TOWR - Outlook remains strong on fiber growth

KBVS Update
Thursday, 7 August 2025

TOWR - Outlook remains strong on fiber growth
(Reiterate BUY - TP: IDR800)

Delivers a solid bottom-line in 1H25. TOWR delivered resilient 1H25 results, with EBITDA up 3.7% yoy, supported by lower opex despite higher cost of revenue. Quarterly EBITDA dipped slightly, but net profit rose 5.8% qoq in 2Q25, aided by lower interest expenses.

Maintains growth outlook on strong fiber momentum. TOWR’s 1H25 performance was inline with expectations, supporting unchanged ‘25F forecasts. The company’s FTTT revenue rose 10.0% yoy, while FTTH grew 29.3%. Despite contributing a smaller portion of total revenue, fiber remains a key growth driver amid MNO consolidation.

Reiterate BUY with TP of IDR800, based on 8.0x ‘25F EV/EBITDA (-0.5SD of 7yrs EV/EBITDA mean).

Regards,
Steven Gunawan - KBVS Research