In 1Q20, the Data, Internet, and IT Services grew 7.2% YoY. However, the company’s income and net profit dropped as the SMS, Fixed and Cellular Voice segment fell by 21.4% YoY. The 1Q20 performance still achieved our expectations with income estimation of FY20 amounting to IDR138.7 trillion (composing 24.7% of our estimation).
1Q20 TOWR booked positive performance, with increases in income and net profit by 22.8% YoY and 9.8% YoY. Tenancy Ratio rose to 1.8x vs 1.7x in FY19. With a low level of debts, TOWR still has a chance to increase its number of towers.
The existence of tower sales and data sales growth was able to boost EXCL performance in 1Q20. Thus, EXCL recorded revenue and net profit growth of IDR6.5 trillion (8.9% YoY), and IDR1.5 trillion. Besides, we see that EXCL is currently trading with EV/EBITDA at 4.9x, which is quite cheap with our estimated target at 5.4x FY20.
ASII’s performance in 1Q20 was unsatisfactory, ASII recorded revenue and net profit of IDR54 trillion (-9.4% YoY) and IDR4.8 trillion (-7.8% YoY), respectively. The suspension of several ASII car production plants due to the PSBB policy is expected to cause car sales to decline in the second quarter. On the other hand, ASII has obtained fresh funds from the sale of its shares in a subsidiary (BNLI) with the acquisition of funds of IDR16.83 trillion. NHKSI recommend Hold with a target price of IDR5,350 FY20
JSMR recorded an optimal performance in 2019, supported by operating income and toll roads which are the main contribution in the growth of the Company’s revenue. Toll road revenues in 2Q20 will be impacted by the implementation of the PSBB policy and the homecoming ban in early April 2020. However, lately, the government is preparing a new normal policy to save the wheels of the Indonesian economy. This is a positively for JSMR to accelerate toll road revenue growth in the third quarter.
Since the COVID-19 pandemic is run amok in Indonesia it cannot be denied that on average all industrial sectors were affected, particularly the telecommunications sector. but on the other hand, this is an opportunity for digital businesses along with the many requests for data services to customers. NHKSI is optimistic that TLKM will still survive in 2020.
TLKM records a sharp correction as fears of COVID-19 spook foreign investors to panically pull out their capital. Despite the fact, NHKSI is sanguine about TLKM’s reviving outlook, backed by its 2020’s performance.
