Premier Insight. Equity Indonesia Research Daily. News & Analysis. 9 April Corporates. JCI Index

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1 Premier Insight 9 April 2018 Equity Indonesia Research Daily Net buy (sell) in Rp bn 6,600 6,500 6,400 6,300 6,200 6,100 5, Mar 8Mar 9Mar 12Mar 13Mar 14Mar 15Mar 16Mar 19Mar 20Mar 21Mar 22Mar 23Mar 26Mar 27Mar 28Mar 29Mar 2Apr 3Apr 4Apr 5Apr Foreign net buy (sell) 6May 11Jan 15% 20% Key Indexes 6Apr 12,000 10,000 8,000 4,000 2,000 5% 0% 5% 10% Index Closing 1 day 1 year YTD JCI 6, % 9.2% 2.8% LQ45 1, % 7.5% 6.7% DJI 23, % 15.9% 3.2% SET 1, % 10.0% 0.8% HSI 29, % 23.0% 0.2% NKY 21, % 15.6% 5.3% FTSE 7, % 2.3% 6.6% FSSTI 3, % 8.3% 1.2% EIDO % 1.3% 6.5% Commodity price Commodities Last price Ret 1 day Ret 1 year (in USD) Oil/barrel (WTI) % 20.0% CPO/tonne % 7.5% Soy/bushel % 9.4% Rubber/kg % 43.7% Nickel/tonne 13, % 31.9% Tins/tonne 21, % 3.5% Copper/tonne 6, % 15.5% Gold/try.oz (Spot) 1, % 6.3% Coal/tonne % 4.7% Corn/bushel % 6.5% Wheat/bushel (USd) % 12.9% Source : Bloomberg % net buy/market turnover Rp bn News & Analysis Corporates BEST: Bekasi Fajar (BEST IJ; Rp286; Buy) booked marketing sales of 4.3ha (% yoy), worth Rp125bn in 1Q18. Company claims that the sales were constitute from three sales from two local manufacturer and one government project. This achievement represents 11% of our/company s FY18 target of 40ha. In addition, according colliers international Indonesia, there were only 10ha industrial land sales in 1Q18, which divided into three estates, Modern Cikande, Bekasi Fajar, and KIIC. (Investor Daily). Comment: We are positive on the news as, BEST marketing sales achievement is inline with our FY18 forecast. In addition, companys still has >70ha of inquries. Maintain Buy on BEST with TP or Rp270. MAIN: Malindo Feedmill (MAIN IJ; Rp725; Not Rated) reported a net profit of Rp49bn (77% yoy) underwhelming market expectation by forming only 89% of analysts forecast. The revenue registered at Rp5,441bn (+3% yoy) while COGS reported at Rp4,877bn (+12% yoy) resulting to gross profit of Rp564bn (36% yoy). Operating profit came significantly lower at Rp146bn (68% yoy). Meanwhile, profitability margins also gauged lower this year with gross, operating, and net profit margin were at 10%, 3%, and 1%, respectively. (2016: 17%, 9%, and 4%). (Company). MEDC: Medco Energi Internasional (MEDC IJ; Rp1,180; Hold) plans to conduct private placement and they plan to hold EGMS in 14 Mei 2018 to obtain aproval. The company also stated that the exercise price will be at least Rp1,305.4/sh. Furhther, the company will issue shares around 1,772,892,346 or equivalent to 10% to the company s total issued capital. (Kontan). POWR: We met with Cikarang Listrindo (POWR IJ; Rp1,100; Buy) yesterday to have details on FY17 performance and here some key takeaways: The company s total net sales increased by 2.8% from US$550.9mn in 2016 to US$566.1mn in 2017, mainly due to the increase in total kwh of electricity supplied by 4.1% yoy. Net sales to industrial estate customers increased by 4.3% yoy from US$401.9mn in 2016 to US$419.3mn in 2017, reflecting an increase of electricity supplied to industrial estate customers by 4.6% yoy. Net sales to PLN decreased by 1.5% yoy from US$149.0mn in 2016 to US$146.9mn in 2017 mainly due to decrease in tariffs for PLN s first contracts started in February 2016 and offset with the increase in kwh sales supplied to PLN by 3.3% yoy. Energized capacity for the industrial estates reached 1,052MVA in 2017, up from 1,014MVA in the previous year. In 2017, the number of customers rose to 2,351 from the previously 2,252 customers in The increase in the number of customers and energized capacity in the five industrial estates is reflected in the increase in electricity sales figure, from 2,918GWh in 2016 to 3,052GWh in 2017, or up by 4.6% yoy. Also, Electricity sales to PLN rose from 1,883GWh in 2016 to 1,945GWh in 2017, or up by 3.3% yoy. The company managed to maintain low energy losses in transmission and distribution networks at a level below 1.0%. In 2017, the Company managed to record energy losses in distribution of 0.7%, stable for the past three years. (Company).

