TLKM - Eyes higher subs addition for Indihome

Telekomunikasi Indonesia (TLKM) is targeting the number of Indihome subcribers to reach 10.2 mn by 2023, despite moderate forecast in additions of 600,000. Judging from historical point of view, the average additions of Indihome touched 3,000-4,000/ day a year prior. (Source : Investor Daily) Comment: Fixed broadband has long been seen to provide significant growth for telecommunication industry, given its low penetration nationwide coupled with growing consumers in middle-income bracket and digital economy. For TLKM, Indihome, that consistently makes larger contribution over years, has been a growth driver amid stagnant mobile revenue. We believe that fixed broadband market is largely defined by superiority in infrastructure, which puts TLKM on the pole position. However, the targeted new subs growth marks a slowdown compared to pandemic years (over 1mn add/year). Yet, We remain optimistic with TLKM and reiterate our BUY call on the back of our expectation on improving mobile competition landscape in 1Q23 onwards, plans to converge fixed and mobile, as well as diversification in non-mobile business.