ISAT - 1H24 net profit beats our estimates on lower finance costs

KBVS Update
Tuesday, 6 August 2024

ISAT - 1H24 net profit beats our estimates on lower finance costs
(Reiterate BUY - TP: IDR13,000)

2Q24 revenue growth driven by data revenue increase. ISAT recorded revenue of IDR27.98 tn in 1H24 (+13.4% yoy), which aligned with ours/cons’ at 51.4%/50.2%.

Exceeds our profit expectations in 1H24. ISAT reported a net profit of IDR2.74 tn (+43.3% yoy) in 1H24, exceeding our expectations by 56.9%. The robust yoy net profit growth was driven by a decline in interest costs.

Upgraded FY24 net profit forecast. Due to lower-than-expected interest costs in 1H24, we reduced our FY24 interest cost estimate to IDR4.40 tn. As a result, our FY24 net profit forecast has been revised upward to IDR5.45 tn (+13.3% from our previous estimate).

BUY reiterated. Maintain our BUY call with a higher target price of IDR13,000 (from IDR12,000) due to a 13.3% upward revision in our FY24 earnings projections.

Regards,
Steven Gunawan - KBVS Research