Messages in this topic (1) Re Tuesday, 12 February 2008 14:36:30 StockWatch (Jakarta) - Shares of PT Telekomunikasi Indonesia Tbk (Telkom/TLKM) are likely to reach target price of IDR13,100 per unit by the end of 2008, Evergreen Securities' analyst Edwin Sebayang said.
Sebayang said that interconnection tariff cut as planned by the government is not likely to have a significant impact on Telkom's revenue, and the impact is expected to occur only in the short term. "Interconnection tariff cut will, at least, trigger the consumers to use telephones," he said. He said further that he is optimistic Telkom will be able to book higher revenue and profit. TLKM moved within trading range of IDR9,600-9,750 per share today (12/2) in the Indonesia Stock Exchange (IDX), so the target price of IDR13,100 implies a potential increase of 35.75%. During the period of August 2007-February 11, 2008, TLKM stepped up to the highest price level at IDR12,650 and stumbled to the lowest level of IDR8,400 per share. The shares traded fairly actively during that period, with average transaction volume of 29.456 billiion shares, and that is why Edwin Sebayang has recommended buying of the shares. TLKM's liquidity is supported by the company's positive financial performance. Based on the company's unaudited financial report for the period that ended in September 2007, Telkom booked operating revenue of IDR45.28 trillion during that period, rising by 21.74% from IDR37.19 trillion in the same period of 2006. At the same time, the largest telecommunication company recorded net profit of IDR9.82 trillion (IDR491.64 per share) or climbing by 6.46% versus IDR9.22 trillion in the same period of the previous year. Meanwhile, Telkom's president Rinaldi Firmansyah said the company is expected to continue enjoying higher revenue in 2008 although the government has decided to cut telecommunication tariffs by 30%. Firmansyah said further that number of the company's subscribers is still likely to increase further, considering that telephone service penetration in Indonesia stands at merely 40% so far. Telkom is eyeing approximately 20 million subscribers in 2008 in a bid to maintain the growth, since the company and its subsidiaries already had 47.89 million subscribers by the end of 2007. Sebayang said Evergreen Securities has categorized telecommunication industry into the prospective sector in 2008. "Telkom's shares are among those that we have recommended for accumulating this year," the analyst added. (konrad/bw) This Email under control by a.nasri panggarbesi,ST
