Mitratel Shares Targeted At IDR 1.200

JAKARTA - Shares of PT Dayamitra Telekomunikasi Tbk (MTEL) or Mitratel are recommended to 'buy' with a target price of IDR 1.200 per unit. The target is 52.87 percent above the closing price of trading at IDR 785 per share on Friday, December 10.

According to data on the Indonesia Stock Exchange (IDX) Regular Market, Friday, December 10, MTEL shares closed at IDR 785 per unit, down from the closing price of IDR 795 per share, Thursday, December 9.

Nicholas Santoso and Raymond Kosasih, capital market analysts at PT Verdhana Sekuritas Indonesia, said in a recent research report, the recommendations above were supported, among other things, by MTEL's performance during the first nine months of 2021.

The two analysts estimate that MTEL's performance will be solid during the period January to September 2021. This estimate is in line with the number of towers owned by MTEL that reach all corners of the country.

Nicholas and Raymond estimate that MTEL's revenue is IDR 5 trillion as of September 2021, an increase of 14 percent compared to the same period in 2020 of IDR 4.38 trillion. MTEL's EBITDA is estimated to increase 33.8 percent, from IDR 2.88 trillion as of September 2020 to IDR 3.85 trillion as of September 2021. MTEL's net profit is estimated to soar 128.1 percent, from IDR 439 billion as of September 2020 to IDR 1 trillion as of September 2021.

According to the two analysts, MTEL's revenue during the third quarter of 2021 (July-September 2021) was around IDR 1.8 trillion, up 20 percent from the same period in 2020 of IDR 1.5 trillion.

"We estimate that MTEL's net profit in the third quarter of 2021 is IDR 299 billion, up 4.9% from the same period in 2020 of IDR 285 billion," the two analysts said in a statement, Tuesday, December 14.

In the long term, according to Nicholas and Raymond, the growth of the tower business in Indonesia is still promising and even growing rapidly. This is driven by data traffic as well as the adoption of 5G services. For the tower business, MTEL is one of the biggest players in Indonesia. Going forward, MTEL will benefit greatly from the potential for increasing organic growth opportunities.

As the largest telecommunications tower company in Indonesia with ownership of more than 28 thousand towers, Mitratel will benefit from the aggressive development of 5G by telecommunications operators to remote areas of Indonesia.