanced technology, the company efficiently converts underground heat into electricity, thereby creating a significant alternative to conventional fossil fuels. The financial backbone of Barito Renewables lies in its ability to secure long-term Power Purchase Agreements (PPAs) with state-run utilities and private companies, which ensures a steady and predictable revenue stream. These contracts not only guarantee the sale of generated power but also reinforce the company’s commitment to environmental stewardship by delivering sustainable energy solutions to its clients. Moreover, by investing in the scaling up of production capacity and exploring additional forms of clean energy, Barito Renewables aims to bolster its market share and strengthen its foothold in the regional energy landscape. Through these strategic moves, the company positions itself as a pivotal player in the Southeast Asian renewable energy market, balancing financial performance with ecological responsibility.

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BREN Intrinsic Value

What is Intrinsic Value?

Economic Moat is a concept popularized by Warren Buffett to describe a company's durable competitive advantage. It represents the 'moat' that protects a company from competitors and helps it sustain profitability over the long term. Our analysis of the past 10 years showed that companies with a wide economic moat significantly outperformed the market, delivering +645% returns compared to +189% for the S&P 500.

Our research into Economic Moat performance spans the past 10 years and focuses on companies with a wide economic moat. For this analysis, we calculated the average stock price returns of these companies, comparing them to the performance of the S&P 500 index over the same period.

The results were compelling: wide moat stocks achieved a remarkable +645% average return, compared to +188% for the broader market. This difference highlights the long-term benefits of investing in businesses that can maintain their market position and pricing power over time.

Note: This research does not account for survivorship bias. Past performance is not indicative of future results.

Determining whether a company has an economic moat requires both a deep dive into financial metrics and a qualitative assessment of its competitive position. Our analysts conduct a rigorous evaluation that focuses on identifying structural advantages that enable a company to sustain profitability and defend its market share over the long term.

The process begins with an analysis of a company’s historical financial performance. We assess how consistently the company has generated returns above its cost of capital and whether those returns have been stable or improving. However, financial performance alone doesn’t reveal the full picture. To understand the sources of these advantages, we evaluate five key drivers of economic moats:

Network Effect: We analyze whether the value of a company’s product or service grows as its user base expands. Platforms like payment systems or marketplaces benefit from this self-reinforcing.

Switching Costs: We assess whether customers face significant costs or disruptions when switching to a competitor’s product or service. High switching costs create customer stickiness and provide pricing power.

Intangible Assets: Strong brands, patents, and regulatory licenses can protect a company’s market position by creating barriers for competitors or enabling premium pricing. For example, a well-recognized consumer brand may command higher customer loyalty and margins.

Efficient scale: Occurs when a market is optimally served by one or a few players, making it unprofitable for new entrants to compete. This typically happens in industries with high fixed costs or geographic constraints, such as utilities or pipelines.

Cost Advantage: Companies with structural cost advantages can produce goods or services at a lower cost than their competitors, enabling them to offer competitive pricing or maintain higher margins. These advantages often arise from economies of scale, superior supply chain management, or proprietary technology. Firms like Walmart leverage their massive scale to negotiate better terms with suppliers, allowing them to undercut competitors on price.

By examining these factors in combination with a company’s financial performance and market positioning, we classify each company into one of three categories:

This rigorous evaluation ensures that our moat ratings are both comprehensive and reliable, giving investors the tools they need to make well-informed, long-term decisions.

The AI Assistant may sometimes provide inaccurate information.

Make your own investment decisions or consult a licensed financial advisor.

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M	Man Industries India Ltd NSE:MANINDS	419.15 INR -1.38%
P	PCCS Group Bhd KLSE:PCCS	0.295 MYR

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Barito Renewables Energy PT Tbk
IDX:BREN