Equity SNAPSHOT Friday, April 27, 2018

Transcription

1 FROM EQUITY RESEARCH Adaro Energy: Unfavorable weather hit the performance (ADRO IJ. IDR 1,995. BUY. TP IDR 2,800) Adaro Energy (ADRO) reported net profits of USD74mn in 1Q18 (- 32.8% qoq, -23.4% yoy). The results were below our forecast due to lower production on the back of unfavorable weather conditions. Nonetheless, we continue to like the company for its business diversification into met-coal and power plants. Maintain BUY with a target price of IDR2,800 (based on DCF valuation). The target price implies 12.1x 2018F PE. To see the full version of this report, please click here Aneka Tambang: Strong prices and higher sales boosted profits (ANTM IJ. IDR 850. HOLD. TP IDR 1,000) Aneka Tambang (ANTM) reported net profits of IDR246bn in 1Q18 (-47.5% qoq, but +3,602.8% yoy). The better yearly net profits reflect strong commodity prices and higher sales volume. The 1Q18 net profits figure is above our estimate mainly thanks to better-thanexpected sales volume of gold and wider margins. We maintain our HOLD recommendation on the stock with a target price of IDR1,000 (based on DCF valuation). To see the full version of this report, please click here BPD Jatim: Modest growth (BJTM IJ. IDR 690. BUY. TP IDR 830) We maintain our BUY call on BJTM with a GGM-derived TP of IDR830, liking the bank for its strong foothold in East Java s civil servants multipurpose lending segment even though more players are competing in this segment. That said, CAR will remain healthy at 24.4% with 7.5% loans growth expected this year. The bank s commercial lending will be driven mainly by the syndicated loans scheme as the bank seeks to achieve a more manageable risk profile. As such, we assume a gross NPLs ratio of 4.4% and a 97% coverage ratio by the end of the year with 77bps credit costs. To see the full version of this report, please click here Pembangunan Perumahan: Change at the top (PTPP IJ. IDR 2,430. BUY. TP IDR 3,600) The shareholders approved the appointment of Mr. Lukman Hidayat as the new CEO of PTPP following the appointment of Mr. Tumiyana as the new CEO of WIKA. Mr. Hidayat previously served as the Director of Strategic planning and Development of PTPP. The shareholders also approved the distribution of cash dividends of IDR46.88 per share, resulting in a dividend yield of 1.9%. Maintain BUY. To see the full version of this report, please click here MARKET NEWS Macroeconomy Government: Central government to control regional tax tariffs Sector Heavy equipment: Robust production yoy growth at 46.05% in 1Q18 Coal: Quota transfer will be allowed KEY INDEX Close Chg Ytd Vol (%) (%) (US$ m) Asean - 5 Indonesia 5,909 (2.8) (7.0) 601 Thailand 1,773 (0.4) 1.1 1,550 Philippines 7, (11.0) 93 Malaysia 1, Singapore 3, ,137 Regional China 3,075 (1.4) (7.0) 40,901 Hong Kong 30,008 (1.1) ,853 Japan 22, (2.0) 13,699 Korea 2, ,965 Taiwan 10,489 (0.7) (1.4) 4,736 India 34, NASDAQ 7, ,554 Dow Jones 24, (1.6) 11,300 CURRENCY AND INTEREST RATE Rate w-w m-m ytd (%) (%) (%) Rupiah Rp/1US$ 13,891 (0.8) (1.1) (2.5) SBI rate % y Gov Indo bond Unit HARD COMMODITY Price d-d m-m ytd (%) (%) (%) Coal US$/ton (3.2) (7.2) Gold US$/toz 1, (2.1) 1.1 Nickel US$/mt.ton 14, Tin US$/mt.ton 21, Unit SOFT COMMODITY Price d-d m-m ytd (%) (%) (%) Cocoa US$/mt.ton 2, Corn US$/mt.ton Oil (WTI) US$/barrel 68 (0.1) Oil (Brent) US$/barrel Palm oil MYR/mt.ton 2, (1.3) (0.1) Rubber USd/kg 139 (0.6) 3.6 (5.4) Pulp US$/tonne 1,130 N/A Coffee US$/60kgbag 91 (0.0) 7.1 (8.5) Sugar US$/MT (9.4) (18.5) Wheat US$/ton 133 (1.9) Soy Oil US$/lb (2.1) (6.9) Soy Bean US$/by 1, Source: Bloomberg

