Investors looking for stocks in the Diversified Communication Services sector might want to consider either Deutsche Telekom AG (DTEGY) or PT Telekomunikasi (TLK) . But which of these two stocks offers value investors a better bang for their buck right now? We'll need to take a closer look.There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The Zack ...

Investors with an interest in Diversified Communication Services stocks have likely encountered both PT Telekomunikasi (TLK) and Chunghwa (CHT) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great grade in the Value category of our Style Scores system. The Zacks Rank favors stocks with strong earnings estimate revision trends, a ...

Group 1 - The core viewpoint is that PT Telekomunikasi Indonesia Tbk (NYSE: TLK) is still considered a "Buy" rated stock, with expectations of improved near-term financial results and potential for stock re-rating [1] - The research service Asia Value & Moat Stocks focuses on identifying Asia-listed stocks that have a significant gap between price and intrinsic value, particularly emphasizing deep value balance sheet bargains and wide moat stocks [1][2] - The investment strategy includes targeting net cash stocks, net-nets, low price-to-book (P/B) stocks, and high-quality businesses that exhibit strong earnings power at a discount [1][2]

Financial Performance - Total revenues for the six months ended June 30, 2025, were IDR 73,004 billion, a decrease of 3.4% compared to IDR 75,292 billion in the same period of 2024[12] - Operating profit for the period was IDR 19,901 billion, down 8.0% from IDR 21,635 billion in the previous year[12] - Profit for the period attributable to owners of the parent company was IDR 10,975 billion, a decrease of 6.7% from IDR 11,761 billion in 2024[12] - Basic earnings per share for the period was IDR 110.79, down from IDR 118.72 in the same period of 2024[12] - The company reported a profit for the period of IDR 14,126 billion for the first half of 2025, compared to IDR 15,424 billion in the same period of 2024, indicating a decrease of about 8.4%[17] Assets and Liabilities - Total current assets decreased to IDR 60,378 billion as of June 30, 2025, from IDR 63,080 billion at the end of 2024, reflecting a decline of 4.3%[11] - Total liabilities increased to IDR 145,435 billion as of June 30, 2025, compared to IDR 137,185 billion at the end of 2024, marking a rise of 6.0%[11] - Total equity decreased to IDR 148,362 billion as of June 30, 2025, down from IDR 162,490 billion at the end of 2024, a decline of 8.7%[11] - The total retained earnings as of June 30, 2025, are IDR 99,520 billion, down from IDR 103,104 billion as of June 30, 2024[15] Cash Flow and Investments - The net cash provided by operating activities for the first half of 2025 is IDR 32,573 billion, an increase from IDR 29,687 billion in the same period of 2024[17] - Cash receipts from customers and other operators decreased to IDR 71,204 billion in 2025 from IDR 72,497 billion in 2024, reflecting a decline of approximately 1.8%[17] - The company incurred cash payments for corporate and final income taxes amounting to IDR 4,466 billion in 2025, a decrease from IDR 6,434 billion in 2024, reflecting a reduction of approximately 30.6%[17] - The net cash used in investing activities decreased to IDR 11,460 billion in 2025 from IDR 14,206 billion in 2024, indicating a reduction of about 19.4%[17] - Proceeds from loans and other borrowings increased significantly to IDR 39,689 billion in 2025 from IDR 24,189 billion in 2024, marking an increase of approximately 64.2%[17] Personnel and Operations - Personnel expenses decreased to IDR 8,075 billion, down 14.9% from IDR 9,485 billion in 2024[12] - As of June 30, 2025, the company had 19,319 employees, a decrease from 19,695 employees as of December 31, 2024[30] - The company continues to focus on enhancing its telecommunications services and expanding its market presence in Indonesia[12] Shareholder Actions - Cash dividends paid to the company's stockholders increased to IDR 21,047 billion in 2025 from IDR 17,683 billion in 2024, representing an increase of approximately 18.5%[17] - The company’s share buyback program reflects a strategic move to enhance shareholder value amidst ongoing market conditions[44] Subsidiaries and Assets - Total assets of PT Telekomunikasi Selular (Telkomsel) as of June 30, 2025, are Rp113,874 billion, down from Rp117,403 billion in December 2024[46] - PT Dayamitra Telekomunikasi (Mitratel) reported total assets of Rp60,076 billion as of June 30, 2025, an increase from Rp58,140 billion in December 2024[46] - The Company has a 100% ownership stake in several subsidiaries, including PT Multimedia Nusantara and PT Telkom Data Ekosistem, with total assets of Rp17,982 billion and Rp8,726 billion respectively as of June 30, 2025[46] Accounting and Financial Reporting - The consolidated financial statements are prepared in accordance with Indonesian Financial Accounting Standards, with amounts expressed in billions of Rupiah[63] - The Group adopted new accounting standards effective January 1, 2025, which did not result in major changes to accounting policies or material effects on reported amounts[67] - The reporting currency for the consolidated financial statements is the Indonesian Rupiah, with certain subsidiaries using other currencies[65] Revenue Recognition - Revenue from mobile services includes cellular service, internet and data service, and SMS, recognized based on actual usage or allowance unit used, indicating a performance-based revenue model[126] - For prepaid services, initial package sales and top-up vouchers are recognized as contract liabilities, while postpaid services generate contract assets for unbilled services[127] - Revenue from enterprise customers is recognized over time based on actual usage or elapsed time, with bespoke contracts being common[134] Financial Assets and Liabilities - The Group's financial assets are classified into categories such as amortized cost, FVTOCI, and FVTPL[169] - Expected credit losses (ECL) are recognized based on the difference between contractual cash flows and expected cash flows[185] - Financial liabilities are initially recognized at fair value, net of transaction costs for loans and borrowings[190]

