Company Update

21 November 2019

MTDL 9M19 - MNC Sekuritas Equity Report

PT Metrodata Electronics Tbk (MTDL)

Computer and Services


Speeding up the Innovation!


Provides Integrated ICT Solution in Indonesia

PT Metrodata Electronics Tbk (MTDL) is a renowned Information Technology and Communications company in Indonesia which consists of Business Distribution, Solution and Information Technology Consultation Units. Aligned with the growth of the business, MTDL partnered with world class IT companies to innovate through developing subsidiaries and even joint ventures which includes 7 main business units. Currently, MTDL has 4,000 customers from the business distribution unit which are the dealers and master dealers with a distribution scope of 7 full branches, 14 warehouses and several sales representatives across Indonesia. The business solution unit has more than 1.700 customer bases which consist of Small Medium Enterprises.


MTDL’s Innovation in Welcoming the Digital Industry Transformation 4.0

Realizing the ever-changing condition of the market from digital transformation, MTDL focuses on the development of strategies as well as diversification in all business segments. One of its strategies is to launch the company’s own do-it-yourself (DIY) PC which will optimize and enable the customer’s creativity to customize their own computers such as gaming products through its subsidiary, PT Synnex Metrodata Indonesia (SMI). Currently SMI's distribution for gaming products has dominated the market share by 50%. In FY19E, SMI developed new gaming products with top of the line technology, such as notebook and PC in the Nvidia RTX Series which includes Intel i9, GTX 16 series graphic card, ROG phone and the newest gaming accessories.


Solid Performance in 9M19: Net Profit grew by +35.47% YoY

Revenue grew by 12.80% YoY to IDR10.22 trillion in 9M19 (vs IDR9.06 trillion in 9M18) driven by the Business Distribution Unit, specifically by the sales of hardware as it contributed 78.13% YoY towards the total sales in 9M19 and another 13.36% YoY from the sales of software. The net profit grew by 35.47% YoY to IDR258,78 billion in 9M19. On this year, the company budgeted their capital expenditure for FY19E as much as IDR200 billion, with a portion of IDR190 billion used for buying ICT products which will be rented out to customers and the remaining IDR10 billion for upgrading the ICT for internal purposes. The company set a quite optimistic target for revenue growth at 12% and the net profit also targeted to grow by 12.5% FY19E.


Valuation and Recommendation: NOT RATED

MTDL is currently trading at the level of +2STD PE (3 years average). MTDL's shares grew by 106.36% YTD with PE at 12,38x. We believe that the development of product innovation strategy that is supported by massive expansions in the upcoming years will potentially increase Company’s performance.




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