TMT Selected News

COMPANY RESULTS

MSTI (Not Rated) - FY24 Inline earnings; solid revenue

FY24 Results

• Revenue Rp5.36tr, +28%yoy, above cons., driven by strong growth in Data Center & Cloud Infra (+42%yoy).
• Gross profit Rp964bn, +11%yoy, but GPM compressed to 18% (vs 21% in FY23) due to a higher portion of hardware.
• Net profit Rp530bn, +18%yoy, in line with consensus 103%, with NPM steady at 11%, due to effective cost control.

 

4Q24 Results

• 4Q24 revenue came in Rp1.90tr (+18%qoq ,-1%yoy), beating cons., but broadly flat vs 4Q23. MSTI booked the remaining 10–30% contract from NVIDIA project.
• MSTI seasonally always sees strong seasonality in Q4.  Considering the flattish revenue yoy growth, the 4Q24 growth may have been only one-sided driven so far only by fulfilling NVIDIA's remaining contract.

 

Comment: 4Q24 was a strong revenue performance by MSTI. The flattish revenue on yoy basis suggests some project delays due to MSTI’s focus on completing its first large-scale NVIDIA GPU implementation, which resulted also to lower margins yoy. (Niko Margaronis & Kafi Ananta – BRIDS)

LOCAL NEWS

Mass Protest Over BHR Bonus: Online Drivers to Rally at Ministry of Manpower

Drivers from Indonesia’s online transportation sector, represented by the Indonesian Transportation Workers Union (SPAI), are set to protest at the Ministry of Manpower (Kemnaker) in South Jakarta on Tuesday (March 25, 2025). The demonstration is in response to what they consider an unfair and inhumane holiday bonus (BHR). SPAI reported cases where online drivers received as little as Rp50k in bonuses, despite earning Rp33mn over the past 12 months. Below is the detailed breakdown of the BHR received by Gojek Indonesia partners based on their category:

Mitra Juara Utama

• Two-wheeled: Rp900k
• Four-wheeled: Rp1.6mn

Mitra Juara

• Two-wheeled: Rp450k
• Four-wheeled: Rp800k

Mitra Unggulan

• Two-wheeled: Rp250k
• Four-wheeled: Rp500k

Mitra Andalan

• Two-wheeled: Rp100k
• Four-wheeled: Rp100k

Mitra Harapan

• Two-wheeled: Rp50k
• Four-wheeled: Rp50k (Bisnis)

 

Axiata shareholders approve XL Axiata-Smartfren merger

Axiata Group Bhd’s shareholders have approved the proposed merger between PT XL Axiata and PT Smartfren Telecom, marking a key milestone toward forming the new entity, XLSMART. The approval was secured through polling at the Malaysian Axiata’s EGM, with results submitted to Bursa Malaysia. Shareholders of XL Axiata and Smartfren will hold their own EGMs to vote on the merger. (TheStar)

Comment: EGMs for XL Axiata and Smartfren will be held today on the 25th March.

 

Centratama Reaches 11,000 Telecommunication Infrastructure Locations

PT Centratama Telekomunikasi Indonesia Tbk. (Centratama) has achieved a new milestone by expanding its telecommunications infrastructure to 11,000 locations and extending its fiber optic network to 5,000 km across Indonesia. Over the past six months, the company's fiber optic coverage has doubled from 2,500 km to 5,000 km. Additionally, Centratama recently completed the construction of its 2,000th build-to-suit site for EdgePoint in Java, with further plans in the pipeline to enhance telecommunication services in the region. (Kontan)

Comment: Centratama has recently been mentioned in the news as a potential acquisition target for peer tower companies.

 

EMTK Acquires 100Mn Shares of SAME at Rp320 Each

EMTK has increased its stake in PT Sarana Meditama Metropolitan Tbk. (SAME) by acquiring 100mn shares at Rp320 per share, totaling an investment of Rp32bn. The transaction, completed on March 20, 2025, raised Emtek’s ownership in SAME from 78.46% to 79.04%, bringing its total shareholding to 13.55bn shares from the previous 13.45bn. (Emitennews)

 

Tokopedia & TikTok Shop Launch Integrated Seller Center

Shop Tokopedia launched an integrated seller center. This new feature allows sellers to manage their stores on both Tokopedia and TikTok Shop from a single dashboard, streamlining operations without the need to switch platforms. The integration enables TikTok Shop sellers to expand their market reach by leveraging Tokopedia’s ecosystem, while Tokopedia sellers can enhance visibility through TikTok’s affiliate network. Additionally, product sales, ratings, and reviews from both platforms will be synchronized, helping sellers build credibility. Sellers can also take advantage of affiliate programs and various integrated features to boost sales. (Kontan)

 

