LINK
Contact our analyst Eka
Double digit revenue growth. 2017 net profit reaches IDR 1 trillion. targeting 30 % more upside. BUY
2nd April 2018
Price Rp5,225
Target price Rp6,740
2nd April 2018
Price Rp5,225
Target price Rp6,740
Double Digit growth in 2017FY
2 Million Homes Passed
Valuation: Maintain BUY with 30% upside
- LINK booked double-digit revenue growth of 15.25% to IDR 3.4 trillion
- EBITDA also grew double digits to IDR. 2.0 trillion with an improved margin of 58.9%..
- Net income IDR 1.01 trillion was higher than our forecast IDR. 972 billion.
- We estimate the company will maintain double digit growth and revenue will reach IDR. 3.85 trillion and net income will reach IDR. 1.14 trillion in 2018.
2 Million Homes Passed
- Homes passed reached 2 million
- ARPU increased to IDR 421,000 / month compared to IDR. 407,000 / month in 2016.
- Up sell transactions increased from 329,031 in 2016 to 386,344 in 2017.
- We are expecting the company will reach their 2021 homes passed target of 2.8 million.
Valuation: Maintain BUY with 30% upside
- We have a one year target price of IDR. 6,740, offering investors a potential return of 30%.
- This would mean the stock trading at 18x 2018F PE with EV/EBITDA at 8.8x.
- We recommend BUY.
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