Supreme Cable Manufacturing & Commerce (IDX: SCCO) Stock 2027: A Deep Financial Analysis for Investors
Published: October 30, 2025
Last Updated: October 7, 2026
Financial data and analysis reviewed as of October 7, 2026.
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| Supreme Cable Manufacturing & Commerce |
Worldreview1989 - Supreme Cable Manufacturing & Commerce Tbk (IDX: SCCO) is an Indonesian cable manufacturer that could attract value-oriented investors looking for exposure to power infrastructure, electrification, industrial demand, and the long-term expansion of electricity networks.
For U.S. investors, however, SCCO requires a different analytical framework from a typical American technology or industrial stock. This is not a high-growth software company, and it is not a copper mining company. SCCO is primarily a cable manufacturing and industrial infrastructure business, where revenue, copper and aluminum input costs, product mix, project demand, working capital and operating margins matter more than simply forecasting copper prices.
One important clarification: IDX:SCCO is PT Supreme Cable Manufacturing & Commerce Tbk, while NYSE:SCCO is Southern Copper Corporation. They are completely different companies.
Check : Indonesia Stock Exchange Listed Companies Directory
What Is Supreme Cable Manufacturing & Commerce?
PT Supreme Cable Manufacturing & Commerce Tbk, commonly known as SUCACO, was established in 1970 and began commercial production in 1972 with technical assistance from Furukawa Electric of Japan. The company was listed on the Indonesia Stock Exchange in 1982 and operates in power cables, telecommunications cables, enameled wires and related products.
The company's product portfolio includes low-, medium- and high-voltage power cables, building wires, flexible cables, instrumentation cables, solar cables and other cable-related products.
That business positioning matters because electricity infrastructure is becoming increasingly important globally.
The International Energy Agency expects global electricity demand to grow at an average 3.6% annually from 2026 through 2030, while annual grid investment may need to increase by roughly 50% from today's level by 2030.
For a cable manufacturer, that creates a favorable structural backdrop.
SCCO 2027 Investment Thesis
From a U.S. investor's perspective, the SCCO thesis can be summarized in five points:
A financially conservative balance sheet
Consistent profitability rather than speculative growth
Potential benefits from electricity-grid and infrastructure investment
Attractive valuation relative to book value and earnings
A meaningful margin of safety, but limited profitability
The most interesting characteristic is that SCCO does not need explosive revenue growth to generate shareholder value.
If the company can maintain modest revenue growth while improving gross margins and capital efficiency, EPS could compound faster than revenue.
That is where the 2027 investment case becomes more interesting.
2025 Financial Performance
SCCO delivered solid growth in 2025.
According to the company's 2025 Annual Report:
| Financial Metric | 2023 | 2024 | 2025 |
|---|---|---|---|
| Revenue | Rp5.82T | Rp6.94T | Rp7.42T |
| Gross Profit | Rp480.2B | Rp596.1B | Rp642.3B |
| Pre-tax Profit | Rp296.5B | Rp377.1B | Rp395.3B |
| Net Profit | Rp237.5B | Rp294.7B | Rp313.4B |
| Total Assets | Rp5.33T | Rp5.70T | Rp5.88T |
| Equity | Rp4.94T | Rp5.37T | Rp5.62T |
Revenue increased approximately 6.9% in 2025, while net profit increased approximately 6.4%. Gross profit increased 7.75%.
This is not hyper-growth.
But that is precisely why SCCO may appeal to a value investor.
The company is demonstrating that it can grow while remaining profitable and maintaining a relatively conservative financial structure.
The independent auditor's 2025 report stated that the consolidated financial statements fairly presented the company's financial position, performance and cash flows in accordance with Indonesian Financial Accounting Standards.
The Most Important Financial Insight: SCCO Is a Low-Margin Business
Investors should not mistake revenue growth for exceptional profitability.
In 2025, SCCO generated approximately:
8.66% gross margin
5.33% ROA
5.58% ROE
4.22% net margin
based on the company's annual financial highlights.
This creates an important investment distinction.
SCCO can be cheap without necessarily being highly profitable.
That is different from a company such as a software business where a high gross margin can support very high incremental profitability.
