MORNING HIGHLIGHT. Equity Research Friday, December 16, 2016

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1 MORNING HIGHLIGHT FROM EQUITY RESEARCH WIKA: Ending the year on a high note (WIKA IJ. Rp2,530. BUY. TP: 3,900) After a long wait, the construction works on Indonesia s first high speed railway (HSR) project linking Jakarta to Bandung can begin following yesterday s signing of construction contracts between KCIC as the project owner and several contractors. Representing the consortium of Indonesian SOEs, WIKA has been awarded construction contracts with a value of Rp15.8tr or 30% of the total contracts offered. We maintain our BUY recommendation on WIKA with a TP of Rp3,900. Ace Hardware Indonesia: In-line 11M16 revenues (ACES. Rp810. SELL. TP: Rp750) Ace Hardware Indonesia (ACES) booked Rp410.7bn of revenues in November 2016 (-6.2% mom). This resulted in 11M16 revenues of Rp 4.3tn (+10.4% mom), reaching 88.9% of our full year target, i.e. in-line. MARKET NEWS *Analysts comment inside Consumer confidence weakens BI hits the brakes on easing Automotive: Domestic car sales up 3.7% yoy to 974,972 units in 11M16* Property sales up in the secondary market DILD starts construction of The Rosebay BMRI in collaboration with Tokopedia to ease payment of BPJS premiums BBRI targets 15,000 transactions in the Festival Brilliant Idea Market WTON enters the ready mix concreate business JSMR and Waskita Toll Road to inject Rp2.7tr for the development of the Salatiga Solo toll road Previous Reports: MTLA: Taking the middle way, SMGR: Steady performance-- Snapshot Cement sales November: still sluggish (UNDERWEIGHT), ASRI: Solid marketing sales growth due to one-off transaction, Ramayana Lestari Sentosa: In-line 11M16 gross sales -Snapshot ACES: Continued inventory problems -Snapshot Strategy: Peaceful rally = return confidence -Snapshot Key Index Close Chg Ytd Vol (%) (%) (US$ m) Asean - 5 Indonesia 5,254 (0.2) Thailand 1,520 (0.1) ,397 Philippines 6,855 (1.1) (1.4) 117 Malaysia 1,637 (0.4) (3.3) 368 Singapore 2,931 (0.8) Regional China 3,118 (0.7) (11.9) 36,407 Hong Kong 22,059 (1.8) ,472 Japan 19, ,724 Korea 2, ,783 Taiwan 9,360 (0.1) ,222 India 26,519 (0.3) NASDAQ 5, ,181 Dow Jones 19, ,760 Currency and Interest Rate Rate w-w m-m ytd (%) (%) (%) Rupiah Rp/1US$ 13,384 (0.7) (0.1) 2.9 SBI rate % (0.3) (1.3) 10y Gov Indo bond (0.8) Unit Hard Commodities Price d-d m-m ytd (%) (%) (%) Coal US$/ton (16.5) 75.6 Gold US$/toz 1,128 (0.0) (7.9) 6.3 Nickel US$/mt.ton 11,250 (1.0) (0.0) 28.1 Tin US$/mt.ton 21, Unit Soft Commodities Price d-d m-m ytd (%) (%) (%) Cocoa US$/mt.ton 2, (5.2) (28.6) Corn US$/mt.ton 129 (1.9) 2.7 (3.7) Oil (WTI) US$/barrel Oil (Brent) US$/barrel IDX ANNOUNCEMENT AGM EGM Announcement Code Action Date Time (WIB) SUGI EGM 16-Dec CMNP EGM 19-Dec Palm oil MYR/mt.ton 3, Rubber USd/kg 204 (5.2) Pulp US$/tonne 809 N/A (0.1) 0.7 Coffee US$/60kgbag 142 (0.5) (11.8) 29.4 Sugar US$/MT (11.1) 18.0 Wheat US$/ton 111 (2.1) (2.3) (21.2) BKSW EGM 19-Dec CMNP EGM 19-Dec BPFI EGM 19-Dec Danareksa Sekuritas