BI-Fast Transactions Increase During Ramadan

Bank Indonesia’s fast payment service, BI-Fast, is seeing a surge in usage among customers. This growth in BI-Fast transactions is observed across almost all banks. Bank Mandiri reported a 5% to 10% increase in BI-Fast transactions during Ramadan. Meanwhile, BTN recorded a 10% rise in the number of transactions, with transaction volume increasing by 7% compared to regular months. (Kontan)

 

TLKM Supports the Inauguration of 17 FIFA-Standard Stadiums

TLKM is committed to supporting the national agenda by providing reliable digital infrastructure for the inauguration of 17 FIFA-standard stadiums by President Prabowo Subianto. Through this initiative, Telkom ensures real-time broadcasting of the event, allowing all connected stadiums to witness the moment with a stable network quality. Telkom’s technical team has conducted thorough infrastructure checks and preparations to ensure optimal network performance. The company aims to contribute to the success of the event while supporting the growth of Indonesia’s sports industry. (SWA)

 

Deloitte’s AI Value Stack features TLKM and ISAT

The Deloitte AI value stack categorizes AI-related activities into three key areas: Application, Platform, and Infrastructure. Within this structure, Telkom (TLKM IJ) and IOH (ISAT IJ) are positioned prominently in the infrastructure and platform layers

• Telkom is featured in Infrastructure alongside 2 other telcos AIS and PLDT, providing Data Centres capacity customized for high rack density AI GPU workloads.
• IOH is featured under Infrastructure alongside CoreWeave, Lambda and Singtel offering compute capacity on cloud dedicated for AI applications and models.
• IOH is also featured under Platform alongside Open AI and DeepSeek, providing the Garuda LLM. IOH and Tech Machindra partnered to build Garuda LLM, for Bahasa Indonesia and its dialects to foster language usage and promote linguistic diversity.

AI is expected to add US$1tr to SE Asia's regional GDP by 2030 to position it as the world’s 4th-largest economy. Key message: cost of inaction now far outweighs the cost of action (Economic Research Institute for ASEAN, Deloitte)

OTHER FOREIGN TRENDS

China’s AI Push Lifts Tech Stocks, Diverging from US Peers - Jack Ma and ANT Group claim can reduce AI training costs using Chinese Chips

Chinese tech stocks have outperformed their US peers in recent weeks, as shown in the charts where names like Tencent, Alibaba, and Meituan rallied while US tech giants such as Nvidia, Tesla, and Meta saw steep declines. This divergence comes as China accelerates its AI independence, exemplified by Jack Ma-backed Ant Group’s breakthrough in training large AI models using Chinese-made chips including from Alibaba and Huawei, while reducing reliance on Nvidia GPUs. Ant claims its new models achieve comparable performance at 20% lower cost, marking a key step in China’s push for AI self-sufficiency amid US export controls. The momentum reflects growing investor confidence in domestic innovation and AI scalability in China, contrasting with recent pullbacks in the US tech sector, where heavyweights like Nvidia face valuation concerns and margin pressure despite leading in GPU dominance. (Bloomberg, BRIDS)

Jack Ma-backed Ant touts AI breakthrough built on Chinese chips

Jack Ma-backed Ant Group has developed an AI training technique using Chinese-made semiconductors, including chips from Alibaba and Huawei, to cut training costs by 20%, marking a step toward China's AI self-sufficiency amid U.S. export restrictions on Nvidia chips. Ant's models, Ling-Plus and Ling-Lite, utilize the Mixture of Experts (MoE) approach to optimize efficiency, reportedly outperforming Meta’s Llama and DeepSeek’s equivalents in certain benchmarks. The company claims its cost-effective training method reduces expenses from 6.35mn yuan (US$880,000) to 5.1mn yuan per trillion tokens. Ant plans to integrate these AI advancements into healthcare and finance, leveraging its recent acquisition of Haodf.com. While the firm acknowledges training challenges, its open-source Ling models highlight China’s progress in AI innovation despite global chip constraints. (Financial Times, TheEconomicTimes)

 

Existing ByteDance investors emerge as front-runners in TikTok deal talks

Existing ByteDance investors, including Susquehanna International Group and General Atlantic, are leading discussions with the White House on a potential deal to spin off TikTok’s U.S. operations to comply with a new law requiring ByteDance to divest the app or face a ban over national security concerns. Private equity firm KKR and investment firm Coatue are also involved in talks, with Oracle set to continue managing U.S. user data to address security issues. The Biden administration has played an active role in the negotiations, effectively acting as an investment bank, while former President Donald Trump, who initially backed the ban, has recently shifted his stance, crediting TikTok for his 2024 election win. Trump issued an executive order delaying enforcement of the ban until April 5 and suggested he might extend the deadline further. Other potential buyers include groups led by billionaire Frank McCourt and YouTube star Mr. Beast. Under the proposed deal, ByteDance would retain a stake, but Oracle would oversee software updates and data management to ensure compliance with U.S. regulations. (Reuters)

 

