Equity SNAPSHOT Wednesday, April 25, 2018

Transcription

1 FROM EQUITY RESEARCH Astra International: Sturdy coal prices enhanced profit (ASII IJ. IDR 7,325. BUY. TP IDR 9,100) Astra International (ASII) reported net profit of IDR4.98tn in 1Q18 (+6.0% qoq, but -1.9% yoy). The results were within our expectation and consensus forecast. While we expect intense competition in the automotive sector to impact on ASII s market share, sturdy coal price will help the company to sustain its net profit for Maintain BUY recommendation with target price of IDR9,100 based on SOTP valuation. To see the full version of this report, please click here Bank Mandiri: Greater stability (BMRI IJ. IDR 7,725. HOLD. TP IDR 8,500) We maintain our HOLD call on BMRI with an unchanged GGMderived TP of IDR8,500 (implying 2.18x 2018F P/BV) following the release of inline results with IDR5.9tn of net profits in 1Q18. Asset quality stabilised, as reflected in the 3.3% gross NPLs ratio as of March 2018 and the significantly lower credit costs at 217bps in 1Q18 (vs 1Q17: 328bps). As such, we expect the gross NPLs ratio to be stable at 3.3% at the end of the year with 199bps credit costs. Furthermore, NIM is expected to reach 5.5% on the back of a lower blended CoF and stabilised asset yields. To see the full version of this report, please click here United Tractors: Supported by strong coal price (UNTR IJ. IDR 37,900. BUY. TP IDR 39,000) United Tractors (UNTR) reported net profit of IDR2,5tn in 1Q18 (+43.4% qoq, and +68.6% yoy). Sturdy coal prices which boosted heavy equipment demand and more coal production and sales volume helped to improve earnings. The results were slightly above our expectation owing due higher margin. We expect heavy equipment demand continues to remain strong backed by the expectation on replacement from the past years. Maintain BUY. To see the full version of this report, please click here Wijaya Karya: Changes to the Board (WIKA IJ. IDR 1,680. BUY. TP IDR 2,300) The shareholders approved the appointment of Mr. Tumiyana as the new CEO of WIKA after Mr. Bintang Perbowo served as the CEO for two periods. Mr Tumiyama recently officiated as the CEO for Pembangunan Perumahan (PTPP). In addition, the shareholders also approved the plan to distribute IDR26.82 of cash dividends per share, implying a 20% payout ratio. The dividend gives a 1.6% yield at the current share price. Maintain BUY. To see the full version of this report, please click here MARKET NEWS Macroeconomy Government: tax deduction for vocation and R&D above 100% approved Village fund distribution has reached IDR 13.02tn Sector Poultry: Gaining optimism for the 2018 outlook KEY INDEX Close Chg Ytd Vol (%) (%) (US$ m) Asean - 5 Indonesia 6,230 (1.2) (2.0) 412 Thailand 1,788 (0.1) 2.0 2,511 Philippines 7,600 (1.5) (11.2) 109 Malaysia 1,865 (0.8) Singapore 3, Regional China 3, (5.4) 37,487 Hong Kong 30, ,476 Japan 22, (2.1) 12,802 Korea 2,441 (1.0) (1.1) 8,711 Taiwan 10,580 (1.1) (0.6) 5,363 India 34, NASDAQ 7,007 (1.7) ,456 Dow Jones 24,024 (1.7) (2.8) 12,240 CURRENCY AND INTEREST RATE Rate w-w m-m ytd (%) (%) (%) Rupiah Rp/1US$ 13,889 (0.9) (1.1) (2.5) SBI rate % y Gov Indo bond Unit HARD COMMODITY Price d-d m-m ytd (%) (%) (%) Coal US$/ton 93 (0.1) (3.6) (7.5) Gold US$/toz 1, (1.2) 2.2 Nickel US$/mt.ton 13,923 (2.0) Tin US$/mt.ton 21, Unit SOFT COMMODITY Price d-d m-m ytd (%) (%) (%) Cocoa US$/mt.ton 2,669 (0.2) Corn US$/mt.ton Oil (WTI) US$/barrel Oil (Brent) US$/barrel 74 (1.1) Palm oil MYR/mt.ton 2,392 (0.1) (1.1) 0.1 Rubber USd/kg 140 (0.4) 4.3 (4.8) Pulp US$/tonne 1,130 N/A Coffee US$/60kgbag (8.6) Sugar US$/MT 325 (1.4) (9.2) (17.8) Wheat US$/ton Soy Oil US$/lb 31 (0.1) (1.3) (6.3) Soy Bean US$/by 1, (0.6) 7.4 Source: Bloomberg Danareksa Sekuritas

2 Equity Research Results Note Wednesday,25 April 2018 BUY Maintain Last price (IDR) 7,475 Target Price (IDR) 9,100 Upside/Downside +21.7% Previous Target Price (IDR) 9,200 Stock Statistics Sector Bloomberg Ticker Automotive ASII IJ No of Shrs (mn) 40,484 Mkt. Cap (IDRbn/USDmn) 302,615/21,654 Avg. daily T/O (IDRbn/USDmn) 226.6/16.2 Major shareholders (%) Jardine Cycle & Carriage 50.1 Estimated free float 49.9 Estimated free float 49.9 EPS Consensus (IDR) 2018F 2019F 2020F Danareksa Consensus Danareksa/Cons (3.0) (3.2) (3.1) ASII relative to JCI Index Source : Bloomberg Astra International (ASII IJ) Sturdy coal prices enhanced profits Astra International (ASII) reported net profits of IDR4.98tn in 1Q18 (+6.0% qoq, but -1.9% yoy). The results are within our expectation and the consensus estimates. While we expect intense competition in the automotive sector to impact on ASII s market share, sturdy coal prices will help the company to sustain its net profits in Maintain BUY with a target price of IDR9,100 based on SOTP valuation. Strong coal prices boosted the quarterly net profits and The 1Q18 net profits jumped by 6% qoq thanks to strong net profits from: a) heavy equipment and mining (+42.0% qoq) on 12.2% qoq higher quarterly Komatsu sales volume and b) 31.8% qoq higher financial services net profits. The other business segments reported lower net profits. The net profits from the automotive business declined by 7.9% qoq even though ASII managed to increase car wholesales volume by 5.0% qoq and the quarterly margin improved due to less discounts. We believe this reflects lower equity in net income of associates from the automotive segment. cushioned against further declines in yearly net profits. Lower profits from some of ASII s business segments led to 1.9% yoy lower net profits in 1Q18. The automotive business posted 7.8% yoy lower profits due to tight competition in the 4W market. This resulted in: a) 12% yoy lower ASII car sales volume with a declining market share in 4W to 48.6% in 1Q18 (1Q17: 56.9%) and b) a lower automotive EBIT margin to 1.5% in 1Q18 (1Q17: 1.8%). The financial services and agri businesses also reported lower profits (down by 5.7% yoy and 55.0% yoy respectively). However, strong net profits from the heavy equipment and mining businesses (+68.3% yoy) thanks to sturdy coal prices (which pushed up Komatsu s sales volume and coal production) helped to cushion against further declines in net profits. Expect ASII s market share to reach around 50%. To counter the competition from the launch of Mitsubishi Expander and Wuling Convero, ASII launched new products, such as Rush and Terios in the LSUV market in 4Q17 as well