Improved Margin in 1H23
Key Takeaways:
◼️ In 1H23, INTP managed to secure a revenue of IDR7.9tn, surging +15.3% YoY (vs IDR6.9tn in 1H22), reflecting 45.6%/46.0% of consensus’/MNCS’s estimates.
◼️ The market share on the whole escalated from 24.7% to 27.4%. There was a significant surge in market share outside of Java, rising from 14.5% to 20.6%, while the market share within Java remained relatively steady at 33.9%.
◼️ Notably, there was an improvement in both Gross Profit margin, increasing from 25.6% to 30.5%, and EBITDA margin, progressing from 13.3% to 18.6%.
◼️ All in all, the net profit came in at a staggering IDR698.4bn or grew 139.6% YoY (vs IDR291.5bn in 1H22), accompanied by solid operating margin/net profit margin of 10.3%/8.8%, reflecting 34.6%/34.8% of consensus’/MNCS’s estimates. Not much changes on the balance sheet position as INTP remain in net cash position.
◼️ We recommend BUY for INTP with a target price of IDR12,700 (13.4% upside), implying a PE of 24.2x/19.9x and EV/EBITDA of 12.0x/9.7x for FY23E/FY24F. INTP is currently traded at the -1STD of its 5-year P/E band average.
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