INVESTOR DIGEST HIGHLIGHT ECONOMY. Equity Research 26 January 2017

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1 INVESTOR DIGEST Equity Research 26 January 2017 Economic Data Latest 2017F 7-DRRR (%), eop Inflation (YoY %) US$ 1 = Rp, period avg 13,333 13,450 Stock Market Data (25 Jan 2017) HIGHLIGHT 4Q16 Investment Matahari Putra Prima: Faded Out by the Competition (MPPA; Rp1,260; Sell; TP:Rp900) Ramayana Business Partner Gathering Takeaways (Rp1,310; Neutral; TP=Rp1,180) Market Recap Jan 25 th 2016; JCI: 5, (+0.03%); USD/IDR: 13,361; Total Value: Rp8tn JCI Index 5, % Trading T/O ( Rp bn ) 5,043.0 Market Cap ( Rp tn ) 5,746.6 ECONOMY 4Q16 Investment Market Data Summary* EBITDA growth (%) EPS growth (%) EV/EBITDA (x) P/E (x) P/BV (x) Div. Yield (%) Earnings Yield (%) Net Gearing (%) ROE (%) * Aggregate of 80 companies in MS research universe, representing 68.4% of JCI s market capitalization Continued investment slowdown paves further 4Q16 economic growth correction. Direct investment realization was Rp159.4tn in 4Q16. It grew at a slower pace of 9.6% YoY relative to 10.7% YoY in 3Q16 (exhibit 1) with FDI and DDI diverging further (exhibit 2). As in the previous quarter, the investment dragger was FDI which growth decelerated in both rupiah and US$ term (specifically on the latter, -5.0% YoY from 0% YoY on 3Q16) (exhibit 3). China was stepping up its investment by becoming the second biggest FDI contributor (14.3%) in the period after Singapore; in 3Q16 it was on the third position (7.8%). DDI, meanwhile, sustained acceleration which may imply that deregulation effect was rolling. Despite the overall slowdown, the Investment Coordinating Board achieved FY16 investment of Rp612.8tn (12.4% YoY, FY15: 17.8% YoY), exceeding 2016 target by 3%. Sectors absorbing the most investment, in proportion, were the following industries: basic chemicals and pharmacy (11.3%), basic metals and electronics (10.6%), and food industry (10.0%). The board is targeting Rp678tn direct investment in FY17F (10.6% YoY). Overall, we view that the result is paving the way for further economic growth correction in 4Q16. We anticipate a figure of 4.9% YoY (3Q16: 5.02% YoY). Expect rebound in 2017 investment. Ahead, we are expecting investment to lead FY17F economic growth inch up to 5.1% (FY16F: 5.0%) provided our outlook of stable household consumption and constrained fiscal capacity. Catalysts include benchmark rate cuts and policy packages that should fully manifest in 2017, further rise in China FDI, and greater domestic corporate capital spending. Particularly on the last point, our equity research desk is estimating a 43.9% increase in capital spending to Rp96tn for companies under Mandiri Sekuritas universe which represent approximately 65% of the JCI. The risk to this view is elevated political tension that, if prolonged, may hit investor sentiment. Past protests may have influenced underwhelming repatriation realization by the end of last year (79.6% of Rp141tn commitment). Page 1 of 10