2 PT Danareksa Sekuritas Jl. Medan Merdeka Selatan No. 14 Jakarta Indonesia Tel (62 21) Fax (62 21) Team Agus Pramono, CFA (62-21) ext.3500 Strategy, Banking Stefanus Darmagiri (62-21) Auto, Coal, Heavy Equip., Metal, Cement Natalia Sutanto (62-21) ext.3508 Consumer, Tobacco, Property Maria Renata (62-21) ext.3513 Construction Adeline Solaiman (62-21) ext Retail Puti Adani (62-21) Consumer Antonia Febe Hartono (62-21) ext.3504 Cement, Property Lucky Bayu Purnomo (62-21) ext.3512 Technical Analyst Melati Laksmindra Isnandari (62-21) ext Research Associate Sales team Novrita E. Putrianti (62 21) ext Laksmita Armandani (62 21) ext Ehrliech Suhartono (62 21) ext Muhammad Hardiansyah (62 21) ext Yunita L. Nababan (62 21) ext Tuty Sutopo (62 21) ext Upik Yuzarni (62 21) ext Kevin Giarto (62 21) ext Danareksa Sekuritas

3 Mar-16 Apr-16 May-16 Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16 Friday, 16 December 2016 BUY Target Price, Rp 3,900 Upside (Downside) 54% WIKA IJ Last Price, Rp 2,530 No. of shares (mn) 9,000 Market Cap, Rpbn 22,694 (US$ mn) 1,696 3M T/O, US$mn 3,87 Last Recommendation 9-SEPT-2016 BUY Rp 4,300 Company relative to JCI Index WIKA (LHS) Relative to JCI (RHS) (Rp) (%) 3,500 3,000 2,500 2,000 1,500 1, Market Recommendation Buy Hold Sell 0 Consensus 5 23 Our Cons % Diff Target Price, IDR 3,900 3, EPS 2016F, IDR PE 2016F, x Maria Renata (62-21) ext maria.renata@danareksa.com Danareksa research reports are also available at Reuters Multex and First Call Direct and Bloomberg Construction/UPDATE Wijaya Karya Ending the year on a high note After a long wait, the construction works on Indonesia s first high speed railway (HSR) project linking Jakarta to Bandung can begin following yesterday s signing of construction contracts between KCIC as the project owner and several contractors. Representing the consortium of Indonesian SOEs, WIKA has been awarded construction contracts with a value of Rp15.8tr or 30% of the total contracts offered. We maintain our BUY recommendation on WIKA with a TP of Rp3,900. WIKA signed construction contracts with KCIC yesterday. For the development of the high speed railway project, WIKA obtained Rp15.8tr of construction contracts or 30% of the total construction value of US$4.3bn. The remaining 70% have been awarded to six Chinese contractors. Under the contract, WIKA s scope of works are extensive and include soil investigation (boring work), road diversion, drainage, subgrade, bridge piling, pile cap, pier, box girder, slab, sleeper, station building, etc. Contract payments will be made depending upon monthly progress such that WIKA s working capital will not be burdened. The financial closing of the project has not been done yet, however, and is targeted to take place this month. New contracts so far of around Rp48.0tr. Including the HSR project, WIKA s new contracts stand at around Rp48.0tr or 88% of the management s full year target of Rp54.4tr. This figure is higher than the new contracts booked in 2015 of Rp25.2tr. The company is optimistic that it will achieve the full year target supported by the signing of the LRT Kelapa Gading Velodrome project with Jakarta Propertindo, which is scheduled to take place next week, with contract value of around Rp5.0tr. WIKA is targeting 2016 net income of Rp940bn, supported by around Rp200bn of oneoff gains booked by Wika Realty. The gains relate to the forming of three new JV companies in 4Q16 with a Chinese investor in three different property projects located in Makassar (84ha), MT Haryono Jakarta (8ha), and Walini. The gains arise from the difference between the purchase price and the selling price of land by Wika Realty to the Chinese investor. 