Flooring Guide by Cinvex – JAKARTA – The stock movements of PT Solusi Sinergi Digital Tbk. (WIFI) and PT Dian Swastatika Sentosa Tbk. (DSSA) diverged following the announcement of the 1.4 GHz spectrum auction winners, marking a significant event in Indonesia’s telecommunications landscape.
Shares of WIFI closed 1.82% weaker this afternoon, settling at Rp3,240 per share. Throughout the day, WIFI’s stock fluctuated within a range of Rp3,160 to Rp3,470 per share, bringing its market capitalization to Rp17.2 trillion. Despite today’s dip, WIFI has demonstrated remarkable growth, appreciating by 53.55% over the past three months and an impressive 690.24% since the beginning of the year, underscoring its long-term investor appeal.
In contrast to WIFI’s performance, DSSA’s shares soared by 3.6% today, reaching Rp115,000 per share. Its trading range for the day was between Rp109,000 and Rp118,000 per share. DSSA commands a substantial market capitalization of Rp886.14 trillion. The company’s stock has also seen robust gains, climbing 84.89% in the last three months and an outstanding 210.81% year-to-date, reflecting strong market confidence.
The recent 1.4 GHz BWA spectrum auction saw both companies secure crucial bandwidth. WIFI, through its subsidiary PT Telemedia Komunikasi Pratama, emerged victorious in Region 1 (covering Java, Papua, and Maluku) with a winning bid of Rp403.76 billion. Meanwhile, DSSA, via its subsidiary PT Eka Mas Republik, secured Region 2 (encompassing Sumatra and the islands of Nusa Tenggara) for Rp300.88 billion. PT Eka Mas Republik also successfully acquired Region 3 (comprising Sulawesi and Kalimantan) with a bid of Rp100.88 billion, solidifying DSSA’s expanded footprint in the telecommunications sector.
According to Niko Pandowo, an analyst at Sucor Sekuritas, WIFI’s positive catalysts include the potential acquisition of LINK and its success in the 1.4 GHz spectrum auction. Pandowo views these developments as positioning WIFI as a potent disruptor, akin to Jio Financial Services in India. This strategy hinges on competitive pricing, freedom from legacy infrastructure burdens, an ecosystem-based approach, solid execution, and a powerful brand presence.
Pandowo further noted that WIFI is currently vying with the Sinarmas Group for the acquisition of LINK. LINK boasts an extensive network across Java and Bali, reaching over 2 million homes and serving approximately 850,000 retail customers. He explained that integrating the LINK acquisition with a partnership involving OREX SAI (a collaboration between NTT Docomo and NEC) is expected to accelerate the rollout of fixed wireless broadband services in urban areas, significantly boosting market adoption and WIFI’s profit margins. Concurrently, the 1.4 GHz frequency allocation will enable WIFI to launch fixed wireless services offering broadband-equivalent speeds at lower implementation costs and greater deployment flexibility.
On the other hand, Juan Harahap and Jonathan Guyadi, analysts at Samuel Sekuritas, highlighted DSSA’s aggressive expansion that has cemented its position as Indonesia’s second-largest fiber-to-home (FTTH) broadband provider, trailing only Telkom’s IndiHome, with coverage spanning over 70 cities. Samuel Sekuritas has issued a “speculative buy” recommendation for DSSA, setting a target price of Rp150,000 per share. The firm attributes this positive outlook to DSSA’s inclusion in the MSCI index, which is expected to enhance liquidity, generate strong momentum, and attract significant foreign investor interest, leading to increased foreign inflows.
Samuel Sekuritas emphasized that “the combination of a rapidly expanding telco-tech portfolio and exposure to renewable energy forms the bedrock for the company’s long-term growth.” However, they also cautioned investors to monitor potential risks associated with DSSA, particularly those related to regulatory approvals for data centers, the execution of renewable energy projects, and fluctuations in coal prices, which remain relevant given some of DSSA’s broader business interests.
Disclaimer: This news article is not intended as an invitation to buy or sell shares. Investment decisions are solely at the discretion of the reader. Bisnis.com is not responsible for any losses or gains arising from readers’ investment decisions.
Summary
The stock movements of PT Solusi Sinergi Digital Tbk. (WIFI) and PT Dian Swastatika Sentosa Tbk. (DSSA) diverged following the 1.4 GHz spectrum auction results. WIFI shares closed 1.82% weaker, though it boasts significant year-to-date growth, after its subsidiary won Region 1 of the auction. Conversely, DSSA’s stock rose 3.6% today, reflecting strong market confidence, with its subsidiary securing Regions 2 and 3.
Analysts highlight WIFI’s potential acquisition of LINK and its new spectrum as catalysts for launching fixed wireless services at lower costs, positioning it as a market disruptor. DSSA’s aggressive expansion has cemented its position as Indonesia’s second-largest fiber-to-home provider. Its inclusion in the MSCI index and a diversified telco-tech and renewable energy portfolio are expected to drive long-term growth and attract foreign investment.