Listed Company Analysis – ISAT


Opening

IHSG keeps getting stronger throughout this week. Tomorrow most likely will have a negative correction or else going to 5300. Let us see in tomorrow’s trading. Anyhow, today we are going to see about a telecommunication company other than Telekomunikasi Indonesia (TLKM) of course because TLKM already been emphasized and discussed in the past LCA (Listed Company Analysis).

Company Information

ISAT of Series 59

PT Indosat Tbk (ISAT) is a fully integrated Indonesian telecommunications network and service provider and provides a complement of national and international telecommunications services in Indonesia. The stakes of ISAT are owned by Ooredoo Asia Pte Ltd 65%, Government of Indonesia at 14.29%, and publicly traded about 20.71%.

The current President’s Director is Ahmad Abdulaziz A A Al-Neama, and The Commissioner is Sheikh Mohammed bin Abdulla bin Mohammed Al Thani.

ISAT first IPO-ed on 19 October 1994 with PT Merrill Lynch and PT Danareksa Sekuritas (Persero) as the underwriters. The initial price was at IDR 7.000/share. 

Key Financial Statistics

Pictures provided.

ISAT Financial Statements of Series 59
ISAT Financial Ratios of Series 59

Highlights of 2020

  • ISAT Losses on Q1-2020 IDR 605.6 B due to the severance package as the effects of COVID-19 on the business.
  • Indosat Tbk held a joint-project with the Nexford University to give scholarship to 10.000 Indonesian Students.
  • ISAT partnership with NetFoundry in cloud-native networking to boost their Network-as-a-Service (NaaS) to the digital and telco Industry.
  • ISAT focusing on providing the youth and students in Indonesia an easier path to the Internet together with Direktorat Jenderal Pendidikan Tinggi Indonesia (DIKTI).

Target Price

NomuraNeutral Rating2.500
Trimegah SecuritiesBuy Rating3.500
Bahana SecuritiesBuy Rating3.000
Ciptadana SekuritasBuy Rating3.150
DBS BankBuy Rating3.000
DanareksaBuy Rating3.000
Kresna SecuritiesBuy Rating3.280
Mirae Asset Daewoo Co., LtdBuy Rating3.050
RHB ResearchBuy Rating4.000
Yuanta Securities InvestmentBuy Rating4.130
BCA SekuritasBuy Rating4.150
Credit SuisseBuy Rating3.950
Goldman SachsHold Rating2.310
Indo Premier SecuritiesBuy Rating3.300
MacquarieBuy Rating3.500
Mandiri SekuritasBuy Rating3.200
HopemityBuy Rating3.000
ISAT Target Price of Series 59

Closing

Buy while the telco companies in their low point. Believe me, it’s going to soaring high soon. ISAT could reach IDR 3.500/share soon. Every sector has its own pros and cons. The telco has a lot of pros in facing the COVID-19 new ecosystem. If you believe in Indonesia to become and successfully become a better nation with great positioning in this world, not going toward China faction or USA faction. This will help Indonesia to steadily become the market top of mind for stocks market that have a positive impact and good return to them.

Mindful invest, don’t be greedy. Do the right thing.


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