Equity Research 14 April Market Recap Apr 13 th 2016; JCI: 4, (+0.49%); USD/IDR: 13,160; Total Value: Rp6.9tn

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1 INVESTOR DIGEST Equity Research 14 April 2016 Economic Data Latest 2016F BI Rate, eop Inflation (YoY %) US$ 1 = Rp, period avg 13,160 14,150 HIGHLIGHT Market Recap Apr 13 th 2016; JCI: 4, (+0.49%); USD/IDR: 13,160; Total Value: Rp6.9tn Stock Market Data (13 Apr 2016) JCI Index 4, % Trading T/O ( Rp bn ) 5,693.0 Market Cap ( Rp tn ) 5, ,659.0 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 75 companies in MS research universe, representing 71.0% of JCI s market capitalization MARKET Market Recap Apr 13 th 2016; JCI: 4, (+0.49%); USD/IDR: 13,160; Total Value: Rp6.9tn Indo market extended yesterday s gains after upbeat Chinese trade data offered hope the economy was stabilizing underpinning both risk sentiment and commodity prices. China reported exports rose 18.7% YoY in yuan terms in March, while imports dipped only a slight 1.7%. This was a huge improvement on Feb, even though data at this time of year tends to be distorted by the new year holidays. Oil prices pared some of their early losses, having run into profittaking after a barnstorming performance the day before. Brent eased 27 cents at $44.43 a barrel, while US crude lost 38 cents to $ Prices had hit four-month highs overnight on reports that Russia and Saudi Arabia may have reached consensus on an oil output cap. The trading was crowded with unfamiliar names, names that usually sleeping including SMBR +22% (the share price has risen 43% since last Friday); ELSA +18% (3x average 5-week volume); and PPRO +25% (4x average 5-week volume). These three also among the top turnover of today. The JCI rose 0.5% at 4853 level in good volume of US$434mn (excluding US$3.7mn SCMA; US$3.5mn MYRX; and US$2mn SUGI crossing). Regular market transaction was recorded at Rp5.7tn (US$433.13mn) and foreign posted a net sell of Rp98.4bn (US$7.48mn). Foreign participants declined to 30% and came up better seller for 5%. Gainers beat losers by 2 to 1. TOP TURNOVER: SMBR ELSA ASII BBRI BMRI ANTM ADHI PPRO TLKM BBNI PTBA BBCA PGAS WSKT GIAA ADRO (45%) ADVANCING SECTOR: cement+7.4%; mining+3.6%; property & plantation+0.5%; construction & telco+0.3%; financial+0.2%; auto flat DECLINING SECTOR: consumer-0.4% The yield of 10-year government went down to 7.428% (-0.841%) and Rupiah depreciated to Rp13,160 (+0.35%). Sales Team Page 1 of 7

2 FROM THE PRESS Banks are optimistic 2016 loan growth to reach +12.3% yoy Based on the BI s 1Q16 Banking Survey, bankers are optimistic that 2016 s loan growth will reach +12.3% yoy, this was higher than last quarter s survey results of +12% yoy. Bankers estimate that increase in new loans will happen in 2Q16 as loan growth in 1Q16 was slower compared to 4Q15, as demand for corporate financing is not as high and as banks are more selective in distributing loans due to increasing NPL levels. The optimism in 2016 s loan growth is driven by better economic conditions, lower interest rates, reduced lending risk, and increase in banking liquidity. (Investor Daily) E-commerce players reject the idea of 10% VAT E-commerce players, especially the ones related to marketplace and classified advertising strongly rejects the idea of 10% VAT imposition on goods being