as a facelift model of the New Yaris in February This should help to cushion against further declines in ASII s market share which we estimate at 50% in 2018 (2017: 54%). In March 2018, ASII s monthly market share improved to 50% (February 2018: 48.0%). Maintain BUY. Although stiffer competition in the domestic car market will impact on ASII s automotive margin, we maintain our BUY recommendation on the stock with a target price of IDR9,100 (based on SOTP valuation) as it still provides 24.2% upside to our target price. The stock also trades at -1SD deviation. x Stefanus Darmagiri (62-21) stefanus.darmagiri@danareksa.com See important disclosure at the back of this report 1

3 Equity Research Company Update Wednesday,25 April 2018 HOLD Maintain Last price (IDR) 7,725 Target Price (IDR) 8,500 Upside/Downside +10.0% Previous Target Price (IDR) 8,500 Stock Statistics Sector Bloomberg Ticker Banking BMRI IJ No of Shrs (mn) 46,667 Mkt. Cap (IDRbn/USDmn) 360,500/25,956 Avg. daily T/O (IDRbn/USDmn) 295.1/21.2 Major shareholders (%) Government of Indonesia 60.0 Estimated free float 40.0 EPS Consensus (IDR) 2018F 2019F 2020F Danareksa Consensus Danareksa/Cons (1.9) (5.6) 1.0 BMRI relative to JCI Index Source : Bloomberg Bank Mandiri (BMRI IJ) Greater stability We maintain our HOLD call on BMRI with an unchanged GGM-derived TP of IDR8,500 (implying 2.18x 2018F P/BV) following the release of inline results with IDR5.9tn of net profits in 1Q18. Asset quality stabilised, as reflected in the 3.3% gross NPLs ratio as of March 2018 and the significantly lower credit costs at 217bps in 1Q18 (vs 1Q17: 328bps). As such, we expect the gross NPLs ratio to be stable at 3.3% at the end of the year with 199bps credit costs. Furthermore, NIM is expected to reach 5.5% on the back of a lower blended CoF and stabilised asset yields. 1Q18 highlights. The net profits of IDR5.9tn were mainly supported by a significant drop in credit costs of 217bps (vs 1Q17: 328bps). Loans grew at a relatively soft pace of 7.1% and the NIM dipped by c.10bps to 5.6%. Additionally, the assets quality stabilised as the gross NPLs ratio reached 3.3% as of March Nonetheless, the write-offs were quite substantial at IDR5.4tn in 1Q18 only, while BMRI s management maintains its write-offs target for FY18 at IDR11tn. Gradual improvement in assets quality. BMRI s assets quality will gradually improve on the back of its recent shift towards corporate and consumer lending. These two segments also provide more manageable credit costs in our view, compared to the middle corporate lending segment (previously commercial segment), for example. Moreover, BMRI s management also emphasized that the middle corporate segment should improve by next year at the soonest. All in all, we expect a major decline in the credit cost to 199bps this year with a 3.3% gross NPLs ratio by the end of the year. Stabilised NIM. We believe that asset yields should be stable at 8.1% this year thanks to higher exposure to the retail lending segment (micro, consumer and SME segment). We expect the contribution from the retail lending segment to increase to 35.9% of the total loans book by the end of the year. Despite that, pressure on asset yields may come from