TOWR - Fiber-Led Growth, Tower-Like Stability

KBVS Update
Friday, 12 June 2026

TOWR - Fiber-Led Growth, Tower-Like Stability
(Reiterate BUY - TP: IDR500)

Fiber monetization continues to accelerate. Fiber remains the key growth engine, with FTTT and FTTH driving a structural uplift in non-tower revenue quality. In FY26F, non-tower revenue is expected to lead growth (+12% YoY), driven by accelerating FTTT (+17.5%), while tower leasing remains steady at +0.5%.

Tenancy gains support earnings delivery. TOWR’s 1Q26 results were broadly inline, with revenue growth of 10.8% YoY driven by improving tenancy. EBIT increased 3.3%, while net profit grew 17.2% on lower financing-costs.

Cost discipline and fiber growth reinforce earnings outlook. Fiber-led mix shift continues to underpin margin resilience, with high-margin fiber services helping to offset cost inflation despite ongoing network expansion. EBITDA is expected to grow 2.9% YoY to IDR11.7 tn, broadly tracking 1Q26 performance inline with both internal forecasts and guidance. Net profit is forecast at IDR3.8tn (+2.5%), supported by disciplined funding costs.

BUY maintained TOWR trades at 5.5x FY26F EV/EBITDA, a ~38% discount to its 5yrs average of 8.8x, which we view as unwarranted given improving fiber monetization and stronger cash-flow quality.

Regards,
Steven Gunawan - KBVS Research