2 EXHIBIT 1. INVESTMENT GROWTH CONTINUED TO SLOW EXHIBIT 2. FDI SUSTAINS GROWTH DECELERATION Source: BKPM, Mandiri Sekuritas Source: BKPM, Mandiri Sekuritas Leo Rinaldy( ) Wisnu Trihatmojo ( ) CORPORATE Matahari Putra Prima: Faded Out by the Competition (MPPA; Rp1,260; Sell; TP:Rp900) MPPA is getting hit by weak demand recovery and tightening competition from other modern trade channels. This bodes ill with company s expansion plan and decision to venture into new formats, which turn out to burden profitability. We are now cautious on the company s ongoing focus for multi-format business model, strained financial capabilities, and delayed recovery in FMCG volume. Facing a double whammy. The competition in grocery retailers goes beyond building brand image; and the most preferred business model in the past years has shifted toward one that is easily accessible. This however supports the fact that the burgeoning number of minimarkets has dampened the growth of the hypermarket business. Besides the stiffer competition, the sluggish demand recovery that also hits the more resilient minimarts also strikes MPPA s financial performance. Multi-format strategy burdens the profitability. Learning from peers' experience, multi-format business is very costly, especially when the concept is operated below the economies of scale. The company s strained financial capabilities will drag the ability for store expansion. We are then not too convinced with the company s ongoing focus in expanding the multi format model (convenient store and wholesale trading) in the longer term. Inadequate financial capabilities. MPPA is left behind competitors given its limited financial capabilities. Its closest competitor, Trans-Mart Carrefour, should have a full pocket of money following GIC s capital injection of Rp5.2T (USD387mn) in Feb 16. Trans-Mart then eyes to open 100 new stores until MPPA on the other hand, with Rp1,394bn of total operating cash flow in FY17-19 can only open 18 stores (~108k sqm) and renovate 20 old stores to G7 concept assuming Rp 4mn/sqm capex. Downgrade to SELL. We cut our FY16-18 earnings by 69%-77% on the back of weak SSSG, operating cost escalation, and higher interest expense. The lofty valuations also led us to downgrade our recommendation from Neutral to Sell with DCF-based target price of Rp900 (WACC: 12.8%; LTG:3%). The near term risk might come from consensus earnings downgrade and the potential cash outflow from participation in Matahari Mall s fund raising. Risks to our call include: faster demand recovery, softening competition, improvement in financial capabilities, and changes in company s business format strategy. Page 2 of 10

3 Earnings revision summary Previous New %changes Revenues 14, , , , , , % -3% -4% Gross Profit 2, , , , , , % -3% -4% Operating Income % -60% -57% EBITDA % -33% -34% Pretax Profit % -77% -71% Net Income % -77% -71% Core Income % -77% -71% SSSG 0.0% 6.0% 6.0% -1.0% 5.0% 5.0% Margin Gross margin 16.6% 17.0% 17.0% 16.5% 16.9% 17.1% EBIT margin 2.1% 2.6% 2.8% 1.1% 1.1% 1.3% EBITDA margin 4.4% 5.0% 5.3% 3.4% 3.5% 3.6% Pretax margin 1.7% 2.3% 2.5% 0.5% 0.5% 0.7% Net margin 1.3% 1.7% 1.9% 0.4% 0.4% 0.6% Core margin 1.3% 1.7% 1.9% 0.4% 0.4% 0.6% Source: Mandiri Sekuritas estimates Laura Taslim ( ) Adrian Joezer ( ) Ramayana Business Partner Gathering Takeaways (Rp1,310; Neutral; TP=Rp1,180) We attended Ramayana s business partner gathering event today. This is an annual event hosted by Ramayana to gather their business partners (consignors on department store business). The purpose of this event is to show the transformation that the company has done in 2016 and their growth target in the short term (2017) and medium term (2020), mostly for the fashion consignment products. No