Telkom`s market capitalization exceeds Rp300 trillion

Ilustrasi (dok)

JAKARTA (IndoTelko) - Market capitalization of PT Telekomunikasi Indonesia Tbk (Telkom) has exceeded USD 300 billion at last week trade closing on Friday (13/2).

As quoted from Bloomberg on Friday (13/2) Telkom's stock price (TLKM) closed Rp2,980 per share rose from the opening on Rp2,915 per share. Telkom's shares was traded in the range of Rp2,915 - Rp3,020 per share with a volume of 183,459,600 pieces, on Friday (13/2),

Market capitalization usually indicates the value of the company as indicated by the share price multiplied by the number of outstanding shares in the stock.

As a result, referring to the closing stock price on Friday (13/2), Telkom market cap has reached Rp300.4 trillion. This figure grows rapidly from mid-October 2014 where the market cap of the Halo-halo issuer's was around Rp280 trillion.

Currently, for the telecommunications sector issuers, Telkom has the biggest market cap. Where it's competitors, Indosat only has a market cap of Rp21.2 trillion and XL's market cap is Rp44.4 trillion.

"The real challenge is to maintain this positive momentum for Telkom," said Telkom's President Director Alex J. Sinaga to IndoTelko, Sunday (15/2).

Alex said that his company has set a target in 2015 to become a market leader in all business lines. In cellular line, Telkom through Telkomsel would be the King of Digital with mobile broadband support. As for the cable-based services, Telkom, would be a champion with the Fiber To The Home (FTTH) service through IndiHome that offers Triple Play.

As for the backbone, Telkom will strengthen Undersea Cable Communication System (SKKL) from Aceh to Papua. "We will also strengthen its footprint in regions in order to become a regional player with the intermediate objectives for 2015 is to achieve Rp100 trillion to Rp300 trillion Market Cap revenue," Alex added.

Earlier, Telkom's Director of Consumer Dian Rachmawan admits that IndiHome will be one of the catalysts for Telkom in the future.

According to Dian's calculation if IndiHome has about 3 million subscribers in 2015, there will be an additional of Rp1.25 trillion from the Rp8.25 trillion targets for the consumer directorate revenue

"If in 2016 we have similar subscriber’s amount will generate USD 18-billion income, and could reach Rp21 trillion in 2017. That is why I emphasize to our fleet that this is the point of no return, win or die," Dian said. (see also: Indi Home a mainstay Telkom)

It Is Time
Separately, Asjaya Indosurya Securities analyst William Suryawijaya saw it was about time that the shares gained after the recent Telkom weakened.

"Investors choose Telkom shares as the company have a strong investment and continuously investing for expansion. Moreover, in the retail sector, telecommunications is one of the strong sectors to face the crisis," William explained.

According to William, the Rp300 trillion Market Cap achievements is a good thing for investors and Telkom. "For investors this provides illiquid stocks and can profit providing commitment. For the issuer, it shows a high public confidence and good for its equity," William said.

In a daily study of Bahana Securities on Monday (16/2), shares owned by Telkom is one of the suggested for investors to collect as it is in the middle of the upward trend.

"Currently this is the right time to buy Telkom shares as its weakened. the shares can be purchased at Rp2,900 - Rp2.950 each with selling level at Rp3,050 - Rp3,150 each. The stock is in an uptrend phase in which prices rise with volume," the study reports.

On Monday's (16/2) trading, Telkom's shares was opened at Rp2,970 per share.(es)