2 Equity Research Results Note Friday,27 April 2018 BUY Maintain Last price (IDR) 1,995 Target Price (IDR) 2,800 Upside/Downside +40.4% Previous Target Price (IDR) 2,200 Stock Statistics Sector Bloomberg Ticker Coal Mining ADRO IJ No of Shrs (mn) 31,986 Mkt. Cap (IDRbn/USDmn) 63,812/4,599 Avg. daily T/O (IDRbn/USDmn) 116.1/8.4 Major shareholders (%) Adaro Strat. Inv Estimated Free Float 42.9 Estimated free float 42.9 EPS Consensus (USDcents) 2018F 2019F 2020F Danareksa Consensus Danareksa/Cons ADRO relative to JCI Index Source : Bloomberg x Stefanus Darmagiri (62-21) stefanus.darmagiri@danareksa.com Adaro Energy (ADRO IJ) Unfavorable weather hit the performance Adaro Energy (ADRO) reported net profits of USD74mn in 1Q18 (-32.8% qoq, -23.4% yoy). The results were below our forecast due to lower production on the back of unfavorable weather conditions. Nonetheless, we continue to like the company for its business diversification into met-coal and power plants. Maintain BUY with a target price of IDR2,800 (based on DCF valuation). The target price implies 12.1x 2018F PE. Unfavorable weather dragged down the performance. ADRO reported 32.8% qoq lower quarterly net profits of USD74mn in 1Q18, reflecting: a) 11.9% qoq lower coal production. The company faced extreme weather conditions during the period which resulted in operational lost hours at Adaro Indonesia s three mining pits. The company also experienced: b) higher cash costs of production per tonne on the back of a higher stripping ratio. Strong coal prices, which resulted in higher ASP helped to mitigate further declines in the net profits. Lower production and higher costs dragged down the yearly profits. While the ASP were 14.1% yoy higher to USD64.4/tonne in 1Q18 - which resulted in 5.1% yoy higher revenues ADRO s net profits declined by 23.4% yoy. This reflects: a) lower coal production due to the extreme weather conditions, b) a higher stripping ratio of 4.9x in 1Q18 (1Q17: 4.6x) and higher fuel costs. The stripping ratio was within the company s target of 4.9x for And c) 26% yoy higher operating expenses from adding more new employees and d) a higher tax rate pf 46.7% in 1Q18 (1Q17: 39.4%). To mitigate the fluctuations in crude oil prices, ADRO has hedged around 20% of its total fuel requirements for The revised EBITDA guidance factors in the recent domestic pricing regulation. The company targets a slight recovery in its coal production to 54 56mn tonnes in Also, the company has indicated that its stripping ratio will increase to 4.9x in 2018 from 4.6x in Nonetheless, with the recent implementation of the domestic pricing regulation, ADRO has trimmed down its EBITDA guidance to USD bn for 2018 from USD bn previously. The revised EBITDA guidance is 73 87% of our EBITDA assumption of USD1.5bn. Maintain BUY. We continue to like the company for its business diversification in met coal and the power business. Maintain BUY with a target price of IDR2,800 (based on DCF valuation with a WACC of 9.9%). Our target price implies 12.1x 2018F PE. Key Financials Year to 31 Dec 2016A 2017A 2018F 2019F 2020F Revenue (USDmn) 2,524 3,258 3,663 3,688 3,734 EBITDA (USDmn) 869 1,293 1,512 1,492 1,417 EBITDA Growth (%) (1.3) (5.0) Net profit (USDmn) EPS (USDcents) EPS growth (%) (3.9) (8.1) BVPS (USDcents) DPS (USDcents) PER (x) PBV (x) Dividend yield (%) EV/EBITDA (x) Source : ADRO, Danareksa Estimates See important disclosure at the back of this report 1