the volatile rate on government recap bonds, as BMRI owned IDR105tn of recap bonds as of March On the funding side, we expect a stable portion from retail at 63.4% of total customer deposits by the end of the year, supported by BMRI s strategy to cross-sell both loan and deposit products. All in all, the NIM is expected to be maintained at 5.5% assuming a 10bps dip in the blended CoF to 3% this year. Maintain HOLD with a TP of IDR8,500. We maintain our HOLD call on BMRI with an unchanged GGM-derived TP of IDR8,500 (implying 2.18x 2018F P/BV) assuming 8.8% CoE, 15.7% sustainable ROAE and 3% long-term growth. Eka Savitri (62-21) ext 3506 eka.savitri@danareksa.co.id Key Financials Year to 31 Dec 2016A 2017A 2018F 2019F 2020F PPOP (IDRbn) 43,258 43,122 46,861 51,819 58,981 Net profit (IDRbn) 13,807 20,640 24,502 28,370 33,624 EPS (IDR) EPS growth (%) (32.1) BVPS (IDR) 3, , , , ,889.5 PER (x) PBV (x) Dividend yield (%) ROAE (%) See important disclosure at the back of this report 1 Source : BMRI, Danareksa Estimates

4 Equity Research Results Note Wednesday,25 April 2018 BUY Maintain Last price (IDR) 37,900 Target Price (IDR) 39,000 Upside/Downside +2.9% Previous Target Price (IDR) 38,000 Stock Statistics Sector Bloomberg Ticker Heavy Equipment UNTR IJ No of Shrs (mn) 3,730 Mkt. Cap (IDRbn/USDmn) 141,372/10,179 Avg. daily T/O (IDRbn/USDmn) 150.9/10.9 Major shareholders (%) Astra International 59.5 Estimated free float 40.5 EPS Consensus (IDR) 2018F 2019F 2020F Danareksa 2, , ,794.8 Consensus 2, , ,058.5 Danareksa/Cons (3.1) (3.8) (8.6) UNTR relative to JCI Index Source : Bloomberg United Tractors (UNTR IJ) Supported by strong coal prices United Tractors (UNTR) reported net profits of IDR2.5tn in 1Q18 (+43.4% qoq, and +68.6% yoy). Sturdy coal prices - which boosted heavy equipment demand - and more coal sales volume helped to improve earnings. The results were slightly above our expectation owing to higher margins. We expect heavy equipment demand to remain strong backed by the expectation of the replacement of equipment from past years. Maintain BUY. Higher coal sales volume boosted quarterly net profits. UNTR reported 43.4% qoq higher net profits in 1Q18. This owed mainly to: a) more than a twofold increase in coal sales volume to 2.6mn tonnes, b) solid revenues from the construction machineries (CM) division on higher parts and services (+8.1% qoq) and others E&A (+9.2% qoq), c) lower operating expenses (-27.3% qoq) and d) normalization in the tax rate to 24.3% in 1Q18 (4Q17: 33.1%). Strong revenues from all divisions boosted the yearly net profits. The 68.6% yoy increase in net profits in 1Q18 was supported by strong revenues in all divisions. The revenues from the CM division surged 43.2% yoy owing to strong sales volume of Komatsu heavy equipment (+38.3% yoy) and Scania and UD trucks. Also, the greater contribution of Komatsu sales to the mining sector at 59.5% in 1Q18 (1Q17: 41.2%) led to higher Komatsu ASP. The sturdy coal prices improved revenues from MC and the coal division by 26.3% yoy and 66.2% yoy respectively. As such, the gross margins in the CM, MC and coal mining divisions improved. Greater earnings enhancement for We expect solid earnings in 2018, supported