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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

Double Digit growth in 2017FY

• 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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November 21, 2017