Reminder: INDY - An Attractive Valuation, New Fair Value Rp4,050
24 Nov 2017
Kideco’s acquisition will become a key catalyst which will further to improve its solid synergies within the group. With the 45% shares purchase, the company will fully consolidate Kideco’s performance which will significantly increase its FY2018 total revenue and net profit by 3.6-fold and 2.3-fold to US$ 2.57 billion and to US$ 275.3 million. Post the acquisition, the company’s share price recently traded at 1.00x 2018F PBV and 2.29x 2018F EV/EBITDA, reflecting an attractive valuation compared to the industry (1.48x 2018F PBV and 6.52x 2018F EV/EBITDA). Maintain BUY rating (new fair value at Rp 4,050/share).
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