- We raise our target price (TP) for CTR by 15% and maintain our BUY rating. - Our higher TP is mainly due to (1) an 11% higher sum of the part (SoTP) EV/EBITDA valuation driven by a 21% higher valuation of towerco business and (2) an 18% higher DCF valuation driven by extending our explicit forecast period to 2024-28F vs 2023-27F previously, given 2028F NPAT-MI growth at 15% YoY. - We attribute a 21% higher EV/EBITDA valuation of towerco business to our use of 2024F EBITDA vs the average of 2023-24F EBITDA previously, while expected 2024F YoY growth is at 40% YoY. The strong growth outlook is driven by our higher 2024F new tower assumption (3,500 vs 2,100 previously). As a result, the contribution of towerco business in the SoTP EV/EBITDA valuation, which has a higher target EV/EBITDA multiple vs other segments, increases to 36% vs 33% previously. |