Jakarta, March 15, 2022 – Shares of PT Dayamitra Telekomunikasi (Mitratel) Tbk. demonstrates potential for acquisition. This is owing to MTEL’s strong fundamentals. MTEL’s performance throughout 2021 exceeded analysts’ expectations.
In this regard, PT Samuel Sekuritas Indonesia Senior Capital Market Analyst, Yosua Zisokhi, recommends “purchase” MTEL shares. “MTEL shares are worth acquiring (“purchasing”) at the current price,” he said. Joshua said that MTEL valuation is fundamentally considered favorable. “From what I see, MTEL shares are considerably favorable, offering room for MTEL shares to move up. That’s because MTEL shares are considerably cheap at the current price,” emphasized Yosua. Last year, MTEL obtained Initial Public Offering (IPO) funds amounting to IDR 18.8 trillion, enabling new tower acquisitions and revenue growth. “In my opinion, this aspect makes MTEL shares worth investing at their current valuation,” he said. MTEL logged impressive revenue growth in 2021 of 11% to IDR 6.87 trillion, compared to 2020 of IDR 6.18 trillion. MTEL also succeeded in increasing EBITDA to reach IDR 5.18 trillion in 2021, marking a notable increase of 23.9% compared to 2020 of IDR 4.18 trillion. Apart from that, MTEL has implemented a lot of efficiency measures, especially concerning depreciation. This made MTEL’s net profit rise significantly by nearly 13,096 amounting to IDR 1.38 trillion, a significant rise from IDR 602 billion in 2020 of. Then, MTEL’s net profit margin surged to 20.1% last year, from 9.7% in 2020. “MTEL’s performance achievements last year exceeded our expectations since we estimated it would be slightly below that. Overall, it is exceptionally wonderful for MTEL to start in 2022,” he said. In 2022, MTEL will reportedly acquire another tower. “That’s what we’ve been waiting for. Moreover, now MTEL has substantial funds after the IPO of tens of trillions, which will be allocated for acquisitions. I think this shows MTEL’s commendable performance,” concluded Yosua. Last year, MTEL acquired 8,139 Telkomsel towers and 798 Telkom towers, leveraging its revenue flow. MTEL’s exceptional revenue flow is obtained from tower rental contracts spanning approximately 10 years, contributing to MTEL’s promising future. “Consequently, in the next 10 years, MTEL will achieve consistent income compared to that of 2021. Therefore, to foster revenue and net profit, MTEL only needs to add around 500 – 750 new towers per year. I think it is an exceptional number,” he said. Yosua emphasized that the consolidation carried out by the Telkom Group has substantially strengthened MTEL. Compared to others, MTEL stands out as one of the largest companies, demonstrating MTEL’s strong purchasing and bargaining power, especially as it is supported by the TelkomGroup, where Telkomsel serves as the linchpin of MTEL’s revenue. “If we are looking ahead with massive 5G services, the demand for towers is likely surging up,” concluded Yosua.