3 Equity Research Results Note Friday,27 April 2018 HOLD Maintain Last price (IDR) 850 Target Price (IDR) 1,000 Upside/Downside +17.6% Previous Target Price (IDR) 700 Stock Statistics Sector Bloomberg Ticker Metal Mining ANTM IJ No of Shrs (mn) 24,031 Mkt. Cap (IDRbn/USDmn) 20,426/1,467 Avg. daily T/O (IDRbn/USDmn) 56.8/4.1 Major shareholders (%) Government of Indonesia 65.0 Estimated Free Float 35.0 Estimated free float 35.0 EPS Consensus (IDR) 2017F 2018F 2019F Danareksa Consensus (1.4) Danareksa/Cons (509.6) 36.1 (33.4) ANTM relative to JCI Index Source : Bloomberg Aneka Tambang (ANTM IJ) Strong prices and higher sales boosted profits Aneka Tambang (ANTM) reported net profits of IDR246bn in 1Q18 (-47.5% qoq, but +3,602.8% yoy). The better yearly net profits reflect strong commodity prices and higher sales volume. The 1Q18 net profits figure is above our estimate mainly thanks to better-than-expected sales volume of gold and wider margins. We maintain our HOLD recommendation on the stock with a target price of IDR1,000 (based on DCF valuation). Lower quarterly net profits in the absence of gains from divestment of Dairi Prima. The company reported 47.5% qoq lower quarterly net profits of IDR246bn in 1Q18, reflecting: a) the absence of gains from the divestment of Dairi Prima Minerals of IDR776bn that were booked in 4Q17, and b) lower quarterly sales volume of ferronickel and gold. Nonetheless, thanks to the strong nickel price, revenues were slightly higher. In addition, 38.7% qoq lower operating expenses helped to cushion against a further decline in quarterly net profits. Yearly net profits boosted by strong sales volume and higher prices. The company reported strong net profits of IDR246bn in 1Q18 from only IDR7bn in 1Q17. This reflects: a) higher sales volume of ferronickel, nickel ore and gold and b) strong nickel and gold prices. Thanks to the buoyant prices, the gross margin improved to 12.7% in 1Q18 from 5.0% in 1Q17. Higher production target for ANTM targets 19% yoy higher ferronickel production of 26,000 tonnes in By boosting production, ANTM seeks to gradually increase the utilization of its ferronickel plant capacity in order to raise production to meet its production capacity of 27,000 tonnes. At the same time, ANTM also expects to double its nickel ore production to 11.3mn Wmt in 2018 (2017: 5.6mn Wmt). For gold production, the company targets 11% yoy higher sales volume of 2,201 kg from the Pongkor and Cibaliung mines. Maintain HOLD. We expect ANTM to post strong earnings in 2018 supported by higher ferronickel sales, nickel ore as well as rising nickel prices albeit at a slower rate. We maintain our HOLD recommendation on the stock with a target price of IDR1,000 (based on DCF valuation with WACC of 9.6% and long-term growth of 3%). x Stefanus Darmagiri (62-21) stefanus.darmagiri@danareksa.com Key Financials Year to 31 Dec 2015A 2016A 2017F 2018F 2019F Revenue (IDRbn) 10,532 9,106 12,654 17,242 17,465 EBITDA (IDRbn) ,431 2,163 2,320 EBITDA Growth (%) (91.3) 1, Net profit (IDRbn) (1,441) EPS (IDR) (109.5) EPS growth (%) 40.4 (102.5) BVPS (IDR) 1, DPS (IDR) PER (x) n/m PBV (x) Dividend yield (%) EV/EBITDA (x) Source : ANTM, Danareksa Estimates See important disclosure at the back of this report 1

