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 First Media Tbk provides television and broadband access services to residential and commercial areas using its hybrid fiber optic coaxial (HFC) networks.

PT Centratama Telekomunikasi Indonesia Tbk provides information technology solution and internet services such as dial up access, leased line, web hosting, co-location, banner, e-mail, roaming, and mailing list. The Company's website includes Lelang88.com, Apakabar.com, Iklanmini.co.id and Centrin.net.id.

Centratama Telekomuniks Indonesia (CENT IJ)

PT Sat Nusapersada Tbk supplies printed circuit boards (PCB's) and mechanical parts assembly for supply multinational industries located in Batam.

P.T. Multipolar Technology Tbk provides IT solutions. The Company offers services in hardware infrastructure, software solutions, and consulting services.

PT Erajaya Swasembada Tbk distributes and retails cellular telephones.  The Company is licensed to distribute international brands of cell phones, and operates a chain of retail shops in Indonesia.

PT Indoritel Makmur Internasional Tbk operates as an investment holding company. The Company is primarily focused on the consumer and retail industries in Indonesia.

PUC Founder (MSC) Berhad is an investment holding group, principally engaged in three business segments namely, Media & Advertising; E-payment Services; and Renewable Energy. The company's businesses has expanded throughout Asia.

Sino Splendid Holdings Limited provides travel and tourism services. The Company, through its subsidiaries, offers tourism publishing and event organization, luxury travel, leisure trade, and corporate travel.

ReWorld operates a social networking Internet website built around sustainable development.  The website allows individuals, companies and associations to exchange information, conduct marketing, and recruit members.

iHeartMedia, Inc. provides media entertainment services. The Company offers radio broadcasting, entertainment data distribution, and media advertising services. iHeartMedia serves customers worldwide.

Mobvista Inc. operates as a holding company. The Company, through its subsidiaries, offers technology platform that provides mobile advertising and mobile analytics services to the application developers. Mobvista serves clients worldwide.

360 Ludashi Holdings Limited operates as a software development company. The Company develops and sells personal computer benchmarking software, smart phone benchmarking monitoring software, and other products. 360 Ludashi Holdings provides services in China.

Vividthree Holdings Ltd. operates as a holding company. The Company, through its subsidiaries, produces and distributes motion pictures. Vividthree Holdings serves customers Singapore and Malaysia.

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