2 PremierInsight WSKT: Waskita Karya (WSKT IJ; Rp2,550; Buy) targets to complete the divestment of 3 toll roads through RDPT, namely KanciPejagan, Pejagan Pemalang, dan Pasuruan Probolinggo (70%) worth Rp5tn within next week. In addition, company also plan to divest another three segment (40%) namely Solo Ngawi, NgawiKertosono, dan SemarangBatang worth Rp2.5tn which expected to completed by June. In addition, WSKT also promote a new president director, I Gusti Ngurah Putra for periods, which was previously the president director of Hutama Karya. WSKT added a new position for Wahyu Utama Putra as director of Quality, Health, Safety and Environment (QHSE), which was previously the QHSE director in Adhi Karya. (Bisnis & Kontan). Comment: The divestment would positively impact WSKT s cash flow and balance sheet going forward. The fresh fund would help reduce WSKT s Debt level, also provide company s additional working capital. Reiterate Buy on WSKT with Tp of Rp3,300. Markets & Sector Oil and gas sector: The government will require Pertamina And AKR Corporindo (AKRA IJ; Rp5,500; Not Rated) to consult first befor increasing their fuel products prices. This consultation aimed in order that government could measure its impact to inflation and its compliance with regulations. (Bisnis Indonesia). Retail sector: Kawan Lama Group will open Living World in Pekanbaru before Lebaran This will be the second Living World in Indonesia, and the second Ace Hardware in Pekanbaru. The group will operate total 13 shopping centers where Living Plaza remains the majority portion for 11 shopping centers. (Kontan). Economic Foreign reserves: Official foreign reserve as of Mar18 was US$126bn and lower than Feb18 s US$128.1bn, according to BI s official data. The reserve was equivalent to 7.9 months of imports and 7.7 months of imports and foreign debt servicing. The declining reserve was due to stabilisation of rupiah amid financial uncertainty and external debt payment. (Bank Indonesia). Comment: Mar18 s position of foreign reserve was only +3.4% yoy and the second month of singledigit growth after 13 consecutive months (between Jan17Jan18) of holding doubledigit growth. It has also gone into a territory of below 8 months of importfinancing needs. We believe the use of reserve was mainly to prop up the rupiah, as is acknowledged by BI. As there is growing need for imports and USD holding prior to eid ulfitr and school holiday, we think there should be more pressure in the foreign reserve expansion should BI wish to maintain prevailing rupiah level at below USD/IDR Rp14,000. 2

3 Head Office PT INDO PREMIER SEKURITAS Wisma GKBI 7/F Suite 718 Jl. Jend. Sudirman No.28 Jakarta Indonesia p f INVESTMENT RATINGS BUY : Expected total return of 10% or more within a 12month period HOLD : Expected total return between 10% and 10% within a 12month period SELL : Expected total return of 10% or worse within a 12month period ANALYSTS CERTIFICATION. The views expressed in this research report accurately reflect the analyst;s personal views about any and all of the subject securities or issuers; and no part of the research analyst's compensation was, is, or will be, directly or indirectly, related to the specific recommendations or views expressed in the report. DISCLAIMERS This reserch is based on information obtained from sources believed to be reliable, but we do not make any representation or warraty nor accept any responsibility or liability as to its accruracy, completeness or correctness. Opinions expressed are subject to change without notice. This document is prepared for general circulation. Any recommendations contained in this document does not have regard to the specific investment objectives, finacial situation and the particular needs of any specific addressee. This document is not and should not be construed as an offer or a solicitation of an offer to purchase or subscribe or sell any securities. PT. Indo Premier Sekuritas or its affiliates may seek or will seek investment banking or other business relationships with the companies in this report.

