XL Axiata (EXCL) Stocks Still Attractive Even though Profits Drop in the First Quarter of 2022, Here's the Reason
5/27/2022
BRI Danareksa Sekuritas makes EXCL shares as top picks, by maintaining a buy recommendation with a target price of Rp.4,250.
The net profit trend of PT XL Axiata Tbk. (EXCL) in the first quarter of 2022 was below analyst estimates. As is known, the company's net profit fell to Rp. 139 billion from Rp. 320.5 billion or decreased by 56.6 percent year on year (yoy).
The net profit trend of PT XL Axiata Tbk. (EXCL) in the first quarter of 2022 was below analyst estimates. As is known, the company's net profit fell to Rp. 139 billion from Rp. 320.5 billion or decreased by 56.6 percent year on year (yoy).
BRI Danareksa Sekuritas analyst Niko Margaronis said investors need not worry even though the company's net profit fell in the first three months of 2022.
"XL is taking steps to further uniform 4G-based subscribers by turning off 3G BTS and building a digital communication channel," Niko said in his research, quoted Thursday (26/5/2022).
Niko explained, XL Axiata increased the use of operating assets and sources of funds ( leverage ) in the first quarter of 2022, so that it can be realized in the next quarter.
XL's move with XL Satu is considered by Niko to have disrupted the Indonesian market, although this is a common thing in many other parts of the world as an end-to-end .
BRI Danareksa Sekuritas sees that until the end of the year EXCL can benefit from the competition, as a non-participant in the recent mergers and acquisitions as well as the consolidation of the telco market. In addition, according to Niko, EXCL will benefit from a stronger capital expenditure intensity.
Meanwhile, BRI Danareksa Sekuritas estimates that EXCL will be able to achieve revenue of IDR 28.4 billion throughout 2022, with a net profit of IDR 1.47 trillion.
BRI Danareksa Sekuritas makes EXCL as top picks , by maintaining a buy recommendation with a target price of Rp.4,250.
Disclaimer: This news is not intended to encourage buying or selling of shares. The investment decision is entirely in the hands of the reader. Risdosagalavsjilong is not responsible for any losses or gains arising from readers' investment decisions.
