The data, internet, and IT service revenues posted a 12.8% YoY increase in sales as the operational expenses and telecommunication services segment accounted for a 7.1% YoY decrease in cost control. We estimate that FY19 revenues to reach IDR144.3 trillion and its FY20 P/E ratio of 17.1x with the low leverage provide Telkom with adequate funds for expansive network coverage. We on grounds of the facts hold BUY recommendation with the price target of IDR4,330.
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