4 Premier Insight 9 April 2018 Equity Indonesia Research Daily Net buy (sell) in Rp bn 6,600 6,500 6,400 6,300 6,200 6,100 5, Mar 8Mar 9Mar 12Mar 13Mar 14Mar 15Mar 16Mar 19Mar 20Mar 21Mar 22Mar 23Mar 26Mar 27Mar 28Mar 29Mar 2Apr 3Apr 4Apr 5Apr Foreign net buy (sell) 6May 11Jan 15% 20% Key Indexes 6Apr 12,000 10,000 8,000 4,000 2,000 5% 0% 5% 10% Index Closing 1 day 1 year YTD JCI 6, % 9.2% 2.8% LQ45 1, % 7.5% 6.7% DJI 23, % 15.9% 3.2% SET 1, % 10.0% 0.8% HSI 29, % 23.0% 0.2% NKY 21, % 15.6% 5.3% FTSE 7, % 2.3% 6.6% FSSTI 3, % 8.3% 1.2% EIDO % 1.3% 6.5% Commodity price Commodities Last price Ret 1 day Ret 1 year (in USD) Oil/barrel (WTI) % 20.0% CPO/tonne % 7.5% Soy/bushel % 9.4% Rubber/kg % 43.7% Nickel/tonne 13, % 31.9% Tins/tonne 21, % 3.5% Copper/tonne 6, % 15.5% Gold/try.oz (Spot) 1, % 6.3% Coal/tonne % 4.7% Corn/bushel % 6.5% Wheat/bushel (USd) % 12.9% Source : Bloomberg % net buy/market turnover Rp bn News & Analysis Corporates BEST: Bekasi Fajar (BEST IJ; Rp286; Buy) booked marketing sales of 4.3ha (% yoy), worth Rp125bn in 1Q18. Company claims that the sales were constitute from three sales from two local manufacturer and one government project. This achievement represents 11% of our/company s FY18 target of 40ha. In addition, according colliers international Indonesia, there were only 10ha industrial land sales in 1Q18, which divided into three estates, Modern Cikande, Bekasi Fajar, and KIIC. (Investor Daily). Comment: We are positive on the news as, BEST marketing sales achievement is inline with our FY18 forecast. In addition, companys still has >70ha of inquries. Maintain Buy on BEST with TP or Rp270. MAIN: Malindo Feedmill (MAIN IJ; Rp725; Not Rated) reported a net profit of Rp49bn (77% yoy) underwhelming market expectation by forming only 89% of analysts forecast. The revenue registered at Rp5,441bn (+3% yoy) while COGS reported at Rp4,877bn (+12% yoy) resulting to gross profit of Rp564bn (36% yoy). Operating profit came significantly lower at Rp146bn (68% yoy). Meanwhile, profitability margins also gauged lower this year with gross, operating, and net profit margin were at 10%, 3%, and 1%, respectively. (2016: 17%, 9%, and 4%). (Company). MEDC: Medco Energi Internasional (MEDC IJ; Rp1,180; Hold) plans to conduct private placement and they plan to hold EGMS in 14 Mei 2018 to obtain aproval. The company also stated that the exercise price will be at least Rp1,305.4/sh. Furhther, the company will issue shares around 1,772,892,346 or equivalent to 10% to the company s total issued capital. (Kontan). POWR: We met with Cikarang Listrindo (POWR IJ; Rp1,100; Buy) yesterday to have details on FY17 performance and here some key takeaways: The company s total net sales increased by 2.8% from US$550.9mn in 2016 to US$566.1mn in 2017, mainly due to the increase in total kwh of electricity supplied by 4.1% yoy. Net sales to industrial estate customers increased by 4.3% yoy from US$401.9mn in 2016 to US$419.3mn in 2017, reflecting an increase of electricity supplied to industrial estate customers by 4.6% yoy. Net sales to PLN decreased by 1.5% yoy from US$149.0mn in 2016 to US$146.9mn in 2017 mainly due to decrease in tariffs for PLN s first contracts started in February 2016 and offset with the increase in kwh sales supplied to PLN by 3.3% yoy. Energized capacity for the industrial estates reached 1,052MVA in 2017, up from 1,014MVA in the previous year. In 2017, the number of customers rose to 2,351 from the previously 2,252 customers in The increase in the number of customers and energized capacity in the five industrial estates is reflected in the increase in electricity sales figure, from 2,918GWh in 2016 to 3,052GWh in 2017, or up by 4.6% yoy. Also, Electricity sales to PLN rose from 1,883GWh in 2016 to 1,945GWh in 2017, or up by 3.3% yoy. The company managed to maintain low energy losses in transmission and distribution networks at a level below 1.0%. In 2017, the Company managed to record energy losses in distribution of 0.7%, stable for the past three years. (Company).

5 PremierInsight WSKT: Waskita Karya (WSKT IJ; Rp2,550; Buy) targets to complete the divestment of 3 toll roads through RDPT, namely KanciPejagan, Pejagan Pemalang, dan Pasuruan Probolinggo (70%) worth Rp5tn within next week. In addition, company also plan to divest another three segment (40%) namely Solo Ngawi, NgawiKertosono, dan SemarangBatang worth Rp2.5tn which expected to completed by June. In addition, WSKT also promote a new president director, I Gusti Ngurah Putra for periods, which was previously the president director of Hutama Karya. WSKT added a new position for Wahyu Utama Putra as director of Quality, Health, Safety and Environment (QHSE), which was previously the QHSE director in Adhi Karya. (Bisnis & Kontan). Comment: The divestment would positively impact WSKT s cash flow and balance sheet going forward. The fresh fund would help reduce WSKT s Debt level, also provide company s additional working capital. Reiterate Buy on WSKT with Tp of Rp3,300. Markets & Sector Oil and gas sector: The government will require Pertamina And AKR Corporindo (AKRA IJ; Rp5,500; Not Rated) to consult first befor increasing their fuel products prices. This consultation aimed in order that government could measure its impact to inflation and its compliance with regulations. (Bisnis Indonesia). Retail sector: Kawan Lama Group will open Living World in Pekanbaru before Lebaran This will be the second Living World in Indonesia, and the second Ace Hardware in Pekanbaru. The group will operate total 13 shopping centers where Living Plaza remains the majority portion for 11 shopping centers. (Kontan). Economic Foreign reserves: Official foreign reserve as of Mar18 was US$126bn and lower than Feb18 s US$128.1bn, according to BI s official data. The reserve was equivalent to 7.9 months of imports and 7.7 months of imports and foreign debt servicing. The declining reserve was due to stabilisation of rupiah amid financial uncertainty and external debt payment. (Bank Indonesia). Comment: Mar18 s position of foreign reserve was only +3.4% yoy and the second month of singledigit growth after 13 consecutive months (between Jan17Jan18) of holding doubledigit growth. It has also gone into a territory of below 8 months of importfinancing needs. We believe the use of reserve was mainly to prop up the rupiah, as is acknowledged by BI. As there is growing need for imports and USD holding prior to eid ulfitr and school holiday, we think there should be more pressure in the foreign reserve expansion should BI wish to maintain prevailing rupiah level at below USD/IDR Rp14,000. 2

