Nationwide digital infrastructure provider with growth from B2C FBB in Bali. Following its recent acquisition of PT Garuda Prima Internetindo (Bali Internet) serving Bali and Lombok, PT Sinergi Inti Andalan Prima Tbk (INET), is poised to deliver surging 2026F revenues projected to reach IDR 1.1tn (+811.7% YoY), reflecting 66% of total. In line with this topline growth, INET’s current operation of 40K homepasses and 12K homeconnects (30% take-up rate) with an average package price of ~IDR 200K will grow to 1mn homepasses and 200K homeconnects, backed by its new WIFI-7 package priced at IDR 300K/month for 2Gbps. With the company positioning itself as a trusted partner by delivering reliable, transparent, and scalable digital infrastructure to support digital transformation, 2027F revenues are expected to further grow to IDR 2.2tn, up 96.0% YoY and accounting for 79% of total topline, helped by 1.5mn homepasses and 500K homeconnects.

 

Rights Issue & bonds to partly fund other new growing business segments. Growth for INET will be partially driven by strategic expansions across multiple segments: 1) subsea cable, 2) FTTH contracting, and 3) Node Internet services. These expansions should help improve EBITDA margins to 51.0% in 2026F and 53.6% in 2027F (25F: 34.3%) as a result of more favorable business mix, paving the way for total net income to reach IDR 239bn in 2026F (+960.6% YoY) and IDR 714bn in 2027F (+198.5% YoY). To fund future expansions, INET plans to raise IDR 4.2tn through 2025-end rights issue and bond issuances in 2026. Despite these debt-related initiatives, the company’s balance sheet is expected to remain solid throughout with net cash position.

 

Spec-Buy with IDR 500 TP based on 2027F EV/EBITDA multiple of 9.1x. We assign Spec-BUY rating on INET with TP of IDR 500 (+85.2% upside), based on 2027F EV/EBITDA multiple of 9.1x (industry: 16.9x), implying 46% discount to its global peers, warranted due to its small-cap status. Assuming further market cap expansion to IDR 13.1tn (USD 795mn) or share price increase to IDR 1,400 (Big Caps: IDR 8,800), we believe the company could potentially be included in MSCI Small Cap Index, making the stock even more attractive to investors. We like INET as one of Indonesia’s fastest-growing ISP companies, supported by its ambitious expansion strategy and rising demand for high-speed internet across work, entertainment, and household segments. As businesses accelerate digital transformation, the need for fast and reliable connectivity continues to strengthen INET’s long-term growth prospects. Key risks to our call include: 1) expansion delays, 2) lower subscriber growth, and 3) weaker purchasing power to adversely impact demand.