traded online that is currently being discussed by the Government. Industry players said that contents being classified online should be free and it will be unfair to charge VAT on them. In addition, they also said that this move might hinder the growth of the currently booming online business in Indonesia. (Kontan) Gov t to create BLU to boost land acquisition process The government will establish a special agency in charge of managing land banks and also managing funds for land acquisition purposes. It will be in a form of Public Service Agency (Badan Layanan Umum or BLU) called State Assets Management Institute (Lembaga Manajemen Aset Negara or LMAN), and it will be under the Ministry of Finance. The first transition process will last till December 2016 and the government will inject funds amounting to Rp16tn, which is the amount allocated for land acquisition for toll road projects in In the future, this new institution will also be an asset manager for other strategic projects such as railroads, ports, and airports. (Detik) The government proposes mandatory investment for repatriation of tax amnesty The government is now proposing that tax amnesty participants are required to invest their assets repatriation in certain instruments for minimum three years. Included as the instruments are government bond, SOE bond, and banking financial instruments as indicated by the minister of finance. However, if the participants want shift their repatriation assets, the government could allow the asset to be transfer to corporate bond, infrastructure, property, real sector in the second or third year of investment. The tax amnesty bill is currently under discussion within the parliament (Bisnis Indonesia) The government targets 5.5% - 5.9% economic growth in 2017 Bisnis Indonesia reported that the coming year s budget would assume 5.5% - 5.9% economic growth. The government also aims revenue and grant of 13.9% of GDP ratio (2016: 13.0%), spending of 16.0% of GDP (2016: 15.6%), and fiscal deficit of 2.2%. These figures are still subject to discussion between authorities (Bisnis Indonesia) Mar16 electricity sales growth decelerates As much as 17.9TWh of electricity was sold in Mar16, growing 6.7% YoY or less than previous period s 10.4% YoY. Flood is affecting the sales in Mar16, according to PLN s Head of Commerce Division Benny Marbun. Things are looking better in cumulative term as 1Q16 s electricity sales growth of 8.1% YoY is higher than the same period in previous years. For instance, it was 2.6% YoY in 1Q15, 7.6% YoY in 1Q14, and 5.7% YoY in 1Q13 (Investor Daily) Property: House of Representative and Ministry of Maritime agree to scrap Jakarta s reclamation permit House of Representative and Ministry of Maritime agree to scrap Jakarta s reclamation permit. There are several reasons why the reclamation need to be stopped; 1.) Environmental impact assessment performed by local Government is incomplete and it should be integrated; 2.) Reclamation project have given bad impact to Jakarta s fisherman; 3.) Reclamation project gives a bad impact to the environment. (Kontan) Page 2 of 7

