ISAT – Yesterday's AGMS decided to distribute a cash dividend of IDR268.4 per share

ISAT – Yesterday's AGMS decided to distribute a cash dividend of IDR268.4 per share Indosat (ISAT) will distribute dividends of IDR2.16 tn from the 2023 fiscal year. This is equivalent to IDR268.4 per share to shareholders. The dividend distribution is in accordance with the approval of shareholders in the Annual General Meeting of Shareholders for fiscal year 2023 on May 21, 2024. The dividend will be paid no later than 30 days after the announcement of the summary of the meeting minutes. The remaining net profit for fiscal year 2023 of IDR2.34 tn will be allocated by the company to retained earnings. (Source: Kontan) Comment : The payout-ratio is recorded at 48,0% of net profit for 2023, an increase from the 2023 AGMS payout-ratio of 43.6% of net profit for 2022. Using yesterday's closing stock price, the dividend yield is recorded at 2.6%. We view the company's balance sheet is healthy enough to distribute this dividend with a cash position of IDR7.87 tn as of 1Q24. Maintain BUY on ISAT with a TP of IDR12,000, based on 4.0x 2024F EV/EBITDA, which is at +0.2SD of 7yrs EV/EBITDA mean.