reports
- Chris Hoare
Protelindo (Buy, TP: IDR 1,900, +136%) Q1 24 Quick Take: Topline beat...
Protelindo delivered a better topline performance with growth at the upper bound of its 4-6% guidance. In addition to FTTT’s contribution, the improvement in Tower revenue helped support this. Yet, margins fell again, and justifiably so as non-Tower contribution rises. With telcos expanding into the under penetrated broadband space and into rural Indonesia, we continue to believe that Protelindo’s adjacent businesses (FTTT and FTTH) stand to benefit.
- Limartha Adhiputra
- Maskun Ramli
- Paula Ruth
- Posmarito Pakpahan
Indonesia Daily - Thursday, April 4, 2024
Mitra Keluarga (MIKA IJ/BUY/Rp2,500/Target: Rp3,000): 4Q23: Net profit dropped 13.5% qoq; 17% net profit growth expected in 2024. Ciputra Development (CTRA IJ/HOLD/Rp1,260/Target: Rp1,370): 4Q23: NPAT in line with consensus; expect better results in the upcoming quarter. Downgrade to HOLD. Sarana Menara Nusantara (TOWR IJ/BUY/Rp855/Target: Rp1,200): 4Q23: Non-tower revenue up 18% yoy; maintain BUY. TRADERS’ CORNER Merdeka Copper Gold (MDKA IJ): Technical BUY Pertamina Geothermal Energy (PG...
- Paula Ruth
Sarana Menara Nusantara (TOWR IJ): 4Q23: Non-Tower Revenue Up 18% yoy
TOWR’s 4Q23 net profit dropped 6% yoy and 5% qoq, mainly from rising expenses. 2023 non-tower revenue jumped 18% yoy (4Q23: +18% yoy and +13% qoq), primarily driven by the 22% expansion of FTTT network length during the period. We expect non-tower (fibre and other non-tower businesses) revenue to grow 24% yoy in 2024 (2023: 37%). Maintain BUY with an unchanged target price of Rp1,200.
- Jacquelyn Yow Hui Li
- Jonathan Koh
- Leow Huey Chuen
- Limartha Adhiputra
- Paula Ruth
- Posmarito Pakpahan
- Tanaporn Visaruthaphong
Regional Morning Meeting Notes: Wednesday, April 03, 2024
INDONESIA Results Mitra Keluarga (MIKA IJ/BUY/Rp2,500/Target: Rp3,000) 4Q23: Net profit dropped 13.5% qoq; 17% net profit growth expected in 2024. Ciputra Development (CTRA IJ/HOLD/Rp1,260/Target: Rp1,370) 4Q23: NPAT in line with consensus; expect better results in the upcoming quarter. Downgrade to HOLD. Sarana Menara Nusantara (TOWR IJ/BUY/Rp855/Target: Rp1,200) 4Q23: Non-tower revenue up 18% yoy; maintain BUY. MALAYSIA Sector Plantation CPO prices have surpassed those of SBO, SFO and R...
- Chris Hoare
- Chris Hoare
EM Tower Trends Q3 CY23 review: Strong in Africa and China; Power dyn...
Amongst our EM Tower coverage, African TowerCos like IHS continue to trend well on topline and EBITDA, with capex expected to come down next FY; topline for Indonesian towers was driven by inorganic growth at Mitratel; China Tower was better on all fronts, with double-digit profit growth again. Indian Towers saw better EBITDA performance on lower bad debt costs, but towers revenue was weaker off Indus’ decline. We see some evidence that Telcos are seeing better bargaining power.
- Paula Ruth
Telecommunications – ISAT Would Be The Beneficiary From Home’s Fixed B...
ISAT on 27 November announced its collaboration with MNC Play by acquiring over 300,000 subscribers. This could give rise to slightly positive sentiment on ISAT as it gives more clarity on its potential inorganic growth in the fixed broadband/fixed mobile convergence business. EXCL has yet to announce the recent progress of its synergy with LINK (top 2 player in fixed broadband market). The impact might be roughly priced in for now as ISAT’s share price jumped 4% on 29 Nov 23. Maintain OVERWEIGH...
- Maskun Ramli
- Paula Ruth
- Desmond Chong Chee Wai
- Heidi Mo Jinghui
- Jack Goh Tooan Orng
- John Cheong Ming Chern
- Johnny Yum Chung Man
- Kwanchai Atiphophai
- Paula Ruth
- Philip Wong
- Ziv Ang Sze Champ
Regional Morning Notes - Tuesday, November 21, 2023
GREATER CHINA Sector Commodities: Weekly: US dollar tumbles on easing Fed rate hike fears; industrial metals and iron ore prices spike on stimulus optimism. Results Xiaomi Corp (1810 HK/BUY/HK$16.18/Target: HK$21.60): 3Q23: Another beat on solid execution. INDONESIA Results Sarana Menara Nusantara (TOWR IJ/BUY/Rp980/Target: Rp1,200): 3Q23: Fibre and connectivity revenue (+39% yoy) were main growth drivers; Maintain BUY. MALAYSIA Results Mr D.I.Y. Group (MRDIY MK/BUY/RM1.61/Target: RM2.10): 3Q2...
