Equity Research 12 October Modest improvement in equity outlook THE BOTTOM LINE MARKET OUTLOOK FOR Mar-13 4,545 4,500 4,000 3,500

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1 INVESTOR DIGEST Equity Research 12 October 2016 Economic Data Latest 2016F 7-DRRR, eop Inflation (YoY %) US$ 1 = Rp, period avg 13,022 13,348 Stock Market Data (11 Oct 2016) JCI Index 5, % Trading T/O ( Rp bn ) 5,959.0 Market Cap ( Rp tn ) 5, ,016.2 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 77 companies in MS research universe, representing 68.4% of JCI s market capitalization Modest improvement in equity outlook Ace Hardware: Sep 16 operational data still weak (ACES; Rp 850; Neutral; TP: 970) HIGHLIGHT CIMB Niaga: Out of the Woods (BNGA; Rp915; Buy; TP:Rp1,130) Nusa Raya Cipta: Meeting Key takeaways (NRCA; Rp472; Not-rated) Siloam Hospital: EGM approves Rp1.3tn rights issues (SILO; Rp10,525; Neutral; TP:Rp10,820) Market Recap Oct 11 th 2016; JCI: 5, (+0.39%); USD/IDR: 13,013; Total Value: Rp6.97tn STRATEGY Modest improvement in equity outlook Global equity markets are currently suffering jitters from two main risks - the US presidential election, and the potential hike in Fed Funds Rate. We believe that both risks would turn managable, whereas in the domestic front we foresee a positive surprise from recovery in consumer spending. Reiterate Overweight. THE BOTTOM LINE MARKET OUTLOOK FOR ,500 6,000 5,500 5,000 4,500 4,000 3,500 Mar-13 4,545 Apr-14 4,800 Oct-13 4,000 Aug-14 5,200 Dec-13 4,000 Oct-14 4,800 Dec-14 5,200 Feb-15 5,100 Jul-15 5,000 Oct-15 4,500 Dec-15 4,500 Sep-16 5,450 Oct-16 5,150 May-16 4,500 May-17 5,950 Dec-16 5,550 Dec-17 6,150 Sep-17 5,250 3,000 2,500 JCI JCI Fcast by Mansek Jan-11 Apr-11 Aug-11 Nov-11 Mar-12 Jul-12 Oct-12 Feb-13 Jun-13 Sep-13 Jan-14 Apr-14 Aug-14 Dec-14 Mar-15 Jul-15 Oct-15 Feb-16 Jun-16 Sep-16 Jan-17 May-17 Aug-17 Dec-17 Source: Bloomberg, Mandiri Sekuritas Suprise recovery in consumer spending after four quarters of sub-5% growth in household consumption, 2Q16 suddenly registered a strong 5.04% jump. Many economists ascribe this to the shift in the timing of Lebaran festivity, meaning they expect 3Q16 to return to sub-5% rise in consumer spending. The rising prices of Indonesia's main commodity exports and consistently falling inflation, however, should provide us with a surprise recovery in household consumption. Page 1 of 11

2 Risks of US presidential election have dwindled in our view. We believe Donald Trump's policies would spark a bond market crash and a trade war. However polls rated his performance in the two presidential debates poorly. The release of a video clip showing his use of vulgar language to describe women should end his chances in our opinion. Fed Funds Rate is likely to see a 25 bps hike in Dec 2016, in our assessment. Yet we expect no further rate hikes in 2017 due to the benign inflation in the US. We also do not expect excessively negative reaction by the stock markets, as we do not face other aggravating factors (such as a collapsing oil price or China indices) at this time. Stock Picks are focused on quality core holdings BBCA TLKM MIKA PTBA, and beneficiaries of infrastructure program and tax amnesty WSKT PWON CTRS BSDE and DMAS. John Rachmat ( ) john.rachmat@mandirisek.co.id CORPORATE Ace Hardware: Sep 16 operational data still weak (ACES; Rp 850; Neutral; TP: 970) Gross sales in Sep 16 was flat yoy at Rp367bn. SSSG fell 3.3% with Ex Java being the worst at -4.9%, followed by Jakarta at -4.5% and Java by -1.4% Cumulative gross sales only grew by 2.9%yoy to Rp3,495bn, below company s growth target for this year of 5% and below our target of 4%. 