Equity Analysis /
Indonesia

ID : Indosat - A lucrative final tower sale

    Choong Chen Foong
    Choong Chen Foong

    Telecommunication Analyst

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    CGS-CIMB
    30 March 2021
    Published byCGS-CIMB

    ISAT sells 4,247 towers to EPID for a lucrative Rp10.3tr cash. Towers were valued at 35-49% premium to the average in the preceding 8 tower sales. FY21F core LPS lowered by 15%, while FY22/23F core EPS raised by 37%/ 20% to factor in the positive earnings impact from the tower sale. Reiterate Add with 6% higher DCF-based target price of Rp9,000.