ASEAN Insight Provider, CrossASEAN Research

Angus Mackintosh

In Equity Sales and Research for more than 25 years covering Asian markets. Possesses in-depth knowledge of a wide range of companies, economies, and markets in Asia. Over his career, he has specialised in HK/China and ASEAN markets at various different Investment Banks, most recently heading equities in Indonesia for Bank of America Merrill Lynch in Jakarta for more than three years. Whilst in Jakarta, he produced a well-read daily and weekly product on the Indonesian market, which included company visits, as well as political, economic and sector commentary. A former racing skier, who enjoys ultra-marathons and surfing in his spare time.

ASEAN Insight Provider

Link Net (LINK IJ) - Multiple Catalysts in Place

The Week That Was in ASEAN@Smartkarma - Link Net, KBANK, and Grab's Delay

Link Net (LINK IJ) - Profitability Intact but Shy on Subscribers

Link Net Tbk Pt (LINK IJ) - 1Q2020 Big on Subscribers but at a Higher Cost

Link Net Tbk Pt (LINK IJ) - Summer Migration at Last

Link Net (LINK IJ) - Moving into Pole Position

CrossASEAN Research

At CrossASEAN Research we strive to produce unbiased and differentiated on the ground insights on companies across South East Asia. Our Research is produced for the most part after face to face meetings and conversations with company management to dig deep into the long term vision and strategy of the companies we cover. We seek to deliver investable and actionable themes on sectors and markets across SE Asia, often in collaboration with other Insight Providers across the region, pooling the vast experience of the analysts within the Smartkarma Ecosystem. We also offer bespoke work and tailor made trips for our clients. 

Insights across South East Asia

Equity Bottom-Up

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<p><a href="https://www.smartkarma.com/entities/link-net-tbk-pt" target="_blank" data-smartkarma-citation="entities:1050:1" rel="noopener">Link Net (LINK IJ)</a> released a positive set of FY2020 results with revenue growth of +7.8% YoY and EBITDA growth of +11.3%, while EPS rose by +9.3% to IDR340 per share versus the consensus forecast of IDR314 per share. </p>
<p>The company achieved record net subscriber additions of +171,000 in FY2020, higher than the three previous years combined.</p>
<p>New homes-passed additions were higher than expected at 211,000, while the ongoing pole migration is on schedule and under budget</p>
<p><a href="https://www.smartkarma.com/entities/link-net-tbk-pt" target="_blank" data-smartkarma-citation="entities:1050:1" rel="noopener">Link Net (LINK IJ)</a>'s network penetration increased to 31.3% as it slowed homes-passed growth as it focused on pole migration. </p>
<p>The company's total subscriber base increased by +25% to 839,000 subscribers in total for 2020 while home passed increased to 2.68m.</p>
<p>The average revenue per user (ARPU) remained stable at IDR364,000 per subscriber per month but is likely to see some slight decline in 2021.</p>
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<section class="figure">We continue to see <a href="https://www.smartkarma.com/entities/link-net-tbk-pt" target="_blank" data-smartkarma-citation="entities:1050:1" rel="noopener">Link Net (LINK IJ)</a> as a high-quality way to play the low-penetration of high-speed broadband in Indonesia. It trades on 12.9x FY21E and FY22E PER as there is limited growth due to the cost of the roll-out of its new poles, although FY22E estimates probably look quite conservative, in my view.</section>
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<section class="figure"><a href="https://www.smartkarma.com/entities/link-net-tbk-pt" target="_blank" data-smartkarma-citation="entities:1050:1" rel="noopener">Link Net (LINK IJ)</a> is also a potential takeover target given the value of its fiber-optic network which is now countrywide and increasingly well developed, especially for Java. It is especially interesting to a mobile operator ahead of the expected roll-out of 5G in 2022.</section>
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Link Net (LINK IJ) released a positive set of FY2020 results with revenue growth of +7.8% YoY and EBITDA growth of +11.3%, while EPS rose by +9.3% to IDR340 per share versus the consensus forecast of IDR314 per share. 
The company achieved record net subscriber additions of +171,000 in FY2020, higher than the three previous years combined.
New homes-passed additions were higher than expected at 211,000, while the ongoing pole migration is on schedule and under budget
Link Net (LINK IJ)'s network penetration increased to 31.3% as it slowed homes-passed growth as it focused on pole migration. 
The company's total subscriber base increased by +25% to 839,000 subscribers in total for 2020 while home passed increased to 2.68m.
The average revenue per user (ARPU) remained stable at IDR364,000 per subscriber per month but is likely to see some slight decline in 2021.


We continue to see Link Net (LINK IJ) as a high-quality way to play the low-penetration of high-speed broadband in Indonesia. It trades on 12.9x FY21E and FY22E PER as there is limited growth due to the cost of the roll-out of its new poles, although FY22E estimates probably look quite conservative, in my view.


Link Net (LINK IJ) is also a potential takeover target given the value of its fiber-optic network which is now countrywide and increasingly well developed, especially for Java. It is especially interesting to a mobile operator ahead of the expected roll-out of 5G in 2022.




Link Net (LINK IJ) - Ahead on Poles and Subscribers