A Vote Doesn't Move a Balance Sheet Line by Itself
The Q2 2022 post covered the actual event: on May 17, 2022, PT Mega Akses Persada's ("MAP") shareholders voted down the dilution mechanism this backlog has tracked since the FY2020 post — rejecting minority co-shareholder PT Mega Akses Perkasa's ("MAK") conversion request and instead giving the Company itself the right to convert Rp150 billion of mandatory notes, while MAP repaid MAK's Rp145 billion advance in cash. Four and a half months later, the Company's disclosed direct-plus-indirect ownership of MAP as of September 30, 2022 is still 66.76% (63.44% direct plus 3.32% via subsidiary PT Indoritel Persada Nusantara) — identical to the pre-reversal figure at both December 31, 2021 and June 30, 2022. A shareholder vote authorizing the Company to convert notes it now owns isn't the same thing as actually converting them; nothing in this quarter's filing shows the Company having exercised that right yet, and the balance-sheet ownership percentage confirms it.
That's a useful reminder for how to read a governance win in this backlog going forward: an approved reversal of a dilution mechanism is a real, positive structural change, but it only shows up in the numbers once the Company actually acts on the right it won — not automatically at the moment of the vote. The underlying business, meanwhile, kept compounding regardless: nine-month net income attributable to owners came to Rp937.9 billion, up 132.2% from Rp403.9 billion in the same period a year earlier, continuing the same broad-based associate recovery this backlog has tracked all year.
The Prescription
Now that the Company holds the right to convert Rp150 billion of MAP's mandatory notes into equity — see above — management's real task is to actually use it, or explain in a future filing why it's choosing not to. Owning an unexercised option on a subsidiary's equity isn't the same as owning the equity; the Company spent real capital acquiring these notes from MAK, and shareholders deserve to see that translate into an actual ownership increase, not sit indefinitely as a dormant right.
What it should stop doing: letting a full quarter pass with a stale customer-concentration disclosure. Cyberindo Aditama's revenue share moved from 49.06% (Q1) to roughly 61-62% (implied for Q2 standalone, per the Q2 2022 post) to 53.47% cumulative through Q3 — a genuinely volatile swing across three consecutive quarters that the filing still doesn't explain in a single sentence.
Key Financial Metrics
9M 2022 (nine months ended September 30, 2022) vs. 9M 2021, consolidated
FX: IDR 15,175.2 = USD 1 (September 30, 2022 rate, independently sourced spot data).
| Metric | 9M 2022 (IDR) | 9M 2022 (USD) | 9M 2021 (IDR) | YoY |
|---|---|---|---|---|
| Revenue (FiberStar, consolidated) | Rp755.819B | ~$49.80M | Rp532.634B | ✅ +41.90% |
| Operating Income» | Rp999.748B | ~$65.88M | Rp447.882B | ✅ +123.28% |
| Net Income» (total, incl. NCI) | Rp986.382B | ~$65.00M | Rp422.639B | ✅ +133.42% |
| Net income attributable to owners | Rp937.937B | ~$61.81M | Rp403.890B | ✅ +132.24% |
| EPS (basic, cumulative) | Rp66.13 | ~$0.00436 | Rp28.48 | ✅ +132.19% |
| Operating cash flow | Rp95.072B | ~$6.27M | -Rp67.813B | ✅ Turned positive |
"Adjusted EBITDA" isn't a metric this Company reports, and it genuinely doesn't map onto a pure holding company's accounts — the same reasoning used throughout this series applies here, since Operating Income embeds a large non-cash equity-method associate-profit component (see the associate table below).
| Balance sheet | Sep 30, 2022 (IDR) | Sep 30, 2022 (USD) | Dec 31, 2021 (IDR) | QoQ |
|---|---|---|---|---|
| Total Assets | Rp18,734.801B | ~$1.234B | Rp18,046.214B | ✅ +3.82% |
| Total Liabilities | Rp6,668.987B | ~$439.5M | Rp6,825.270B | ✅ -2.29% |
| Total Equity | Rp12,065.814B | ~$795.1M | Rp11,220.944B | ✅ +7.53% |
| Cash and cash equivalents | Rp775.239B | ~$51.09M | Rp440.052B | ✅ +76.17% |
Operating cash flow stayed positive for a third consecutive quarter (Rp95.1 billion cumulative through 9M, against a Rp67.8 billion outflow for 9M 2021) — confirming the turn flagged in the Q1 and Q2 posts is a genuine multi-quarter pattern, not a one-off. Cash and equivalents have grown 76% since year-end 2021, the strongest liquidity build anywhere in this backlog's coverage.
Two Associates Keep Recovering, One Turns the Corner for Good
The associate rollforward footnote through 9M 2022 shows every associate contributing positively for the first time in this backlog — including Fast Food Indonesia, whose H1 2022 swing into profit (flagged in the Q2 2022 post) reversed slightly this quarter.
| Associate | 9M 2022 share of profit | Carrying value, Sep 30, 2022 | Carrying value, Dec 31, 2021 |
|---|---|---|---|
| Indomarco Prismatama (Indomaret) | Rp691.837B | Rp6,616.116B | Rp5,925.369B |
| Nippon Indosari Corpindo (Sari Roti) | Rp67.773B | Rp2,428.352B | Rp2,456.566B |
| Fast Food Indonesia (KFC) | -Rp7.948B | Rp1,926.359B | Rp1,929.729B |
| PT Jaringan Mega Sedayu (joint venture) | -Rp1.388B | Rp14.105B | Rp15.493B |
| Total | Rp750.274B | Rp10,984.932B | Rp10,327.157B |
Fast Food Indonesia's cumulative 9M share of profit is back to a small loss (-Rp7.9 billion) after posting a positive Rp10.5 billion through H1 — meaning Q3 alone was a loss for the KFC franchisee, giving back the H1 gain. This is the first quarter-over-quarter reversal for FAST anywhere in this backlog's 2022 coverage and is worth watching in the Q4/FY2022 post to see whether it's a one-quarter blip or a return to the multi-year loss pattern the FY2021 post covered. Indomaret continues to dominate the combined profit line, now contributing 92% of the Rp750.3 billion total.
