■ *Enhancing 2026-27F earnings via DATA acquisition and IDR 5.5tn Rights Issue.* TOWR is strengthening its connectivity business and B2B/B2C growth by acquiring an additional 20% stake in DATA for IDR 267.8bn on 25 July 2025, bringing the total to IDR 804bn (@ EV/EBITDA 11.0x, 17% below peers) after its initial 40% buy in April. It will also launch a 1-for-6.19 rights issue to raise IDR 5.5tn (USD 338mn) at IDR 680/share (TERP IDR 568, 13.9% dilution) to maintain full ownership in Protelindo, which will repay debt. These actions should support stronger 2026–27F earnings and medium-term growth, despite headwinds from XLSmart integration and tougher price competition.

■ *1Q25 topline growth backed by IBST; Better-than-expected tower relocation.* Supported by the IBST acquisition in 3Q24, TOWR posted 1Q25 revenue of IDR 3,208bn (-2.4% QoQ, +5.3% YoY) from tower rentals and FTTT, though a lower lease rate of IDR 12.3mn (-1.5% QoQ, -3.9% YoY) weighed on QoQ growth. EBITDA reached IDR 2,679bn (-2.8% QoQ, +5.3% YoY) with a stable margin of 83.5%, while net profit was IDR 803bn (-9.6% QoQ, +0.7% YoY) with a 25% margin, pressured by FX losses. Looking ahead, EXCL’s push to rival ISAT via XLSmart could sustain tower relocation demand and help offset churn.

■ *Cheapest in the Sector; Reiterate BUY with unchanged TP of IDR 1,030.* TOWR trades at a 2025F EV/EBITDA of 7.3x, the sector’s cheapest, even after our earnings revisions reflecting the rights issue and 1Q25 results. We maintain our TP at IDR 1,300, implying 89% upside and a rerating to the sector average of 9.8x, supported by its strategic shift to higher-growth connectivity. Key risks include fiercer telco competition, lower tenancy, and 2–3% churn risk (~700 towers) from XLSmart, similar to the IOH merger.