TOWR - 2025F: Fiber-fueled growth

KBVS Update
Thursday, 17 July 2025

TOWR - 2025F: Fiber-fueled growth
(Reiterate BUY - TP: IDR800)

Strengthens financials with rights issue. TOWR’s planned 8.08bn-share rights issue could raise ~IDR5.49 tn, strengthening its balance sheet and funding capacity for future M&A. The capital injection is expected to lower its D/E ratio from 2.7x to 1.9x and improve net debt/EBITDA from 4.6x to 3.9x.

Pushes fiber growth with 40% Remala Abadi stake. TOWR is accelerating its fiber business, especially in FTTT & FTTH, to offset potential tenant losses from EXCL-FREN merger. In 3M25, FTTT revenue rose 15.3% yoy, while FTTH jumped 42.7%. TOWR aims to reach 2.0mn homepasses and recently acquired a 40% stake in Remala Abadi to strengthen its fiber infrastructure. In ‘25F, non-tower revenue is projected to grow 35.2% to IDR4.7 tn, mainly from FTTT & Connectivity segments.

Reiterate BUY with TP of IDR800, based on 8.0x ‘25F EV/EBITDA (-0.5SD of 7yrs EV/EBITDA mean).

Regards,
Steven Gunawan - KBVS Research