6 Head Office PT INDO PREMIER SEKURITAS Wisma GKBI 7/F Suite 718 Jl. Jend. Sudirman No.28 Jakarta Indonesia p f INVESTMENT RATINGS BUY : Expected total return of 10% or more within a 12month period HOLD : Expected total return between 10% and 10% within a 12month period SELL : Expected total return of 10% or worse within a 12month period ANALYSTS CERTIFICATION. The views expressed in this research report accurately reflect the analyst;s personal views about any and all of the subject securities or issuers; and no part of the research analyst's compensation was, is, or will be, directly or indirectly, related to the specific recommendations or views expressed in the report. DISCLAIMERS This reserch is based on information obtained from sources believed to be reliable, but we do not make any representation or warraty nor accept any responsibility or liability as to its accruracy, completeness or correctness. Opinions expressed are subject to change without notice. This document is prepared for general circulation. Any recommendations contained in this document does not have regard to the specific investment objectives, finacial situation and the particular needs of any specific addressee. This document is not and should not be construed as an offer or a solicitation of an offer to purchase or subscribe or sell any securities. PT. Indo Premier Sekuritas or its affiliates may seek or will seek investment banking or other business relationships with the companies in this report.

7 Premier Insight 9 April 2018 Equity Indonesia Research Daily Net buy (sell) in Rp bn 6,600 6,500 6,400 6,300 6,200 6,100 5, Mar 8Mar 9Mar 12Mar 13Mar 14Mar 15Mar 16Mar 19Mar 20Mar 21Mar 22Mar 23Mar 26Mar 27Mar 28Mar 29Mar 2Apr 3Apr 4Apr 5Apr Foreign net buy (sell) 6May 11Jan 15% 20% Key Indexes 6Apr 12,000 10,000 8,000 4,000 2,000 5% 0% 5% 10% Index Closing 1 day 1 year YTD JCI 6, % 9.2% 2.8% LQ45 1, % 7.5% 6.7% DJI 23, % 15.9% 3.2% SET 1, % 10.0% 0.8% HSI 29, % 23.0% 0.2% NKY 21, % 15.6% 5.3% FTSE 7, % 2.3% 6.6% FSSTI 3, % 8.3% 1.2% EIDO % 1.3% 6.5% Commodity price Commodities Last price Ret 1 day Ret 1 year (in USD) Oil/barrel (WTI) % 20.0% CPO/tonne % 7.5% Soy/bushel % 9.4% Rubber/kg % 43.7% Nickel/tonne 13, % 31.9% Tins/tonne 21, % 3.5% Copper/tonne 6, % 15.5% Gold/try.oz (Spot) 1, % 6.3% Coal/tonne % 4.7% Corn/bushel % 6.5% Wheat/bushel (USd) % 12.9% Source : Bloomberg % net buy/market turnover Rp bn News & Analysis Corporates BEST: Bekasi Fajar (BEST IJ; Rp286; Buy) booked marketing sales of 4.3ha (% yoy), worth Rp125bn in 1Q18. Company claims that the sales were constitute from three sales from two local manufacturer and one government project. This achievement represents 11% of our/company s FY18 target of 40ha. In addition, according colliers international Indonesia, there were only 10ha industrial land sales in 1Q18, which divided into three estates, Modern Cikande, Bekasi Fajar, and KIIC. (Investor Daily). Comment: We are positive on the news as, BEST marketing sales achievement is inline with our FY18 forecast. In addition, companys still has >70ha of inquries. Maintain Buy on BEST with TP or Rp270. MAIN: Malindo Feedmill (MAIN IJ; Rp725; Not Rated) reported a net profit of Rp49bn (77% yoy) underwhelming market expectation by forming only 89% of analysts forecast. The revenue registered at Rp5,441bn (+3% yoy) while COGS reported at Rp4,877bn (+12% yoy) resulting to gross profit of Rp564bn (36% yoy). Operating profit came significantly lower at Rp146bn (68% yoy). Meanwhile, profitability margins also gauged lower this year with gross, operating, and net profit margin were at 10%, 3%, and 1%, respectively. (2016: 17%, 9%, and 4%). (Company). MEDC: Medco Energi Internasional (MEDC IJ; Rp1,180; Hold) plans to conduct private placement and they plan to hold EGMS in 14 Mei 2018 to obtain aproval. The company also stated that the exercise price will be at least Rp1,305.4/sh. Furhther, the company will issue shares around 1,772,892,346 or equivalent to 10% to the company s total issued capital. (Kontan). POWR: We met with Cikarang Listrindo (POWR IJ; Rp1,100; Buy) yesterday to have details on FY17 performance and here some key takeaways: The company s total net sales increased by 2.8% from US$550.9mn in 2016 to US$566.1mn in 2017, mainly due to the increase in total kwh of electricity supplied by 4.1% yoy. Net sales to industrial estate customers increased by 4.3% yoy from US$401.9mn in 2016 to US$419.3mn in 2017, reflecting an increase of electricity supplied to industrial estate customers by 4.6% yoy. Net sales to PLN decreased by 1.5% yoy from US$149.0mn in 2016 to US$146.9mn in 2017 mainly due to decrease in tariffs for PLN s first contracts started in February 2016 and offset with the increase in kwh sales supplied to PLN by 3.3% yoy. Energized capacity for the industrial estates reached 1,052MVA in 2017, up from 1,014MVA in the previous year. In 2017, the number of customers rose to 2,351 from the previously 2,252 customers in The increase in the number of customers and energized capacity in the five industrial estates is reflected in the increase in electricity sales figure, from 2,918GWh in 2016 to 3,052GWh in 2017, or up by 4.6% yoy. Also, Electricity sales to PLN rose from 1,883GWh in 2016 to 1,945GWh in 2017, or up by 3.3% yoy. The company managed to maintain low energy losses in transmission and distribution networks at a level below 1.0%. In 2017, the Company managed to record energy losses in distribution of 0.7%, stable for the past three years. (Company).