4 Equity Research Company Update Friday, 27 April 2018 BUY Maintain Last price (IDR) 690 Target Price (IDR) 830 Upside/Downside +20.3% Previous Target Price (IDR) 830 Stock Statistics Sector Bloomberg Ticker Banking BJTM IJ No of Shrs (mn) 14,975 Mkt. Cap (IDRbn/USDmn) 10,332/742 Avg. daily T/O (IDRbn/USDmn) 8.9/0.6 Major shareholders (%) East Java provincial government 51.4 East Java regencies government 28.5 Estimated free float 20.3 EPS Consensus (IDR) 2018F 2019F 2020F Danareksa Consensus n/a Danareksa/Cons (4.1) (3.2) (3.2) BJTM relative to JCI Index BPD Jatim (BJTM IJ) Modest growth We maintain our BUY call on BJTM with a GGM-derived TP of IDR830, liking the bank for its strong foothold in East Java s civil servants multipurpose lending segment even though more players are competing in this segment. That said, CAR will remain healthy at 24.4% with 7.5% loans growth expected this year. The bank s commercial lending will be driven mainly by the syndicated loans scheme as the bank seeks to achieve a more manageable risk profile. As such, we assume a gross NPLs ratio of 4.4% and a 97% coverage ratio by the end of the year with 77bps credit costs. 1Q18 highlights. 1Q18 s net profits of IDR377bn are inline with our forecast and its seasonal pattern as the 1Q results were % of the full year figure in the past three years. NIM contracted to 6.6% on the back of lower asset yields as BJTM adjusted down its lending rates by bps in general. The gross NPLs ratio and coverage ratio were flat at 4.8% and 95.4%, respectively, on a yoy comparison, with a 74bps credit cost (vs 132bps in 1Q17). All in all, we maintain our forecasts of 7.5% loans growth and 8.6% net profits growth this year. Consumer lending will continue to be the driver. While multipurpose loans will continue to account for most of BJTM s loans, the bank can also leverage its strong customer-base covering regional civil servants to boost its mortgage lending. As for commercial lending, it may only be driven by the syndicated loans scheme (along with other big SOE banks) on certain infrastructure projects, i.e. the Pasuruan-Banyuwangi toll road. This year, we estimate that consumer loans will grow by 8.6%, thus pushing up the contribution from consumer loans to total loans to 70.8% by the end of the year. Lower NIM projection. Amid tight competition in multipurpose lending with BBRI as its closest peer, BJTM recently cut its lending rate in this segment to 11-12% (previously 13-14%). Nonetheless, we still expect the bank s funding structure to remain secure thanks to strong support from the local government, both institutional and retail customer-based. Taking these factors into account, we project a compression in NIM to 7.8% given a lower assets yield of 11.4% for BUY with a TP of IDR830. We maintain our BUY call on BJTM with a GGMderived TP of IDR830 assuming 11% CoE, 14.9% sustainable ROAE and 3% long-term growth. Our TP implies 1.5x 2018F P/BV. Source : Bloomberg Eka Savitri (62-21) ext 3506 eka.savitri@danareksa.co.id Key Financials Year to 31 Dec 2016A 2017A 2018F 2019F 2020F PPOP (IDRbn) 1,961 1,860 1,983 2,121 2,290 Net profit (IDRbn) 1,028 1,159 1,259 1,350 1,469 EPS (IDR) EPS growth (%) BVPS (IDR) PER (x) PBV (x) Dividend yield (%) ROAE (%) Source : BJTM, Danareksa Estimates See important disclosure at the back of this report 1

