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

<ul><li>IOH fully absorbed its FY23 capex budget in 4Q23 signaling its growth commitments, hence its guidance for further outperformance in FY24F. </li><li>IOH subs offer significant ARPU upside to over Rp40k in FY24F and onwards, hence the 50% EBITDA margin guidance should be attainable. </li><li>We include the Home BB Internet take-up, raise our FY24-25F earnings by 23%/19%, raise our TP to Rp13,300 (implying 6.1x EV/EBITDA); reiterate Buy rating on strong fundamentals and the growth outlook. </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 fully absorbed its FY23 capex budget in 4Q23 signaling its growth commitments, hence its guidance for further outperformance in FY24F. IOH subs offer significant ARPU upside to over Rp40k in FY24F and onwards, hence the 50% EBITDA margin guidance should be attainable. We include the Home BB Internet take-up, raise our FY24-25F earnings by 23%/19%, raise our TP to Rp13,300 (implying 6.1x EV/EBITDA); reiterate Buy rating on strong fundamentals and the growth outlook. 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.

ISAT IJ - Earnings Beat Offers a Credible Prospect of Further Growth Outperformance 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>JCI’s 13x PE implies room for a rerating if growth improves, while Indonesia’s resilient economic growth offers downside protection.</li><li>Despite our 5% FY24 EPS growth forecast, we see support from more social aid, better liquidity and the next govt’s growth policies.</li><li>We retain our FY24-end JCI target of 7,830 (+12% upside from the FY23 target); our stock picks are ICBP, MYOR, ISAT, HEAL, BBCA and BMRI.</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.

JCI’s 13x PE implies room for a rerating if growth improves, while Indonesia’s resilient economic growth offers downside protection.Despite our 5% FY24 EPS growth forecast, we see support from more social aid, better liquidity and the next govt’s growth policies.We retain our FY24-end JCI target of 7,830 (+12% upside from the FY23 target); our stock picks are ICBP, MYOR, ISAT, HEAL, BBCA and BMRI.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: FY24 Outlook: The Road to JCI 8,000

Indonesia

PT Indosat Tbk is a telecommunication and information service provider in Indonesia that provides cellular services (prepaid and postpaid), fixed data services or MIDI (Multimedia, Internet & Data Communication) and fixed voice services including fixed wireless access services.

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Indosat Tbk PT (ISAT 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

ISAT IJ - Earnings Beat Offers a Credible Prospect of Further Growth Outperformance in FY24

We include the Home BB Internet take-up, raise our FY24-25F earnings by 23%/19%, raise our TP to Rp13,300 (implying 6.1x EV/EBITDA)

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

Equity Strategy: FY24 Outlook: The Road to JCI 8,000

JCI’s 13x PE implies room for a rerating if growth improves, while Indonesia’s resilient economic growth offers downside protection.

BRI Danareksa Research

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