Telekomunikasi Indonesia: Multiple Levers To Pull

The Value Pendulum
Investing Group Leader

Summary

  • TLK expects its top line to grow by +5% or higher in FY 2023, which could turn out to be its best year in terms of revenue expansion since 2018.
  • The valuation creation levers for Telekomunikasi Indonesia include more aggressive cross-selling, the potential listing of its data center assets, and sustaining a high dividend payout ratio.
  • TLK's current mid-single digit forward EV/EBITDA valuation multiple is undemanding, and there is room for valuation re-rerating supported by multiple value creation levers.
  • Looking for more investing ideas like this one? Get them exclusively at Asia Value & Moat Stocks. Learn More »

Young Asian businessman working from home, using smartphone, sitting on bed at bedroom window of modern house

Martin Puddy/DigitalVision via Getty Images

Elevator Pitch

My rating for PT Telekomunikasi Indonesia Tbk's (NYSE:TLK) [TLKM:IJ] stock stays as a Buy. I previously discussed how Telekomunikasi Indonesia's stock performed last year and the prospects for the company's shares in my

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This article was written by

The Value Pendulum
12.78K Followers

The Value Pendulum is an Asian equity market specialist with over a decade of experience on both the buy and sell sides.

He is the author of the investing group Asia Value & Moat Stocks, providing ideas for value investors seeking investment opportunities listed in Asia, with a particular focus on the Hong Kong market. He hunts for deep value balance sheet bargains and wide moat stocks and provides a range of watch lists with monthly updates within his investing group.

Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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