specific target is set for direct purchase and supermarket division during the event. Aggressive target is set for consignment. Management is setting an aggressive internal target to double the consignment revenue from Rp3,000bn in FY15 to Rp6,440bn in This implies 15%-20% annual growth in consignment business vs. 11% CAGR in the past 5 years. In addition to this, there will be additional space allocation for consignment at 400k sqm by 2020, or equals to 80k sqm every year. The transformations to achieve such growth are: o o o Store re-layout. The company is looking to optimize sales productivity by better placing for each brand according to its group/zone. Previously, the placement is quite scattered without proper planning. According to the company s data, this initiative can yield ±30%-40% growth following the implementation Improvement in logistics system. Ramayana will ease the problem in logistics by allowing all the suppliers to drop their products to Ramayana s office in Tanah Abang (Jakarta) instead of to its distribution center in Bekasi. Logistics is an important issue to ensure that all the products arrive timely at the stores, especially during festive periods. In store operation. There will be organization restructuring within the company. The new organizational structure will be based on regional area. The company will also implement decentralization in operation, which means that every region will have its own authority in deciding the merchandising and planning as different area has different characteristics in terms of taste and needs. Page 3 of 10

4 We are positive on the companies continuous effort to improve its performance. However, bear in mind this is just the company s internal target for its business partners which is supposed to be aggressive. We are reviewing our call on the stock. Laura Taslim ( ) Adrian Joezer ( ) laura.taslim@mandirisek.co.id adrian.joezer@mandirisek.co.id TAX AMNESTY MARKET Market Recap Jan 25 th 2016; JCI: 5, (+0.03%); USD/IDR: 13,361; Total Value: Rp8tn Indo shares extended gain after US corporate results and higher demand for commodities from China reignited investor optimism over economic growth. Share rotation at LQ45 calculation was the main topic of today s trading. New inclusions to the LQ45 index, such as BUMI (close +1.3%), PPRO (flat) and EXCL (+5.6%), rose in tandem and good volume (twice the average five-week volume). On the other hand, those who got dropped from the LQ45 saw their share price deteriorating including BMTR (-4%), MPPA (-8%) and SILO (-3.1%). Toward the end, fresh foreign buying into HMSP (from flat to close +1%) helped keep the JCI into flat positive position. Volume was good at US$443mn (excluding US$47mn TOBA; US$9.5mn MYRX; US$9.5mn IIKP; US$9.3mn JPFA; US$7.6mn MNCN; $7.1MN JGLE crossing). Excluding foreign net buy from TOBA s crossing, foreign posted a net sell of Rp237.4bn (US$17.77mn) and foreign participants declined to 20% and came up better seller for 10%. Losers beat gainers by 13 to 10. The dollar halted a three-day losing streak against a basket of its trade-weighted rivals and pushed higher on Tue, though it dipped again slightly on Wed. And Treasury yields pushed higher overnight as Trump shifted his focus back to growth initiatives including promising corporate tax breaks to fuel US investment, after focusing on protectionism in his first few days in office. Trump signed two executive orders on Tue to move forward with construction of the controversial Keystone XL and Dakota Access oil pipelines, rolling back key Obama administration environmental actions in favor of Page 4 of 10

