■ WIFI offers affordable "Starlite" B2C fixed broadband at IDR 100K (200 Mbps, 80% discount vs. peers), only 4% of Java’s minimum wage, catering towards the untapped and less competitive low-income subscribers. In 2025F, the company aims to penetrate 5 million households by leveraging exclusive fiber backbone along KAI's railway and its big-name partnerships (PLN/Icon+, Pertagas, etc).

■ In 2026F, we project WIFI to achieve ROIC of 18.2% (vs. peers' 10.9%), driven by efficient capex and high take-up rates of 80-90%. To support its future growth, the company plans to cut its spending to IDR 800-900K per connection and raise IDR 1.4tn in funds in 2025F. Regarding EBITDA margin, the company recorded an industry-leading 70.9%, almost doubling the peers' average of 42.6%.

■ To further cement its stronghold in the mid-to-low-end FBB market, WIFI is partnering with NTT East Corporation, Nokia and Huawei (for fiber optic backbone and FTTH networks), Qualcomm (for 5G FWA), FTTH players such as Linknet (IDR 250K for up to 500 Mbps), and OREX SAI (for 5G FWA infrastructure). These collaborations are expected to improve and sustain future growth and profitability.

■ We initiate our coverage with BUY rating and TP of IDR 5,200, offering 218% upside, based on DCF model (WACC: 11.7%, terminal growth: 1.5%) and 5.0x forward EV/EBITDA, implying 2026F EV/EBITDA of 6.6x (40% discount to the sector).