by: a) a higher increase in Komatsu sales volume (+10.9% yoy) and higher Komatsu ASP owing to a higher portion in the product mix of large-sized machineries, b) the expectation of sustained growth in the spare parts and services division at 15% yoy, c) coal production to increase by 5% yoy with OB removal to increase by 10% yoy and d) higher coal sales volume (+30% yoy) with coking coal sales volume of around 1 1.3mn tonnes. Maintain BUY. While we expect consolidation in coal prices in 2Q18, we still foresee that heavy equipment demand from the mining sector will remain strong. Maintain BUY with a target price of IDR39,000 (based on DCF valuation with WACC of 11.8% and long-term growth of 3%). x Stefanus Darmagiri (62-21) stefanus.darmagiri@danareksa.com Key Financials Year to 31 Dec 2016A 2017A 2018F 2019F 2020F Revenue (IDRbn) 45,539 64,559 75,310 80,417 82,423 EBITDA (IDRbn) 9,150 13,832 17,066 18,633 19,946 EBITDA Growth (%) (26.2) Net profit (IDRbn) 5,002 7,403 8,783 9,714 10,425 EPS (IDR) 1, , , , ,794.8 EPS growth (%) BVPS (IDR) 10, , , , ,039.9 DPS (IDR) ,064.0 PER (x) PBV (x) Dividend yield (%) EV/EBITDA (x) Source : UNTR, Danareksa Estimates See important disclosure at the back of this report 1

5 Equity Research Company Update Wednesday,25 April 2018 BUY Maintain Last price (IDR) 1,680 Target Price (IDR) 2,300 Upside/Downside +36.9% Previous Target Price (IDR) 2,300 Stock Statistics Sector Bloomberg Ticker Construction WIKA IJ No of Shrs (mn) 8,970 Mkt. Cap (IDRbn/USDmn) 15,070/1,085 Avg. daily T/O (IDRbn/USDmn) 52.1/3.8 Major shareholders (%) Govt. Indonesia 65.1 Public 35.0 Estimated free float 34.9 EPS Consensus (IDR) 2018F 2019F 2020F Danareksa Consensus Danareksa/Cons WIKA relative to JCI Index Wijaya Karya(WIKA IJ) Changes to the Board The shareholders approved the appointment of Mr. Tumiyana as the new CEO of WIKA after Mr. Bintang Perbowo served as the CEO for two periods. Mr Tumiyama recently officiated as the CEO for Pembangunan Perumahan (PTPP). In addition, the shareholders also approved the plan to distribute IDR26.82 of cash dividends per share, implying a 20% payout ratio. The dividend gives a 1.6% yield at the current share price. Maintain BUY. The new CEO is not a new face in the industry. The shareholders approved the appointment of Mr. Tumiyana as the new CEO of WIKA replacing Mr. Bintang Perbowo who served as the CEO for two periods from Mr. Tumiyana is not a new face in the industry since he has a long track record working with PTPP. Starting his career in PTPP in 1985, Mr. Tumiyana became the CEO of PTPP in Apr 16. He also previously served as the Director of Finance in PTPP ( ). Three out of seven of the BoD members are new faces on the board. The shareholders at the AGM held yesterday appointed three new directors out of seven available positions, including one additional director position. Besides the new CEO, the shareholders also approved the appointment of a new Director of Operation 1 and Director of Quality, Safety, Health, and Environment (QSHE). The new position is the QSHE (see exhibit 7 for details). Plans to distribute IDR26.8 of cash dividends per share. WIKA plans to distribute 20% of its 2017 earnings as cash dividends. This