9M16 gross sales accounted for 68% of our FY forecast and management target, below historical average of 72%. 9M16 SSSG was at 0.7%yoy with Ex-Java region posted the weakest performance of 0.2%, Jakarta at 0.7% while Java was strong at 1.2% We think the weak sales performance was mainly driven by the still-weak property pre-sales data given a high correlation of ACES SSSG and property pre-sales in the past. Boom sale period has just started from 25 Sep 25 Oct, we expect mom operational to recover while anticipating a weak performance yoy given last year boom sales was a high base from ACES 20 th year anniversary celebration. We estimate 3Q16 SSSG at -4.9% down from 4.6% in 2Q16 and also lower from 1.3% in 3Q15. Maintain our Neutral call on the stock with TP:970 Sep-15 Oct-15 Nov-15 Dec-15 Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16 Jul-16 Aug-16 Sep-16 Gross sales (Rp bn) YoY 4.6% 10.8% 5.2% 8.8% 9.4% 5.4% -0.1% 3.5% 5.9% 14.7% -0.6% -4.3% 0.0% Cumulative Gross Sales (Rp bn) 3,396 3,802 4,191 4, ,150 1,515 1,912 2,325 2, ,128 3,495.5 YoY 3.3% 4.1% 4.2% 4.6% 9.4% 7.5% 4.8% 4.5% 4.8% 6.4% 5.3% 3.3% 2.9% YoY SSSG - Monthly Jakarta 3.1% 9.1% 3.5% 6.8% 5.8% 0.5% 0.3% 0.2% 0.7% 13.0% -3.1% -5.4% -4.5% Java 2.2% 8.0% 3.7% 7.0% 3.3% 4.1% 0.6% 1.9% 3.6% 10.4% -3.3% -6.1% -1.4% Ex-Java -1.2% 3.2% 1.0% 3.5% 7.0% 3.4% 1.0% 0.9% 0.2% 9.0% -6.6% -5.8% -4.9% Overall 1.6% 7.0% 2.9% 6.0% 5.1% 2.7% 0.6% 1.1% 1.7% 10.9% -4.1% -5.8% -3.3% YoY SSSG - YTD Jakarta -0.3% 0.6% 0.9% 1.4% 5.8% 3.2% 2.2% 1.7% 1.5% 3.4% 2.3% 1.3% 0.7% Java -0.1% 0.7% 1.0% 1.6% 3.3% 3.7% 2.7% 2.4% 2.7% 4.0% 2.7% 1.5% 1.2% Ex-Java 4.3% -3.5% -3.1% -2.4% 7.0% 5.4% 3.9% 3.0% 2.5% 3.6% 1.8% 0.8% 0.2% Overall -1.3% -0.4% -0.1% 0.5% 5.1% 4.0% 2.8% 2.3% 2.2% 3.7% 2.3% 1.2% 0.7% Laura Taslim ( ) laura.taslim@mandirisek.co.id Page 2 of 11

3 CIMB Niaga: Out of the Woods (BNGA; Rp915; Buy; TP:Rp1,130) We initiate coverage on CIMB Niaga (BNGA) with a BUY recommendation and a TP of Rp1,130, implying 24% upside from the stock s current share price. We believe re-rating to 0.9x FY17 P/BV will be driven by improvement in asset quality, digital banking enhancements, and CASA growth. Strong recovery. We initiate CIMB Niaga, the 2 nd largest private bank, with a BUY recommendation and TP of Rp1,130, based on 0.9x FY17 P/BV using GGM. Underpinning our call is: 1) improvement in asset quality; 2) digital banking enhancements leading to lower CIR; and 3) CASA growth driven by digital services, cross selling, and value chain initiatives. We believe CIMB Niaga s valuation at 0.6x FY17 P/BV looks relatively cheap compared to peers under our coverage, trading at an average of 1.8x FY17 P/BV. A cleaner loan book. In line with management s view, we believe CIMB Niaga s NPL has passed its peak and will continue to improve over the coming quarters as indicated by declining special mention loans and provision expenses. In Sept-15 the bank took a bold step and sold ~USD200mn mining related bad debts to a local SPV, fully owned by CIMB Group. This reduced mining related NPLs from an astonishing 44% in Jun-15 to 2.4% in Jun-16. We believe the remaining NPLs