Telekomunikasi Indonesia: Competitive Pressures Easing And Data Center Growth Are Reasons To Be Bullish

The Value Pendulum
Investing Group Leader
(9min)

Summary

  • I stick to a Buy rating for Telekomunikasi Indonesia, taking into consideration the improved competitive environment for its mobile business and the favorable growth prospects for its data center operations.
  • TLK's mobile ARPU remained stable in Q2 2024 and its peers have began to raise prices, which indicates that pricing competition has become less intense in the Indonesian mobile market.
  • TLK's data center revenue grew by 22% YoY in 1H 2024, and the growth outlook for this segment is positive considering the company's 2030 capacity growth target and its search for strategic investors.
  • Looking for more investing ideas like this one? Get them exclusively at Asia Value & Moat Stocks. Learn More »
Office building of PT. Telkom Indonesia Semarang.

Muhammad Zula Ainul Albab/iStock Editorial via Getty Images

My rating for PT Telekomunikasi Indonesia Tbk (NYSE:TLK) [TLKM:IJ] stock is a Buy. I'm staying positive on TLK as the competitive environment for Indonesia's mobile market has gotten better and the company's data center business boasts favorable growth prospects.

Price

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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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