reports
- Paula Ruth
Telecommunications – 1Q24 EBITDA Up 9% yoy; EXCL Showed Slight Gain In...
The combined EBITDA and net profit of TLKM, ISAT, and EXCL was up by 9% yoy (4% qoq) and 4% yoy (3% qoq) respectively, despite more signs of competition in 1Q24. EXCL showed a slight gain in market share (based on 1Q24 EBITDA) among the top 3 telcos, partly thanks to EBITDA margin expansion. The upcoming Eid al-Fitr festive season could bring a slightly positive seasonality to telcos’ 2Q24 performance. Maintain OVERWEIGHT with EXCL as our top pick.
- Maskun Ramli
- Paula Ruth
- Chris Hoare
IHS Towers (Buy, TP: $8, +144%) Q1 24: Slower growth (as expected), i...
IHS Towers has reported a slower quarter as expected. Top line performance was solid and came in ahead of expectations, but EBITDA growth was below expectations. Capex this quarter is well below historic levels as the company is now focused on cash generation and rebuilding the balance sheet. As a result, OpFCF margins improved.
- Adrian Loh Tzum Yung
- Ariel Poh Yun Li
- Chong Lee Len
- Damon Shen
- Jacquelyn Yow Hui Li
- Jieqi Liu
- Johnny Yum Chung Man
- Kampon Akaravarinchai
- Kasemsun Koonnara
- Keith Wee Teck Keong
- Leow Huey Chuen
- Limartha Adhiputra
- Llelleythan Tan Tan
- Paula Ruth
- Stevanus Juanda
- Tanaporn Visaruthaphong
Regional Morning Notes - Tuesday, May 07, 2024
GREATER CHINA Sector Property: Expect sales improvement in May on low base; watch PBOC’s and NDRC’s actions in 2Q24; add Longfor to top picks. Results Estun Automation (002747 CH/SELL/Rmb16.64/Target: Rmb14.00): 4Q23/1Q24: Another two sets of disappointing results; erosion of ASP and margins not over yet. INDONESIA Results Ace Hardware Indonesia (ACES IJ/BUY/Rp880/Target: Rp1,200): 1Q24: NPAT up 29.3% yoy; in line with expectations. Indocement Tunggal Prakarsa (INTP IJ/BUY/Rp7,125/Target: Rp8,8...
1023 CIMB GROUP HOLDINGS BHD
F34 WILMAR INTERNATIONAL LIMITED
TOWR PT SARANA MENARA NUSANTARA TBK
INTP PT INDOCEMENT TUNGGAL PRAKARSA TBK
ACES PT ACE HARDWARE INDONESIA TBK
2747 ESTUN AUTOMATION
ONEE THE ONE ENTERPRISE PCL
SMGR SEMEN INDONESIA PERSERO TBK
ITC I-TAIL CORPORATION PUBLIC COMPANY LIMITED
- Paula Ruth
Sarana Menara Nusantara (TOWR IJ) - 1Q24: Moderate Net Profit Growth O...
TOWR booked 1Q24 EBITDA of Rp2.5t, up 4% yoy and down 1% qoq, in line with our and consensus estimates. TOWR also booked net profit growth of +6% yoy in 1Q24. 1Q24 FTTT revenue jumped 16% yoy on FTTT network expansion. Our 2024 fibre and connectivity revenue growth forecast is 24% yoy (faster than tower’s revenue) with a higher revenue contribution (32% in 2024 vs 27% in 2023). Maintain BUY with a target price of Rp1,200.
- Limartha Adhiputra
- Maskun Ramli
- Paula Ruth
- Stevanus Juanda
Indonesia Daily - Tuesday, May 7, 2024
Ace Hardware Indonesia (ACES IJ/BUY/Rp880/Target: Rp1,200): 1Q24: NPAT up 29.3% yoy; in line with expectations. Indocement Tunggal Prakarsa (INTP IJ/BUY/Rp7,125/Target: Rp8,800): 1Q24: NPAT falls 35.9% yoy and 65.1% qoq on seasonally weak sales volumes; results below expectations. Sarana Menara Nusantara (TOWR IJ/BUY/Rp880/Target: Rp1,200): 1Q24: Moderate net profit growth of 6% yoy. Maintain BUY. Semen Indonesia (SMGR IJ/BUY/Rp4,700/Target: Rp7,000): 1Q24: Weak sales volume from bag segment ...
- 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.
- Chris Hoare
- Chris Hoare
- 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
IHS Towers (Buy, TP: $10, +161%) Feedback from small group call
We hosted a small group zoom call with the IHS CFO, Steve Howden, and Head of IR, Colby Synesael yesterday. The company has had a torrid time over the last 2 years, but operationally has proven relatively resilient to intense pressure in our view. Our takeaway from the call was cautiously positive, though of course lots depends on Nigerian Macro.
- Chris Hoare
- Chris Hoare
- Chris Hoare
Chinese Telcos & Towers Outlook 2024 – Expect another good year for t...
2023 was another decent year for the telcos largely driven by Enterprise. Stocks (especially China Mobile and Telecom) outperformed the weak local index. We expect trends to last through 2024 with good revenue growth and reducing margin pressure and the potential for shareholder remuneration to surprise
- 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
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