MTEL - Eyes to outperform industry’s growth

Dayamitra Telekomunikasi (MTEL) is planning to spend IDR7 tn in capex this year to support its business expansion plans as the company is also eyeing to acquire more towers and fiber optic. Management also eyes the company to outperform the industry as the company's 5-year CAGR reached 27%. (Source : Kontan) Comment : We are of the view that management’s target is quite realistic and achievable, despite consolidation in towercos, MTEL still has opportunities to continue its inorganic expansion thanks to affiliation with Telkomsel, which still operates sizeable amount of towers under its belt. In addition, majority of MTEL's towers are located in ex-Java which is in-line with MNO's focus to expand their market in the areas. MTEL is seen to be well protected against interest hike headwinds and strong USD thanks to its robust cash and low gearing ratio.