65% yoy growth target for For 2017, WIKA targets new contracts to reach Rp43.2tr, 20.5% lower than 2016 s target due to the HSR project. Excluding the HSR project, the target shows 12.0%yoy growth. Revenues in 2017 are targeted to grow by 65%yoy to Rp25.8tr (FY16 target: Rp15.6tr), while net income is targeted to reach Rp1.2tr (+29.7yoy). Without the one-off gains from Wika Realty, 2017 net income growth is expected to reach 64.7%yoy. The strong growth is supported by Rp6.1tr of fresh funds from the rights issue conducted in early 4Q16. Maintain BUY. We believe that WIKA s net income growth of 50%yoy in 2016 and 30%yoy in 2017 should offset the 31% EPS dilution from the rights issue. We maintain our BUY call on the stock with a new TP of Rp3,900 (previously Rp4,300). Our TP is based on the average SD forward PE of 29.4x. Year end Dec F 2017F 2018F Sales 12,463 13,620 14,786 19,488 24,833 Net Profit ,190 1,633 EPS (Rp) EPS Growth (%) DPS (Rp) BVPS (Rp) ,260 1,373 1,528 P/E (x) Div Yield (%)

4 Jan-13 Apr-13 Jul-13 Oct-13 Jan-14 Apr-14 Jul-14 Oct-14 Jan-15 Apr-15 Jul-15 Oct-15 Jan-16 Apr-16 Jul-16 Oct-16 Jan-13 Apr-13 Jul-13 Oct-13 Jan-14 Apr-14 Jul-14 Oct-14 Jan-15 Apr-15 Jul-15 Oct-15 Jan-16 Apr-16 Jul-16 Oct December 2016 Wijaya Karya Changes in our forecast. We update our forecast by factoring in the rights issue, the one-off gains from Wika Realty, and the HSR project. For the HSR, the project is recorded under the JV which will not be reflected in WIKA s revenues. WIKA expects to book a net margin of around 5% to 5.5% from the project. However, our forecast is based on a 5% net JV margin and 40% realization rate in 2017 and 60% in This is based on the railway commissioning which is targeted in early Exhibit 1. Changes in forecast and management s target Previous target New target Change WIKA target Our vs WIKA target in Rp bn New Contracts 45,071 49,578 51,666 40, % -17.6% 54,398 43, % -5.5% Carry over 33,743 55,954 28,172 60, % 7.6% 28,172 59, % 0.8% Order book 78, ,532 79, , % -4.3% 82, , % -1.8% Revenues 18,102 20,654 14,786 19, % -5.6% 15,586 25, % -24.5% Op. Income 1,945 2,330 1,669 2, % -1.0% na na na na Net income , % 32.2% 940 1, % -2.4% Maintain BUY with a new TP of Rp3,900. We maintain our BUY call with a new TP of Rp3,900 (previously Rp4,300). Our TP is based on the average SD forward PE of 29.4x. WIKA currently trades at -1.4SD or 19.1x 2017 PE. Exhibit 2. PE Band SD: 43.9x +1SD: 36.6x Avg.: 29.4x -1SD: 22.1x -2SD: 14.9x 0 Source: Bloomberg, Danareksa Sekuritas Exhibit 3. Price movement 6,000 5,000 4,000 3,000 2, x 35.0x 29.0x 23.0x 17.0x 1,000 - Source: Bloomberg, Danareksa Sekuritas --- 2

5 16 December 2016 Wijaya Karya Exhibit 4. Profit and Loss (Rp bn) Year end 31 Dec F 2017F 2018F Revenue 12,463 13,620 14,786 19,488 24,833 Revenue Growth (%) Gross Profit before JO 1,425 1,655 1,725 2,205 2,890 Opr. Profit 1,401 1,514 1,669 2,306 3,110 EBITDA 1,494 1,654 1,860 2,578 3,442 EBITDA Growth (%) Net Int Inc/(Exp) (124) (372) (317) (289) (383) Gain/(loss) Forex (2) Other Inc/(Exp) (129) (72) 169 (36) (57) Pre-tax Profit 1,146 1,098 1,521 1,981 2,670 Tax (395) (395) (495) (643) (835) Minority Int Extra. Items Reported Net Profit ,190 1,633 Exhibit 5. Balance Sheet (Rp bn) Year end 31 Dec F 2017F 2018F Cash and equivalents 2,301 2,560 8,900 9,205 10,600 Other curr asset 7,214 10,000 8,892 11,670 14,828 Net fixed asset 2,676 3,184 3,652 4,056 4,395 Other asset 