Equity Research 6 January Market Recap Jan 5 th 2016; JCI: 4, (+0.7%); USD/DR: 13,892; Total Value: Rp4.75tn

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1 INVESTOR DIGEST Equity Research 6 January 2016 Economic Data Latest 2016F BI Rate, eop Inflation (YoY %) US$ 1 = Rp, period avg 13,892 14,150 HIGHLIGHT Market Recap Jan 5 th 2016; JCI: 4, (+0.7%); USD/DR: 13,892; Total Value: Rp4.75tn Stock Market Data (5 Jan 2016) MARKET JCI Index 4, % Trading T/O ( Rp bn ) 3,828.0 Market Cap ( Rp tn ) 4, ,150.3 Market Recap Jan 5 th 2016; JCI: 4, (+0.7%); USD/DR: 13,892; Total Value: Rp4.75tn Market Data Summary* 2015F 2016F Indo market rebounded and finally closed up +0.7% at 4557 level. WTON went up 9.38% after news that President Jokowi decided the groundbreaking of Jakarta-Bandung high speed train will be held on Jan 21 st. Regular market transaction was recorded at Rp3.8tn (US$273.5mn) and foreign posted a net buy of Rp72.9bn (US$5.25mn). EBITDA growth EPS growth EV/EBITDA (x) P/E (x) P/BV (x) Div. Yield Earnings Yield Net Gearing ROE TOP TURNOVER: TLKM ASII BBCA BBRI BMRI UNVR BBNI INDF GGRM WTON SRIL WIKA ADVANCING SECTOR: misc. industry +2.98%, agri +2%, infra +1.45%, finance +0.8%, construction +0.8%, manufacture +0.7%, mining +0.57%, consumer +0.3%, basic industry +0.2% DECLINING SECTOR: trade -0.7%, The yield of 10-year government went up to 8.853% (+0.35%) and Rupiah appreciated to Rp13,892 (+0.37%). * Aggregate of 74 companies in MS research universe, representing 66% of JCI s market capitalization Sales Team Page 1 of 7

2 FROM THE PRESS 10 private banks and 6 regional development banks to supply KUR The 10 private banks which will supply KUR will be announced by OJK before April The two conditions that private and regional development banks have to fulfill in order to be able the supply KUR are NPL of micro and SMEs have to be below 5% and portfolio of micro and SMEs have to be above 5% of total loan balance. (Kontan) 18 toll roads are under evaluation for not having started construction. The government is currently evaluating toll roads that have acquired development agreements (PPJT) but have not initiated construction. Those without a valid reason will be given a sanction. Out of the 41 toll road projects that received PPJT in 2015, 18 are still in planning stages including the Kunciran Serpong toll road, Cinere Serpong, and Cibitung Cilincing. (Bisnis Indonesia). Govt optimistic KUR to reach Rp120tn in 2016 The Indonesian government is optimistic that 2016 s supply of KUR will reach Rp tn. The optimism is supported by lower interest rates for KUR at 9% and an effort to accelerate supply of KUR by banks. (Investor Daily) National cement industry is expected to pick up in FY16 The Indonesian cement industry is expected to recover from sluggish sales in FY15, mainly driven by government s infrastructure projects. Semen Indonesia (SMGR) expects national cement consumption to grow more than 5% in FY16. The company stated commencement of infrastructure projects in FY15 would continue to boost cement consumption in FY16 coupled with expectation of improving economic growth and low per capita cement consumption. (Jakarta Post) Aneka Tambang (ANTM) allocated FY16 capex of Rp2.0tn Aneka Tambang (ANTM) has allocated approximately Rp2tn for FY16 capex mainly for its expansion projects. Funds will mainly be used for the construction of 3 projects namely Anode Slime, Smelter Grade Alumina (SGA) Mempawah and East Halmahera Ferronickel Plant (P3FH). (Kontan) Bank BNI (BBNI) and Bank Mandiri (BMRI) reviews restructuring Trikomsel s (TRIO) debt BBNI and BMRI states that they are currently coming up with a number of restructuring options, after the court allowed TRIO to delay debt repayment (PKPU), in order to decrease NPLs. BBNI s SEVP Remedial Recovery, Elissa Massa Manik, states that BBNI, BBCA, and BMRI are currently discussing the restructuring process. (Kontan) Bank Tabungan Negara (BBTN) net income to reach Rp1.8tn Based on November s realized net income, BBTN is positive that its net income for FY2015 will reach Rp1.75-Rp1.8tn. Finance and Treasury Director of BBTN states that if BBTN s net income exceeds Rp1.8tn, BBTN will allocated the excess amount to strengthen its reserves. (Bisnis Indonesia) Kalbe Farma (KLBF) allocate Rp1.5tn for FY16 capex KLBF is planning to allocate Rp1.5tn for FY16 capex, a 50% yoy increase from FY15 s Rp1tn target. The fund will be used to expand the current capacity (i.e. pharmaceutical plant, consumer health plant and distribution plant); while it will also be used to widened its distribution network in East Indonesia (i.e. Sulawesi, Nusa Tenggara & Papua) through the opening of new branches. According to company, the fund will be sourced internally. (Bisnis Indonesia) Page 2 of 7

