Research from SooChow CSSD Capital Markets (Asia), SCCM Asia Research

SCCM Asia Research

Research from SooChow CSSD Capital Markets (Asia)

Equity Bottom-Up

Solusi Sinergi Digital Tbk PT / Equity Bottom-Up

<h2>Post-Initiation NDR Feedback</h2><p>We hosted a number of non-deal roadshow sessions in the past week across 20 institutional investors and family offices. Interest was high on Solusi Sinergi Digital’s (WIFI) ability to pivot into Fiber Optic (FO) business and growing its Digital Out-Of-Home (DOOH) advertising business. Overall, investors were generally positive on WIFI’s overall business strategies and guidance, as well as massive potential of its FO business. This affirms our belief that WIFI is on the verge of an earnings explosion – 195% EPS CAGR from 2020-24E on our conservative assumptions. Reiterate BUY.</p>

Post-Initiation NDR FeedbackWe hosted a number of non-deal roadshow sessions in the past week across 20 institutional investors and family offices. Interest was high on Solusi Sinergi Digital’s (WIFI) ability to pivot into Fiber Optic (FO) business and growing its Digital Out-Of-Home (DOOH) advertising business. Overall, investors were generally positive on WIFI’s overall business strategies and guidance, as well as massive potential of its FO business. This affirms our belief that WIFI is on the verge of an earnings explosion – 195% EPS CAGR from 2020-24E on our conservative assumptions. Reiterate BUY.

SCCM | PT Solusi Sinergi Digital (WIFI IJ) - Post-Initiation NDR Feedback (BUY; TP IDR1,930/Share)

<h2>No Stop Signs, Nor Speed Limit; On The FO Highway</h2><p><br>Solusi Sinergi Digital (WIFI) is a digital ecosystem company, providing a fiber optic (FO) infrastructure network service alongside ~2,740km of rail tracks across Java Island. WIFI’s two other business pillars, OOH digital advertising and app development, is set to recover from the pandemic effect and cross-benefit from the FO network synergistically. We believe WIFI is able to tap on the latent demand for fixed broadband bandwidth as Indonesia targets to digitalize both urban and rural areas. We forecast EPS to grow by 195% CAGR from FY20-24E; Initiate coverage with a BUY rating and TP of IDR1,930/share.</p>

No Stop Signs, Nor Speed Limit; On The FO Highway Solusi Sinergi Digital (WIFI) is a digital ecosystem company, providing a fiber optic (FO) infrastructure network service alongside ~2,740km of rail tracks across Java Island. WIFI’s two other business pillars, OOH digital advertising and app development, is set to recover from the pandemic effect and cross-benefit from the FO network synergistically. We believe WIFI is able to tap on the latent demand for fixed broadband bandwidth as Indonesia targets to digitalize both urban and rural areas. We forecast EPS to grow by 195% CAGR from FY20-24E; Initiate coverage with a BUY rating and TP of IDR1,930/share.

SCCM | Solusi Sinergi Digital (WIFI IJ; Initiate with BUY)

Indonesia

PT Solusi Sinergi Digital Tbk provides information technology services. The Company offers network infrastructure, application and software development, out of home advertising media, and digital advertising solutions. Solusi Sinergi Digital serves customers worldwide.

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Solusi Sinergi Digital Tbk PT (WIFI IJ)

SCCM | Solusi Sinergi Digital (WIFI IJ; Initiate with BUY)

Solusi Sinergi Digital (WIFI IJ; Initiate with BUY) – No Stop Signs, Nor Speed Limit; On The FO Highway (TP IDR1,930/share; 101% upside)

SCCM Asia Research

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SCCM | PT Solusi Sinergi Digital (WIFI IJ) - Post-Initiation NDR Feedback (BUY; TP IDR1,930/Share)

Investors were generally positive on WIFI’s overall business strategies and guidance, as well as massive potential of its FO business. We belief...

SCCM Asia Research

SCCM | Solusi Sinergi Digital (WIFI IJ; Initiate with BUY)

Solusi Sinergi Digital (WIFI IJ; Initiate with BUY) – No Stop Signs, Nor Speed Limit; On The FO Highway (TP IDR1,930/share; 101% upside)

SCCM Asia Research