Kiwoom Research | Equity Update - 27 August 2026 PT. Dayamitra Telekomunikasi Tbk. (MTEL) Resilient Core Growth, Strategic Merger and Spectrum Upside Key Takeaways - Resilient 1H26 performance. Revenue grew 2% y/y to IDR4.69tn, supported by fiber and tower-related growth, while net profit rose 2% to IDR1.11tn despite margin pressure. - Merger to unlock efficiency. The PST-UMT merger should improve opex/capex efficiency and asset utilization, with tenancy ratio potentially rising above 1.6x and new growth from FWA, fiberization, IoT, and power services. - Spectrum as a structural catalyst. The 700 MHz and 2.6 GHz auctions could drive colocation, new sites, and fiberization, potentially adding 3,000–3,500 tenants and IDR360–420bn annualized tower revenue by FY27–FY29. Recommendation “BUY” We revise our MTEL target price to IDR 635/share (from IDR 705), based on a blended EV/EBITDA and DCF valuation, supported by the company’s long-term growth prospects. This valuation implies 2026F multiples of P/E 24x, EV/EBITDA of 9.6x, and PBV of 1.53x. At the current price of IDR 460, The stock trades at 17.29x P/E and 1.11x PBV, versus peers at 17.0x and 1.33x, respectively. Downside risks include: Dependency on telecom operators, especially Telkomsel, Intense competition from TBIG and TOWR Technology risks (e.g., Open RAN, satellite disruption), Regulatory changes by the government, Financing risks (e.g., rising interest rates), Location-based risks and natural disruptions. Sukarno Alatas Equity research KIWOOM SEKURITAS INDONESIA