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Strong 2Q26F revenues to be backed by Starlite subscribers and IRA rollouts. For WIFI, we expect 2Q26F revenue of IDR 976bn (+24.6% QoQ, +246.3% YoY) and net profit of IDR 191bn (+16.2% QoQ, +31.6% YoY). In 1Q26, revenues were IDR 784bn (+21.6% QoQ, +238.4% YoY), driven by telco revenue of IDR 590bn (+24.0% QoQ, +345.6% YoY) from 1.7mn subscribers, plus IDR 125bn from wholesale trade. EBITDA rose to IDR 547bn (+17.3% QoQ, +203.4% YoY) with margin at 70%, while interest expense increased to IDR 118bn, bringing net profit to IDR 165bn (+7.4% QoQ, +99.2% YoY), in line with forecast and consensus.
FWA: game changer on deployment ease & cheap pricing (IDR 100K/month) We project FY26F FWA subscribers to reach ~1.5–2 million (TUR: 55%), supported by ~700K CPE units since launch, potentially generating ~1 million pre-registrations in 1H26. FWA, or “Internet Rakyat” (IRA), offers scalable deployment addressing Indonesia’s low fiber penetration (~30%) at an affordable IDR 100K/month, though EBITDA margins (~55–60%) are lower than FTTH. WIFI’s 3-month free subscription with upfront IDR 100K and World Cup access is expected to sustain demand in 2H26F. Currently, 600+ FWA sites are operational in Region-1, targeting 5.5K sites by year-end, with capex ~IDR 6.5 tn.
Expansions of FTTH on renewed KAI contract until 2037 for Java and Sumatra. In its FTTH business, WIFI renewed its contract with PT KAI until 2037 for Java and Sumatra. It is constructing fiber networks along ~2,000 km of Sumatra railway (~IDR 130mn/km vs. IDR 100mn/km in Java), expected to complete by end-2Q26, with subscriber additions from 3Q26. For 2026, WIFI targets 2.3mn home connects (+35% YoY) and 4.0mn homepasses (+60% YoY) with TUR of 58%, supported by 2026 capex of IDR 8.4tn (FWA: 6.4tn; FTTH: 2.0tn).
Undervaluation & strong growth: BUY with TP of IDR 5,200 (239% upside). We reiterate BUY on WIFI with TP IDR 5,200 (239% upside), valued at 7.0x 2026F EV/EBITDA (56% discount to peers). FWA monetization and FTTH expansion are expected to grow its footprint and secure long-term customers. Key risks: 1) lower subscriber acquisition, 2) weaker purchasing power, 3) stretched balance sheet amid rising rates.
Samuel Sekuritas Indonesia is a leading Indonesian securities brokerage firm. Established in 1997, the firm has grown to become one of the most respected and trusted financial services companies in the country. With a wide range of services and products, Samuel Sekuritas Indonesia has become a trusted partner to many investors, both institutional and individual.
The company offers a variety of financial services, including equity, debt and derivative securities brokerage services, research and portfolio management, asset management and capital market services, as well as a range of other investment solutions. Samuel Sekuritas Indonesia is also a leader in providing financial education and training, and has established itself as a leading provider of investor relations services.
The company has a strong research capability and is committed to providing its clients with up-to-date and reliable market analysis and recommendations. It also has a team of experienced and knowledgeable professionals who are dedicated to providing quality service to its clients. As a result, Samuel Sekuritas Indonesia has become a preferred partner for many investors in Indonesia.
In addition to its financial services, Samuel Sekuritas Indonesia also offers a range of other services, such as corporate finance and advisory services, mergers and acquisitions, and venture capital.