3,725 3,858 4,215 5,867 6,834 Total asset 15,915 19,602 25,659 30,799 36,657 ST debt 1,708 1,818 2,095 2,652 3,179 Other curr liab 6,768 8,780 8,555 11,314 14,381 LT debt 1,324 1,692 1,497 1,895 2,271 Other LT Liab 1,137 1,874 1,083 1,427 1,819 Minority interest 989 1,063 1,123 1,197 1,298 Total Liabilities 10,936 14,164 13,230 17,288 21,649 Shareholders Equity 3,990 4,375 11,305 12,314 13,709 Net debt / (cash) (5,307) (4,659) (5,150) Total cap employed 7,021 7,885 14,898 16,860 19,159 Net Working capital 1,038 1,963 7,142 6,910 7,868 Debt 3,032 3,510 3,593 4,547 5,450 3

6 16 December 2016 Wijaya Karya Exhibit 6. Statement of cash flow (Rp bn) Year end 31 Dec F 2017F 2018F Core Net Profit ,190 1,633 Depr / Amort Chg in Working Cap (331) (36) Others CF's from oprs ,168 1,773 2,250 Capex (1,932) (684) (1,066) (2,241) (1,539) Others (28) (78) 70 (73) (83) CF's from investing (1,960) (762) (995) (2,315) (1,622) Net change in debt Others 1,739 (454) 5,767 (107) (137) CF's from financing 2, , Net cash flow , ,394 Cash at BoY 1,387 2,301 2,560 8,900 9,205 Cash at EoY 2,301 2,560 8,900 9,205 10,600 Exhibit 7. Ratios Year end 31 Dec F 2017F 2018F Profitability Gross Margin (%) Opr Margin (%) EBITDA Margin (%) Core Net Margin (%) ROAE (%) ROAA (%) Stability Current ratio (x) Net Debt to Equity (x) (0.5) (0.4) (0.4) Net Debt to EBITDA (x) (2.9) (1.8) (1.5) Interest Coverage (x) Efficiency A/P (days) A/R (days) Inventory (days)

7 Ace Hardware Indonesia: In-line 11M16 revenues (ACES. Rp810. SELL. TP: Rp750) FLASH NOTES Ace Hardware Indonesia (ACES) booked Rp410.7bn of revenues in November 2016 (-6.2% mom). This resulted in 11M16 revenues of Rp 4.3tn (+10.4% mom), reaching 88.9% of our full year target, i.e. in-line. As of November 2016, SSSG YTD reached 1.1%, flat compared to the previous month (Oct 2016: 1.1%). By region, the rest of Java showed the highest SSSG YTD of 1.6% (Oct 2016: 1.6%), followed by Jakarta with SSSG YTD of 0.8% (Oct 2016: 0.8%). Ex Java s SSSG YTD was 0.6% (Oct 2016: 0.6%). In terms of the monthly SSSG, in November alone, the figure was lower compared to the previous month (Nov 2016: 0.9%; Oct 2016: 3.7%). By region, the rest of Java monthly SSSG was still the highest at 1.7% (Oct 2016: 4.8%), followed by ex Java s monthly SSSG of 0.5% (Oct 2016: 3.7%). Jakarta s monthly SSSG in November was the lowest at 0.2% (Oct 2016: 2.2%) due to stiff competition. In terms of gross store space, as of mid December 2016, ACES had opened 12 new Ace Hardware stores with total additional gross store space of around 23.8k sqm, still in line with our expectation. Given that the company s inventory problems are likely to continue going forward due to soft demand for property, we remain downbeat on ACES and maintain our SELL recommendation. Other concerns are the weak SSSG, which will remain low in 4Q16 at least. The stock is currently trading at 24x P/E 2017F or +1 STD based on its 3 years historical average. Risks to our call include higher-than-expected sales performance next year and a stronger property market. Exhibit 1. Revenues, November 2016 (In Rp bn) Exhibit 2. SSSG YTD, November 2016 Adeline Solaiman Natalia Sutanto (62-21) ext 3503 (62-21) ext 3508 adeline.solaiman@danareksa.com natalia.sutanto@danareksa.com Danareksa Sekuritas

