TLKM - To spin off InfraCo entity

TLKM - To spin off InfraCo entity Telekomunikasi Indonesia (TLKM) is on process of establishing a new entity InfraCo focusing on consolidating its infrastructure assets especially fiber optic. Later on, according to management's plans, the InfraCo will be spun off from its parent company fully operating its B2B connectivity segment. Based on timeline, management expects asset transfer to conclude by 1H25. (Source: IDX news) Comment: The establishment of InfraCo is part of the company's five bold moves strategy aiming to consolidate an array of its diversified business and assets. The company will be focused on its competitive advantage, tapping further into B2B segments, including infrastructure and data center. We believe expanded B2B segment is essential for TLKM to diversify away from consumer business which has seen in a decline following OTT cannibalism. In overall, we are still confident with TLKM, reiterating BUY call with at IDR4,650 per share.