TOWR - FTTT poised for 4Q24F surge; Mitigating merger risks

KBVS Update
Thursday, 13 February 2025

TOWR - FTTT poised for 4Q24F surge; Mitigating merger risks
(Reiterate BUY - TP: IDR900)

Strong FTTT revenue growth in 4Q24F. TOWR's 4Q24F FTTT revenue is projected to surge by 21.2% qoq, reaching IDR652.0 bn, with cumulative '24F FTTT revenue expected to grow by 4.9% yoy to IDR2.2 tn.

Fiber focus to combat EXCL-FREN impact. In '25F, TOWR is expected to further expand its fiber business to mitigate potential tenant losses from the EXCL-FREN merger, with non-tower segments like FTTT & Connectivity leading revenue growth, surpassing tower-leasing income.

Reiterate BUY with TP of IDR900, based on 8.9x ‘25F EV/EBITDA, or within 7yrs avg. historical mean.

Regards,
Steven Gunawan - KBVS Research