Jakarta: PT Dayamitra Telekomunikasi Tbk or Mitratel is predicted to continue carrying out a series of acquisitions of 6,000 telecommunications towers during 2022-2023. As of August 21, 2021, this telecommunications tower management issuer owned 28,030 towers.
PT Mandiri Sekuritas capital market analyst Kresna Hutabarat said the series of acquisitions of thousands of towers would bring the tenant ratio to 1.57 times in 2021 and would increase to 1.72 times in 2023. “Mitratel operates in a consolidated tower industry with strong mobile growth prospects. “Mitratel provides a strong basis for accelerating multi-income growth in 2021-2023 with a strategy of access to the digital infrastructure business which is growing rapidly in Indonesia,” said Kresna, quoted in a press release, Tuesday, December 21, 2021. Meanwhile, the share price of the issuer coded MTEL at the close of trading yesterday was at IDR 770 per share or corrected compared to the closing trading level last weekend at IDR 785 per share. This price is also still experiencing a decline from the price at the IPO of IDR 800 per share. “Despite moving below, the IPO price, MTEL or Mitratel shares are still recommended ‘buy’ with a target price of IDR 970 per share. “This target is 26 percent above yesterday’s closing price at IDR 770 per share,” he said. Meanwhile, the Morgan Stanley analyst team revealed that MTEL could develop faster than organic growth industries generated from outside Java. Morgan Stanley projects that Mitratel’s share price has the potential to move to the level of IDR 1,000 per share. “We are optimistic that Mitratel can grow significantly faster than the industry through organic growth generated from outside Java, where smaller mobile operators are now developing. “Moreover, Mitratel has the highest tower market share at 41 percent,” wrote the Morgan Stanley research team. HSBC Global Research analyst Piyush Choudhary also said that the target for MTEL shares is at the level of IDR 1,120 per share. According to him, MTEL’s acquisitions and strong cash flow will drive organic growth. “With strong cash flow and experience in making acquisitions, Mitratel is in a good position to take advantage of inorganic growth opportunities,” he concluded. Source : Medcom.id https://www.medcom.id/ekonomi/keuangan/dN6XM0qk-bakal-akuisisi-ribuan-menara-saham-mitratel-diproyeksi-moncer