3 Bank Bukopin (BBKP) strengthens its E-channel to receive incentives BBKP is trying to increase its efficiency by increasing the number of transactions made through its e-channel. The strategy is implemented so that BBKP can receive OJK s incentive, up to a 50% discount to the allocation of core capital. BBKP is confident that by maximizing its e-channel, BBKP can lower its NIM and of funds to meet OJK s requirements. (Bisnis Indonesia) Bank Rakyat Indonesia (BBRI) to rely on its satellite to cut operational expenses Currently, BBRI claims preparations to launch its satellite is 95% complete. President Director of BBRI, Asmawi Syam, states that the satellite will be launched on June 8, 2016 in Kourou and will be named BRISat. BBRI invested USD260mn or equivalent to Rp3.4tn in the satellite and has received loans from US Exim Bank and BNP Paribas totaling to USD170mn and USD190mn to fund the BRISat. BBRI states that they will not rent out space or a satellite slot to private companies, the unused slots will be given to the government through the Ministry of Communication and Information. Furthermore, BBRI states that the satellite will lower its overhead, leading to a reduction in to income. (Bisnis Indonesia) Electronic City (ECII) targets >5% yoy growth in revenue ECII targets revenue growth of >5% on yoy basis; with savings on opex that is targeted to be reduced by 1 2% yoy in FY16. The Company strategy to reduce opex includes better inventory management and to improve supply chain channel through building a new distribution plant. While to improve revenue, ECII plans to open 5 new stores in FY16 with an estimated investment amounting to Rp40bn. (Kontan) Matahari Putra Prima (MPPA) prepared Rp550bn Rp690bn capex for FY16 MPPA have allocated around Rp550bn Rp690bn for FY16 capex to expand it retail outlets. The company is planning to open new stores this year (6-7 Hypermarts, 3-4 Foodmart, 3-4 SmartClub, FMX and Boston). As of 1Q16 MPPA have already used around 35% - 40% of the capex to expand it outlets. Company s representative said that the fund will be sourced from internal cash. (Investor Daily) Sampoerna Agro (SGRO) CPO price rises 33% in Apr-16 According to the local press, SGRO reported CPO price increase of 33% to Rp8,000/kg in Apr-16 as compared to Rp6,000/kg at the beginning of the year. In addition, the company also indicated decline in production in 1Q16 as compared to 4Q15 due to low crop season. For FY16, SGRO is aiming for 10-15% production growth. (Kontan) Page 3 of 7

4 Indices Currencies and ADRs Major Commodities Last YTD Currency Last YTD Last YTD JCI 4, Rp/US$ 13, Oil spot (US$/bl) Dow Jones 17, US$/EUR Nickel spot (US$/mt) 8, Nikkei 16, YEN/US$ Gold spot (US$/oz) 1, SET 1, SGD/US$ Tin 3-month (US$/mt) 17, Hang Seng 21, CPO futures (Ringgit/ton) 2, STI 2, ADR Stocks Soybean oil (US$/100gallons) S&P 500 2, TLK in Rp 17, 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 Premium (discount) to replacement Replacement per share PE (x) ROE 16F 17F 16F 17F BSDE Buy 33,345 1,815 2,200-59% 4,475 17% 1, % 13.8% PWON Buy 24, % % % 24.4% SMRA Neutral 21,637 1,500 1,600-62% 3, % % 14.1% CTRA Buy 19,412 1,280 1,600-51% 2,628 64% % 13.9% JRPT Buy 10, ,300-77% 3,242 5% % 21.5% ASRI Neutral 6, % 1,161 69% % 6.3% LPCK Buy 4,907 7,050 13,500-71% 24,683 50% 4, % 16.8% MDLN Buy 4, % 1,165 42% % 6.6% CTRS Buy 4,007 2,025 3,600-75% 8,077-27% 2, % 14.7% Simple Average -64% % 14.7% Industrial Valuation JCI Code Rec. Market Cap (Rp bn) Share price Target Price Discount to NAV RNAV per share Premium (discount) to replacement Replacement per share PE (x) ROE 16F 17F 16F 17F DMAS Buy 9, % 691 4% % 11.0% BEST Neutral 2, % % % 9.8% SSIA Neutral 3, % 1,639 1% % 12.7% LPCK Buy 4,907 7,050 13,500-71% 24,683 50% 4, % 16.8% MDLN Buy 4, % 1,165 42% % 6.6% Simple Average -64% % 11.4% Page 4 of 7