For SCCO, the investment question is therefore not:
"Can revenue grow 20%?"
The better question is:
"Can SCCO gradually convert infrastructure demand into higher-margin earnings?"
That is the variable I would watch most closely through 2027.
2026 Results Show an Interesting Improvement
The first half of 2026 provides a more encouraging picture.
SCCO reported approximately:
Revenue: Rp3.92 trillion
Gross profit: Rp359.3 billion
EBITDA: Rp255.9 billion
Net profit: Rp205.4 billion
for 1H 2026.
Compared with 1H 2025, revenue increased approximately 1.9%, gross profit increased 6.3%, EBITDA increased 5.5%, and net profit increased 12.5%. Net margin reached approximately 5.2%.
This is potentially more important than the headline revenue growth.
Why?
Because earnings are growing faster than sales.
That suggests SCCO may be experiencing some combination of:
better product mix,
better procurement,
operating efficiency,
improved pricing,
lower cost pressure, or
better absorption of fixed costs.
If this pattern continues into 2027, earnings growth could outperform revenue growth.
That would create a stronger case for a valuation re-rating.
SCCO's Balance Sheet Is a Major Positive
Another reason SCCO deserves attention is its balance sheet.
At the end of 2025, the company reported approximately:
Cash: more than Rp1.2 trillion
Total assets: Rp5.88 trillion
Equity: Rp5.62 trillion
Short-term debt: approximately Rp208 billion
Long-term debt: approximately Rp50 billion
The resulting debt burden was relatively low compared with equity.
By 1H 2026, reported equity had risen to approximately Rp5.74 trillion, while the financial data showed no long-term debt and no short-term debt in the summarized balance sheet.
For investors, this reduces one of the biggest risks associated with cyclical industrial companies:
financial leverage.
A heavily leveraged cable manufacturer could be vulnerable to:
copper price volatility,
weak construction demand,
rising interest rates,
working-capital pressure,
delayed infrastructure projects.
SCCO's relatively conservative balance sheet provides a degree of protection against those risks.
The Hidden Copper Exposure: Tembaga Mulia Semanan
One of the more interesting aspects of SCCO is its investment in PT Tembaga Mulia Semanan Tbk (TBMS).
SCCO owns approximately 33.81% of TBMS.
TBMS produces copper and aluminum rods and wires, creating a strategic relationship with SCCO's cable manufacturing ecosystem. SCCO's 2025 Annual Report reported TBMS sales of approximately US$920.7 million.
This does not make SCCO a copper miner.
Instead, it creates an interesting vertical exposure to the copper processing and cable value chain.
However, investors should not automatically assume that higher copper prices translate directly into higher SCCO profits.
That would be a mistake.
Copper Prices Are Not the Same as Cable Manufacturer Margins
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| Supreme Cable Manufacturing & Commerce (IDX: SCCO) |
For a U.S. investor, this distinction is extremely important.
A copper miner benefits directly when copper prices rise because the selling price of its output increases while production costs may not rise proportionally.
A cable manufacturer operates differently.
When copper becomes more expensive:
Raw-material costs increase → selling prices may also increase → revenue increases → but the underlying margin may not increase proportionally.
Therefore, SCCO should be analyzed through:
volume × product mix × spread/margin × working capital
rather than simply:
copper price = higher SCCO profit.
This is one of the most important differences between SCCO and a copper mining stock.
Why Electricity Infrastructure Could Matter in 2027
The long-term demand environment is favorable.
The IEA expects electricity demand to accelerate through 2030, supported by industrial activity, EV adoption, cooling, data centers and broader electrification.
The United States is particularly interesting.
U.S. electricity demand is projected to increase by nearly 2% annually through 2030, with data centers accounting for roughly half of the total increase.
Globally, grid investment requirements are also increasing.
The IEA estimates that annual grid investment will need to rise by approximately 50% by 2030 from today's level.
That matters because power cables are not an optional component of electricity infrastructure.
Generation capacity without adequate transmission and distribution infrastructure creates bottlenecks.
Therefore, the structural investment theme is broader than renewable energy.
It includes:
transmission lines,
distribution networks,
industrial facilities,
data centers,
EV infrastructure,
solar projects,
manufacturing facilities,
commercial buildings,
grid upgrades.