5 Equity Research Company Update Friday,27 April 2018 BUY Maintain Last price (IDR) 2,430 Target Price (IDR) 3,600 Upside/Downside +48.1% Previous Target Price (IDR) 3,600 Stock Statistics Sector Bloomberg Ticker Construction PTPP IJ No of Shrs (mn) 6,200 Mkt. Cap (IDRbn/USDmn) 15,066/1,086 Avg. daily T/O (IDRbn/USDmn) 39.3/2.8 Major shareholders (%) Government 51.0 Estimated free float 48.9 EPS Consensus (IDR) 2018F 2019F 2020F Danareksa Consensus Danareksa/Cons 0.7 (1.3) (5.8) PTPP relative to JCI Index Source : Bloomberg Pembangunan Perumahan(PTPP IJ) Change at the top The shareholders approved the appointment of Mr. Lukman Hidayat as the new CEO of PTPP following the appointment of Mr. Tumiyana as the new CEO of WIKA. Mr. Hidayat previously served as the Director of Strategic planning and Development of PTPP. The shareholders also approved the distribution of cash dividends of IDR46.88 per share, resulting in a dividend yield of 1.9%. Maintain BUY. Mr Lukman Hidayat has been appointed as the new CEO of PTPP. This follows the appointment of Mr. Tumiyana ( Apr 18) as the new CEO of WIKA. With more than 28 years of working experience in the company, we believe PTPP will be in capable hands. Mr. Hidayat started his career at PTPP in 1990 and he previously served as the Director of Strategic planning and Development starting from Mar Not many changes in the new BoD. There are not many changes in PTPP s new BoD. Of the six members of the board, there is only one new face: Mr. Anton Satyo Hendriatmo, the new Director of Building Construction. Mr. Hendriatmo replaces Mr. Aprindy who has been appointed as the Director of Strategic Planning and Development replacing Mr. Hidayat (see exhibit 7 for details). Plans to distribute dividends of IDR46.9 per share. The shareholders also approved the distribution of 20% of the 2017 earnings as cash dividends. This translates into IDR290.6bn in total or IDR46.88 per share. The dividend payment of IDR46.88/sh is 5.3% lower than last year s dividend of IDR49.52/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 stock has a dividend yield of 1.9%. PTPP booked new contracts of IDR5.2tn in 2M18. This figure is 10.6% of the management s full year target of IDR49.0tn (+18.4%yoy; FY17: IDR41.4tn). As such, the order book as of Feb 18 reached IDR63.3tn, including IDR58.1tn of carry over contracts. By project owner, around 71% of the new contracts booked in 2M18 were SOE projects, 27% private projects, and only 2% government projects. The management expects more government projects to be booked in 2Q onwards. Maintain BUY. We are awaiting the issuance of 1Q18 s unaudited result and we believe more contracts will be booked over the following quarters since the announcement of the winning bids for most government projects occurs in 2Q onwards. Yesterday, PTPP s share price dropped 8.3%, resulting in an attractive valuation. Based on the current share price, PTPP trades at 8.7x 2018 PE, below its -1 SD of 12.5x. Maintain BUY. x Maria Renata (62-21) ext.3513 maria.renata@danareksa.com Key Financials Year to 31 Dec 2016A 2017A 2018F 2019F 2020F Revenue (IDRbn) 16,459 21,502 26,834 32,618 42,091 EBITDA (IDRbn) 2,010 2,592 3,222 3,866 4,638 EBITDA Growth (%) Net profit (IDRbn) 1,020 1,495 1,741 2,140 2,746 EPS (IDR) EPS growth (%) BVPS (IDR) 1, , , , ,854.1 DPS (IDR) PER (x) PBV (x) Dividend yield (%) EV/EBITDA (x) Source : PTPP, Danareksa Estimates See important disclosure at the back of this report 1

