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IPTV, a 14% higher target price
Current, target price 274, 314 (+14%)
September 5th, 2021
1 minute read
Sales new high
Costs a bit higher
1 minute read
Sales new high
- Sales grew by 5% in the second quarter to a new high 1,050 billion rupiah which is slightly above our forecast 1,033 billion rupiah.
- This brings the average quarterly growth to 4%.
- We predict average growth of 4% in this next 12 months to bring sales to 1,226 billion rupiah in the second quarter of 2022.
Costs a bit higher
- The cash cost ratio of net profit add non cash costs minus sales as a percent of sales was at -69% in the second quarter & profit was 63 billion rupiah.
- Average quarterly costs are also now at -69%.
- We use the same -69% costs to predict a 2X 119 billion rupiah profit in the second quarter of 2022.
Cashflow turning positive
Balance sheet, lower leverage
Value, a 14% higher target price
- Cashflow was up to 224 billion rupiah with investment spending of -206 billion rupiah in the second quarter.
- Average quarterly Cashflow has atoll negative at -307 billion rupiah.
- We use the same -206 billion rupiah investment spending which with higher sales gives a positive 179 billion rupiah cashflow in the second quarter 2022.
Balance sheet, lower leverage
- Cash declined from 81 to 32 billion rupiah in the second quarter.
- Liabilities declined from 3,804 to 3,626 billion rupiah so net cash imports from -3,723 to -3,594 billion rupiah.
- With our forecast cashflow & a -123 billion rupiah equity payout, net cash will be -3,062 billion rupiah in 12 months time.
Value, a 14% higher target price
- IPTV capital from the last three years improved to -2,700 billion rupiah in the second quarter.
- At the current market value of 11,370 billion rupiah, based on our forecasts, it’s at 1.03X assets with a 1% yield.
- Our free cashflow forecast is 651 billion rupiah. At 17X , this gives a 14% higher target price of 314 rupiah.