5 expanding energy infrastructure. He also met chief executives of the Big Three US automakers and pressed them to build more cars in the country. US Treasury yields rose with two-year benchmark yields holding firm at 1.22% compared to 1.15% on Tuesday, reflecting strong economic conditions. Ten year yields were at 2.47%. TOP TURNOVER: BUMI ENRG BBRI DEWA ELTY BMRI ASII TLKM BRMS BBNI BBCA CTRA UNTR ANTM (35%) ADVANCING SECTOR: cement +2.9%; telco +1.5%; consumer +0.3%; construction+0.1% DECLINING SECTOR: financial-0.4%; property & plantation-0.2%; mining & auto-0.1% The yield of 10-year government went up to 7.553% (+0.55%) and Rupiah depreciated to Rp13,361 (-0.23%). Sales Team FROM THE PRESS BI targets interconnection of electronic money to be complete before Lebaran BI plans to begin testing the interconnection of electronic money in March 2017 and targets implementation of electronic money, particularly for toll road transactions, to be implemented before Lebaran. Governor of BI Agus Martowardojo states that they are currently finishing up the national payment gateway policy, which is targeted to be launched by 1Q17. (Investor Daily) Nine banks to conduct a rights issue in 2017 The nine banks are Bank BRI Agro with a target of Rp1tn, Bank Permata with a target of Rp1.5tn, Bank Bukopin with a target of Rp3tn, Bank of India with a target of Rp660bn, Bank J Trust with a target of Rp300bn, Maybank Indonesia with a target of Rp2tn, MNC Bank with a target of Rp500bn, Bank INA Perdana with a target of Rp703bn, and Bank Panin Dubai Syariah with a target of Rp0.5-1tn. (Bisnis Indonesia) Bank Mandiri (BMRI) plans to expand in Asean After recording consolidated assets of more than Rp1,000tn, BMRI hopes that they can be considered as a Qualified Asean Bank. BMRI plans to expand its business to the Philippines, Vietnam, and Thailand, BMRI views that the consumption needs of these three countries are similar to Indonesia. BMRI plans to acquire a local bank in the Philippines and will enter Vietnam through its subsidiary such as Mandiri Tunas Finance or Mandiri Utama Finance, meanwhile BMRI is still reviewing expansion plans in Thailand. The bank targets expansion plans in the Philippines to be finalized prior to Thailand and Vietnam. (Bisnis Indonesia) Bank Mandiri (BMRI) encourages subsidiaries to go public BMRI to encourage two of its subsidiaries, Mandiri Tunas Finance and Bank Mandiri Taspen Pos or known as Bank Mantap to conduct an initial public offering (IPO). Corporate Secretary Rohan Hafas states that Mandiri Tunas Finance has a promising prospect and its IPO will take priority over Mandiri Taspen Pos, however details on the plan have not been announced. Meanwhile, BMRI still cannot provide any certainty regarding Mandiri Taspen Pos IPO. (Investor Daily) Cooperation between TransMart Carrefour and Honestbee to support growth Honestbee, Singapore-based apps for delivery services, already start cooperation with TransMart Carrefour since Sep'16. Transmart claimed that they saw 5% additional customers from this colaboration. Currently Honestbee services is supported by 17 Transmart stores in Greater Jakarta area. Going forward Honestbee will expand their coverage to Surabaya, Medan and Bali. (Bisnis Indonesia) Page 5 of 10

