TLKM - Moves forward with 5 bold move strategy

Telekomunikasi Indonesia (TLKM) is optimistic with industry growth following a transition to endemic phase, spurring demand for telecommunications service amid a pick up in productivity. This will also be supported by three business pillars, namely connectivity, digital platform and digital services. The company is also progressing with its transformation strategy, 5 bold moves that will further focus on Infra Co, DC co through TDE, Digi Co through Leap and IndiCo through Telkomsel. (Source : Bisnis Indonesia) Comment : Following a shift to endemic phase, we retain our sanguine view about the industry, boosted by continued digitalization that has proven to be strong cushion during economic backdrop. For TLKM, the 5 bold moves strategy should be able to sharpen its business focus and transformation, and improve its competitiveness especially given its enormous asset. Maintain our BUY call for TLKM with target price of IDR5,000/share, implying '23 EV/EBITDA of 6.3x.