ISAT - Reports significant subs growth in Sumatra

Indosat Ooredoo Hutchison (ISAT) reported a significant jump in subs located in Sumatra by 121% throughout last year. In total, ISAT's subs base has reached 100mn in 2022 across the archipela. Meanwhile, strong subs growth in Sumatra was supported by strong infrastructures as the company has added aroud 100 4G BTS in the island. (Source : IDX Channel) Comment: The company's total subs growth in 2022 exceeded our estimate, which made ISAT becomes second-largest MNO by subs. We also appreciate ISAT's initiative to expand its base to ex-Java, mostly into undertapped Eastern provinces in order to seek a new source of growth. Conclusion of network integration and maximized synergies should help improve costs, while bringing opportunities to accelerate more investment in ex-Java. We maintain our BUY call with an upgraded target price of IDR8,550/share.