8 PremierInsight WSKT: Waskita Karya (WSKT IJ; Rp2,550; Buy) targets to complete the divestment of 3 toll roads through RDPT, namely KanciPejagan, Pejagan Pemalang, dan Pasuruan Probolinggo (70%) worth Rp5tn within next week. In addition, company also plan to divest another three segment (40%) namely Solo Ngawi, NgawiKertosono, dan SemarangBatang worth Rp2.5tn which expected to completed by June. In addition, WSKT also promote a new president director, I Gusti Ngurah Putra for periods, which was previously the president director of Hutama Karya. WSKT added a new position for Wahyu Utama Putra as director of Quality, Health, Safety and Environment (QHSE), which was previously the QHSE director in Adhi Karya. (Bisnis & Kontan). Comment: The divestment would positively impact WSKT s cash flow and balance sheet going forward. The fresh fund would help reduce WSKT s Debt level, also provide company s additional working capital. Reiterate Buy on WSKT with Tp of Rp3,300. Markets & Sector Oil and gas sector: The government will require Pertamina And AKR Corporindo (AKRA IJ; Rp5,500; Not Rated) to consult first befor increasing their fuel products prices. This consultation aimed in order that government could measure its impact to inflation and its compliance with regulations. (Bisnis Indonesia). Retail sector: Kawan Lama Group will open Living World in Pekanbaru before Lebaran This will be the second Living World in Indonesia, and the second Ace Hardware in Pekanbaru. The group will operate total 13 shopping centers where Living Plaza remains the majority portion for 11 shopping centers. (Kontan). Economic Foreign reserves: Official foreign reserve as of Mar18 was US$126bn and lower than Feb18 s US$128.1bn, according to BI s official data. The reserve was equivalent to 7.9 months of imports and 7.7 months of imports and foreign debt servicing. The declining reserve was due to stabilisation of rupiah amid financial uncertainty and external debt payment. (Bank Indonesia). Comment: Mar18 s position of foreign reserve was only +3.4% yoy and the second month of singledigit growth after 13 consecutive months (between Jan17Jan18) of holding doubledigit growth. It has also gone into a territory of below 8 months of importfinancing needs. We believe the use of reserve was mainly to prop up the rupiah, as is acknowledged by BI. As there is growing need for imports and USD holding prior to eid ulfitr and school holiday, we think there should be more pressure in the foreign reserve expansion should BI wish to maintain prevailing rupiah level at below USD/IDR Rp14,000. 2

9 Head Office PT INDO PREMIER SEKURITAS Wisma GKBI 7/F Suite 718 Jl. Jend. Sudirman No.28 Jakarta Indonesia p f INVESTMENT RATINGS BUY : Expected total return of 10% or more within a 12month period HOLD : Expected total return between 10% and 10% within a 12month period SELL : Expected total return of 10% or worse within a 12month period ANALYSTS CERTIFICATION. The views expressed in this research report accurately reflect the analyst;s personal views about any and all of the subject securities or issuers; and no part of the research analyst's compensation was, is, or will be, directly or indirectly, related to the specific recommendations or views expressed in the report. DISCLAIMERS This reserch is based on information obtained from sources believed to be reliable, but we do not make any representation or warraty nor accept any responsibility or liability as to its accruracy, completeness or correctness. Opinions expressed are subject to change without notice. This document is prepared for general circulation. Any recommendations contained in this document does not have regard to the specific investment objectives, finacial situation and the particular needs of any specific addressee. This document is not and should not be construed as an offer or a solicitation of an offer to purchase or subscribe or sell any securities. PT. Indo Premier Sekuritas or its affiliates may seek or will seek investment banking or other business relationships with the companies in this report.

