Listed Company Analysis – TOWR


Opening

Are you curious about cables and towers that we sometimes have seen in suburban or housing area where we live? How the internet-connected to our home? Why signal not stable in remote places? We are privileged if we lived in cities because we seldom lost signal and having problems connecting through our phones. Telecommunication towers is a key to have smooth experiences in our surfing in the digital world. Today, we are going to look at a company that actively constructs and helps enable us to get a good signal wherever we go. Let us check this out!

Company Information

Cover of TOWR Series 60

The name is PT Sarana Menara Nusantara Tbk, through a subsidiary, builds telecommunications towers. The company constructs operate and rents the towers to mobile telecommunications services providers. PT Sarana Menara Nusantara Tbk (TOWR) or known as Protelindo operates in three segments: Tower Rental; Very Small Aperture Terminal (VSAT) Services; and Metropolitan Wireless Fiber Optic and Internet. It leases space at its multi-tenant tower for wireless operators under long term lease agreements; and acts as a closed fixed network provider with VSAT and fiber optic capability. TOWR acquisition PT Komet Infra Nusantara (KIN) from PT Nusantara Infrastructure Tbk (META). The group of TOWR including PT Profesional Telekomunikasi Indonesia (Protelindo) and IForte owned by Djarum Group. Protelindo currently is celebrating 20.000++ towers celebration, 20.914 towers in Indonesia, 36.778 rental locations, 3693 VSAT, and more than 35.000 fiber optic cables throughout Indonesia. 

Let’s take a look at the certifications owned by TOWR:

  • PAS 99:2012 – Integrated Management Registration (registered on Aug 2, 2012)
  • ISO 14001:2004 – Environment Management System (registered on Aug 1, 2012)
  • OHSAS 18001:2007 – Occupational Health & Safety Management System (registered on Aug 1, 2012)
  • ISO 9001:2008 – Quality Management System (registered on Jul 11, 2012). 

Here are the Awards:

  • Deals of the Year 2008 – Project Finance. Protelindo successfully arranges a floating rate term loan of $360 Mio mandated by ABN Amro; DBS Bank; Chinatrust; OCBC; Standard Chartered; CIMB; Bank Mandiri, and Bank Central Asia.
  • Forbes Best of the Best Awards (The Top 50 Companies for 2012)
  • Fitch Ratings in 2016 as an AAA with Stable Outlook company 
  • Moody’s Investors Service rate of Baa3 with stable outlook rating.

Key Financial Statistics

Pictures provided.

TOWR Financial Statements of Series 60
TOWR Financial Ratios of Series 60

Highlights of 2020

  • TOWR received an award top-performing listed companies 2020 from Investor Awards 2020 along with PT Bank Central Asia Tbk, PT Industri Jamu & Farmasi Sido Muncul Tbk, PT Kapuas Prima Coal Tbk, and PT Batavia Prosperindo Trans Tbk.
  • First semester EBITDA grow 25% year-on-year to IDR 1.9 T due to towers acquisitions and rent of 1.344 new towers (34% increase, year-on-year).
  • TOWR co-location business growing to 1.79x from 1.61x last year.
  • Capital Expenditure of IDR 2.5 T spent on acquisitions towers for Protelindo.

Target Price

BCA SekuritasBuy Rating1.400
Mandiri SekuritasBuy Rating1.300
NomuraBuy Rating1.420
Trimegah SecuritiesBuy Rating1.000
New Street ResearchBuy Rating1.200
Indo Premier SecuritiesBuy Rating1.200
UOB Kay HianHold Rating1.160
HSBCHold Rating1.000
J.P. MorganBuy Rating1.220
NH Korindo SecuritiesHold Rating1.140
HopemityHold Rating1.000
TOWR Target Price of Series 60

Closing

This is one example of a company that is growing steadily due to COVID-19. The demand for internet connection and more connected to each other digitally making this company more valuable than ever! Exponential growth as well that could make this company become even more super towards the end of 2020. Pick your choice, and stay mindful of your life.

Stay healthy, stay out of stress. Cheers!


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