6 Indonesia Toll Road Authority (BPJT) to sign 3 toll road projects worth Rp29tn in Feb-17 The first section, Cileunyi Sumedang Dawuan (Cisumdawu, Rp10tn) was granted to the consortium of Citra Marga Nusaphala Persada (CMNP) Waskita Toll road Pembangunan Perumahan (PTPP), Brantas Abipraya, and Jasa Sarana. While Serang Panimbang section (Rp10tn) was granted to the consortium of Wijaya Karya (WIKA) PTPP and Jababeka (KIJA). The last section, Tebing Tinggi Parapat was granted to Hutama Karya through direct appointment, the company would construct this section along with JSMR and WSKT. (Bisnis Indonesia) Jasa Marga (JSMR) plans allocate Rp27tn capital expenditure in 2017 The toll road SOE would allocate most of the capital expenditure for the construction of additional 235km toll road with an estimated total investment cost of Rp22tn, while the remaining Rp4tn would be used for operational purpose, and the rest would be used to develop property and service subsidiaries. (Investor Daily) Perusahaan Gas Negara (PGAS) to allocate US$500mn capital expenditure in 2017 The largest natural gas transportation and distribution company plans to allocate US$500mn capex in 2017, lower than the company s capex target for 2016 of US$500mn. The SOE would allocate the capex to develop both upstream and downstream business lines. PGAS s CFO, Nusantara Suyono, stated that 50% (US$250mn) would be used to develop Saka Energi Indonesia, while the remaining would be used for PGAS. (Investor Daily) Sinar Mas Land to invest Rp250bn in a commercial site Sinar Mas Land plans to develop West Park, a commercial site of shop houses in Tangerang on top of 1.8ha of land complete with 8ha of green area and lake. The company plans to launch in Feb 17 and targets to complete construction in one year. Tag price/unit is between Rp bn for the planned 104 units. Meanwhile, land area ranges from 32sqm to 104sqm and building area ranges from 62sqm to 253sqm. (Bisnis Indonesia) Wijaya Karya (WIKA) to issue Rp10tn bond in 2017 The construction SOE plans to issue 3-year and 5-year bonds with Rp1.5-2tn target in 1H17. The bond proceed would partly be used to fund WIKA s FY17 capex target of Rp12tn. (Bisnis Indonesia) Page 6 of 10

7 Indices Currencies and ADRs Major Commodities Last Chg (%) YTD Chg (%) Currency Last Chg (%) YTD Chg (%) Last Chg (%) YTD Chg (%) JCI 5, Rp/US$ 13, Oil spot (US$/bl) Dow Jones 20, US$/EUR Nickel spot (US$/mt) 9, Nikkei 19, YEN/US$ Gold spot (US$/oz) 1, SET 1, SGD/US$ Tin 3-month (US$/mt) 20, Hang Seng 23, CPO futures (Ringgit/ton) 3, STI 3, ADR Stocks Soybean oil (US$/100gallons) S&P 500 2, TLK in Rp 9, Rubber forward (US /kg) Coal (US$/ton) Ishares indo Baltic Dry Index Property Valuation JCI Code Rec. Market Cap (Rp bn) Share price Target Price Discount to NAV RNAV per share (Rp) Premium (discount) to replacement cost Replacement cost per share (Rp) PE (x) ROE 17F 18F 17F 18F BSDE Buy 35,799 1,860 2,570-60% 4,673 20% 1, % 10.5% PWON Buy 27, % 1,207 37% % 25.5% SMRA Neutral 19,834 1,375 1,575-65% 3, % % 17.2% CTRA Buy 20,322 1,340 1,600-56% 3,073 72% % 14.0% JRPT Buy 12, ,300-73% 3,242 26% % 18.7% ASRI Neutral 7, % 1,161 68% % 5.3% LPCK Buy 3,550 5,100 10,000-79% 24,683 9% 4, % 11.9% MDLN Buy 4, % 1,165 21% % 7.9% CTRS Buy 5,363 2,710 4,000-80% 13,390-33% 4, % 12.2% Simple Average -67% % 13.7% Industrial Estate Valuation JCI Code Rec. Market Cap (Rp bn) Share price Target Price Discount to NAV RNAV per share (Rp) Premium (discount) to replacement cost Replacement cost per share (Rp) PE (x) ROE 17F 18F 17F 18F DMAS Buy 10, % % % 11.8% BEST Buy 3, % % % 9.9% SSIA Buy 2, % 1,701-29% % 5.6% LPCK Buy 3,550 5,100 10,000-79% 24,683 9% 4, % 11.9% MDLN Buy 4, % 1,165 21% % 7.9% Simple Average -69% % 9.4% Page 7 of 10

