ASEAN Insight Provider, CrossASEAN Research

Angus Mackintosh

In Equity Sales and Research for more than 25 years covering Asian markets. Possesses in-depth knowledge of a wide range of companies, economies, and markets in Asia. Over his career, he has specialised in HK/China and ASEAN markets at various different Investment Banks, most recently heading equities in Indonesia for Bank of America Merrill Lynch in Jakarta for more than three years. Whilst in Jakarta, he produced a well-read daily and weekly product on the Indonesian market, which included company visits, as well as political, economic and sector commentary. A former racing skier, who enjoys ultra-marathons and surfing in his spare time.

ASEAN Insight Provider

Link Net (LINK:IJ)- New Subscriber Growth Strategy Working. The Company Is Undervalued.

Link Net (LINK IJ) - Ahead on Poles and Subscribers

Link Net (LINK IJ) - Multiple Catalysts in Place

Link Net Tbk Pt (LINK IJ) - 1Q2020 Big on Subscribers but at a Higher Cost

Link Net Tbk Pt (LINK IJ) - Summer Migration at Last

Link Net Tbk Pt (LINK IJ) - Entertaining and Connecting the Home Crowd

CrossASEAN Research

At CrossASEAN Research we strive to produce unbiased and differentiated on the ground insights on companies across South East Asia. Our Research is produced for the most part after face to face meetings and conversations with company management to dig deep into the long term vision and strategy of the companies we cover. We seek to deliver investable and actionable themes on sectors and markets across SE Asia, often in collaboration with other Insight Providers across the region, pooling the vast experience of the analysts within the Smartkarma Ecosystem. We also offer bespoke work and tailor made trips for our clients. 

Insights across South East Asia

Equity Bottom-Up

<p><a href="https://www.smartkarma.com/entities/link-net-tbk-pt" target="_blank" data-smartkarma-citation="entities:1050:1" rel="noopener">Link Net (LINK IJ)</a> just released 3Q2020 results which look encouraging, with revenue growth of +6.5% YoY and EBITDA growth of +7%, as the company effectively controlled costs during the quarter.</p>
<p>The company added 53,277 new subscribers during 3Q2020, bringing net new subscribers for 9M2020 to 147,464 and total subscribers to 815,669 at the end of 3Q2020. It has added more subscribers this year than over the past two years. </p>
<p>ARPUs remained stable at IDR369,000 per subscriber per month, whilst network penetration increased to a record high of 30.8%, with a total network size of 2,652,000 homes passed.</p>
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<p>Valuations for <a href="https://www.smartkarma.com/entities/link-net-tbk-pt" target="_blank" data-smartkarma-citation="entities:1050:1" rel="noopener">Link Net (LINK IJ)</a> look attractive with the company trading on 7.3x FY21E PER versus its 5-year average of 12.4x forward PER. The key overhang and cost issue for the company is its decision to build its own network of poles (financed by debt) to carry its fibre over the next two years to avoid the risk of future rental hikes by PLN. Offsetting this is the fact that there are potential suitors out there looking to take a stake in the company, given the attractiveness of its fibre network, especially for 5G in the future. </p>
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Link Net (LINK IJ) just released 3Q2020 results which look encouraging, with revenue growth of +6.5% YoY and EBITDA growth of +7%, as the company effectively controlled costs during the quarter.
The company added 53,277 new subscribers during 3Q2020, bringing net new subscribers for 9M2020 to 147,464 and total subscribers to 815,669 at the end of 3Q2020. It has added more subscribers this year than over the past two years. 
ARPUs remained stable at IDR369,000 per subscriber per month, whilst network penetration increased to a record high of 30.8%, with a total network size of 2,652,000 homes passed.

Valuations for Link Net (LINK IJ) look attractive with the company trading on 7.3x FY21E PER versus its 5-year average of 12.4x forward PER. The key overhang and cost issue for the company is its decision to build its own network of poles (financed by debt) to carry its fibre over the next two years to avoid the risk of future rental hikes by PLN. Offsetting this is the fact that there are potential suitors out there looking to take a stake in the company, given the attractiveness of its fibre network, especially for 5G in the future. 


Link Net (LINK IJ) - Moving into Pole Position