Analysts have raised their price target for XLSMART Telecom Sejahtera from Rp2,728 to Rp2,798. They cited updated financial projections and modest adjustments to key valuation factors as reasons for the change.
What's in the News
- PT XLSMART Telecom Sejahtera Tbk is a key participant in the joint construction of the Candle Submarine Cable System, an international data cable spanning approximately 8,000 km across Japan, Taiwan, the Philippines, Indonesia, Malaysia, and Singapore. (Key Developments)
- The Candle Submarine Cable System is expected to begin operations in 2028. It will expand regional communication infrastructure and provide high-capacity, low-latency data transfer. (Key Developments)
- This project involves major partners such as Meta Platforms, Inc., Softbank Corp., TM Technology Services, and supplier NEC Corporation. (Key Developments)
- XLSMART Telecom Sejahtera has issued earnings guidance for 2025, projecting consolidated revenue growth roughly in line with overall market trends. (Key Developments)
Valuation Changes
- Fair Value: Increased modestly from IDR 2,728 to IDR 2,798. This reflects a higher estimated value per share.
- Discount Rate: Slightly reduced from 13.48% to 13.44%. This signals a marginally lower perceived risk profile.
- Revenue Growth: The projected rate has declined marginally, moving from 11.84% to 11.65%.
- Net Profit Margin: Decreased from 12.06% to 11.25%, indicating an expected tightening of profitability.
- Future P/E: Increased from 13.59x to 15.00x. This suggests an expectation of higher earnings multiples.
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