8 Equity Valuation Price Price % of Mkt Cap Net Profit EPS Growth PER (x) EV/EBITDA (x) P/BV (x) Div.Yield Code Rating (Rp) Target PT (Rp Bn) MANSEK universe 5,294 5,550 4,017, , , % 13.1% % 2.0% Banking 926,046 81,172 95, % 17.5% N.A. N.A % 2.0% BBCA Neutral 14,950 15, ,592 21,729 24, % 11.2% N.A. N.A % 1.3% BBNI Buy 5,500 6, ,568 12,995 15, % 17.9% N.A. N.A % 3.8% BBRI Buy 11,700 13, ,629 28,258 34, % 22.2% N.A. N.A % 2.4% BBTN Buy 1,920 2, ,333 2,843 3, % 18.6% N.A. N.A % 2.8% BDMN Neutral 4,210 3,575 (15.1) 40,351 4,060 4, % 13.2% N.A. N.A % 1.8% BJBR Sell 2,300 1,600 (30.4) 22,301 1,780 1, % 10.5% N.A. N.A % 3.2% BJTM Neutral (12.0) 9,324 1,107 1, % 12.2% N.A. N.A % 7.4% BNGA Buy 970 1, ,378 3,290 3, % 21.2% N.A. N.A % 0.0% BNLI Buy , ,434 N/M 75.7% N.A. N.A % 0.5% BTPN Neutral 2,590 2, ,126 1,730 1, % 10.5% N.A. N.A % 0.0% PNBN Buy 790 1, ,029 2,565 2, % 11.8% N.A. N.A % 0.0% Building Materials 119,506 6,356 7, % 10.9% % 1.7% INTP Neutral 15,075 14,400 (4.5) 55,495 3,252 3, % 10.4% % 1.9% SMCB Sell (11.1) 6, % 14.2% % 0.0% SMGR Neutral 9,025 8,600 (4.7) 53,532 3,207 3, % 8.4% % 1.8% ARNA Buy , % 18.2% % 2.3% Constructions 110,834 6,339 7, % 15.2% % 1.4% ADHI Neutral 2,150 2,020 (6.0) 7, % 35.2% % 1.3% PTPP Buy 3,480 4, ,576 1,323 1, % 22.7% % 1.2% WIKA Buy 2,510 3, ,490 1,239 1, % 11.9% % 1.1% WSKT Buy 2,550 3, ,122 1,842 2, % 10.2% % 1.2% WTON Buy 825 1, , % 13.8% % 1.4% WSBP Buy , % 7.8% % 1.6% TOTL Buy 775 1, , % 14.1% % 5.3% Toll road 30,338 1,805 1, % 4.6% % 1.8% JSMR Buy 4,180 5, ,338 1,805 1, % 4.6% % 1.8% Rice Mill 6, % 27.9% % 0.7% AISA U/R 1,985 U/R U/R 6, % 27.9% % 0.7% Consumer 1,128,333 37,839 41, % 10.8% % 1.1% ICBP Neutral 8,600 9, ,292 3,904 4, % 14.0% % 1.8% INDF Buy 8,000 11, ,256 4,221 4, % 11.5% % 3.2% MYOR Neutral 1,750 1,550 (11.4) 39,128 1,443 1, % 19.7% % 1.5% ULTJ U/R 4,400 U/R U/R 12, % 10.2% n/a 0.5% 0.6% UNVR Neutral 41,900 41, ,697 7,274 8, % 11.1% % -2.3% GGRM Buy 63,000 75, ,218 7,272 7, % 8.9% % 1.6% HMSP Neutral 3,990 3,850 (3.5) 464,109 12,996 14, % 9.7% % 2.7% WIIM U/R 440 U/R U/R 924 n/a n/a 0.0% 0.0% n/a n/a n/a n/a n/a n/a 0.0% 0.0% Healthcare 86,743 3,779 4, % 11.9% % 2.5% KLBF U/R 1,495 U/R U/R 70,078 2,569 2, % 11.2% % 2.0% SIDO Buy , % 15.0% % 5.2% TSPC U/R 1,870 U/R U/R 8, % 12.4% % 3.8% Hospital 49, , % 21.7% % 0.7% MIKA Buy 2,440 3, , % 16.1% % 1.0% SILO Neutral 11,850 10,820 (8.7) 13, % 49.4% % 0.0% Retail 89,417 4,637 5, % 17.9% % 3.4% ACES Neutral , % 15.3% % 2.4% ERAA U/R 620 U/R U/R 1, % 25.2% n/a n/a 5.6% 6.8% LPPF Buy 15,150 19, ,206 2,355 2, % 17.0% % 4.8% MAPI Buy 5,125 6, , % 35.5% % 0.6% MPPA Sell 1, (28.6) 6, % 55.4% % 0.3% RALS Neutral 1,310 1,180 (9.9) 9, % 6.5% % 2.9% TELE U/R 850 U/R U/R 6, % 14.2% % 2.2% Automotive 331,512 18,303 19, % 6.0% % 2.5% Page 8 of 10