10 Premier Insight 9 April 2018 Equity Indonesia Research Daily Net buy (sell) in Rp bn 6,600 6,500 6,400 6,300 6,200 6,100 5, Mar 8Mar 9Mar 12Mar 13Mar 14Mar 15Mar 16Mar 19Mar 20Mar 21Mar 22Mar 23Mar 26Mar 27Mar 28Mar 29Mar 2Apr 3Apr 4Apr 5Apr Foreign net buy (sell) 6May 11Jan 15% 20% Key Indexes 6Apr 12,000 10,000 8,000 4,000 2,000 5% 0% 5% 10% Index Closing 1 day 1 year YTD JCI 6, % 9.2% 2.8% LQ45 1, % 7.5% 6.7% DJI 23, % 15.9% 3.2% SET 1, % 10.0% 0.8% HSI 29, % 23.0% 0.2% NKY 21, % 15.6% 5.3% FTSE 7, % 2.3% 6.6% FSSTI 3, % 8.3% 1.2% EIDO % 1.3% 6.5% Commodity price Commodities Last price Ret 1 day Ret 1 year (in USD) Oil/barrel (WTI) % 20.0% CPO/tonne % 7.5% Soy/bushel % 9.4% Rubber/kg % 43.7% Nickel/tonne 13, % 31.9% Tins/tonne 21, % 3.5% Copper/tonne 6, % 15.5% Gold/try.oz (Spot) 1, % 6.3% Coal/tonne % 4.7% Corn/bushel % 6.5% Wheat/bushel (USd) % 12.9% Source : Bloomberg % net buy/market turnover Rp bn News & Analysis Corporates BEST: Bekasi Fajar (BEST IJ; Rp286; Buy) booked marketing sales of 4.3ha (% yoy), worth Rp125bn in 1Q18. Company claims that the sales were constitute from three sales from two local manufacturer and one government project. This achievement represents 11% of our/company s FY18 target of 40ha. In addition, according colliers international Indonesia, there were only 10ha industrial land sales in 1Q18, which divided into three estates, Modern Cikande, Bekasi Fajar, and KIIC. (Investor Daily). Comment: We are positive on the news as, BEST marketing sales achievement is inline with our FY18 forecast. In addition, companys still has >70ha of inquries. Maintain Buy on BEST with TP or Rp270. MAIN: Malindo Feedmill (MAIN IJ; Rp725; Not Rated) reported a net profit of Rp49bn (77% yoy) underwhelming market expectation by forming only 89% of analysts forecast. The revenue registered at Rp5,441bn (+3% yoy) while COGS reported at Rp4,877bn (+12% yoy) resulting to gross profit of Rp564bn (36% yoy). Operating profit came significantly lower at Rp146bn (68% yoy). Meanwhile, profitability margins also gauged lower this year with gross, operating, and net profit margin were at 10%, 3%, and 1%, respectively. (2016: 17%, 9%, and 4%). (Company). MEDC: Medco Energi Internasional (MEDC IJ; Rp1,180; Hold) plans to conduct private placement and they plan to hold EGMS in 14 Mei 2018 to obtain aproval. The company also stated that the exercise price will be at least Rp1,305.4/sh. Furhther, the company will issue shares around 1,772,892,346 or equivalent to 10% to the company s total issued capital. (Kontan). POWR: We met with Cikarang Listrindo (POWR IJ; Rp1,100; Buy) yesterday to have details on FY17 performance and here some key takeaways: The company s total net sales increased by 2.8% from US$550.9mn in 2016 to US$566.1mn in 2017, mainly due to the increase in total kwh of electricity supplied by 4.1% yoy. Net sales to industrial estate customers increased by 4.3% yoy from US$401.9mn in 2016 to US$419.3mn in 2017, reflecting an increase of electricity supplied to industrial estate customers by 4.6% yoy. Net sales to PLN decreased by 1.5% yoy from US$149.0mn in 2016 to US$146.9mn in 2017 mainly due to decrease in tariffs for PLN s first contracts started in February 2016 and offset with the increase in kwh sales supplied to PLN by 3.3% yoy. Energized capacity for the industrial estates reached 1,052MVA in 2017, up from 1,014MVA in the previous year. In 2017, the number of customers rose to 2,351 from the previously 2,252 customers in The increase in the number of customers and energized capacity in the five industrial estates is reflected in the increase in electricity sales figure, from 2,918GWh in 2016 to 3,052GWh in 2017, or up by 4.6% yoy. Also, Electricity sales to PLN rose from 1,883GWh in 2016 to 1,945GWh in 2017, or up by 3.3% yoy. The company managed to maintain low energy losses in transmission and distribution networks at a level below 1.0%. In 2017, the Company managed to record energy losses in distribution of 0.7%, stable for the past three years. (Company).

11 PremierInsight WSKT: Waskita Karya (WSKT IJ; Rp2,550; Buy) targets to complete the divestment of 3 toll roads through RDPT, namely KanciPejagan, Pejagan Pemalang, dan Pasuruan Probolinggo (70%) worth Rp5tn within next week. In addition, company also plan to divest another three segment (40%) namely Solo Ngawi, NgawiKertosono, dan SemarangBatang worth Rp2.5tn which expected to completed by June. In addition, WSKT also promote a new president director, I Gusti Ngurah Putra for periods, which was previously the president director of Hutama Karya. WSKT added a new position for Wahyu Utama Putra as director of Quality, Health, Safety and Environment (QHSE), which was previously the QHSE director in Adhi Karya. (Bisnis & Kontan). Comment: The divestment would positively impact WSKT s cash flow and balance sheet going forward. The fresh fund would help reduce WSKT s Debt level, also provide company s additional working capital. Reiterate Buy on WSKT with Tp of Rp3,300. Markets & Sector Oil and gas sector: The government will require Pertamina And AKR Corporindo (AKRA IJ; Rp5,500; Not Rated) to consult first befor increasing their fuel products prices. This consultation aimed in order that government could measure its impact to inflation and its compliance with regulations. (Bisnis Indonesia). Retail sector: Kawan Lama Group will open Living World in Pekanbaru before Lebaran This will be the second Living World in Indonesia, and the second Ace Hardware in Pekanbaru. The group will operate total 13 shopping centers where Living Plaza remains the majority portion for 11 shopping centers. (Kontan). Economic Foreign reserves: Official foreign reserve as of Mar18 was US$126bn and lower than Feb18 s US$128.1bn, according to BI s official data. The reserve was equivalent to 7.9 months of imports and 7.7 months of imports and foreign debt servicing. The declining reserve was due to stabilisation of rupiah amid financial uncertainty and external debt payment. (Bank Indonesia). Comment: Mar18 s position of foreign reserve was only +3.4% yoy and the second month of singledigit growth after 13 consecutive months (between Jan17Jan18) of holding doubledigit growth. It has also gone into a territory of below 8 months of importfinancing needs. We believe the use of reserve was mainly to prop up the rupiah, as is acknowledged by BI. As there is growing need for imports and USD holding prior to eid ulfitr and school holiday, we think there should be more pressure in the foreign reserve expansion should BI wish to maintain prevailing rupiah level at below USD/IDR Rp14,000. 2