A Second Tailwind: AI and Data Centers
The AI boom may appear unrelated to an Indonesian cable manufacturer.
It is not.
The IEA estimates that global data-center electricity consumption could approximately double to around 945 TWh by 2030 in its base case.
Every large data center ultimately requires:
electricity generation → transmission → substations → transformers → distribution → cables → computing equipment.
That does not mean SCCO will directly sell cables to U.S. hyperscalers.
Instead, the broader investment thesis is that growing electricity demand creates additional infrastructure requirements.
SCCO is positioned farther down the physical infrastructure chain.
This is a potentially attractive place to invest because the company does not have to predict which AI model will win.
It only needs electricity infrastructure spending to continue.
Valuation: Why SCCO Looks Cheap
Around September 2026, market data showed SCCO trading in the vicinity of Rp2,500–Rp2,600 per share, with a market capitalization of roughly Rp2.1 trillion.
The company had approximately 822.3 million shares outstanding. KSEI confirms SCCO's active listing and the same share count.
Using a reference price of approximately Rp2,570, investors can construct a simple valuation framework.
If 2026 EPS eventually reaches approximately Rp420–Rp450, the implied forward P/E would be roughly:
Rp2,570 ÷ Rp435 ≈ 5.9× earnings
That is a relatively low multiple.
But there is an important caveat.
A low P/E is not automatically evidence that a stock is undervalued.
The market may be assigning a discount because SCCO has:
low ROE,
low margins,
relatively small market capitalization,
limited analyst coverage,
low foreign ownership,
cyclical industrial exposure,
and limited liquidity for international investors.
Therefore, the valuation discount has reasons behind it.
Book Value Provides Another Margin-of-Safety Argument
At the end of 2025, SCCO had equity of approximately Rp5.62 trillion against 822.3 million shares.
That produces book value of roughly:
Rp6,830–Rp6,840 per share.
Against a market price around Rp2,570, the stock trades at approximately:
0.38× book value.
That is unusually low.
However, investors should not interpret a sub-0.5× price-to-book ratio as a guaranteed bargain.
The market is effectively saying:
"The company owns substantial net assets, but those assets are not generating exceptional returns."
This is where ROE becomes critical.
If SCCO's ROE remains around 5–6%, a low PBV may persist.
If management can increase ROE toward 8–10% through better margins, asset utilization and capital allocation, the market could potentially justify a higher PBV.
SCCO 2027 Scenario Analysis
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| Supreme Cable Manufacturing & Commerce (IDX: SCCO) |
Rather than pretending that a single target price is certain, a scenario model is more appropriate.
Bear Case
Assumptions:
Weak industrial demand
Margin pressure
Copper/input-cost volatility
2027 EPS around Rp390
P/E multiple: 6×
Estimated value:
Rp2,340 per share
This scenario suggests limited downside from a Rp2,500–Rp2,600 reference price, but the stock would not generate meaningful capital appreciation.
Base Case
Assumptions:
Moderate infrastructure growth
Revenue growth around mid-single digits
Gradual margin improvement
2027 EPS around Rp450
P/E multiple: 7×
Estimated value:
Rp3,150 per share
This represents a potential rerating based on both earnings growth and modest multiple expansion.
Bull Case
Assumptions:
Strong infrastructure spending
Better product mix
Sustained margin expansion
Higher demand for power and industrial cables
2027 EPS around Rp520
P/E multiple: 8×
Estimated value:
Rp4,160 per share
This would require more than simply higher revenue.
It would require the market to believe that SCCO has entered a structurally better earnings cycle.
2027 Valuation Matrix
| Scenario | 2027 EPS Assumption | P/E | Implied Value |
|---|---|---|---|
| Bear | Rp390 | 6× | Rp2,340 |
| Base | Rp450 | 7× | Rp3,150 |
| Bull | Rp520 | 8× | Rp4,160 |
These are analytical scenarios, not company guidance or guaranteed price targets.
The key variable is not the P/E alone.
It is whether SCCO can produce sustainable EPS growth while improving returns on capital.
Dividend Appeal
SCCO also has a potential income component.
