MARI
Contact our analyst Revita
Market Domination, BUY
5th December 2017
Current price Rp1,195
Target price Rp1,500
5th December 2017
Current price Rp1,195
Target price Rp1,500
Total market domination
Strong profit growth
Valuation: 25.5% upside, BUY
- After acquiring 4 radio stations in Jakarta MARI’s market share (excluding digital) grew to 46% in 3Q17 compared to 23% in 4Q16.
- MARI is also in the middle of developing their own digital platform to support expansion in radio.
- We maintain our target of revenue growth 2017-2018 with the additional growth from new acquired radio stations reflected from 2018.
Strong profit growth
- Based on 9M17 result, We are adjusting our target for MARI’s net profit and EBITDA margin growth 2017-2018F to 35% and 51%.
- Historically, MARI’s EBITDA margin growth has averaged more than 40% and net income margin growth more than 30%.
- MARI doesn’t require high capex as equipment is durable and revenue can easily more than cover these operating expenses.
Valuation: 25.5% upside, BUY
- Due to the strong focus on radio expansion and digital platform expansion & resulting strong profit growth, we have a target price IDR. 1500
- Puts the stock at a very reasonable 14.4x PER.
- 25.5% potential upside, BUY.
