J.P. Morgan ASEAN FTM 9 Jun 26 U/g TOWR to OW amid compelling case for sector M/A; US mktg feedback on Astra & ID; MINT: Recovery traction; TH Insurance: Apr premiums point to recovery; Investing our Telco Recs

Research evidence excerpt

J.P. Morgan ASEAN FTM 9 Jun 26 U/g TOWR to OW amid compelling case for sector M/A; US mktg feedback on Astra & ID; MINT: Recovery traction; TH Insurance: Apr premiums point to recovery; Investing our Telco Recs

Asia Pacific Equity Research

ASEAN First to Market 09 June 2026

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| Indonesia Towers (Ranjan Sharma, CFA), Indonesia

Compelling case for consolidation; TOWR to OW on valuation and M&A optionality

Over the past three years, Indonesia’s main towercos (MTEL, TOWR, TBIG) have underperformed the JCI by 5-55%. This

underperformance has been primarily driven by a multiple de-rating, stemming from a declining return on capital amid

challenging industry dynamics following wireless operators consolidation. We believe MTEL and TOWR valuations are

attractive with the trading multiples implying little to no growth and attractive FCFs. We are upgrading TOWR to OW (from N) on

attractive valuations with the stock trading at a 2027E EV/EBITDA of 5.3x and a P/E of 4.6x with an FCFE yield of 18%. The

compression in ROICs to parity or lower than cost of capital raises the probability of industry consolidation that can improve the

pricing power of tower companies and their lease rates, in our view. The attractive valuations could even bring in capital from

global infrastructure and alternative asset managers. MTEL (OW) continues to be our preferred pick in the space.

Indonesia Commodities, Consumers and Astra (Benny Kurniawan, CFA), Indonesia

US marketing feedback – repricing of equity risk premiums

We were on the road in the US last week, meeting with investors and also attending the JPM APAC All-star forum. The JCI fell

8.7% last week and another 4% today as of 8 June 2026 closing, dominating the discussions we had with investors. Most of the