Core Viewpoint - The article emphasizes the importance of value investing and highlights PT Telekomunikasi Indonesia (TLK) as a strong candidate for value investors due to its attractive valuation metrics and earnings outlook [2][6]. Company Summary - PT Telekomunikasi Indonesia (TLK) has a Zacks Rank of 2 (Buy) and an "A" grade in the Value category, indicating it is one of the strongest value stocks currently available [4][6]. - TLK is trading with a P/E ratio of 10.54, significantly lower than the industry average P/E of 20.75, suggesting it may be undervalued [4]. - Over the past year, TLK's Forward P/E has fluctuated between a high of 11.95 and a low of 7.98, with a median of 9.97 [4]. - The stock has a P/B ratio of 1.54, which is attractive compared to the industry's average P/B of 2.39, indicating a favorable valuation [5]. - TLK's P/B has ranged from a high of 2.34 to a low of 1.28 over the past year, with a median of 1.74 [5]. - The combination of these metrics suggests that TLK is likely undervalued and stands out as a strong value investment opportunity [6].

Core Insights - Michael Dion is an FP&A leader with diverse finance experience across various industries including Telecom, Media and Entertainment, Hospitality, and Construction [1] - He founded Mike's F9 Finance, a platform aimed at helping finance professionals enhance their careers [1] - Dion's investment strategy focuses on identifying value opportunities where market reactions to news are disproportionate, emphasizing strong fundamentals and a preference for dividend-paying stocks [1] - The importance of cash flow is highlighted as critical for both companies and investors at all levels [1]

Group 1 - Telkom Indonesia has filed its annual report on Form 20-F for the year 2024 with the U.S. Securities and Exchange Commission as required by the New York Stock Exchange Listed Company Manual [1] - The 20-F report is accessible on Telkom Indonesia's official website and the SEC website [1] - Holders of Telkom Indonesia's securities can request a hard copy of the 20-F report, including audited financial statements, free of charge [2]