is equivalent to IDR240.4bn or IDR26.82/sh. The dividend payment of IDR26.82/sh is 20.9% lower than last year s dividend of IDR33.86/sh due to a lower payout ratio. For this year, the payout ratio is set at 20% or lower than 30% in At the current share price, the dividend yield is 1.6%. The cum date is 2 May 18 (see exhibit 8 for details). WIKA booked new contracts of IDR3.4tn as of Feb 18. This is only 5.9% of the management s full year target of IDR57.2tn (+35.0%yoy, FY17: IDR42.4tn). The new contracts booked in 2M18 are 71.5%yoy lower than the IDR11.8tn of new contracts booked in 2M17 (27.8% of the full year number). Maintain BUY. We are awaiting the issuance of the 1Q18 unaudited results and we believe more new contracts will be booked in the following quarters since most of the winning bids for government projects are announced in 2Q onwards. WIKA trades at 9.6x 2018PE, lower than its -1SD of 15.0x. Source : Bloomberg x Maria Renata (62-21) ext.3513 maria.renata@danareksa.com Key Financials Year to 31 Dec 2016A 2017A 2018F 2019F 2020F Revenue (IDRbn) 15,669 26,176 33,021 41,412 47,048 EBITDA (IDRbn) 1,853 2,500 3,162 3,858 4,082 EBITDA Growth (%) Net profit (IDRbn) 1,059 1,202 1,588 2,108 1,963 EPS (IDR) EPS growth (%) 59.3 (17.3) (6.9) BVPS (IDR) 1, , , , ,930.1 DPS (IDR) PER (x) PBV (x) Dividend yield (%) EV/EBITDA (x) Source : WIKA, Danareksa Estimates See important disclosure at the back of this report 1

6 MARKET NEWS MACROECONOMY Government: tax deduction for vocation and R&D above 100% approved The Coordinating Ministry for Economic Affairs has agreed that the tax deduction for providing vocation and research and development may exceed 100% of the vocation and research and development program costs. Previously the Ministry only agreed to give a maximum tax deduction of 100% of the total cost. The Ministry will also list the types of sector that are able to obtain such tax deductions and which meet the requirements. (Bisnis Indonesia) Village funds distribution has reached IDR 13.02tn The Ministry of Finance has recorded IDR 13.02tn of distributed village funds as of April or 21.7% of the total allocated village funds. The funds have been distributed in two phases. In the first phase, the amount is IDR 11.06tn. The funds were distributed to 405 of the 434 targeted regions which includes 68,815 villages. In the second phase, funds have been distributed to 45 regions with coverage of 5,953 villages. The distribution of funds will be done through cash-for-work and village empowerment programs. (Investor Daily) SECTOR Poultry: Greater optimism for the 2018 outlook The government is optimistic that the global market for poultry products, especially chickens, will improve in line with the improved aspects of animal health that increase the competitiveness of poultry products. Muslim-majority countries are the main prospective markets. (Kontan) Danareksa Sekuritas