8 MARKET NEWS Consumer confidence weakens Based on Bank Indonesia s latest consumer survey, consumers were less upbeat in November 2016, but still optimistic. Looking ahead over the next six months, consumers are less optimistic on the economy and less upbeat on future job availability and business conditions. Nonetheless, the government s plan to raise the minimum wage has boosted optimism concerning incomes. BI also forecasts that there will be milder inflationary pressures in February (Bank Indonesia) BI hits the brakes on easing Bank Indonesia held the 7 days reverse repo rate steady at 4.75% after trimming the reference rate six times this year to jack up growth in the economy. This move follows the decision of the Fed to hike its policy rate by 25 bps to % bps, with plans for three more hikes in 2017, taking into account the incoming president s promises of tax cuts and deregulation to bolster growth. In its official statement, BI stated that it would continue to remain vigilant over risk of capital reversal related to uncertainties in US policies and that it would continue to undertake exchange rate stabilization. (The Jakarta Post) Automotive: Domestic car sales up 3.7% yoy to 974,972 units in 11M16 Domestic car sales increased 3.7% yoy to 974,972 units in 11M16. With these sales, the Association of the Indonesian Automotive Industries (Gaikindo) is optimistic that domestic car sales will reach 1.05mn units in Only around 75,000 cars need to be sold in December 2016 to meet the target. Toyota remains the leader in the domestic car market with 35.9% market share, followed by Honda with market share of 19.0% and Daihatsu with 17.8% market share. (Investor Daily) Comment: With domestic car sales of 974,972 units in 11M16, sales volume in November 2016 alone was 100,093 units (+8.8% mom), the highest monthly sales figure this year. The 11M16 domestic car sales are within our expectations as they are 92% of our full year estimate of 1.06mn units. With the revival in commodity prices, as reflected in the moderate pace of economic growth, we expect domestic car sales to increase by 5.0% yoy in Property sales up in the secondary market Bank Mandiri (BMRI) estimates that property demand will show slow growth in The main drivers for recovery in the property sector are (i) lower mortgage rates and (ii) the tax amnesty program. The impact of lower mortgage rates is expected to kick in during the next six to nine months. Meanwhile, Bank Tabungan Negara (BBTN) is still optimistic in the prospect for recovery in the property sector in In the secondary market, Rumah123 stated that property sales were increasing. In 2016, apartment transactions in the secondary market surged 178% yoy (in terms of value), or higher than the growth in 2014 and 2015 of 100% yoy. Sales of apartments priced below Rp500mn increased by 213% yoy while sales of apartments priced between Rp1-2bn only increased by 103% yoy. Indicating a similar trend, transactions of landed residential property soared 192% (in terms of value). This was mainly driven by sales of houses priced between Rp1-2bn (+202% yoy) and sales of houses priced below Rp500mn (+120% yoy). (Investor Daily) DILD starts construction of The Rosebay Intiland Development (DILD) has started construction of The Rosebay apartment in Western Surabaya. In the first phase of construction, the company will build five apartment towers (from seven towers). Handover is expected to be in From this project, the company has offered 