>PT Sinergi Inti Andalan Prima Tbk (INET) continues to strengthen its positioning as an integrated digital-infrastructure operator, underpinned by fast-expanding capacity and accelerating contribution from newly developed business segments. Since its establishment in 2016, INET has scaled into one of Indonesia’s key wholesale connectivity players, serving more than 100 domestic and international clients across data-center interconnection, colocation backbone, local loop, NAP services, submarine-cable leasing, and FTTH contracting. The company’s ecosystem is further reinforced through three strategically aligned subsidiaries—GPI, PFI, and IAB—which collectively establish a vertically integrated value chain ranging from network development to bandwidth monetization.

>GPI is currently executing a large-scale FTTH rollout across Bali–Lombok using next-generation Wi-Fi 7 technology, while PFI manages 20 Tbps of submarine bandwidth capacity obtained through an IRU scheme with Jejaring Mitra Persada. Notably, approximately 50% of this capacity has already been secured under long-term leases by a subsidiary of WIFI.IJ, providing early revenue visibility as the asset ramps up. Meanwhile, IAB has secured a sizeable mandate to construct two million homepasses in Java under PT Integrasi Jaringan Ekosistem (IJE), positioning the company for rapid scaling of contractor-based revenue as backbone integration with WIFI supports smoother execution.

>INET’s growth strategy is further supported by a planned rights issue of IDR 3.2 trillion, aimed at reinforcing capital structure and accelerating network expansion. The rights issue consists of 12.8 billion new shares at an exercise price of IDR 250, with a ratio of 3 existing shares for every 4 new shares. The majority shareholder, PT Abadi Kreasi Unggul Nusantara, has committed to fully subscribing, indicating strong conviction in INET’s long-term roadmap. Proceeds will be allocated to: (1) GPI (~IDR 2.8tn) for Wi-Fi 7 deployment across Bali–Lombok; (2) PFI (IDR 213bn) for IRU obligations tied to the Rising 8 cable system; and (3) IAB (IDR 135bn) to accelerate FTTH rollout in Java. The remaining funds will enhance working capital, providing financial buffer for nationwide expansion.

>Driven by multiple new verticals entering full monetization phase, we project INET to deliver a remarkable revenue CAGR of 233.19% over 2024–2028F. The submarine-cable segment is expected to grow at a CAGR of 8.41% during FY26F–FY30F as utilization rises from 50% to 70%, while the FTTH-contracting business is projected to record a 15.62% CAGR supported by the two-million-homepass mandate. In parallel, the Bali–Lombok FTTH segment—powered by Wi-Fi 7 speeds up to 2 Gbps—is forecast to sustain a CAGR above 70.50%. Profitability trends remain constructive, with GPM improving from 35.7% in FY24 to 53.0% by FY26F. Net profit is expected to reach IDR 372bn in FY26F, reflecting a 57.38% CAGR, with NPM expanding to 14.10% in FY26F and stabilizing at 31–33% during FY27–FY30F.

>We initiate coverage on INET with a BUY rating and a target price of IDR 600, implying FY26F/FY27F PBV of 3.5x/3.2x based on a DCF valuation (TG: 3.0%, WACC: 10.3%). We consider the current share price to be undervalued, as it has yet to fully reflect INET’s structural earnings uplift and scaling potential that should become more evident by FY26F. Key downside risks include (1) execution delays in the rollout of FTTH and submarine-cable projects, and (2) slower-than-expected customer acquisition in new markets.

By PHINTRACO SEKURITAS | Research
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