7 DANAREKSA VALUATION GUIDE Equity Valuation Rating Price (Rp) Price Mkt Cap Net profit, Rp bn EPS (Rp) Core EPS (Rp) EPS Growth PER (x) EV / EBITDA (x) PBV (x) ROE Target Rp Bn Danareksa Universe 4,023, , , % 11.9% Auto 296,542 18,881 20, % 8.4% Astra International BUY 7,325 9, ,542 18,881 20, % 8.4% Banks 1,578,480 90, , % 14.0% BCA HOLD 22,925 21, ,216 23,620 27, , , % 14.6% N/A N/A BNI BUY 8,375 10, ,183 13,616 15, % 15.6% N/A N/A BRI BUY 3,490 4, ,477 29,044 31, % 8.9% N/A N/A Bank Tabungan Negara BUY 3,660 4,000 38,759 3,135 3, % 16.7% N/A N/A Bank Mandiri HOLD 7,725 8, ,500 20,640 24, % 18.7% N/A N/A BTPN BUY 2,900 3,900 16,937 1,273 1, % 27.8% N/A N/A BPD Jatim BUY ,408 1,282 1, % 3.0% N/A N/A Cement 162,116 4,000 4, % 4.9% Indocement SELL 18,300 14,700 67,367 1,887 1, % 2.7% Semen Indonesia SELL 9,900 8,600 58,722 1,945 2, % 8.4% Semen Baturaja SELL 3, , % -11.0% Cigarettes 600,116 20,595 22, % 10.7% Gudang Garam BUY 72,500 83, ,496 7,498 8,487 3,897 4,411 3,897 4, % 13.2% HM Sampoerna HOLD 3,960 4, ,620 13,097 14, % 9.2% Construction 120,418 8,554 10, % 21.0% Wijaya Karya BUY 1,680 2,100 15,070 1,225 1, % 45.5% Pembangunan Perumahan BUY 2,710 4,000 16,802 1,295 1, % 21.2% Adhi Karya BUY 2,120 2,800 7, % 37.3% Waskita Karya BUY 2,460 3,000 33,392 2,383 3, % 27.4% Waskita Beton BUY ,124 1,104 1, % 19.5% Wika Beton BUY , % 20.2% Jasa Marga BUY 4,420 7,800 32,080 1,747 1, % -8.1% Consumer 592,128 16,992 19, % 12.0% Indofood CBP BUY 8,350 9,700 97,377 3,894 4, % 10.3% Indofood BUY 6,900 9,100 60,585 4,381 4, % 10.6% Unilever HOLD 48,000 52, ,240 7,324 8, , , % 13.7% Kino Indonesia HOLD 2,160 2,100 3, % 25.8% Mayora Indah HOLD 2,900 1,960 64,840 1,277 1, % 10.4% Healthcare 81,224 2,700 2, % 11.5% Kalbe Farma HOLD 1,465 1,700 68,672 2,411 2, % 10.3% Kimia Farma SELL 2,260 1,910 12, % 12.7% Heavy Equipment 141,372 7,463 8,439 2,001 2, % 13.1% United Tractors BUY 37,900 38, ,372 7,463 8,439 2,001 2,262 2,001 2, % 13.1% Industrial Estate 14,080 2,352 1, % -49.5% Puradelta Lestari BUY , % 1.8% Bekasi Fajar BUY , % 11.3% Surya Semesta HOLD ,588 1,131 (103) 240 (22) (119) (32) % % 2.3 (25.2) (2.8) Media 58,809 2,965 3, % 13.5% Media Nusantara Citra BUY 2,660 2,800 38,893 1,491 1, % 7.6% Surya Citra Media BUY 1,395 1,750 19,915 1,474 1, % 19.5% Mining 209,410 14,754 17, % 15.5% Adaro Energy BUY 2,200 2,800 70,369 6,283 7, % 17.4% Timah BUY 1,060 1,100 7, % 3.0% Vale Indonesia HOLD 3,430 3,100 34,082 (74) 233 (7) 23 (7) % % (460.2) (0.3) 1.0 Aneka Tambang HOLD ,666 (264) (68) (11) (3) (11) (3) % -74.4% (78.3) (305.7) (1.4) (0.4) Bukit Asam BUY 3,330 3,600 38,364 4,476 4, % 3.3% Indo Tambangraya Megah HOLD 26,650 33,200 30,113 3,384 3,903 2,995 3,455 3,232 3, % 15.3% Harum Energy HOLD 2,930 2,200 7, % 2.1% Plantation 38,417 3,010 2, % -0.8% Astra Agro Lestari HOLD 12,875 14,800 24,780 1,908 1, % -3.0% Sampoerna Agro SELL 2,450 2,240 4, % 6.4% PP London Sumatra BUY 1,320 1,700 9, % 1.7% Poultry 79,121 4,078 5, % 29.8% Charoen Pokphand HOLD 3,640 3,100 59,689 2,576 3, % 32.2% Japfa Comfeed BUY 1,550 1,650 17,686 1,463 1, % 23.8% Malindo Feedmill HOLD , % 91.5% Property 107,359 8,450 8, % -0.2% Alam Sutera HOLD ,467 1,379 1, % 4.1% Bumi Serpong Damai BUY 1,820 2,000 35,029 3,909 2, % -29.5% Ciputra Development BUY 1,180 1,350 21, , % 58.8% Pakuw on Jati HOLD ,896 1,937 2, % 24.0% Summarecon BUY 975 1,100 14, % 28.3% Retail 83,999 3,402 3, % 12.4% Mitra Adi Perkasa BUY 8,225 8,100 13, % 46.8% Ramayana HOLD 1,410 1,400 10, % 4.9% Matahari Department Store BUY 10,975 12,500 32,024 1,928 2, % 5.3% Matahari Putra Prima SELL , % 2.7% Ace Hardw are BUY 1,300 1,450 22, % 9.3% Erajaya Sw asembada BUY 1,390 1,100 4, % 11.8% Danareksa Sekuritas