KSEI reported a Rp100-per-share cash dividend for SCCO in 2026, with payment scheduled for July 7, 2026.
At a share price of Rp2,570, a Rp100 dividend corresponds to a simple dividend yield of approximately:
3.9%
That is not an exceptionally high yield, but it becomes more attractive when combined with:
low leverage,
substantial book value,
positive earnings,
and potential EPS growth.
The important issue for 2027 will be whether dividend growth follows earnings growth.
For a long-term investor, a company that can move from:
Rp100 → Rp110 → Rp120
while maintaining a healthy payout ratio could become considerably more attractive.
What American Investors May Like
From a U.S. investor's perspective, SCCO offers several characteristics that could be attractive.
1. Cheap valuation
The stock trades at a relatively low earnings multiple and well below book value.
2. Infrastructure exposure
The business is connected to a physical infrastructure theme that should remain relevant even if individual technology trends change.
3. Low leverage
The balance sheet provides a significant advantage during cyclical downturns.
4. Dividend income
The company has demonstrated a willingness to return capital to shareholders.
5. Tangible assets
Unlike many high-growth stocks, SCCO is backed by physical manufacturing operations and substantial equity.
6. Potential earnings normalization
If 2026's stronger earnings trend continues, the current valuation could become increasingly difficult to justify.
What American Investors May Not Like
There are equally important negatives.
1. Small-cap liquidity
SCCO is a relatively small Indonesian listed company.
2. Limited U.S. accessibility
It trades on the Indonesia Stock Exchange, not the NYSE or Nasdaq.
A U.S. investor cannot simply buy it through every American brokerage account.
3. Currency risk
An American investor ultimately measures investment returns in U.S. dollars.
Even if SCCO rises 20% in Indonesian rupiah, a weakening rupiah can reduce the return in USD terms.
4. Low ROE
A stock trading below book value can remain cheap for years when return on equity remains modest.
5. Commodity-linked costs
Copper and aluminum input costs can create working-capital and margin volatility.
6. Limited analyst coverage
SCCO does not have the extensive institutional research coverage available to large U.S. industrial companies.
7. Governance and minority-investor considerations
International investors should carefully review ownership structure, board composition, related-party transactions and disclosure quality before investing.
The Most Important 2027 KPI Is Not Revenue
For SCCO, investors should watch gross margin and ROE more closely than revenue alone.
Consider two possible scenarios.
Company A
Revenue grows 10%.
Net profit grows 5%.
ROE remains 5%.
The stock may remain cheap.
Company B
Revenue grows 7%.
Net profit grows 15%.
ROE rises toward 8–9%.
The market has a much stronger reason to revalue the shares.
Therefore, SCCO's 2027 investment story depends heavily on operating leverage and capital efficiency.
That is the central analytical point.
What Could Trigger a Re-Rating?
Several developments could cause the market to assign a higher valuation to SCCO:
1. EPS growth above revenue growth
This would indicate genuine margin expansion.
2. ROE moving materially above 6%
This could make the low PBV harder to justify.
3. Higher infrastructure spending
Especially transmission, distribution, industrial and renewable projects.
4. Stable copper and aluminum procurement
Better procurement can protect spreads.
5. Higher dividend
A growing dividend could attract income-oriented investors.
6. Improved liquidity and institutional ownership
Greater investor participation could reduce the valuation discount.
What Could Break the Investment Thesis?
The biggest risks are not necessarily a collapse in revenue.
The more dangerous scenario is margin compression.
For example:
Copper prices rise sharply.
SCCO raises selling prices.
Revenue increases.
But customers resist price increases and gross margins decline.
The headline revenue number would look healthy while shareholder returns deteriorate.
Other risks include:
weak construction activity,
delayed infrastructure projects,
currency volatility,
higher working-capital requirements,
increased competition,
raw-material price shocks,
lower industrial demand,
and disappointing capital allocation.
SCCO vs. a Copper Mining Stock
U.S. investors sometimes compare SCCO with copper miners.
