PT Mastersystem Infotama TbkFull report →1 / 14
MSTIIDXThe short version

PT Mastersystem Infotama Tbk

PT Mastersystem Infotama is a founder-controlled Indonesian IT system integrator that builds and maintains the data-centre, network and security infrastructure behind the country's banks and telecoms, funded almost entirely by its own cash.

Listed near $0.088 in November 2023, the shares reached about $0.10 by August 2025, slid to $0.065 by mid-2026, and sit at $0.076 today — roughly flat with the IPO as earnings rose and the multiple compressed.
$0.076
Share price
$237M
Market cap
$327M
FY2025 revenue
$97M
Net cash · 38% of cap
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The statements

Steady compounding, then a FY2025 stall

FY2021 → FY2025as reported · Rp
RevenueRp5.5T+2%
Operating margin12.2%+0.1pp
Net incomeRp549.1B+4%
EPSRp174.90+4%
Free cash flowRp874.6B+0%
As-reported income statement and cash flow, FY2021–FY2025.
  • Revenue. Sales compounded about 15% a year to $327M in FY2025, but growth stalled to +1.7% as a one-off 2024 hardware project rolled off.
  • Profit. Net income rose 3.5% to $33M, a 10.1% margin; return on equity has held above 20% for five straight years, near 24%.
  • Cash. The model is asset-light — capex under 1% of sales — and free cash flow ran near $40M, funding a ~70% dividend payout.
Financials & mix

The only line that grew earns the thinnest margin

Software share vs blended gross margin
Software climbs; the blended margin drifts down with it.
  • Growth without profit. MSTI's growth is concentrated in its lowest-margin line: software license resale at ~8% gross margin rose 39% in FY2025 and 26.8% in Q1 FY2026 — climbing from 22.8% to 38.6% of sales — as hardware fell 14% then 21%, so the surge added almost nothing to profit (blended gross profit +2.0%, gross margin flat ~18%).
  • The other side. Hardware's own product margin improved, from 13.4% to 15.9%, and higher-margin maintenance grew 13.5% — a real shift into managed services could still make the mix a margin story.
First FY2026 quarter

Cheap on the multiple, shrinking on the base

4.9x
EV / FY2025 earningsex net cash
4.1x
EV / operating profit
−8.0%
Q1 net sales, YoY
−7.5%
Q1 net profit, YoY
Credit the cash pile and the operating business is priced near five times earnings.
  • Cheap on a falling base. After crediting ~$84M of net cash (about 36% of market value), MSTI's operating business trades at only ~4.9x FY2025 earnings and ~4.1x operating profit — but that trailing base is already contracting, with Q1 FY2026 net sales down 8.0% to $61.4M and net profit down 7.5% to $6.0M.
  • Or a cyclical washout. Hardware's drop is the unwind of the one-off 2024 AI-Factory boom — still above 1Q23 levels — while software keeps compounding and margins held; consensus now needs ~8% growth across the rest of FY2026.
What it sells

Four revenue lines, reweighting toward software

FY2025 revenue by product line
Hardware still about half of sales; software now nearly a third.
  • Reseller-integrator. MSTI plans, installs and maintains data-centre, network and security infrastructure for Indonesian banks and telecoms, reselling and configuring third-party hardware and software.
  • Recurring core. Maintenance — the highest-quality, recurring line — grew 13.5% to $48M; hardware fell 14% as the 2024 project rolled off while software rose 39%.
  • Concentrated demand. Financial services and telecoms supply 73–81% of revenue, and the single largest account rotates each year — Bank Indonesia was 12.3% of FY2025 sales.
Forward estimates

Consensus sees a modest reset, not a rebound

$342M
FY2026e revenue+4.5%
$0.011
FY2026e EPS
$363M
FY2027e revenue+6.1%
$0.099
Mean target · Strong Buy
Three analysts; a modest step-up off the FY2025 stall, a fraction of the 15% four-year pace.
  • Below the old pace. Management guides single-digit growth and consensus models +4.5% then +6.1% — a return to trend after a project-driven spike, not a reacceleration.
  • What flips it. A new project cycle in cybersecurity, cloud or managed services is the path the company points to back toward double-digit growth.
Cash conversion