recorded in the bank s book are cyclical and will improve over the coming quarters as the economy recovers. Benefits of the digital banking push. CIMB Niaga s digital developments, both in the back and front office, have resulted in lower Cost to Income Ratio (CIR) of 54% in 1H16 (vs. 56% in 1H15). Furthermore, the bank s digital enhancements, combined with improved transaction banking activities, cross-selling, and value chain initiatives, have boosted CASA to 49% in Jun-16 (from 45% in Jun-15). Recently launched innovations include the "Wave n Go" (contactless) credit card and the Octopay, a virtual credit card that makes transactions via Facebook. With more digital enhancements set in the pipeline, we expect CIMB Niaga s CIR to gravitate towards 50% over the next several years. We also expect CASA to gradually improve to 54-57%% in F. Risks to our call: 1) Adverse macro conditions; 2) Government intervention; 3) Competition in consumer lending segment; 4) Failure to realize of digital banking initiatives. FINANCIAL SUMMARY YE Dec (Rp Bn) 2014A 2015A 2016F 2017F 2018F Pre-Provision Profit 6,407 6,046 6,870 7,540 8,055 Net Profit 2, ,670 3,290 3,986 EPS EPS Growth (45.3) (81.7) P/E Ratio (x) BVPS 1,132 1,141 1,345 1,476 1,634 P/BV Ratio (x) Dividend Yield ROAE CAR Source: Company ( ), Mandiri Sekuritas ( ) Priscilla Thany ( ) Tjandra Lienandjaja ( ) priscilla.thany@mandirisek.co.id tjandra.lienandjaja@mandirisek.co.id Page 3 of 11

4 Nusa Raya Cipta: Meeting Key takeaways (NRCA; Rp472; Not-rated) Slow new contracts progress. 9M16 new contracts have reached Rp1.98tn YTD or 60% of Co. s FY16 target. However, this new contracts achievement was mainly driven by three big projects, consisting of Branz Surabaya (office - Rp800bn), Orchard Park Batam (APLN-owned residential project - Rp400bn), and Renaissance Bali (hotel - Rp300bn), while the remaining was formed from smaller projects. NRCA is currently bidding for the 36km Serpong-Balaraja toll road worth Rp3.7tn which is owned by consortium of Sinarmas, Kompas Gramedia, and Astratel Nusantara. As the bidding process still in early stage, NRCA does not expect to record additional contract from Serpong-Balaraja toll-road project in the near future. However, NRCA expects to perform a joint-venture with other construction companies for this project. Difficulty in obtaining infrastructure projects has causing us to worry that NRCA s new contracts achievement would fall short of our current FY16 new contracts target of Rp2.75tn (-9% YoY). Potential toll road divestment ahead. NRCA confirms that SSIA would join Saratoga Investama (SRTG) in search of potential buyers to its Cikopo-Palimanan (Cipali) toll-road asset. There have been two potential buyers which are currently conducting a due diligence process. Although, NRCA is currently forbidden to disclose the exact detail of this deal, they believe that the potential buyers have enough financial capabilities and could work together with Plus Expressway Bhd (the majority owner of Cipali toll road). We view the Cipali divestment positively as it would relieve the earnings performance of NRCA and SSIA. Performance is expected to be lackluster. With property market remains lackluster this year combined with tighter completion from private and SOE contractors, we believe NRCA s performance will remain subdue in 2H16. New contracts numbers are expected to only improve