MTEL booked revenue of IDR2.24 trillion in 2Q24, growing by +1.72% QoQ and +8.18% YoY, reflecting 46% of the 2024E target.

The tower leasing segment remains the key driver, with revenue up by 7.20% YoY to IDR3.70 trillion in 1H24

MTEL’s fiber segment experienced impressive growth of 104.90% YoY, reaching IDR175 billion, with the addition of 5,081 km of optical fiber in 1H24.

EBITDA increased by 10.59% YoY to IDR1.85 trillion, with a margin of 82.67%. Net profit grew by 4.19% YoY to IDR543 billion.

MTEL’s introduction of Flying Tower Station (FTS) aims to enhance connectivity in remote areas, with commercialization expected by 2026. This technology is projected to be a new revenue stream between 2026-2031.

MTEL’s innovative, sustainable, and aesthetic tower designs in the IKN area, where 19 sites have been completed as of 1H24, with a target of 82 towers by year-end.

We maintain our BUY recommendation for MTEL with a target price of IDR720 per share, reflecting a potential upside of 10.42%. This valuation is based on a blended valuation between DCF and Multiple Valuation with 5% terminal growth. This potential upside implies a PER and EV/EBITDA valuation of 24.70x and 9.80x, respectively, for FY24F.

By PHINTRACO SEKURITAS | Research
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