Analisa Saham TOWR | 29 November 2018

Danareksa

Sarana Menana Nusantara (TOWR/BUY/TP:IDR750) : Rosier outlook from new orders

3Q18
Revenue Rp1.54 tn (+6.8% qoq, +15.4% yoy)
EBITDA Rp1.29 tn (+6.4% qoq, +12.7% yoy)
Net profit Rp626 bn (+11.7% qoq, +17.9% yoy)
TOWR showed improvement on both topline and EBITDA on revenue from new tenancies from big-3 as well as boost from KIN. Churns are also seen in this quarter. YTD orders are guided higher with #1,150 new tenancies in the pipeline.

9M18
Revenue Rp4.34 tn (+9.2% yoy)
EBITDA Rp3.68 tn (+7.6% yoy)
Net profit 1.71 tn (+4.9% yoy)
Net debt / EBITDA coming down to 1.8x post KIN acquisition 

YTD Revenues, EBITDA are in line with ours and consensus forecast while EBITDA Rp5.2 tn is lagging to our forecast forming just (53%/56%) of our YE18 forecast & consensus. Net profit recorded lower growth rate +4.9% from higher interest expense buy ND/EBITDA is down to 1.8x from higher earnings.

We think TOWR is significantly underpriced -2SD of 3yr EV/EBITDA with interim dividend waiting to be announced. Maintain Buy; TP:Rp750, implies 8.4x multiple

For more details: http://dmia.danareksaonline.com/Upload/20181031 TOWR.pdf