TLKM - Plans to allocate higher dividend payment

Telkomunikasi Indonesia (TLKM) is set to disburse higher dividend payment, reaching 80% of last year’s net profit despite lower reported net profit. This makes up dividend per share of IDR168, according to management. (Source : Kontan) Comment : The dividend proposal is higher than our guest of at least 70% of TLKM's reported net profit and also exceed previous year's dividend proportion of c. 65% or Rp150/ share. Despite planning on higher dividend distribution, we believe that TLKM will still be able to maintain its strong cash position, healthy leverage ratio and meet its capex planning.