Bakrie Telecom (BTEL) – Maintain HOLD
Price: Rp245 – Target Price: Rp250
Bottom Line Boosted by Non-cash Items
- BTEL’s 9M10 net profit grew by 52.7% YoY while revenue slightly up by 2%.
- BTEL’s 9M10 revenue and EBITDA came below expectation, accounts for only 63% of FY estimate.
- Strong bottom line was driven by higher forex gain and the recognition of excess frequency cost.
- Lower than expected top line mainly due to lower ARPU in 9M10.
- Cut our ‘10F-‘12F ARPU by 3-9%, brought revenue and earnings down by 7-11% and 45%.
- New TP at Rp250. BTEL is trading at a demanding valuation ‘11F PER of 62.9x. Maintain Hold.
- Bakrie Telecom (BTEL) 24 November 2010 (191.3 KiB)