Company Update

11 September 2023

TBIG IJ - MNC Sekuritas Equity Report September 11, 2023

Expect Recovery Post-MNO Consolidation

Key Takeaways:
• TBIG’s net profit in 1H23 decreased by -16.6% YoY, reaching IDR688.8 bn (vs IDR826.1 bn in 1H22) due to increase in the finance expense (+7.0% YoY). This is followed by reduced revenue (-0.7% YoY), influenced by Tri’s consolidated tenancy to IOH and ISAT’s non-renewals.
• To finance TBIG’s expansion in the tower industry, the company has prepared 2 ways through bond issuance and treasury shares disposal.
• We recommend HOLD with TP: IDR2,250/share (+9.8% upside), implying FY23E EV/EBITDA 12.6x. Downside risks: 1) MNO Consolidation; 2) high current interest rate; 3) leverage level; 4) premium valuation among peers.

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