ISAT - Resilient ‘25F growth despite rising costs

KBVS Update
Wednesday, 12 February 2025

ISAT - Resilient ‘25F growth despite rising costs
(Reiterate BUY - TP: IDR2,700)

Revenue up, profits down in FY24. ISAT's FY24 revenue grew 9.1% yoy to IDR55.9 tn, but 4Q24 EBITDA & net profit declined qoq due to rising expenses, resulting in FY24 net profit missing estimates despite 9.0% yoy growth.

FY24 expense overrun, ‘25F outlook revised. FY24 expenses exceeded forecasts due to operational expansion, leading to a revised '25F expense estimate, but increased revenue from BTS expansion and customer acquisition initiatives offset this, resulting in a slightly lower EBIT forecast.

Reiterate BUY with TP of IDR2,700, based on 3.2x ‘25F EV/EBITDA, or within 5yrs avg. historical mean.

Regards,
Steven Gunawan - KBVS Research