in 2H17 after better marketing sales in property sector. During this period, NRCA would continue to take smaller projects while attempting to find new infrastructure project (e.g. water treatment plant). Meanwhile, we still expect continuous loss making on the Cipali toll-road and tougher competition to drag down and post risk on SSIA s earnings. Though we don t have any rating for NRCA at the meantime, we do have a Neutral call with TP of Rp700 for SSIA. At the counter, SSIA is currently trading at 9.8x FY17F PE and 69% discount to NAV while NRCA is trading at 13x FY17 consensus PER. Ferdy Wan ( ) ferdy.wan@mandirisek.co.id Siloam Hospital: EGM approves Rp1.3tn rights issues (SILO; Rp10,525; Neutral; TP:Rp10,820) SILO announced on Sept 2, 2016 that it was officially issuing a Rp 1.3 trillion rights issue. In this right issue, existing shareholders will be given pro rata rights to subscribe 144,512,500 new shares. Shareholders owning 8 shares will be given the right to subscribe 1 new share. Shareholders who do not exercise their rights will be diluted by 11.11%. Siloam intends to use the proceeds from the issue as follows: 1. Approximately 56% of the proceeds will be used to finance investments for business development in the period of 2017 to 2019, consisting of the following: a. Construction or expansion of hospitals and/or expansion of existing hospitals. b. Opportunistic acquisitions to expand and develop Siloam businesses including acquisition of hospitals, acquisition of shares of the company which owns the hospital, or the acquisition of assets that has synergies with Siloam business. 2. Approximately 33% of the proceeds will be used to pay debt (principal and interest) owed PT Lippo Karawaci Tbk ( LPKR ) with principal balance of Rp billion as of 30 June Approximately 11% of the proceeds will be used to fund working capital needs which includes operating expenses such as hospital building leases and others. Francis Lim ( ) francis.lim@mandirisek.co.id Page 4 of 11

5 TAX AMNESTY MARKET Market Recap Oct 11 th 2016; JCI: 5, (+0.39%); USD/IDR: 13,013; Total Value: Rp6.97tn Indo equities were mixed in early trading on Tuesday after oil prices surged to a one-year high and optimism over Hillary Clinton widening lead in the US presidential election campaign pushed Wall Street higher. Brent crude rose to as high as $53.73, the highest level since Oct 9 th 2015 and closed up 2.3% at $ US crude futures jumped 3.1% to $51.26, a fourmonth high. The gains came after Russia said it was ready to join the OPEC in limiting crude output and Algeria called for similar commitments from other non-opec producers. Accordingly, coal plays got a fresh boost and led the JCI higher right at the opening: ITMG (+7.1%), DOID (+4.8%), KKGI (+3.9%), HRUM (+4.9%), PTBA (+4.2%), UNTR (+3.2%) and ADRO (+1.1%). Meanwhile, SMGR lost 2.9% to close at 10000, recovered from day low of 9650 (-6.3%, the most since Sept 7 th ) after news report that Supreme Court rejected appeal to maintain environmental permit for its already-90%-completion cement plant in Rembang. In the end, the JCI rose 0.4% at 5382 level in strong turnover at US$458mn (excluding US$19mn SMMA; US$7.7mn SMBR; US$4.6mn MYRX; US$3.7mn ASMI; US$2.7mn LCGP; and US$2.2mn KREN crossing). Regular market transaction was recorded at Rp6tn (US$461mn) and excluding foreign sell from SMMA crossing, foreign posted a net buy