5 Equity Valuation Price Price Mkt Cap Net Profit EPS Growth PER (x) EV/EBITDA (x) P/BV (x) Div.Yield Code Rating Target (Rp Bn) Mandiri Universe 4,853 5,000 3,717, , , % 12.7% % 2.5% Banking 783,563 66,526 76, % 15.3% N.A. N.A % 2.6% BBCA Neutral 13,100 13, ,981 18,174 21, % 17.7% N.A. N.A % 1.7% BBNI Buy 5,050 6,000 94,176 11,032 12, % 13.8% N.A. N.A % 3.5% BBRI Neutral 10,600 12, ,493 25,478 29, % 15.8% N.A. N.A % 3.4% BBTN Buy 1,700 2,100 17,990 2,379 2, % 19.5% N.A. N.A % 2.6% BDMN Sell 3,725 3,500 35,703 3,375 3, % 9.5% N.A. N.A % 2.0% BJBR Buy 955 1,100 9,260 1,378 1, % 7.8% N.A. N.A % 7.4% BJTM Neutral , , % 10.1% N.A. N.A % 9.6% BTPN Sell 2,700 2,200 15,769 1,648 1, % 10.4% N.A. N.A % 0.0% PNBN Buy 800 1,000 19,270 2,067 2, % 12.7% N.A. N.A % 0.0% Building Materials 149,026 9,279 9, % 5.6% % 3.3% SMCB Sell 1, , N/M 10.1% % 1.4% INTP Neutral 20,800 20,200 76,570 4,368 4, % 5.3% % 4.6% SMGR Neutral 10,775 11,200 63,912 4,501 4, % 5.4% % 2.1% Constructions 83,130 3,755 4, % 20.4% % 0.9% ADHI Buy 2,805 2,880 9, % 13.9% % 1.5% PTPP Buy 3,810 4,560 18, , % 30.7% % 0.0% WIKA Neutral 2,645 3,000 16, % 17.2% % 1.4% WSKT Buy 2,200 2,540 29,871 1,372 1, % 17.6% % 0.9% WTON Neutral 995 1,030 8, % 23.0% % 1.0% Toll road 36,550 1,620 1, % 7.4% % 1.9% JSMR U/R 5,375 U/R 36,550 1,620 1, % 7.4% % 1.9% Rice Mill 3, % 10.0% % 0.9% AISA U/R 1,195 U/R 3, % 10.0% % 0.9% Consumer 1,106,045 32,423 36, % 12.4% % 2.1% ICBP Neutral 14,900 14,000 86,881 3,298 3, % 10.7% % 1.9% INDF Neutral 7,175 6,000 63,003 4,160 4, % 13.5% % 3.3% MYOR Sell 32,500 24,500 24, % 19.8% % 0.6% ULTJ U/R 3,895 U/R 11, % 12.4% % 0.0% UNVR Neutral 43,350 41, ,761 6,051 7, % 18.4% % 1.8% GGRM Buy 66,900 56, ,721 5,665 6, % 11.7% % 1.6% HMSP Neutral 98, , ,687 11,712 12, % 9.3% % 2.5% WIIM U/R 394 U/R n/a 0.0% 0.0% n/a n/a n/a n/a n/a n/a 0.0% 0.0% Healthcare 81,274 3,281 3, % 11.7% % 1.7% KLBF Neutral 1,390 1,500 65,156 2,156 2, % 11.2% % 1.3% SIDO Neutral , % 12.9% % 3.3% TSPC Neutral 1,915 2,100 8, % 12.1% % 2.9% Hospital 46, , % 25.8% % 0.9% MIKA Buy 2,440 3,400 35, % 17.0% % 1.1% SILO Buy 9,100 11,000 10, % 73.2% % 0.1% Retail 95,953 4,300 5, % 18.8% % 2.4% ACES Neutral , % 14.4% % 1.5% ERAA Neutral , % 49.7% % 3.5% LPPF Buy 18,200 21,250 53,089 2,154 2, % 15.1% % 2.8% MAPI Sell 4,405 2,700 7, % 56.1% % 0.5% MPPA Neutral 1,630 2,175 8, % 24.2% % 1.3% RALS Neutral , % 8.3% % 3.8% TELE Buy 740 1,040 5, % 18.6% % 3.9% Automotive 304,971 18,406 20, % 9.3% % 2.7% ASII Buy 7,400 8, ,578 17,977 19, % 9.2% % 2.7% IMAS U/R 1,950 U/R 5, % 13.5% % 0.9% Heavy Equipment 59,422 5,632 5, % -1.3% % 2.7% HEXA* U/R 1,800 U/R 1, % 33.3% n/a n/a 0.0% 0.0% Page 5 of 7