That comparison should be made carefully.
| Factor | SCCO | Copper Miner |
|---|---|---|
| Main business | Cable manufacturing | Mining |
| Copper exposure | Indirect | Direct |
| Main earnings driver | Volume, pricing, margins | Copper price + production |
| Capital intensity | Manufacturing | Very high |
| Commodity sensitivity | Moderate | High |
| Infrastructure exposure | High | Indirect |
| Balance-sheet profile | Relatively conservative | Varies significantly |
| Dividend potential | Moderate | Commodity-cycle dependent |
This makes SCCO potentially interesting for investors who want industrial infrastructure exposure without taking the full operating risk of a copper miner.
2027 Investment Verdict
Supreme Cable Manufacturing & Commerce (IDX:SCCO) looks more like a value-and-income industrial stock than a high-growth stock.
The company enters the 2027 outlook with several strengths:
revenue above Rp7 trillion,
consistent profitability,
substantial equity,
relatively low debt,
a long operating history,
exposure to power infrastructure,
an established position in Indonesia's cable industry,
and a valuation that appears inexpensive relative to earnings and book value.
The biggest weakness is profitability.
A company with approximately 5–6% ROE does not automatically deserve a premium valuation simply because it trades below book value.
Therefore, my base-case view for 2027 is cautiously constructive, provided SCCO can continue growing earnings faster than revenue and improve capital efficiency.
Analytical 2027 Range
Bear case: Rp2,340
Base case: Rp3,150
Bull case: Rp4,160
The Rp3,150 base-case valuation assumes approximately Rp450 of 2027 EPS and a 7× P/E multiple.
The most important confirmation signal would be:
EPS growth + expanding gross margin + rising ROE + stable balance sheet.
If those four indicators appear together, SCCO could move from being merely a "cheap stock" to becoming a genuine value-re-rating candidate.
Final Takeaway for U.S. Investors
SCCO is not a stock that needs an AI breakthrough, a new drug, or explosive consumer growth to work.
Its potential catalyst is much more basic:
the world needs more electricity infrastructure.
The IEA expects electricity demand to continue rising through 2030, while grid investment requirements are also increasing.
That creates a favorable long-term environment for cable manufacturers.
But investors should remain disciplined.
Cheap assets are not enough.
The real 2027 opportunity would emerge if SCCO converts its strong balance sheet and infrastructure positioning into higher margins, higher ROE and faster EPS growth.
For a value-oriented investor willing to accept Indonesian-market, currency and liquidity risks, SCCO deserves a place on the 2027 watchlist.
Overall 2027 view: Cautiously Bullish / Value Watchlist
Key catalysts: infrastructure investment, margin expansion, EPS growth, dividend growth and ROE improvement.
Key risks: low profitability, commodity/input-cost volatility, currency risk, small-cap liquidity and prolonged valuation discount.
Primary Sources
The analysis of PT Supreme Cable Manufacturing & Commerce Tbk (IDX: SCCO) should be supported by the company's official corporate disclosures and audited financial statements. These primary sources provide information on the company's financial position, revenue, profitability, assets, liabilities, equity, cash flows, business operations, and other material information relevant to investors.
Official Company Source:
PT Supreme Cable Manufacturing & Commerce Tbk (SUCACO) – Official Corporate Website
https://www.sucaco.com/
Official Financial Report:
PT Supreme Cable Manufacturing & Commerce Tbk and its subsidiaries – Consolidated Financial Statements and Annual Financial Report 2024
https://www.sucaco.com/assets/img/pdf/Annual%20financial%20report%202024.pdf
The official financial statements provide primary financial data that can be used to evaluate SCCO's balance sheet, liabilities, equity, and overall financial condition.
Company History and Corporate Information:
SUCACO's official corporate history states that the company was established in 1970, began commercial production in 1972 with technical support from Furukawa Electric Co., Ltd., and became the first domestic Indonesian company to list its shares on the Indonesia Stock Exchange in 1982.
WorldReview1989's analysis should be considered secondary analytical commentary, while the company's official financial statements and corporate disclosures should remain the primary sources for historical financial facts.
Investor Note:
Investors should verify financial figures, corporate actions, and material developments against the latest official company disclosures and applicable Indonesia Stock Exchange filings before making an investment decision. Historical performance does not guarantee future returns, and SCCO remains exposed to factors including raw-material prices, demand for cable products, competition, operating costs, working-capital requirements, and broader economic conditions.
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