TLKM Dec2021

TLKM

Contact our analyst Eka

3rd December, 2021
BUY
Price Rp 4,160
Target price Rp5,360

Double-digit Growth

Despite the pandemic, TLKM maintained strong revenue growth in 3Q2021. TLKM recorded a revenue increase of +10.5% YoY and +3% QoQ to IDR 36.5 trillion in 3Q2021. For 9M2021, TLKM booked 6.1% YoY revenue growth to IDR 106 trillion.
Indihome still grew at a double digit rate of 17.7% YoY to IDR 6.76 trillion in 3Q2021, or 21.9% YoY growth to IDR 19.6 trillion for the 9M2021. The growth is inline with the increase in IndiHome new subscribers and a higher ARPU. Indihome added +155k new subscribers in 3Q2021, an increase compared to 2Q2021’s +152k new subscribers. ARPU increased +1.5% QoQ to IDR 274 thousand in 3Q2021.
Data, Internet & IT service revenue increased +11.5% YoY to IDR 20.66 trillion in 3Q2021, boosted by higher Internet, data and IT services of IDR 2.5 trillion, up 31.3% YoY.
Legacy telephone revenue declined -10% YoY to IDR 4.2 trillion and SMS decreased slightly -0.7% to IDR 1.22 trillion.
We maintain our revenue estimate at IDR 142.5 trillion as we expect demand growth to continue.

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Margin Improved

TLKM also maintained double digit growth in net income of +12.9% YoY to IDR 6.42 trillion with a higher NPM of 17.6% from 17.1%.
Operating profit increased +17.9% YoY or +6.5% QoQ to IDR 12.68 trillion. Operating profit margins Increased from 32.5% to 34.7% in 3Q2021.
For 9M2021, net income increased +13% YoY to IDR 18.87 trillion, and the NPM increased to 17.8% from 16.7%. OPM also increased to 34.2% from 33% in 9M2020.
EBITDA surged +8.1% YoY to IDR 57.9 trillion in 9M2021, and the EBITDA margin expanded to 54.6% from 3.6% last year.
We maintained our TLKM bottom line target of IDR 24.15 trillion in 2021F.

Valuation: Maintain BUY with TP 5,360

We are targeting TLKM to reach IDR 5,360, 29% upside, which is a 20x PE valuation within one year. We maintain our recommendation to BUY.

Previously

TLKM Sep2021