6 Price Price Mkt Cap Net Profit EPS Growth PER (x) EV/EBITDA (x) P/BV (x) Div.Yield Code Rating Target (Rp Bn) UNTR Sell 15,525 13,250 57,910 5,491 5, % -2.3% % 2.8% Plantation 40,781 2,866 3, % 17.5% % 3.0% AALI U/R 16,050 U/R 25,275 1,854 2, % 15.9% % 3.3% LSIP U/R 1,720 U/R 11, % 16.6% % 2.6% SGRO U/R 1,995 U/R 3, % 31.3% % 1.8% Property 135,142 12,199 12, % 1.7% % 1.4% APLN U/R 261 U/R 5, % 10.8% % 3.1% ASRI Neutral ,895 1, % -59.0% % 1.8% BSDE Buy 1,815 2,200 33,345 2,750 3, % 9.2% % 2.1% CTRA Buy 1,280 1,600 19,412 1,511 1, % -5.4% % 1.6% CTRS Buy 2,025 3,600 4, % 8.5% % 2.9% JRPT Buy 730 1,300 10, , % 11.5% % 1.1% LPCK Buy 7,050 13,500 4, % -5.6% % 0.0% MDLN Buy , % -7.6% % 0.0% PWON Buy ,561 1,958 2, % 25.3% % 1.8% SMRA Neutral 1,500 1,600 21,637 1,137 1, % 4.5% % 0.0% Industrial 15,872 1,426 1, % 19.7% % 2.8% DMAS Buy , % 1.7% % 3.9% BEST Neutral , % 42.7% % 0.4% SSIA Neutral , % 62.3% % 1.5% Poultry 74,266 3,045 3, % 26.5% % 1.2% CPIN U/R 3,750 U/R 61,493 2,557 3, % 22.5% % 1.3% JPFA U/R 900 U/R 9, N/M 51.7% % 1.0% MAIN U/R 1,420 U/R 3, N/M 39.8% % 0.9% Coal 51,890 4,522 5, % 12.4% % 5.2% ADRO* Neutral , % 13.4% % 3.9% HRUM* Neutral 1, , % N/M % 0.7% ITMG* Neutral 7,125 6,000 8, % 13.8% % 10.4% PTBA Buy 7,575 7,500 17,457 1,619 1, % 11.3% % 5.2% Oil & Gas 66,301 7,517 7, % 5.9% % 5.6% PGAS* Sell 2,735 3,400 66, % 10.5% % 5.6% Shipping 3, % 6.3% % 4.1% SOCI* Buy , % 11.0% % 4.1% Metal 25, , % 17.4% % 2.1% ANTM Neutral , % N/M % 0.1% INCO* U/R 1,920 U/R 19, % 0.0% % 2.9% Telco 400,196 21,436 24, % 14.2% % 3.7% EXCL Buy 3,875 4,000 33,062 1,153 1,754 N/M 52.1% % 1.1% ISAT U/R 6,225 U/R 33,826 1,199 1, % 52.9% % 2.4% TLKM Buy 3,395 3, ,307 19,083 20, % 9.5% % 4.1% Tower 70,060 3,540 4, % 26.3% % 0.0% TBIG Neutral 5,800 6,000 27,820 1,120 1, % 39.1% % 0.0% TOWR Buy 4,140 5,000 42,240 2,420 2, % 20.4% % 0.0% Media 78,228 3,753 4, % 18.9% % 2.6% SCMA Neutral 3,210 3,000 46,935 1,769 2, % 19.5% % 2.6% MNCN Buy 2,125 2,200 31,293 1,984 2, % 18.4% % 2.5% Textile 5, % 16.8% % 0.0% SRIL* Buy , % 22.0% % 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 6 of 7

7 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 John Rachmat Head of Equity Research, Strategy john.rachmat@mandirisek.co.id Tjandra Lienandjaja Banking tjandra.lienandjaja@mandirisek.co.id Liliana S Bambang Property, Building Material liliana.bambang@mandirisek.co.id Ariyanto Kurniawan Telecom, Coal & Metal Mining ariyanto.kurniawan@mandirisek.co.id Matthew Wibowo Retail, Textile, Hospital matthew.wibowo@mandirisek.co.id Rizky Hidayat Property, Industrial, Media rizky.hidayat@mandirisek.co.id Bob Setiadi Construction, Toll Road bob.setiadi@mandirisek.co.id Francis Lim Consumer francis.lim@mandirisek.co.id Leo Putera Rinaldy Economist leo.rinaldy@mandirisek.co.id Wisnu Trihatmojo Research Assistant wisnu.trihatmojo@mandirisek.co.id Yudha Gautama Research Assistant yudha.gautama@mandirisek.co.id Kevin Halim Research Assistant kevin.halim@mandirisek.co.id Priscilla Thany Research Assistant priscilla.thany@mandirisek.co.id Ferdy Wan Research Assistant ferdy.wan@mandirisek.co.id Giovanni Dustin Research Assistant giovanni.dustin@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 Karmia Tandjung-Nasution Institutional Sales karmia.tandjung@mandirisek.co.id Mirna Santikara Salim Institutional Sales santikara.salim@mandirisek.co.id Oos Rosadi Institutional Sales oos.rosadi@mandirisek.co.id Vera Ongyono Institutional Sales vera.ongyono@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 Yohanes Triyanto Kelapa Gading yohanes.triyanto@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 (10% or higher), Neutral (-10% to10%) and Sell (-10% 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.