MARI

Contact our analyst Revita

Market Domination, BUY
​5th December 2017
Current price Rp1,195
Target price Rp1,500

Total market domination

• 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.

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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.

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