MTEL - Strong 3Q24; expected continued strength in ‘25F

KBVS Update
Thursday, 7 November 2024

MTEL - Strong 3Q24; expected continued strength in ‘25F
(Reiterate BUY - TP: IDR800)

3Q24 EBITDA rises despite cost pressures. MTEL's 3Q24 EBITDA grew 6.2% qoq, despite a 3.4% qoq increase in cash costs. This growth was driven by lower construction & project management costs.

Improved O&M efficiency and enhanced co-location to drive ‘25F margins. Increased business scale, driven by high co-location rates, led to enhanced O&M efficiency and improved EBITDA margins in ‘25F.

Reiterate BUY with TP of IDR800, based on 9.5x 2025F EV/EBITDA (-2SD 3yrs-historical mean).

Regards,
Steven Gunawan - KBVS Research