- Paula Ruth
Sarana Menara Nusantara (TOWR IJ) - 3Q23: Fibre and Connectivity Reven...
TOWR booked 3Q23 EBITDA of Rp2.5t, up 5% yoy and 1% qoq, in line with our and consensus’ estimates. Its 3Q23 net profit growth of +7% qoq showed an encouraging trend thanks to lower finance costs. 9M23 FTTT revenue rose by 68% yoy, mainly due to strong growth in its FTTT network length (around 47% yoy). We expect fibre and connectivity revenue to grow 24% yoy in 2024 with higher revenue contribution (32% in 2024 vs 27% in 2023). Maintain BUY with a target price of Rp1,200.
- Maskun Ramli
- Paula Ruth
Indonesia Daily - Tuesday, November 21, 2023
Sarana Menara Nusantara (TOWR IJ/BUY/Rp980/Target: Rp1,200): 3Q23: Fibre and connectivity revenue (+39% yoy) were main growth drivers; Maintain BUY. TRADERS’ CORNER Saratoga Investama Sedaya (SRTG IJ): Technical BUY Astra Otoparts (AUTO IJ): Technical BUY
- Chris Hoare
Protelindo (Buy, TP: IDR 1,900, +113%) Q3 23 Quick Take: Good tractio...
Protelindo printed a slower set of results but still sustained MSD growth, helped by FTTT. EBITDA slowed slightly YoY on higher marketing and G&A costs, but margin remained decent at 85%. Protelindo’s exposure to FTTT is proving worthwhile and following the industry’s shift towards convergence, we believe Protelindo stands to benefit.
- Paula Ruth
Telecommunications – Data Traffic To Grow 18% yoy In 2024; Maintain OV...
We expect data revenue to rise 10%/9% yoy in 2023/24, mainly due to data traffic growth. The upcoming Election Day in Feb 24 may also help increase data traffic by at least 7% vs a normal day. We also believe fixed broadband revenue could accelerate slightly by 10% yoy in 2024 (2023: 9% yoy). For tower companies, fibre-to-the-tower could become an additional growth driver. We expect TOWR's revenue from FTTT and connectivity services to grow 29%/24% yoy in 2023/24 respectively. Maintain OVERWEIGH...
- Maskun Ramli
- Paula Ruth
- Chris Hoare
- David Lopes
EM Tower Trends Faster quarter in Africa and Indonesia; IHS’ MTN Nige...
Amongst our EM Tower coverage, African TowerCos like IHS continue to trend well on topline and EBITDA; Indonesian towers reported faster EBITDA growth ahead of topline again; China Tower slowed again as Towers revenue were impacted by MSA renegotiation effective from 2023; its Two Wings business continue to show healthy growth, however. Indian towers reported better numbers, supported by Indus performance as the lower bad debt costs helped offset its higher energy costs.
- Paula Ruth
Telecommunications – Fixed Broadband Remains Attractive Despite Starli...
Although Starlink, a satellite internet provider, might aim to operate directly as a business-to-consumer (B2C) player in Indonesia, we think the potential impact to the telco sector is still relatively minor for now. This considers our observation that the prices of certain Indihome and XL Satu Fiber products are still way more attractive (52- 65% cheaper) than Starlink's standard plan prices for two other Southeast Asian countries. Maintain OVERWEIGHT on the sector with ISAT and TOWR as our to...
- Maskun Ramli
- Paula Ruth
- Paula Ruth
Telecommunications – Inorganic Growth For Tower Providers From IBST Sa...
We are positive on tower providers given a new inorganic growth opportunity from a possible ownership change in IBST (about 3,383 towers). Other tower providers like MTEL (supported by its balance sheet quality) or CENT (likely to expand its fibre optic assets) could be one of the potential buyers. Annualised 2023 revenue of IBST accounts for 13% of MTEL’s revenue and 44% of CENT’s revenue for 2023. We are OVERWEIGHT on the telco sector with ISAT and TOWR as our top buys.
- Maskun Ramli
- Paula Ruth
- Paula Ruth
Sarana Menara Nusantara (TOWR IJ) - High Growth In FTTT And Connectivi...
We upgrade TOWR to BUY with a target price of Rp1,200 given several factors: a) 2023/24 FTTT and connectivity revenue should surge 29%/24%; b) potentially higher demand for fibre optic service as 5G spectrum might be put up for auction in the near term; c) revenue contribution from big telcos rose to 76% in 1H23 vs before the Indosat- Tri merger (58% in 2021), implying better quality in tenancies; and d) core profit growth should recover to +4% yoy in 2024 (vs -7% yoy in 2023).
Unfortunately, this report is not available for the investor type or country you selected.
Report is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.