of Rp37.28bn (US$2.86mn). Foreign participants recovered to 30% and came up better seller for 10%. Losers beat gainers by 11 to 10. In currency, even though the greenback retained overnight gains on growing expectations that the US Federal Reserve will raise interest rates this year, the IDR stabilized around level. Traders have priced in a 70% chance that the Fed will hike at a Dec policymakers meeting, up from 66% early Friday, according to CME Group s FedWatch tool. Investors are looking to Wed release of minutes of the latest FOMC meeting to see how close the Fed was to hiking rates last month. TOP TURNOVER: TLKM BBRI ASII ANTM SMGR BMRI BBCA PPRO LPPF BBNI INDF UNTR PGAS UNVR HRUM WSBP (45%) ADVANCING SECTOR: mining +1.8%; consumer +1.1%; telco +0.8%; property +0.4%; financial +0.1%; construction flat DECLINING SECTOR: cement -0.8%; plantation -0.3%; auto flat The yield of 10-year government went up to 7.133% (+0.338%) and Rupiah weakened to Rp13,013 (-0.27%). Sales Team Page 5 of 11

6 FROM THE PRESS House of Legislatives is eyeing excise tax for soda drinks Soda drinks are said to be dangerous for health, thus eligible for excise taxation. According to Ministry of Finance, soda drinks consumption reaches 3.75 mn kiloliters. Should soda excise be Rp3,000/L, additional tax revenue can reach up to Rp11.24 tn. Discussion is still ongoing among house members, Ministry of Health, and stakeholders. (Kontan) Indonesia Toll Road Authority (BPJT) recommends 25 additional toll roads into list of National Strategic Projects The toll road projects inside list of National Strategic Projects would able to receive guarantee on the payment of bailout fund from the State Asset Management Agency (LMAN). Some of the notable toll road projects include Krian-Legundi-Bunder (initiated by Waskita Karya) as well as Jakarta-Cikampek II Elevated and South (initiated by Jasa Marga). (Bisnis Indonesia) Jakarta Propertindo (Jakpro) to select 3 SOEs for Jakarta Light Rail Transit (LRT) project Jakpro is currently waiting for the revision of Government Regulation (PP) No.79/2015 prior to announcing tender winner for the first phase of LRT project (Pegangsaan-Kelapa Gading-Pulo Mas-Kebayoran Lama). Nevertheless, Jakpro stated it would complete the selection process of 3 state-owned construction companies which have submitted its bid in the next 5 days. (Bisnis Indonesia) Regulations on economic policy packages near completion Government has issued 202 out of 204 regulations as well as 24 among 26 derivative rules under economic policy packages I- XII. The remaining regulations are intended for package XIII which accommodates housing development for low income segment (Kontan) Retail sales growth acceleration in Aug16 might continue in Sep16 Bank Indonesia survey showed retail sales growth of 14.4% YoY in Aug16, up from 6.3% YoY in Jul16. It was backed by food & beverages and spare parts & accessories sales. The same categories are expected to push even higher retail sales growth rate of 15.7% YoY in Sep16. (Bank Indonesia) The Government to cancel nickel ore export he government decided to cancel nickel ore export as the construction of the new nickel smelter in Indonesia is already going well. On top of that, the government also found that the processing facility to process nickel ore with less than 1.7% nickel content is already available. Previously the government plans to