6 MARKET NEWS MACROECONOMY Government: Central government to control regional tax tariffs The central government will be given the authorization to intervene in all kinds of tax matters through presidential decree. This intervention is deemed necessary to minimalize the costs of regional tax administration. This scheme is also expected to improve the control and supervision of any regional charges in order to improve national fiscal control. The progress of designing such a scheme is still underway. Furthermore, this scheme is expected to rationalize the number of regional retribution categories from 32 to 9. (Bisnis Indonesia) SECTOR Heavy equipment: Robust production yoy growth at 46.05% in 1Q18 Based on data from the Indonesia Heavy Equipment Industry Association, heavy equipment production for construction and mining soared by 46.05% yoy in 1Q18, following the solid growth in 2017 of 52.5% yoy. (Bisnis Indonesia) Coal: Quota transfers will be allowed The Ministry of Energy and Mineral Resources has stated that coal companies can transfer quotas to meet the domestic market obligation (DMO) of at least 25% of production. This would mean any companies which have no contracts with PT PLN can buy the DMO quota from other companies that have DMO percentage above 25%. This scheme will also allow coal companies that have not fulfilled the DMO to buy from other coal companies to meet the DMO requirement. Several sanctions, such as production cuts and reductions in export quotas, will be applied if the coal mining company cannot fulfill the DMO requirement. (Bisnis Indonesia)

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 3,749, , , % 11.9% Auto 286,421 18,881 20, % 8.4% Astra International BUY 7,075 9, ,421 18,881 20, % 8.4% Banks 1,437,866 90, , % 14.0% BCA HOLD 21,350 22, ,384 23,620 27, , , % 14.6% N/A N/A BNI BUY 7,900 10, ,324 13,616 15, % 15.6% N/A N/A BRI BUY 3,140 4, ,306 29,044 31, % 8.9% N/A N/A Bank Tabungan Negara BUY 3,190 4,200 33,782 3,135 3, % 16.7% N/A N/A Bank Mandiri HOLD 6,775 8, ,167 20,640 24, % 18.7% N/A N/A BTPN BUY 2,850 3,900 16,645 1,273 1, % 27.8% N/A N/A BPD Jatim BUY ,258 1,282 1, % 3.0% N/A N/A Cement 156,654 4,000 4, % 4.9% Indocement SELL 17,500 14,700 64,422 1,887 1, % 2.7% Semen Indonesia SELL 9,275 8,600 55,015 1,945 2, % 8.4% Semen Baturaja SELL 3, , % -11.0% Cigarettes 555,495 20,595 22, % 10.7% Gudang Garam BUY 68,050 83, ,934 7,498 8,487 3,897 4,411 3,897 4, % 13.2% HM Sampoerna HOLD 3,650 4, ,561 13,097 14, % 9.2% Construction 112,085 8,554 10, % 21.0% Wijaya Karya BUY 1,560 2,100 13,993 1,225 1, % 45.5% Pembangunan Perumahan BUY 2,430 4,000 15,066 1,295 1, % 21.2% Adhi Karya BUY 1,900 2,800 6, % 37.3% Waskita Karya BUY 2,260 3,000 30,677 2,383 3, % 27.4% Waskita Beton BUY ,703 1,104 1, % 19.5% Wika Beton BUY , % 20.2% Jasa Marga BUY 4,220 7,800 30,628 1,747 1, % -8.1% Consumer 563,804 16,992 19, % 12.0% Indofood CBP BUY 8,050 9,700 93,878 3,894 4, % 10.3% Indofood BUY 6,750 9,100 59,268 4,381 4, % 10.6% Unilever HOLD 45,000 52, ,350 7,324 8, , , % 13.7% Kino Indonesia HOLD 2,040 2,100 2, % 25.8% Mayora Indah HOLD 2,880 1,960 64,393 1,277 1, % 10.4% Healthcare 80,792 2,700 2, % 11.5% Kalbe Farma HOLD 1,470 1,700 68,906 2,411 2, % 10.3% Kimia Farma SELL 2,140 1,910 11, % 12.7% Heavy Equipment 130,461 7,463 8,439 2,001 2, % 13.1% United Tractors BUY 34,975 38, ,461 7,463 8,439 2,001 2,262 