Indosat Tbk. (ISAT) – HOLD
Price: Rp5,000 – Target Price: Rp6,400
Lousy FY10 Bottom Line
- FY10 net profit dropped by 56.8% to Rp647.2bn, while revenue and EBITDA grew by 5.2% YoY and 9.7% YoY, respectively.
- Net margin eroded by 4.7 bps to only 3.3% while EBITDA margins improved by 2 bps to 48.6%.
- Bottom line came largely below ours & consensus’ while revenue and EBITDA relatively in-line.
- The lousy bottom line was largely due to lower forex gain and escalating interest and D&A expense.
- Maintain HOLD with potential downgrade on our earnings estimate due to higher cost of debt.
- Indosat Tbk (ISAT) 3 March 2011 (219.3 KiB)