export nickel citing lack of demand for nickel ore with <1.8% nickel content (Bisnis) Commnet: This is positive for the entire nickel sector particularly for INCO but net negative for ANTM. Prior to export ban in FY14, nickel ore sales accounted for around 20-40% of ANTM s sales. ANTM initially plans to use the cash flow from nickel ore sales to fund the construction of its new nickel smelter. Bank Mandiri (BMRI) forms a new unit to boost consumer loans BMRI has formed a new unit called the Retail Credit Center (RCC) to boost distribution of consumer loans. The new unit has started operating in September According to BMRI s Operational Director Ogi Prastmoniyono, the central RCCs located in Jakarta, Surabaya, Palembang, and Makassar will accelerate and increase efficiency of loan distribution. The RCC will specialize in the following products: mortgage, credit cards, and unsecured loans. As of September, the RCCs have distributed Rp2.2tn of loans. (Bisnis Indonesia) Bank Rakyat Indonesia (BBRI) to increase capital of BRISyariah BBRI will still inject capital to BRISyariah even though BRISyariah has issued subordinate sukuk mudharabah to strengthen its capital. However, the amount injected to BRISyariah will be less than BBRI s initial plan of Rp500bn. (Bisnis Indonesia) Page 6 of 11

7 Ciputra Development (CTRA) to launch phase II of Citra Maja Raya Through its subsidiary, Ciputra Residence, company plans to launch phase II of residential project on top of 300ha in Nov 16 consisting of two clusters, Tevana and Navari, with tag price starting from Rp149mn/unit for Tevana and Rp293mn/unit for Navari. Construction phase will start in early FY17 and is expected to complete in early FY19 with investment cost totaled Rp2tn. Meanwhile, Ciputra Residence, together with Mitsui will form a JV to launch 5-storey flats targeting mid segment in Citra Raya Tangerang towards the end of FY16 with estimated tag price starting from Rp500mn. (Investor Daily) Panin Bank (PNBN) to issue bonds Rp2.13tn PNBN plans to issue sustainable bonds II Phase II 2016 with a principal amount of Rp2.13tn and an interest rate of 8.75%. The tenor of the bonds is five years since its issuance date at October 27, The funds will be used for the bank s working capital needs and to strengthen the bank s long term funding. (Bisnis Indonesia) Semen Indonsia (SMGR) - cancellation of the environmental license for the rembang plant According to the news, the environmental license for SMGR s quarry mining/factory building in Rembang (for the new 3mn MT cement plant) is cancelled. The farmers submit a new evidence to the Supreme Court and they won the legal battle. The licenses of the cement plant were issued by the Central Java governor, Ganjar Pranowo. Previously, these farmers went to the President, Jokowi, in which the President offer to become mediator to resolve the issue. Jokowi offered solutions to determine which part of the karst mountain could be exploited and which could not. In regards to the plant construction, SMGR has followed all the proper legal procedures and environmental assessment. Comment: Management is still studying the result of the Supreme Court. We believe that the worst case is that the operational of Rembang (3mn MT) is delayed. Rembang Plant is around c. 10% of total SMGR s capacity and previously were expected to run on 1Q17. The construction of Rembang plant is