8 COVERAGE PERFORMANCE LEADERS Price as on Code 24-Apr Apr-18 Chg, % w-w, % m-m, % YTD, % Rating Erajaya Swasembada ERAA 1,390 1, BUY Surya Semesta SSIA HOLD Semen Baturaja SMBR 3,630 3, (1.9) 4.9 (4.5) SELL Waskita Karya WSKT 2,460 2, (2.4) 11.3 BUY United Tractors UNTR 37,900 37, BUY Ace Hardware ACES 1,300 1, (2.6) (2.3) 12.6 BUY Matahari Department Store LPPF 10,975 10, BUY Puradelta Lestari DMAS BUY Mitra Adi Perkasa MAPI 8,225 8, BUY Bank Tabungan Pensiunan Nasional BTPN 2,900 2,900 - (3.7) (8.2) 17.9 HOLD Sources: Bloomberg LAGGARDS Price as on Code 24-Apr Apr-18 Chg, % w-w, % m-m, % YTD, % Rating Unilever UNVR 48,000 50,800 (5.5) (6.7) (5.8) (14.1) HOLD Bank Negara Indonesia BBNI 8,375 8,725 (4.0) (6.4) (4.0) (15.4) HOLD Pakuwon Jati PWON (4.0) (4.0) (0.8) (12.4) HOLD Kalbe Farma KLBF 1,465 1,525 (3.9) (7.9) 2.4 (13.3) HOLD Aneka Tambang ANTM (3.9) (1.1) HOLD Timah TINS 1,060 1,100 (3.6) BUY Summarecon Agung SMRA 975 1,010 (3.5) (4.4) BUY Bank Mandiri BMRI 7,725 8,000 (3.4) (2.2) (4.0) (3.4) HOLD Vale Indonesia INCO 3,430 3,550 (3.4) HOLD Pembangunan Perumahan PTPP 2,710 2,800 (3.2) (1.5) BUY Sources: Bloomberg Danareksa Sekuritas

9 PREVIOUS REPORTS Bank Central Asia: Soft set of results, Bank Negara Indonesia: Steady growth in 1Q18, Bank Tabungan Pensiunan Nasional: Efficiency gains help lift profits, Unilever Indonesia: Moderate growth, Waskita Karya: Much better margins, Astra Agro Lestari: Disappointing 1Q18 Results SnapShot Bank Tabungan Negara: Still going strong SnapShot Astra International: Better monthly 4W market share, Bukit Asam: Higher coal prices sustained earnings SnapShot Ace Hardware Indonesia: Solid Mar-18 revenues SnapShot United Tractors: Strong Komatsu Sales in March 2018 SnapShot Danareksa Sekuritas

10 PT Danareksa Sekuritas Jl. Medan Merdeka Selatan No. 14 Jakarta Indonesia Tel (62 21) Fax (62 21) Equity Research Team Helmy Kristanto Stefanus Darmagiri Natalia Sutanto S helmy.kristanto@danareksa.com (62-21) ext Head of Research, Strategy stefanus.darmagiri@danareksa.com (62-21) ext Auto, Coal, Heavy Equip, Metal, Cement natalia.sutanto@danareksa.com (62-21) ext.3508 Consumer, Tobacco, Property Maria Renata maria.renata@danareksa.com (62-21) ext.3513 Construction Eka Savitri Eka.savitri@danareksa.com (62-21) ext.3506 Banking Yudha Gautama Yudha.gautama@danareksa.com (62-21) ext.3509 Plantation Adeline Solaiman adeline.solaiman@danareksa.com (62-21) ext Media, Retail, Poultry Ignatius Teguh Prayoga ignatius.prayoga@danareksa.com (62-21) ext.3511 Research Associate Lucky Bayu Purnomo lucky.purnomo@danareksa.com (62-21) ext.3512 Technical Analyst Sales team Novrita E. Putrianti novrita@danareksa.com (62-21) ext Tuty Sutopo tuty@danareksa.com (62-21) ext Ehrliech Suhartono ehrliech@danareksa.com (62-21) ext Upik Yuzarni upik_y@danareksa.com (62-21) ext Laksmita Armandani laksmitaa@danareksa.com (62-21) ext Giovan Sitepu giovanp@danareksa.com (62-21) ext Rendy Ben Philips rendy.philips@danareksa.com (62-21) ext Danareksa Sekuritas

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