Key Operational Metrics
- Ownership stakes (equity-method associates): Indomarco Prismatama (Indomaret) 40%, Fast Food Indonesia (KFC) 35.84%, Nippon Indosari Corpindo (Sari Roti) 25.77% — all unchanged
- FiberStar consolidation (MAP): 66.76% direct-plus-indirect (63.44% direct + 3.32% via PT Indoritel Persada Nusantara) — unchanged since Dec 31, 2021, despite the May 2022 EGM reversal (see above)
- Cyberindo Aditama revenue concentration: 53.47% of 9M 2022 revenue vs. 49.12% (9M 2021) — up YoY this quarter, reversing the direction the Q1 and Q2 posts both showed
- Not available this quarter: home-passed/home-connected subscriber counts (not disclosed in interim filings); a discrete Q3-only revenue breakdown by type
Beyond the Usual
FAST's quarterly profit reversed after two quarters of improvement
Fast Food Indonesia's cumulative 9M 2022 equity-method profit share swung back to -Rp7.9 billion after standing at a positive Rp10.5 billion through H1 2022 (per the Q2 2022 post) — meaning Q3 alone was a loss of roughly Rp18.5 billion in profit-share terms, reversing the H1 gain entirely. This quarter's filing doesn't provide FAST's own standalone P&L for the discrete quarter, only the cumulative rollforward, so it isn't possible to tell from this document whether the reversal reflects a genuine operational setback (a seasonally softer Q3 for dine-in traffic, a cost pressure) or something else. Worth confirming against the Q4/FY2022 post whether this becomes a full-year loss again or stays a one-quarter dip.
The Company still hasn't converted the MAP notes it won the right to in May
Four and a half months after MAP's shareholders approved selling Rp150 billion of mandatory convertible notes to the Company (see the Q2 2022 post), the Company's disclosed ownership of MAP remains at the pre-reversal 66.76%. This is a plain factual observation, not a criticism of the Company's timeline — a corporate action of this size (converting Rp150 billion of notes, a governance and regulatory process) reasonably takes time — but it's worth tracking explicitly so the Q4/FY2022 post can confirm whether the conversion has actually happened by year-end.
Target Valuation Range
Bottom line: the market re-rated the stock up meaningfully this quarter — DNET's share price rose 11.1% while book value per share grew a slower 6.1%, a genuine improvement in sentiment on top of the fundamental recovery, not just more of the same mechanical cheapening this backlog tracked through FY2021 and early 2022.
The Company's shares closed the quarter at Rp3,710 (independently sourced spot data for September 30, 2022), up 11.1% from Rp3,340 at the end of Q2 2022 — the largest single-quarter move anywhere in this backlog's coverage. No stock split has occurred for this ticker since the FY2019 filing.
| Market cap → book value | 9M 2022 | H1 2022 (prior quarter) | Change |
|---|---|---|---|
| Share price (period-end) | Rp3,710 | Rp3,340 | ✅ up 11.1% |
| Shares outstanding | 14,184,000,000 | 14,184,000,000 | ➖ unchanged |
| Market capitalization | Rp52,622.6B (~$3.469B) | Rp47,374.6B | ✅ up 11.1% |
| Book value per share (total equity basis) | Rp850.72 | Rp827.09 | ✅ up |
| P/B» | ~4.36x | ~4.04x | ⚠️ up |
| Sum-of-the-parts sanity check | 9M 2022 |
|---|---|
| Fast Food Indonesia stake, at market (per most recently disclosed price, Rp970/share) | ~Rp1.387 trillion |
| Nippon Indosari Corpindo (Sari Roti) stake, at market (per most recently disclosed price, Rp1,285/share) | ~Rp2.049 trillion |
| Non-associate net assets (total equity less carrying value of all associate/JV investments) | ~Rp1.081 trillion |
| Sum, excluding Indomaret | ~Rp4.517 trillion |
| Company's market capitalization | Rp52.623 trillion |
| Implied value of 40% Indomaret stake | ~Rp48.106 trillion |
| Implied value of all of Indomaret | ~Rp120.264 trillion |
FAST's and ROTI's per-share prices carry forward from the Q1 2022 post (dated March 30, 2022), since this quarter's filing doesn't re-disclose them. The implied full value of Indomaret jumps to roughly Rp120.3 trillion this quarter — well above every prior reading in this backlog (FY2020's ~Rp109.8 trillion, FY2021's ~Rp105.2 trillion, Q1 2022's ~Rp102.2 trillion) — driven almost entirely by this quarter's 11.1% share-price move rather than any change in Indomaret's own disclosed fundamentals. This is the clearest evidence yet in this series that the stock's valuation moves independently of the associates' actual earnings trajectory — a pattern the FY2021 post first identified from the opposite direction (price flat while profit tripled) and this quarter shows working the other way (price jumping while the underlying business grew at a steadier, more typical pace).
A full discounted cash flow model still isn't attempted, for the reasons stated throughout this series. The sum-of-the-parts and reverse-valuation reads remain the honest lens, and this quarter's jump in the implied Indomaret multiple is itself the finding worth carrying into the Q4/FY2022 post — whether it holds, extends further, or reverts once a full year of 2022 trading is in.
PT Indoritel Makmur Internasional Tbk's consolidated financial statements for the period ended September 30, 2022 (with September 30, 2021 comparatives), including notes to the consolidated financial statements.