External broker reports(aggregated public sources), BRI Danareksa Research

BRI Danareksa Research

External broker reports(aggregated public sources)

As a one-stop financial solution with the vision to be the most valuable securities house, BRI Danareksa Sekuritas (BRIDS) has maintained an excellent track record and extensive experience in the capital market as an underwriter, broker, and financial advisor for individual, institutional, foreign and domestic, private and government clients. Established in 1992, PT Danareksa Sekuritas is a securities company that performs activities as a securities broker, underwriter, or arranger and financial advisor.

Thematic (Sector/Industry)

<ul><li>Organic and inorganic opportunities for rerating4Q23 foretells positive trends for better subs demographics and ARPU for IOH &amp; XL, justifying their guidance for FY24 revenue to outperform.</li><li>TLKM’s valuation reflects mainly ex-Java challenges</li><li>Integrated services qualities can be unlocked with the presence of a strategic investor.An EXCL-FREN M&amp;A may not trigger a tender-offer</li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Organic and inorganic opportunities for rerating4Q23 foretells positive trends for better subs demographics and ARPU for IOH &amp; XL, justifying their guidance for FY24 revenue to outperform.TLKM’s valuation reflects mainly ex-Java challengesIntegrated services qualities can be unlocked with the presence of a strategic investor.An EXCL-FREN M&amp;A may not trigger a tender-offerContent is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Telco - Organic and Inorganic Opportunities for Rerating

Equity Bottom-Up

XLSMART Telecom Sejahtera / Equity Bottom-Up

<ul><li>We expect EXCL’s revenue momentum to continue in FY24; high single digit growth guidance is based on continuous ARPU improvement and homes connect.</li><li>We raised FY24-25F NP 18%/37%; we raised revenue but lowered EBITDA margin below 49% to account for stronger rollout of fixed BB.</li><li>We maintain Buy rating with unchanged TP: Rp3,000, implying 4.9x EV/EBITDA.</li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

We expect EXCL’s revenue momentum to continue in FY24; high single digit growth guidance is based on continuous ARPU improvement and homes connect.We raised FY24-25F NP 18%/37%; we raised revenue but lowered EBITDA margin below 49% to account for stronger rollout of fixed BB.We maintain Buy rating with unchanged TP: Rp3,000, implying 4.9x EV/EBITDA.Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

XL Axiata - Expect Strong Revenue Momentum and FCF Generation to Continue in FY24

<ul><li>IOH may see 4Q23 revenue growth (+3.9%qoq) provided that it absorbs its capex budget, while we expect margins to continue to improve. </li><li>Expect TLKM &amp; EXCL to deliver 4Q23 revenue growth of 4.0%/1.5% qoq but with opex potentially weighing on the 4Q23 margins.</li><li>ISAT is our top pick for expected earnings improvements, while EXCL is an attractive merger target and has value unlocking potential.  </li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

IOH may see 4Q23 revenue growth (+3.9%qoq) provided that it absorbs its capex budget, while we expect margins to continue to improve. Expect TLKM &amp; EXCL to deliver 4Q23 revenue growth of 4.0%/1.5% qoq but with opex potentially weighing on the 4Q23 margins.ISAT is our top pick for expected earnings improvements, while EXCL is an attractive merger target and has value unlocking potential.  Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

4Q23 Preview: Telcos to Deliver Tangible Quarterly Topline Growth with Broadly In-Line Earnings

<ul><li>Reversalsin foreign flows in recent weeks indicate foreign investors may be starting to price in re-emerging risk factors.</li><li>We think large banks’ 4Q23 earnings may dictate ST market direction, as domestic funds are OW and valuations are at premiums.</li><li>We see Telcos (ISAT, EXCL) and middle-high retailers as sectors with potential growth surprises, reasonable valuations and are less crowded.</li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Reversalsin foreign flows in recent weeks indicate foreign investors may be starting to price in re-emerging risk factors.We think large banks’ 4Q23 earnings may dictate ST market direction, as domestic funds are OW and valuations are at premiums.We see Telcos (ISAT, EXCL) and middle-high retailers as sectors with potential growth surprises, reasonable valuations and are less crowded.Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Equity Strategy: Re-Emerging Risk Factors May Warrant More Conservative Positioning in Feb24

<ul><li>XL may accelerate its FMC by acquiring the subs of LINK and rolling out 3m new homepasses upon obtaining funding at the associated co. level.</li><li>We see a merger scenario to potentially unlock XL’s unique value propositions.</li><li>We reiterate our Buy rating with an unchanged TP of Rp3,000 (based on our DCF, implying 4.9x 2024 EV/EBITDA).</li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

XL may accelerate its FMC by acquiring the subs of LINK and rolling out 3m new homepasses upon obtaining funding at the associated co. level.We see a merger scenario to potentially unlock XL’s unique value propositions.We reiterate our Buy rating with an unchanged TP of Rp3,000 (based on our DCF, implying 4.9x 2024 EV/EBITDA).Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

XL Axiata - Potential FMC Strategy Acceleration and Value Unlocking from the Merger Scenario

Indonesia

XLSMART Telecom Sejahtera Tbk PT provides a wide range of mobile telecommunications services in Indonesia.

Price Gauge
52-week Range	0.00 - 0.00
Market Cap (USDm)	0.00
P/E	0.00
Dividend (Yield)	0.00

XLSMART Telecom Sejahtera (EXCL IJ)

Telco - Organic and Inorganic Opportunities for Rerating

Organic and inorganic opportunities for rerating4Q23 foretells positive trends for better subs demographics and ARPU for IOH & XL, justifying their...

BRI Danareksa Research

XL Axiata - Expect Strong Revenue Momentum and FCF Generation to Continue in FY24

We expect EXCL’s revenue momentum to continue in FY24; high single digit growth guidance is based on continuous ARPU improvement and homes connect.

BRI Danareksa Research

4Q23 Preview: Telcos to Deliver Tangible Quarterly Topline Growth with Broadly In-Line Earnings

ISAT is our top pick for expected earnings improvements, while EXCL is an attractive merger target and has value unlocking potential.

BRI Danareksa Research

Equity Strategy: Re-Emerging Risk Factors May Warrant More Conservative Positioning in Feb24

We see Telcos (ISAT, EXCL) and middle-high retailers as sectors with potential growth surprises, reasonable valuations and are less crowded.

BRI Danareksa Research

XL Axiata - Potential FMC Strategy Acceleration and Value Unlocking from the Merger Scenario

XL may accelerate its FMC by acquiring the subs of LINK and rolling out 3m new homepasses upon obtaining funding at the associated co. level.

BRI Danareksa Research

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)