229 units for sale. The area per unit ranges from sqm with an average price of Rp31.2mn/sqm. At the moment, the take-up rate for this project has reached 50%. BMRI in collaboration with Tokopedia to ease payment of BPJS premiums BMRI will arrange the PPOB Modern Channel on Tokopedia applications allowing users to pay BPJS premiums on Tokopedia using Clickpay Mandiri, Mandiri Credit Cards and Debit Cards, and Mandiri Ecash. At the moment, users of Tokopedia number 15 million people. (IQplus, Investor Daily) Danareksa Sekuritas

9 BBRI targets 15,000 transactions in the Festival Brilliant Idea Market BBRI targets transactions (10,000 and 5,000 transactions from debit and credit cards respectively) in the Festival Brilliant Idea Market from December 2016 in Jakarta. Through this shopping festival, BRI in collaboration with the e- commerce Association of Indonesia (IDEA) hopes to increase the public's confidence in e-commerce shops. (Investor Daily) WTON enters the ready mix concreate business Wika Beton (WTON) has formed a new ready mix concrete (RMC) business this year. The company expects RMC to contribute around 10% of revenues next year. The RMC will mostly be used for the development of roads and LRT development. WTON recently obtained new contracts for RMC amounting to Rp1.3tr for the Samarinda Balikpapan toll road. Furthermore, the company is also eyeing RMC contracts worth around Rp1.7tr for the LRT Kelapa Gading Velodrome project. Meanwhile, WTON is targeting 30%yoy growth in new contracts in 2017 to Rp7.8tr from the Rp6.0tr targeted in WTON has revised up its 2016 target by 40% from Rp4.3tr to Rp6.0tr. Up until now new contracts obtained reached Rp5.6tr. To support the business, WTON plans to develop a new precast plant in Subang, West Java on a 30ha land plot with a capacity of 2.6mn tons. (Kontan) JSMR and Waskita Toll Road to inject Rp2.7tr for the development of the Salatiga Solo toll road The Solo Ngawi Jaya consortium which comprises Jasa Marga (JSMR) and Waskita Toll Road plans to inject Rp2.7tr for the development of the Salatiga Solo toll road next year. Currently, the project is being tendered to select contractors to carry out the project. The tender winner is expected to be known at the beginning of The toll road will be 29.0km long and is targeted to need 18 months to be constructed. The toll road will connect to the Solo-Ngawi-Kertosono toll road which is currently under construction and owned by the consortium consisting of JSMR and Waskita Toll Road. For 2017, Waskita Karya (WSKT) has allocated Rp30.7tr for capex, 207% higher than the Rp10.0tr allocated in Around Rp25.0tr of the 2017 capex is allocated for the toll road business, Rp1.9tr for energy, and Rp1.0tr for realty. (Investor Daily) Danareksa Sekuritas

10 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) Net Gearing RO Target Rp Bn Danareksa Universe 3,057, , , % 17% Auto 313,748 15,508 18, % 18% Astra International HOLD 7,750 8, ,748 15,508 18, % 18% Banks 1,016,371 74,614 91, % 23% BCA HOLD 14,775 16, ,278 18,931 20, % 10% N/A N/A N/A 19.6 BNI HOLD 5,400 6, ,703 10,494 13, % 31% N/A N/A N/A 12.7 BRI BUY 11,400 14, ,228 26,092 31,100 1,058 1,261 1,058 1,261 3% 19% N/A N/A N/A 20.1 Bank Tabungan Negara BUY 1,715 2,300 18,162 2,200 2, % 17% N/A N/A N/A 13.6 Bank Mandiri HOLD 10,800 11, ,000 16,898 23, , ,000-17% 38% N/A N/A N/A 12.4 Cement 138,462 7,891 