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

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 (LINK IJ) - On the Cusp of a Game Change

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

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> just released a positive set of 1Q2021 results with revenue up +11.4% YoY and net profit up +26% YoY,  despite slower subscriber growth and the ongoing focus on pole migration</p>
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<section class="figure">ARPU remained stable at IDR358,000 per subscriber per month versus IDR364,000 in FY2020 but the number was higher than 4Q2020, as the company ceased giving out ultra-low packages.  </section>
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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> is also providing the option for customers to upgrade their packages through the My First Media app, which includes e-wallet payment options.plus conducting various promotional campaigns with major e-commerce players reducing acquisition costs.</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> has revised down the total cost of the migration to IDR2.5tn versus IDR3tn previously due to effective cost management and operational cost efficiencies. Enterprise business picking up</p>
<p>Now that investing in fixed broadband has no foreign ownership restrictions versus a 67% limit previously, <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> has become a more attractive acquisition target for a potential suitor.</p>
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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> remains a key proxy for the low penetration of fixed broadband in Indonesia and currently provided the highest quality in terms of download speeds and programming.</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> remains attractive from a valuation standpoint trading on 13.2x FY2021E and FY2022E PER but it looks likely that we could see further earnings upgrades for FY2022E, given that the pole migration is scheduled to complete by May 2022. It is trading above its 5-year average forward PER of 12x but it has traded as high as 17x forward PER. </p>
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Link Net (LINK IJ) just released a positive set of 1Q2021 results with revenue up +11.4% YoY and net profit up +26% YoY,  despite slower subscriber growth and the ongoing focus on pole migration


ARPU remained stable at IDR358,000 per subscriber per month versus IDR364,000 in FY2020 but the number was higher than 4Q2020, as the company ceased giving out ultra-low packages.  


Link Net (LINK IJ) is also providing the option for customers to upgrade their packages through the My First Media app, which includes e-wallet payment options.plus conducting various promotional campaigns with major e-commerce players reducing acquisition costs.
Link Net (LINK IJ) has revised down the total cost of the migration to IDR2.5tn versus IDR3tn previously due to effective cost management and operational cost efficiencies. Enterprise business picking up
Now that investing in fixed broadband has no foreign ownership restrictions versus a 67% limit previously, Link Net (LINK IJ) has become a more attractive acquisition target for a potential suitor.

Link Net (LINK IJ) remains a key proxy for the low penetration of fixed broadband in Indonesia and currently provided the highest quality in terms of download speeds and programming.
Link Net (LINK IJ) remains attractive from a valuation standpoint trading on 13.2x FY2021E and FY2022E PER but it looks likely that we could see further earnings upgrades for FY2022E, given that the pole migration is scheduled to complete by May 2022. It is trading above its 5-year average forward PER of 12x but it has traded as high as 17x forward PER. 


Link Net (LINK IJ) - Multiple Catalysts in Place