9 Price Price % of Mkt Cap Net Profit EPS Growth PER (x) EV/EBITDA (x) P/BV (x) Div.Yield Code Rating (Rp) Target PT (Rp Bn) ASII Neutral 8,100 8, ,917 18,054 18, % 4.5% % 2.5% IMAS U/R 1,300 U/R U/R 3, % 267.7% % 0.2% Heavy Equipment 87,192 5,799 5, % -0.3% % 2.1% HEXA* U/R 3,330 U/R U/R 2, % 0.0% % 3.9% UNTR Neutral 22,625 21,000 (7.2) 84,394 5,623 5, % -0.4% % 2.0% Plantation 45,223 3,099 3, % 14.0% % 2.4% AALI Buy 15,775 16, ,362 2,008 2, % 14.0% % 2.3% LSIP Buy 1,640 1, , % 7.5% % 2.8% SGRO U/R 1,945 U/R U/R 3, % 31.4% % 2.0% Property 140,924 11,477 12, % 9.8% % 0.8% APLN U/R 222 U/R U/R 4, % -12.6% % 2.9% ASRI Neutral , % -46.1% % 1.5% BSDE Buy 1,860 2, ,799 2,648 2, % -6.4% % 0.9% CTRA Buy 1,340 1, ,322 1,429 1, % 11.4% % -1.4% CTRS Buy 2,710 4, , % -3.1% % 2.2% JRPT Buy 875 1, ,031 1,074 1, % 9.4% % 0.9% LPCK Buy 5,100 10, , % -7.1% % 0.0% MDLN Buy , % 29.5% % 0.0% PWON Buy ,692 2,435 3, % 27.1% % 2.0% SMRA Neutral 1,375 1, , , % 148.5% % 0.0% Industrial Estate 16,820 2,814 1, % -41.9% % 3.7% DMAS Buy , , % 2.8% % 2.7% BEST Buy , % 20.4% % 0.5% SSIA Buy ,917 1, % -83.7% % 10.4% Poultry 73,401 5,544 6, % 18.8% % 2.4% CPIN U/R 3,190 U/R U/R 52,310 3,525 4, % 17.6% % 2.3% JPFA U/R 1,610 U/R U/R 18,371 1,688 2, % 22.2% % 2.4% MAIN U/R 1,215 U/R U/R 2, % 12.8% % 2.7% Coal 102,706 8,370 8, % 3.4% % 4.1% ADRO* Sell 1,740 1,200 (31.0) 55, % 2.9% % 2.5% HRUM* Sell 1,980 1,600 (19.2) 5, % 7.3% % 5.2% ITMG* Sell 14,525 12,250 (15.7) 16, % -9.3% % 7.6% PTBA Sell 10,975 9,500 (13.4) 25,292 2,256 2, % 12.4% % 5.0% Oil & Gas 64,240 5,529 5, % 5.9% % 4.4% PGAS* U/R 2,650 U/R U/R 64, % 5.9% % 4.4% Shipping 2, % N/A % 0.0% SOCI* U/R 308 U/R U/R 2, n/a 0.0% % 4.7 n/a 6.8 n/a n/a n/a 0.0% 0.0% Metal 30, % N/M ### % 1.2% ANTM Neutral (37.9) 7, % -13.3% % -3.9% INCO* U/R 2,300 U/R U/R 22, % 125.0% % 2.8% Telco 446,921 23,840 27, % 17.6% % 3.9% EXCL Neutral 2,830 2,400 (15.2) 30, % 37.7% % 0.5% ISAT U/R 6,200 U/R U/R 33,690 1,871 2, % 43.5% % 3.4% TLKM Buy 3,900 4, ,029 21,439 24, % 14.9% % 4.2% Tower 59,813 4,471 5, % 16.1% % 0.0% TBIG Neutral 5,025 6, ,103 1,558 1, % 25.6% % 0.0% TOWR Buy 3,500 5, ,710 2,913 3, % 11.0% % 0.0% Media 64,907 3,681 4, % 14.8% % 3.1% SCMA Buy 2,750 3, ,209 1,870 2, % 13.6% % 3.3% MNCN Buy 1,730 2, ,698 1,812 2, % 16.0% % 2.9% Textile 4, % N/A % 0.0% SRIL* U/R 250 U/R U/R 4, n/a 33.3% % 4.8 n/a 5.7 n/a 0.9 n/a 5.2% 0.0% Note: - *) net profit in USD mn - U/R means Under Review - n/a means Not Available - N/M means Not Meaningful - N.A means Not Applicable Page 9 of 10

10 Mandiri Sekuritas A subsidiary of PT Bank Mandiri (Persero) Tbk Plaza Mandiri 28 th Floor, Jl. Jend. Gatot Subroto Kav , Jakarta 12190, Indonesia General: , Fax : (Equity Sales) RESEARCH Tjandra Lienandjaja Deputy Head of Equity Research, Banking tjandra.lienandjaja@mandirisek.co.id Liliana S Bambang Property, Building Material liliana.bambang@mandirisek.co.id Adrian Joezer Consumer, Strategy adrian.joezer@mandirisek.co.id Ariyanto Kurniawan Telecom, Coal, Metal, Automotive ariyanto.kurniawan@mandirisek.co.id Bob Setiadi Construction, Toll Road bob.setiadi@mandirisek.co.id Francis Lim Quant, Health Care, Hospital francis.lim@mandirisek.co.id Yudha Gautama Mining, Plantation yudha.gautama@mandirisek.co.id Laura Taslim Retail laura.taslim@mandirisek.co.id Priscilla Thany Banking priscilla.thany@mandirisek.co.id Ferdy Wan Building Material, Industrial Est., Media ferdy.wan@mandirisek.co.id Lakshmi Rowter Research Assistant lakshmi.rowter@mandirisek.co.id Gerry Harlan Research Assistant gerry.harlan@mandirisek.co.id