12 Head Office PT INDO PREMIER SEKURITAS Wisma GKBI 7/F Suite 718 Jl. Jend. Sudirman No.28 Jakarta Indonesia p f INVESTMENT RATINGS BUY : Expected total return of 10% or more within a 12month period HOLD : Expected total return between 10% and 10% within a 12month period SELL : Expected total return of 10% or worse within a 12month period ANALYSTS CERTIFICATION. The views expressed in this research report accurately reflect the analyst;s personal views about any and all of the subject securities or issuers; and no part of the research analyst's compensation was, is, or will be, directly or indirectly, related to the specific recommendations or views expressed in the report. DISCLAIMERS This reserch is based on information obtained from sources believed to be reliable, but we do not make any representation or warraty nor accept any responsibility or liability as to its accruracy, completeness or correctness. Opinions expressed are subject to change without notice. This document is prepared for general circulation. Any recommendations contained in this document does not have regard to the specific investment objectives, finacial situation and the particular needs of any specific addressee. This document is not and should not be construed as an offer or a solicitation of an offer to purchase or subscribe or sell any securities. PT. Indo Premier Sekuritas or its affiliates may seek or will seek investment banking or other business relationships with the companies in this report.

13 Premier Insight 9 April 2018 Equity Indonesia Research Daily Net buy (sell) in Rp bn 6,600 6,500 6,400 6,300 6,200 6,100 5, Mar 8Mar 9Mar 12Mar 13Mar 14Mar 15Mar 16Mar 19Mar 20Mar 21Mar 22Mar 23Mar 26Mar 27Mar 28Mar 29Mar 2Apr 3Apr 4Apr 5Apr Foreign net buy (sell) 6May 11Jan 15% 20% Key Indexes 6Apr 12,000 10,000 8,000 4,000 2,000 5% 0% 5% 10% Index Closing 1 day 1 year YTD JCI 6, % 9.2% 2.8% LQ45 1, % 7.5% 6.7% DJI 23, % 15.9% 3.2% SET 1, % 10.0% 0.8% HSI 29, % 23.0% 0.2% NKY 21, % 15.6% 5.3% FTSE 7, % 2.3% 6.6% FSSTI 3, % 8.3% 1.2% EIDO % 1.3% 6.5% Commodity price Commodities Last price Ret 1 day Ret 1 year (in USD) Oil/barrel (WTI) % 20.0% CPO/tonne % 7.5% Soy/bushel % 9.4% Rubber/kg % 43.7% Nickel/tonne 13, % 31.9% Tins/tonne 21, % 3.5% Copper/tonne 6, % 15.5% Gold/try.oz (Spot) 1, % 6.3% Coal/tonne % 4.7% Corn/bushel % 6.5% Wheat/bushel (USd) % 12.9% Source : Bloomberg % net buy/market turnover Rp bn News & Analysis Corporates BEST: Bekasi Fajar (BEST IJ; Rp286; Buy) booked marketing sales of 4.3ha (% yoy), worth Rp125bn in 1Q18. Company claims that the sales were constitute from three sales from two local manufacturer and one government project. This achievement represents 11% of our/company s FY18 target of 40ha. In addition, according colliers international Indonesia, there were only 10ha industrial land sales in 1Q18, which divided into three estates, Modern Cikande, Bekasi Fajar, and KIIC. (Investor Daily). Comment: We are positive on the news as, BEST marketing sales achievement is inline with our FY18 forecast. In addition, companys still has >70ha of inquries. Maintain Buy on BEST with TP or Rp270. MAIN: Malindo Feedmill (MAIN IJ; Rp725; Not Rated) reported a net profit of Rp49bn (77% yoy) underwhelming market expectation by forming only 89% of analysts forecast. The revenue registered at Rp5,441bn (+3% yoy) while COGS reported at Rp4,877bn (+12% yoy) resulting to gross profit of Rp564bn (36% yoy). Operating profit came significantly lower at Rp146bn (68% yoy). Meanwhile, profitability margins also gauged lower this year with gross, operating, and net profit margin were at 10%, 3%, and 1%, respectively. (2016: 17%, 9%, and 4%). (Company). MEDC: Medco Energi Internasional (MEDC IJ; Rp1,180; Hold) plans to conduct private placement and they plan to hold EGMS in 14 Mei 2018 to obtain aproval. The company also stated that the exercise price will be at least Rp1,305.4/sh. Furhther, the company will issue shares around 1,772,892,346 or equivalent to 10% to the company s total issued capital. (Kontan). POWR: We met with Cikarang Listrindo (POWR IJ; Rp1,100; Buy) yesterday to have details on FY17 performance and here some key takeaways: The company s total net sales increased by 2.8% from US$550.9mn in 2016 to US$566.1mn in 2017, mainly due to the increase in total kwh of electricity supplied by 4.1% yoy. Net sales to industrial estate customers increased by 4.3% yoy from US$401.9mn in 2016 to US$419.3mn in 2017, reflecting an increase of electricity supplied to industrial estate customers by 4.6% yoy. Net sales to PLN decreased by 1.5% yoy from US$149.0mn in 2016 to US$146.9mn in 2017 mainly due to decrease in tariffs for PLN s first contracts started in February 2016 and offset with the increase in kwh sales supplied to PLN by 3.3% yoy. Energized capacity for the industrial estates reached 1,052MVA in 2017, up from 1,014MVA in the previous year. In 2017, the number of customers rose to 2,351 from the previously 2,252 customers in The increase in the number of customers and energized capacity in the five industrial estates is reflected in the increase in electricity sales figure, from 2,918GWh in 2016 to 3,052GWh in 2017, or up by 4.6% yoy. Also, Electricity sales to PLN rose from 1,883GWh in 2016 to 1,945GWh in 2017, or up by 3.3% yoy. The company managed to maintain low energy losses in transmission and distribution networks at a level below 1.0%. In 2017, the Company managed to record energy losses in distribution of 0.7%, stable for the past three years. (Company).