Company Overview - PT Telkom Indonesia is the largest information and communications technology enterprise in Indonesia, focusing on digital connectivity, digital platforms, and digital services[9]. - The company serves five customer segments: mobile, consumer, enterprise, wholesale and international business, and other segments[9]. - The company's shares are traded on both the Indonesia Stock Exchange (IDX) and the New York Stock Exchange (NYSE) under the tickers TLKM and TLK, respectively[9]. Financial Reporting - PT Telkom Indonesia (Persero) Tbk filed its 2024 Annual Report on Form 20-F with the US SEC on April 28, 2025[7]. - The 2024 Audited Financial Statement is available for viewing on the company's website[7]. - Investors can request a hard copy of the 20-F Report via email or phone[8]. - The report is part of PT Telkom Indonesia's compliance with the NYSE Listed Company Manual[7]. Business Strategy - PT Telkom Indonesia aims to enhance its market position through continuous innovation in digital services[9]. - The company emphasizes its legacy services, including voice and SMS services, alongside its digital offerings[9]. Investor Relations - The company is committed to transparency and investor relations, as indicated by the filing of its annual report[6].

Financial Performance - The company reported a revenue increase of 15% year-over-year, reaching $5.2 billion in the last quarter[5] - The company reported a revenue increase of 15% year-over-year, reaching $1.5 billion in Q3 2023[1] - The company projects a revenue growth of 10% for Q4 2023, expecting to reach $1.65 billion[3] - The company has set a performance guidance of 12% revenue growth for the next fiscal year[5] - The company reported a net profit margin of 18%, reflecting improved operational efficiency[5] User Engagement and Growth - Average Revenue per User (ARPU) improved by 8% to $12.50, indicating stronger customer engagement[22] - User data indicates a 25% increase in active subscribers, reaching a total of 15 million[5] - User base expanded by 20%, totaling 10 million active users as of the end of Q3 2023[2] - Implementation of a new customer engagement strategy is projected to improve customer retention rates by 15%[8] Market Expansion and Strategy - The company plans to expand its market presence in Southeast Asia, targeting a 20% increase in user base by the end of the fiscal year[5] - Market expansion efforts in Southeast Asia are expected to drive a 30% increase in user acquisition[6] - A strategic acquisition of a local competitor is anticipated to close by Q3 2024, expected to increase market share by 10%[5] - The company completed a strategic acquisition of a local competitor for $300 million to enhance market presence[7] Product Development and Innovation - New product launches are expected to contribute an additional $300 million in revenue over the next two quarters[5] - New product launch in Q4 2023 is anticipated to contribute an additional $200 million in revenue[4] - Investment in R&D increased by 25%, totaling $150 million, focusing on next-generation technologies[5] - The company is investing $1 billion in 5G technology development to enhance service offerings and network capacity[5] Operational Efficiency and Cost Management - The company aims to reduce operational costs by 10% through efficiency improvements in the supply chain[9] - The company is focusing on enhancing its cybersecurity measures, allocating $50 million for upgrades in the next year[5] Future Outlook - Future outlook remains positive with a focus on sustainable growth and innovation in service offerings[10] - The company’s forward-looking statements include expectations regarding future operating performance and business prospects, which are subject to risks and uncertainties[186] - The company does not undertake any obligation to update or revise forward-looking statements after the date they are made[188] Financial Reporting - The company reported consolidated financial statements for the years ended December 31, 2023, and 2024, prepared in accordance with IFRS[181] - The exchange rate for converting Indonesian Rupiah to U.S. Dollars was Rp16,095.0 to US$1.00 for December 31, 2024, and Rp15,398.5 to US$1.00 for December 31, 2023[182] - Certain numerical figures in the financial data have been subject to rounding adjustments, which may cause slight variations in totals[183]

Group 1 - The article focuses on the Asia Value & Moat Stocks research service, which targets value investors looking for Asia-listed stocks with significant discrepancies between price and intrinsic value [1] - The service emphasizes deep value balance sheet bargains, such as net cash stocks and low price-to-book (P/B) stocks, as well as wide moat stocks that represent high-quality businesses [1] - The author provides a range of watch lists with monthly updates, specifically concentrating on investment opportunities in the Hong Kong market [1]