Profits turn to cash across the cycle, lumpily

Operating cash flow vs net income ($M)
Cumulative cash flow is ~98% of profit; any single year swings on tax and project timing.
  • Backed by cash. Over FY2021–FY2025 operating cash flow equalled about 98% of reported profit and capex ran below 1% of sales — the earnings are real.
  • Why one year misleads. A project-delivery book and a chronic VAT-refund cycle swing conversion from 32% of profit in FY2022 to 171% in FY2024; FY2025's $42M is a timing dip, not weakness.
  • The line to watch. Trade receivables jumped 37% on flat sales, lifting days-sales-outstanding from 39 to 53 — a further climb would mean profit running ahead of cash.
Margin of safety

A balance sheet built to make wipeout unlikely

$97M
Net cash
38%
Net cash / market cap
$1.1M
Drawn bank debt
3.1x
Current assets / liabilities
Net cash worth roughly 38% of market value; interest cost is a rounding error.
  • Debt-free. FY2025 cash of $98M sat against just $1.1M of bank borrowings; the business needs no leverage and pays almost nothing in interest.
  • Not entirely idle. About $2.6M of cash is formally restricted and a further undisclosed slice is pledged behind the bank guarantees the project book requires.
  • Paid to wait. The cash funds an ~8.7% dividend from its own pocket, and current assets cover current liabilities 3.1 times over.
Control & capital

Founders own 85% and take cash as minorities do

Shareholding
Three founders hold ~85%; the public float is the 15% sold at IPO.
  • Aligned pay. All directors and commissioners together earned $2.9M in FY2025 — flat, and about 9% of profit — while the founders collected roughly $19M through the same per-share dividend every holder receives.
  • Clean books. No material related-party dealing ran through FY2025; the family monetises the business the one way that cannot shortchange the 15% minority.
  • The cost of caution. Around $97M of net cash earns about 2%, dragging reported return on equity to ~24% from roughly 76% for the operating business alone.
The dividend

A rising payout is the return in hand

Dividend per share ($)
A third straight annual rise; the payout has settled at the 70% ceiling.
  • Resolved. Shareholders approved $0.0073 per share for FY2025 — a first-ever interim plus final, a 70% payout, and a ~9% yield at $0.076.
  • Capped, for now. Company policy limits dividends to 70% of profit, so FY2025 delivered the top of the range rather than a break above it.
  • The bigger lever. The idle $97M is untouched — a second interim, a payout above 70%, or a buyback would be the clearest sign the family means to close the value gap.
Moat & market

Growing markets, but MSTI grows slower than them

Indonesian cybersecurity market (US$B)
A ~13.7% forecast CAGR — one of several double-digit end-markets MSTI serves.
  • The tailwind is real. Indonesia's ICT market runs near US$47bn, with cloud, data-centre and cybersecurity sub-markets compounding at double digits — the FY2025 pause is not a market that stopped growing.
  • Share is earned yearly. MSTI is the third-largest player at 6.9% share, anchored by three-decade banking ties and top-tier Cisco status — in a business its own filings call low-barrier and fragmented.
  • Below its own market. At +1.7% in FY2025 MSTI grew slower than its end-markets; closing that gap, with margins turning up, is what a genuine services pivot would look like.
Valuation

At $0.076 the market is paying the bear case

Implied value per share ($)
Net cash at face value plus operating earnings at 5x/7x/9x; today sits at the bottom.
  • The cash is the anchor. Net cash worth about $0.027 per share — 36% of the price — comes at face value; the residual pays for the operating business at roughly five times earnings.
  • Mostly a re-rating. The $0.099 analyst target is 9.6x forward earnings against ~5% EPS growth — upside that leans on the multiple, not a growth rebound.
  • Cheap, if it converts. The gap only closes if the family returns or redeploys the cash, or growth reaccelerates — levers the 15% minority cannot pull.
Two readings

The same facts, read two ways

Bull and bear on the same balance sheet
Shared factBull readsBear reads
Net cash ≈38% of capDownside floor and optionalityIdle capital dragging ROE, no plan
~5x EV / earningsCheap for a 24%-ROE businessEarned by a growth reset
+1.7% FY2025 revenueBase effect after a one-offShare loss to a growing market
85% founder-ownedAligned; pro-rata dividendMinority cannot force change
Each row is a filing item, read in opposite directions.
  • Not different numbers. Bull and bear agree on every figure; they disagree on whether the cheapness is quality on sale or a value trap earned by the slowdown.
  • What decides it. Capital-return follow-through and the FY2026 revenue and margin path — the checkable events that would tip the read either way.
What to watch

Cheap, cash-rich and paused: a margin-of-safety holding whose upside the 15% minority cannot compel.

Read the full report →

This distils a guided study built chapter by chapter — financials, cash conversion, control, moat and valuation.

Compiled from the full report · 2026-07-22 · For information, not investment advice.