14 PremierInsight WSKT: Waskita Karya (WSKT IJ; Rp2,550; Buy) targets to complete the divestment of 3 toll roads through RDPT, namely KanciPejagan, Pejagan Pemalang, dan Pasuruan Probolinggo (70%) worth Rp5tn within next week. In addition, company also plan to divest another three segment (40%) namely Solo Ngawi, NgawiKertosono, dan SemarangBatang worth Rp2.5tn which expected to completed by June. In addition, WSKT also promote a new president director, I Gusti Ngurah Putra for periods, which was previously the president director of Hutama Karya. WSKT added a new position for Wahyu Utama Putra as director of Quality, Health, Safety and Environment (QHSE), which was previously the QHSE director in Adhi Karya. (Bisnis & Kontan). Comment: The divestment would positively impact WSKT s cash flow and balance sheet going forward. The fresh fund would help reduce WSKT s Debt level, also provide company s additional working capital. Reiterate Buy on WSKT with Tp of Rp3,300. Markets & Sector Oil and gas sector: The government will require Pertamina And AKR Corporindo (AKRA IJ; Rp5,500; Not Rated) to consult first befor increasing their fuel products prices. This consultation aimed in order that government could measure its impact to inflation and its compliance with regulations. (Bisnis Indonesia). Retail sector: Kawan Lama Group will open Living World in Pekanbaru before Lebaran This will be the second Living World in Indonesia, and the second Ace Hardware in Pekanbaru. The group will operate total 13 shopping centers where Living Plaza remains the majority portion for 11 shopping centers. (Kontan). Economic Foreign reserves: Official foreign reserve as of Mar18 was US$126bn and lower than Feb18 s US$128.1bn, according to BI s official data. The reserve was equivalent to 7.9 months of imports and 7.7 months of imports and foreign debt servicing. The declining reserve was due to stabilisation of rupiah amid financial uncertainty and external debt payment. (Bank Indonesia). Comment: Mar18 s position of foreign reserve was only +3.4% yoy and the second month of singledigit growth after 13 consecutive months (between Jan17Jan18) of holding doubledigit growth. It has also gone into a territory of below 8 months of importfinancing needs. We believe the use of reserve was mainly to prop up the rupiah, as is acknowledged by BI. As there is growing need for imports and USD holding prior to eid ulfitr and school holiday, we think there should be more pressure in the foreign reserve expansion should BI wish to maintain prevailing rupiah level at below USD/IDR Rp14,000. 2

15 Head Office PT INDO PREMIER SEKURITAS Wisma GKBI 7/F Suite 718 Jl. Jend. Sudirman No.28 Jakarta Indonesia p f INVESTMENT RATINGS BUY : Expected total return of 10% or more within a 12month period HOLD : Expected total return between 10% and 10% within a 12month period SELL : Expected total return of 10% or worse within a 12month period ANALYSTS CERTIFICATION. The views expressed in this research report accurately reflect the analyst;s personal views about any and all of the subject securities or issuers; and no part of the research analyst's compensation was, is, or will be, directly or indirectly, related to the specific recommendations or views expressed in the report. DISCLAIMERS This reserch is based on information obtained from sources believed to be reliable, but we do not make any representation or warraty nor accept any responsibility or liability as to its accruracy, completeness or correctness. Opinions expressed are subject to change without notice. This document is prepared for general circulation. Any recommendations contained in this document does not have regard to the specific investment objectives, finacial situation and the particular needs of any specific addressee. This document is not and should not be construed as an offer or a solicitation of an offer to purchase or subscribe or sell any securities. PT. Indo Premier Sekuritas or its affiliates may seek or will seek investment banking or other business relationships with the companies in this report.