almost completed. Even without the Rembang plant, we think that SMGR has sufficient capacity to fulfill domestic demand (we forecast 84% utilization rate without the rembang plant in FY17). We think that the government officials will become mediators to the farmers of Rembang to offer solutions (in regards to what Jokowi offers previously). Despite the delay of the Rembang plant, we would not immediately become bullish on cement sector on the back of rising coal price (from US$50/MT to US$85/MT). Page 7 of 11

8 Indices Currencies and ADRs Major Commodities Last YTD Currency Last YTD Last YTD JCI 5, Rp/US$ 13, Oil spot (US$/bl) Dow Jones 18, US$/EUR Nickel spot (US$/mt) 10, Nikkei 16, YEN/US$ Gold spot (US$/oz) 1, SET 1, SGD/US$ Tin 3-month (US$/mt) 19, Hang Seng 23, CPO futures (Ringgit/ton) 2, STI 2, ADR Stocks Soybean oil (US$/100gallons) S&P 500 2, TLK in Rp 20, 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 16F 17F 16F 17F BSDE Buy 41,958 2,180 2,350-57% 5,038 41% 1, % 11.6% PWON Buy 32, % 1,207 58% % 24.7% SMRA Neutral 25,748 1,785 1,600-55% 3, % % 14.7% CTRA Buy 23,356 1,540 1,600-41% 2,628 97% % 14.0% JRPT Buy 11, ,300-75% 3,242 19% % 20.4% ASRI Neutral 8, % 1,161 98% % 6.3% LPCK Buy 4,072 5,850 10,000-76% 24,683 24% 4, % 14.6% MDLN Buy 5, % 1,165 48% % 6.6% CTRS Buy 5,363 2,710 4,000-80% 13,390-33% 4, % 13.9% Simple Average -61% % 14.1% 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 16F 17F 16F 17F DMAS Buy 12, % % % 12.5% BEST Buy 2, % % % 9.0% SSIA Neutral 2, % 1,701-38% % 8.1% LPCK Buy 4,072 5,850 10,000-76% 24,683 24% 4, % 14.6% MDLN Buy 5, % 1,165 48% % 6.6% Simple Average -67% % 10.2% Page 8 of 11

9 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) Mandiri Universe 5,382 5,550 4,155, , , % 16.1% % 1.8% Banking 934,698 66,358 81, % 23.5% N.A. N.A % 2.1% BBCA Neutral 15,800 13,000 (17.7) 389,549 18,174 21, % 17.7% N.A. N.A % 1.4% BBNI Neutral 5,200 6, ,973 9,953 13, % 32.4% N.A. N.A % 3.1% BBRI Neutral 11,950 11,300 (5.4) 294,797 24,832 28, % 16.4% N.A. N.A % 2.9% BBTN Buy 1,915 2, ,280 2,439 2, % 21.0% N.A. N.A % 2.4% BDMN Sell 3,960 3,500 (11.6) 37,955 3,375 3, % 9.5% N.A. N.A % 1.9% BJBR Neutral 1,635 1,500 (8.3) 15,853 1,772 2, % 15.6% N.A. N.A % 4.5% BJTM Sell (1.8) 8,205 1,047 1, % 10.0% N.A. N.A % 8.5% BNGA Buy 915 1, ,995 1,670 3, % 97.0% N.A. N.A % 0.0% BNLI Buy , ,069 N/M N/M N.A. N.A % 0.0% BTPN Sell 2,600 2,200 (15.4) 15,185 1,648 1, % 10.4% N.A. N.A % 0.0% PNBN Buy 805 1, ,391 2,129 2, % 11.3% N.A. N.A % 0.0% Building Materials 136,482 9,374 10, % 7.0% % 3.7% INTP Neutral 17,675 20, ,066 4,368 4, % 5.3% % 5.4% SMCB Sell (9.1) 7, N/M 10.1% % 1.6% SMGR Neutral 10,000 11, ,315 4,501 4, % 5.4% % 2.3% ARNA Buy (0.8) 4, % 147.5% % 1.5% Constructions 88,960 4,132 5, % 21.8% % 0.6% ADHI Buy 2,340 3, , % 32.0% % 1.3% PTPP Buy 4,250 5, , , % 19.2% % 0.9% WIKA Buy 2,750 3, , % 23.9% % -1.3% WSKT Buy 2,640 3, ,326 1,634 1, % 12.7% % 1.0% WTON Buy 910 1, , % 54.2% % 1.2% Toll road 31,756 1,612 1, % -6.2% % 1.0% JSMR Neutral 4,670 5, ,756 1,612 1, % -6.2% % 1.0% Rice Mill 6, % 16.9% % 0.5% AISA U/R 2,050 U/R U/R 6, % 16.9% % 0.5% Consumer 1,185,802 33,682 37, % 10.7% % 1.0% ICBP Neutral 9,800 9,050 (7.7) 114,287 3,464 3, % 8.2% % 1.4% INDF Buy 8,925 10, ,370 3,801 3, % 2.2% % 2.6% MYOR Neutral 1,495 1, ,427 1,346 1, % 7.2% % 1.6% ULTJ U/R 4,700 U/R U/R 13, % 19.6% % 0.0% UNVR Neutral 45,250 41,400 (8.5) 345,258 6,358 7, % 