Leo Putera Rinaldy Chief Economist leo.rinaldy@mandirisek.co.id Wisnu Trihatmojo Economist wisnu.trihatmojo@mandirisek.co.id Aziza Nabila Amani Research Assistant aziza.amani@mandirisek.co.id INSTITUTIONAL SALES Lokman Lie Co-Head Institutional Equities lokman.lie@mandirisek.co.id Silva Halim Co-Head Institutional Equities silva.halim@mandirisek.co.id Aditya Sastrawinata Institutional Sales aditya.sastrawinata@mandirisek.co.id Andrew Handaya Institutional Sales andrew.handaya@mandirisek.co.id Cindy Amelia P. Kalangie Institutional Sales cindy.amelia@mandirisek.co.id Feliciana Ramonda Institutional Sales feliciana.ramonda@mandirisek.co.id Kevin Halim Institutional Sales kevin.halim@mandirisek.co.id Mirna Santikara Salim Institutional Sales santikara.salim@mandirisek.co.id Oos Rosadi Institutional Sales oos.rosadi@mandirisek.co.id Zahra Aldila Niode Institutional Sales zahra.niode@mandirisek.co.id Kusnadi Widjaja Equity Dealing kusnadi.widjaja@mandirisek.co.id Edwin Pradana Setiadi Equity Dealing edwin.setiadi@mandirisek.co.id Jane Theodoven Sukardi Equity Dealing jane.sukardi@mandirisek.co.id Michael Taarea Equity Dealing michael.taarea@mandirisek.co.id RETAIL SALES Andreas M. Gunawidjaja Head Retail Equities andreas@mandirisek.co.id Boy Triyono Plaza Mandiri boy.triyono@mandirisek.co.id A. A. Damargumilang Pondok Indah Office Tower damar.gumilang@mandirisek.co.id Herianto Pondok Indah Prioritas herianto@mandirisek.co.id Hendra Riady Mangga Dua hendra.riady@mandirisek.co.id Indra Mas'ari Bandung indra.mas ari@mandirisek.co.id Yogiswara P. Yogyakarta yogiswara.perdana@mandirisek.co.id Widodo Solo widodo@mandirisek.co.id Linawati Surabaya Linawati@mandirisek.co.id Bambang Suwanto Malang bambang.suwanto@mandirisek.co.id Ruwie Medan ruwie@mandirisek.co.id Aidil Idham Palembang aidil.idham@mandirisek.co.id Yuri Ariadi Pontianak yuri.ariadi@mandirisek.co.id INVESTMENT RATINGS: Indicators of expected total return (price appreciation plus dividend yield) within the 12-month period from the date of the last published report, are: Buy (15% or higher), Neutral (-15% to15%) and Sell (-15% or lower). DISCLAIMER: This report is issued by PT. Mandiri Sekuritas, a member of the Indonesia Stock Exchanges (IDX) and Mandiri Sekuritas is registered and supervised by the Financial Services Authority (OJK). Although the contents of this document may represent the opinion of PT. Mandiri Sekuritas, deriving its judgement from materials and sources believed to be reliable, PT. Mandiri Sekuritas or any other company in the Mandiri Group cannot guarantee its accuracy and completeness. PT. Mandiri Sekuritas or any other company in the Mandiri Group may be involved in transactions contrary to any opinion herein to make markets, or have positions in the securities recommended herein. PT. Mandiri Sekuritas or any other company in the Mandiri Group may seek or will seek investment banking or other business relationships with the companies in this report. For further information please contact our number or fax ANALYSTS CERTIFICATION: Each contributor to this report hereby certifies that all the views expressed accurately reflect his or her views about the companies, securities and all pertinent variables. It is also certified that the views and recommendations contained in this report are not and will not be influenced by any part or all of his or her compensation.