2,001 2, % 13.1% Industrial Estate 13,210 2,352 1, % -49.5% Puradelta Lestari BUY , % 1.8% Bekasi Fajar BUY , % 11.3% Surya Semesta HOLD ,517 1,131 (103) 240 (22) (119) (32) % % 2.2 (24.6) (2.8) Media 53,957 2,965 3, % 13.5% Media Nusantara Citra BUY 2,460 2,800 35,969 1,491 1, % 7.6% Surya Citra Media BUY 1,260 1,750 17,988 1,474 1, % 19.5% Mining 193,419 14,754 17, % 15.5% Adaro Energy BUY 1,995 2,800 63,812 6,283 7, % 17.4% Timah BUY 1,015 1,100 7, % 3.0% Vale Indonesia HOLD 3,200 3,100 31,796 (74) 233 (7) 23 (7) % % (429.3) (0.3) 1.0 Aneka Tambang HOLD ,946 (264) (68) (11) (3) (11) (3) % -74.4% (75.6) (295.1) (1.4) (0.4) Bukit Asam BUY 3,060 3,600 35,253 4,476 4, % 3.3% Indo Tambangraya Megah HOLD 24,825 33,200 28,050 3,384 3,903 2,995 3,455 3,232 3, % 15.3% Harum Energy HOLD 2,590 2,200 7, % 2.1% Plantation 37,478 3,010 2, % -0.8% Astra Agro Lestari HOLD 12,600 14,800 24,251 1,908 1, % -3.0% Sampoerna Agro SELL 2,450 2,240 4, % 6.4% PP London Sumatra BUY 1,260 1,700 8, % 1.7% Poultry 80,422 4,078 5, % 29.8% Charoen Pokphand HOLD 3,770 3,100 61,820 2,576 3, % 32.2% Japfa Comfeed BUY 1,485 1,650 16,945 1,463 1, % 23.8% Malindo Feedmill HOLD , % 91.5% Property 100,822 8,450 8, % -0.2% Alam Sutera HOLD ,034 1,379 1, % 4.1% Bumi Serpong Damai BUY 1,720 2,000 33,104 3,909 2, % -29.5% Ciputra Development BUY 1,100 1,350 20, , % 58.8% Pakuw on Jati HOLD ,210 1,937 2, % 24.0% Summarecon BUY 905 1,100 13, % 28.3% Retail 81,274 3,402 3, % 12.4% Mitra Adi Perkasa BUY 7,675 8,100 12, % 46.8% Ramayana HOLD 1,335 1,400 9, % 4.9% Matahari Department Store BUY 10,775 12,500 31,441 1,928 2, % 5.3% Matahari Putra Prima SELL , % 2.7% Ace Hardw are BUY 1,260 1,450 21, % 9.3% Erajaya Sw asembada BUY 1,420 1,100 4, % 11.8%

8 COVERAGE PERFORMANCE LEADERS Price as on Code 26-Apr Apr-18 Chg, % w-w, % m-m, % YTD, % Rating Semen Baturaja SMBR 3,750 3, (1.3) SELL Charoen Pokphand CPIN 3,770 3, HOLD Matahari Department Store LPPF 10,775 10, (1.1) (1.4) 7.7 BUY Kino Indonesia KINO 2,040 2, (6.4) 6.0 (3.8) HOLD Mayora Indah MYOR 2,880 2, (1.0) 42.6 HOLD Erajaya Swasembada ERAA 1,420 1, BUY Sampoerna Agro SGRO 2,450 2, (1.6) (4.7) SELL Kalbe Farma KLBF 1,470 1,480 (0.7) (5.8) 2.1 (13.0) HOLD BPD Jatim BJTM (0.7) (2.1) 7.9 (3.5) BUY Astra Agro Lestari AALI 12,600 12,700 (0.8) (6.0) (8.9) (4.2) HOLD Sources: Bloomberg LAGGARDS Price as on Code 26-Apr Apr-18 Chg, % w-w, % m-m, % YTD, % Rating Bank Tabungan Negara BBTN 3,190 3,560 (10.4) (12.8) (13.1) (10.6) BUY Pembangunan Perumahan PTPP 2,430 2,650 (8.3) (13.2) (11.3) (8.0) BUY Media Nusantara Citra MNCN 1,260 1,370 (8.0) (10.3) (9.0) (1.9) BUY Adhi Karya ADHI 1,900 2,050 (7.3) (12.4) (11.2) 0.8 BUY Surya Citra Media SCMA 2,460 2,630 (6.5) (7.9) (9.2) (0.8) BUY Bukit Asam PTBA 3,060 3,270 (6.4) (6.7) BUY Adaro Energy ADRO 1,995 2,120 (5.9) (8.5) (2.2) 7.3 BUY Vale Indonesia INCO 3,200 3,400 (5.9) (15.8) HOLD Ramayana RALS 1,335 1,415 (5.7) (4.6) HOLD Harum Energy HRUM 2,590 2,740 (5.5) (15.1) (5.8) 26.3 HOLD Sources: Bloomberg

9 PREVIOUS REPORTS Vale Indonesia: Buoyant nickel prices boosted profits SnapShot Astra International: Sturdy coal prices enhanced profit, Bank Mandiri: Greater stability, United Tractors: Supported by strong coal price, Wijaya Karya: Changes to the Board SnapShot 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

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. 3148

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