13.5% % -1.8% GGRM Buy 64,500 72, ,104 5,902 7, % 21.7% % 1.6% HMSP Neutral 4,090 3,750 (8.3) 475,741 12,021 12, % 7.2% % 2.5% WIIM U/R 496 U/R U/R 1, n/a % 0.0% n/a n/a n/a n/a n/a n/a 0.0% 0.0% Healthcare 99,150 3,281 3, % 11.7% % 1.4% KLBF Neutral 1,720 1,500 (12.8) 80,625 2,156 2, % 11.2% % 1.1% SIDO Neutral (4.3) 8, % 12.9% % 2.8% TSPC Neutral 2,200 2,100 (4.5) 9, % 12.1% % 2.6% Hospital 52, % 12.2% % 0.6% MIKA Buy 2,800 3, , % 11.1% % 0.7% SILO Neutral 10,525 10, , % 17.7% % 0.0% Retail 98,823 3,980 4, % 21.6% % 2.8% ACES Neutral , % 10.4% % 1.9% ERAA Neutral (11.8) 1, % 49.7% % 4.0% LPPF Buy 17,700 22, ,647 2,082 2, % 14.3% % 3.6% MAPI Buy 4,450 5, , % 194.2% % 0.0% MPPA Neutral 1,850 1, , % 49.9% % 0.5% RALS Neutral 1,240 1,180 (4.8) 8, % 6.5% % 2.9% TELE Buy 640 1, , % 18.6% % 4.5% Automotive 340,731 16,763 18, % 10.0% % 2.2% ASII Neutral 8,325 8,200 (1.5) 337,026 16,492 18, % 9.5% % 2.2% Page 9 of 11

10 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) IMAS U/R 1,340 U/R U/R 3, N/M 53.7% % 1.3% Heavy Equipment 74,668 4,686 4, % 2.9% % 1.9% HEXA* U/R 2,520 U/R U/R 2, % 50.0% n/a n/a 0.0% 0.0% UNTR Sell 19,450 11,000 (43.4) 72,551 4,554 4, % 1.8% % 1.9% Plantation 40,270 2,145 3, % 40.5% % 1.7% AALI Buy 15,125 16, ,377 1,519 2, % 19.8% % 1.8% LSIP Buy 1,505 1, , % 85.0% % 1.4% SGRO U/R 1,920 U/R U/R 3, % 28.6% % 1.7% Property 162,987 11,167 11, % 6.1% % 0.6% APLN U/R 284 U/R U/R 5, , % 24.7% % 2.9% ASRI Neutral (22.9) 8,110 1, % -59.0% % 1.6% BSDE Buy 2,180 2, ,958 2,143 2, % 17.6% % 0.8% CTRA Buy 1,540 1, ,356 1,474 1, % -3.1% % -1.3% CTRS Buy 2,710 4, , % 1.8% % 2.2% JRPT Buy 825 1, , , % 11.6% % 1.0% LPCK Buy 5,850 10, , % -15.9% % 0.0% MDLN Buy , % -2.2% % 0.0% PWON Buy ,026 1,934 2, % 25.9% % 1.4% SMRA Neutral 1,785 1,600 (10.4) 25, , % 40.0% % 0.0% Industrial Estate 17,596 1,394 1, % 11.5% % 1.9% DMAS Buy , % 8.4% % 2.3% BEST Buy , % 18.8% % 0.4% SSIA Neutral , % 15.5% % 1.8% Poultry 82,745 3,547 4, % 22.2% % 1.2% CPIN U/R 3,700 U/R U/R 60,673 2,671 3, % 20.2% % 1.3% JPFA U/R 1,745 U/R U/R 18, % 25.8% % 0.8% MAIN U/R 1,550 U/R U/R 3, N/M 36.3% % 1.2% Coal 91,498 5,259 5, % 11.5% % 3.2% ADRO* Neutral 1,400 1,100 (21.4) 44, % 14.2% % 2.6% HRUM* Neutral 1,500 1,100 (26.7) 4, N/M 43.3% % 2.3% ITMG* Neutral 13,950 7,600 (45.5) 15, % 8.0% % 5.4% PTBA Neutral 11,675 9,200 (21.2) 26,905 1,542 1, % 12.7% % 3.2% Oil & Gas 62,786 7,044 7, % 8.0% % 5.7% PGAS* Sell 2,590 3, , % 10.5% % 5.7% Shipping 2, % 8.5% % 4.7% SOCI* Buy , % 11.0% % 4.7% Metal 34, N/M N/M % 0.4% ANTM Neutral (39.8) 7, % N/M % 0.1% INCO* U/R 2,720 U/R U/R 27, % 33.3% % 0.5% Telco 469,444 20,500 23, % 16.7% % 3.1% EXCL Neutral 2,650 3, , ,179 N/M 172.1% % 0.8% ISAT U/R 6,375 U/R U/R 34,641 1,013 1,908 N/M 76.0% % 2.1% TLKM Buy 4,160 3,800 (8.7) 408,412 19,083 20, % 9.5% % 3.3% Tower 68,270 3,540 4, % 26.3% % 0.0% TBIG Neutral 6,150 6,000 (2.4) 29,499 1,120 1, % 39.1% % 0.0% TOWR Buy 3,800 5, ,771 2,420 2, % 20.4% % 0.0% Media 67,289 3,175 3, % 16.0% % 2.6% SCMA Buy 2,620 3, ,309 1,599 1, % 16.9% % 2.9% MNCN Buy 2,030 2, ,980 1,576 1, % 15.0% % 2.2% Textile 4, % 19.2% % 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 10 of 11

11 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 Adrian Joezer Consumer 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 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 (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.