Malaysia to tighten semiconductor regulations under US pressure

Malaysia plans to tighten semiconductor regulations under U.S. pressure to curb the flow of advanced chips to China, particularly high-end Nvidia chips crucial for AI development, according to Trade Minister Zafrul Aziz. The U.S. has urged Malaysia to closely monitor shipments and ensure that servers remain in designated data centers. This comes amid U.S. investigations into whether Chinese AI firm DeepSeek has been using restricted U.S. chips. Malaysia is also probing potential legal breaches in a Singapore-linked fraud case involving US$390mn in server shipments, which may have included Nvidia chips subject to U.S. export controls. (CNA)

 

ChatGPT Continues To Reign Supreme

ChatGPT remains the most popular AI tool, leading with 4.7 billion monthly visits, far surpassing competitors. Canva follows with 887 million visits, leveraging AI-powered design features. Meanwhile, Chinese AI firm DeepSeek saw an astonishing 2,026% surge in traffic, reaching 268 million visits, following the open-source release of its reasoning model in January. The AI landscape continues to evolve, with DeepSeek’s rapid growth signaling rising competition in the chatbot space. (Voronoi)

Google Confirms Gmail Upgrade—3 Billion Users Must Now Decide

Google has confirmed a major AI-driven upgrade to Gmail’s search feature, promising faster and more relevant results by analyzing user interactions with emails and senders. While this enhancement aims to improve efficiency, concerns over privacy and data security are growing, as AI is increasingly being integrated into personal and business platforms. Google assures users they have control over their data through personalization settings, but experts warn of potential risks associated with AI analyzing sensitive information. As businesses also grapple with AI adoption, questions around governance, security, and ethical data use continue to intensify. (Forbes)

 

NVIDIA, xAI, and BlackRock Join US$100Bn AI Infrastructure Partnership

A newly rebranded AI Infrastructure Partnership (AIP), now backed by NVIDIA, xAI, Microsoft, BlackRock, MGX, GE Vernova, and NextEra Energy, aims to build the "physical internet of intelligence" at a global scale. Combining NVIDIA’s compute power, BlackRock’s US$30Bn equity funding (leveraged to US$100Bn), and NextEra’s scalable energy solutions, AIP is creating AI factories starting with a massive 1.2 GW data center in Texas. This move intensifies the AI infrastructure race against OpenAI’s rival US$500Bn STARGATE initiative, backed by Oracle and SoftBank. With Microsoft hedging its bets on both sides, the battle isn’t just about AI models—it’s about controlling the foundational infrastructure that powers the AI economy. (SosMed)

 

Global E-Commerce to Exceed US$10Tr by 2030 as Digital Payments Dominate

The global e-commerce market is projected to surpass US$10tr by 2030, driven by the rapid expansion of digital payments. Digital wallets have experienced an explosive rise, growing their share of POS transaction value from just 3% in 2014 to 32% in 2024—a tenfold increase. This shift is propelled by real-time payment systems like Brazil’s PIX, Thailand’s PromptPay, and India’s UPI, as digital transactions increasingly replace traditional cash and card payments worldwide. (SosMed)

Alibaba-affiliate Ant combines Chinese and U.S. chips to slash AI development costs

Alibaba-affiliate Ant Group is integrating both Chinese and U.S.-made semiconductors to enhance AI efficiency and reduce reliance on a single supplier like Nvidia. By utilizing a mixture of experts (MoE) technique, Ant has cut AI training costs by 20%, using lower-cost chips from Alibaba, Huawei, AMD, and Nvidia alternatives. The company also announced AI upgrades for healthcare, now deployed in major Chinese hospitals. This move comes amid U.S. restrictions on China’s access to advanced AI chips, pushing firms like Ant to diversify their semiconductor sources. (CNBC)

 

AI chip startup FuriosaAI reportedly turns down US$800Mn acquisition offer from Meta

South Korean AI chip startup FuriosaAI has reportedly turned down an US$800mn acquisition offer from Meta, citing disagreements over business strategy and structure rather than price. As Meta seeks alternatives to Nvidia for AI chip supply, FuriosaAI remains committed to developing its own chips, Warboy and Renegade (RNGD), which have been tested with LG AI Research and Aramco. The startup is now raising approximately US$48mn to support its growth and plans to launch RNGD chips later this year. (TechCrunch)

 

Bain Capital-owned Bridge Data gets record US$2.8bn loan

Bain Capital-owned Bridge Data Centres has secured a record US$2.8bn loan to support its operations and expansion in Malaysia, marking its largest bank financing deal to date. The five-year syndicated loan will be used for refinancing and growth, as demand for AI-driven data services surges. This follows a similar US$3.4bn financing move by competitor DayOne, highlighting the region’s booming data center market. Johor, a key hub for data infrastructure, continues to attract major investments from tech giants like Microsoft and ByteDance. (TheEdgeMalaysia)

 

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