TOWR - Mixed 1H24 results; Impressive tenants expansion

KBVS Update
Wednesday, 2 October 2024

TOWR: Mixed 1H24 results; Impressive tenants expansion
(Reiterate BUY - TP: IDR1,000)

2Q24 EBITDA grows despite rising costs. EBITDA rose 2.3% qoq in 2Q24, though cash costs climbed 4.7%. TOWR's ability to maintain EBITDA growth qoq and yoy despite rising costs is a positive sign.

Tenant base expands despite tower-leasing revenue dip. Tower-leasing revenue declined in 2Q24, but the company added a significant number of new tenants, and expanded its tower portfolio.

Revising down FY24 bottom-line forecasts. Due to unexpectedly high CoR in 1H24, we increased our FY24 CoR estimate to IDR3.67 tn, resulting in a downward adjustment in our FY24 net profit forecast to IDR3.29 tn.

Reiterate BUY with TP of IDR1,000, based on 8.9x 2024F EV/EBITDA (-0.5SD 7yrs-historical mean).

Regards,
Steven Gunawan - KBVS Research