SCMA - Waiting for sunrise

KBVS Update
Friday, 23 February 2024

SCMA: Waiting for sunrise
(Assign HOLD call with TP: IDR165)

•    SCMA is expected to witness a year of recovery in '24, especially in 1H24 stemming from higher ads spending on roll-out of general election program, strong consumer sentiment ahead of Eid and waning effect of ASO

•    With an addition of Mentari and revamped EMTK-owned Moji, we are sanguine that SCMA should be able to maintain its leading position in all-time audience share at c.30%

•    SCMA has been committed to continue investing in digital ads as well as developing new revenue channel through affiliated marketing and Vidio

•    We expect Vidio will be able to cement its pole position as other OTTs have started to adjust its pricing, making it more appealing to subs

•    We assign our HOLD call on SCMA with a target price IDR165 per share. Note that at our target price, it implies 17.5x P/E ’24 or below 5-year mean average, while it is currently trading at 23.0x forward P/E ‘24

Regards, 
Devi Harjoto – KBVS Research Team