5, % -26% Indocement SELL 16,150 14,600 59,452 3,863 2,808 1, , % -27% net cash 15.8 Semen Indonesia SELL 8,975 8,100 53,235 3,792 2, % -22% Semen Baturaja SELL 2, , % -56% net cash 7.8 Cigarettes 592,839 18,145 19, % 8% Gudang Garam HOLD 66,300 70, ,567 6,342 6,860 3,296 3,565 3,296 3,565-1% 8% HM Sampoerna HOLD 4,000 3, ,272 11,803 12, % 8% net cash 36.1 Construction 138,366 6,602 8, % 24% Wijaya Karya BUY 2,530 4,300 22, % 19% Pembangunan Perumahan BUY 3,820 5,700 19, , % 34% net cash 20.2 Adhi Karya BUY 2,090 3,500 7, % 40% net cash 12.2 Waskita Karya BUY 2,520 3,700 34,206 1,688 2, % 39% Waskita Beton BUY , % 44% net cash 13.1 Wika Beton BUY 850 1,300 7, % 35% net cash 11.5 Jasa Marga BUY 4,480 5,700 32,482 1,671 1, % -11% Consumer 411,417 10,506 12, % 15% Indofood CBP BUY 8,700 10, ,459 3,714 4, % 16% net cash 22.5 Unilever HOLD 40,150 46, ,345 6,563 7, % 15% Kino Indonesia BUY 2,530 4,500 3, % 14% Healthcare 87,159 2,490 2, % 9% Kalbe Farma SELL 1,530 1,400 71,719 2,210 2, % 10% net cash 19.9 Kimia Farma SELL 2,780 1,510 15, % 8% Heavy Equipment 84,115 4,481 5,676 1,201 1,522 16% 27% Hexindo Adiperkasa United Tractors HOLD 22,550 23,500 84,115 4,481 5,676 1,201 1,522 1,231 1,556 16% 27% net cash 12.0 Mining 170,935 4,311 5, % 24% Adaro Energy HOLD 1, ,417 1,781 1, % 11% Timah HOLD 1, , % 9% Vale Indonesia HOLD 3,250 2,800 32, % 116% net cash 0.9 Aneka Tambang HOLD ,508 (307) (147) (13) (6) (13) (6) -79% -52% (70.1) (146.0) (1.7) Bukit Asam BUY 12,700 8,800 29,262 1,610 1, % 14% net cash 16.7 Indo Tambangraya Megah HOLD 17,500 8,400 19, , % 17% net cash 8.4 Harum Energy HOLD 2, ,191 (123) (95) (45) (35) (45) (35) -540% -22% (50.5) (65.0) net cash (3.2) Property 110,316 5,172 6, % 17% Alam Sutera HOLD , % 13% Bumi Serpong Damai BUY 1,750 2,500 33,682 1,859 2, % 8% Ciputra Development BUY 1,350 1,850 20, % 26% Pakuwon Jati HOLD ,414 1,757 2, % 15% Summarecon BUY 1,395 1,600 20, % 27% Retail 80,949 3,435 3, % 13% Mitra Adi Perkasa HOLD 5,025 5,000 8, % 54% Ramayana BUY 1,095 1,350 7, % 18% net cash 11.6 Matahari Department Store SELL 14,400 12,000 42,018 2,080 2, % 14% net cash Matahari Putra Prima HOLD 1,660 1,700 8, % 44% net cash 4.5 Ace Hardware SELL , % -5% net cash 23.7

11 COVERAGE PERFORMANCE LEADERS Price as on Code 15-Dec Dec-2016 Chg, % w-w, % m-m, % YTD, % Rating Wijaya Karya WIKA 2,530 2, BUY Aneka Tambang ANTM (6.8) HOLD HM Sampoerna HMSP 4,000 3, HOLD Wika Beton WTON BUY United Tractors UNTR 22,550 22, (2.1) (1.5) 33.0 HOLD Bukit Asam PTBA 12,700 12, (0.6) BUY Mitra Adi Perkasa MAPI 5,025 5, (4.7) HOLD Adhi Karya ADHI 2,090 2, (2.3) BUY Vale Indonesia INCO 3,250 3, (3.6) HOLD Unilever UNVR 40,150 40, (2.8) (2.3) 8.5 HOLD Sources: Bloomberg LAGGARDS Price as on Code 15-Dec Dec-2016 Chg, % w-w, % m-m, % YTD, % Rating Pakuwon Jati PWON (4.8) (9.2) (15.1) 19.0 HOLD Ramayana RALS 1,095 1,140 (3.9) (4.8) (10.2) 69.8 BUY Semen Indonesia SMGR 8,975 9,300 (3.5) (3.0) 6.2 (21.3) SELL Timah TINS 1,140 1,175 (3.0) (12.3) HOLD Indocement INTP 16,150 16,600 (2.7) (27.7) SELL Indofood CBP ICBP 8,700 8,925 (2.5) 0.3 (1.4) 29.1 BUY Ace Hardware ACES (2.4) (5.8) (4.7) (1.8) SELL Pembangunan Perumahan PTPP 3,820 3,890 (1.8) (3.8) (3.2) 3.7 BUY Summarecon Agung SMRA 1,395 1,420 (1.8) (4.8) 3.0 (15.5) BUY Alam Sutera ASRI (1.6) (2.1) (5.1) 7.9 HOLD Sources: Bloomberg Danareksa Sekuritas

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