3 Kimia Farma (KAEF) prepared Rp1tn for FY16 Capex KAEF prepared Rp1tn to improve their services through building 1.) raw material plant for drugs and supplements in Lippo Cikarang (West Java), 2.) plant to produce drugs in Banjaran-Bandung (West Java), 3.) Stage II pharmaceutical salt s plant in Batuwakon-Jombang (East Java), 4.) diagnostic kit plant in Bali, 5.) and around 125 new pharmacies around Indonesia. Capex will funded through equity and loan; Rp200bn-250bn through equity and the rest will be sourced through loan. The company expects to record Rp5tn revenue and Rp250bn net profit for FY15; while they expect the revenue to increase to Rp5.6tn (with net margin of around 5%) in FY16. (Investor Daily) Summarecon Agung (SMRA) targets FY16 marketing sales of Rp4.5tn Summarecon Agung (SMRA) is targeting FY16 marketing sales amounting to Rp4.5tn, similar to FY15 marketing sales target. According to the company, majority of marketing sales is expected to come from Summarecon Bandung and Serpong projects (Rp1.5tn each), while the remaining Rp1.5tn will be contributed by Summarecon Bekasi and Kelapa Gading. In FY15, SMRA has managed to achieved marketing sales of Rp4.3tn, 96% of FY15 marketing sales target of Rp4.5tn. Meanwhile, the company has allocated Rp2.7tn for FY16 capex. Funds will primarily be used for new projects, existing property projects and development of infrastructure. (Kontan) Surya Semesta Internusa (SSIA) to acquire 300ha of industrial land Surya Semesta Internusa (SSIA) is planning to acquire 300ha of industrial land in Subang, West Java, which represents a revision from initial target of 500ha. The company has prepared Rp600bn in order to support the expansion plans. (Kontan) Trikomsel (TRIO) to expand their cellphone product Together with PT Arga Mas Lestari (Advan cellphone producer), TRIO will release its 4G cellphone under the brand Osmo. They will release 3 different types of Osmo cellphone with different price range and specs to grab a wider target market. The brand will try to use TRIO s retail network to distribute and promote the brand. (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$/mt) 8, Nikkei 18, YEN/US$ Gold spot (US$/oz) 1, SET 1, SGD/US$ Tin 3-month (US$/mt) 14, Hang Seng 21, CPO futures (Ringgit/ton) 2, STI 2, ADR Stocks Soybean oil (US$/100gallons) S&P 500 2, TLK in Rp 15, 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 P/E 15F P/E 16F ROE 15F ROE 16F BSDE Buy 33,437 1,820 2,400-61% 4,725 18% 1, % 15.5% PWON Buy 23, % 1,033 40% % 27.5% SMRA Neutral 22,719 1,575 1,600-60% 3, % % 15.7% CTRA Neutral 21,763 1,435 1,350-36% 2,234 84% % 17.0% JRPT Buy 10, ,350-78% 3,380-6% % 25.9% ASRI Buy 6, % 1,538-21% % 23.3% APLN Buy 6, % 721-4% % 15.9% LPCK Buy 4,889 7,025 13,500-72% 24,683 49% 4, % 19.9% MDLN Buy 5, % 1,712-17% % 15.5% CTRS Buy 4,274 2,160 3,600-73% 8,077-22% 2, % 14.8% Simple Average -64% % 19.1% 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 P/E 15F P/E 16F ROE 15F ROE 16F DMAS Buy 10, % % % 14.1% BEST Neutral 2, % 1,047-45% % 7.1% SSIA Buy 3, ,100-73% 2,750-45% 1, % 14.9% LPCK Buy 4,889 7,025 13,500-72% 24,683 49% 4, % 19.9% MDLN Buy 5, % 1,712-17% % 15.5% Simple Average -70% % 14.3% 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 4,558 5,000 3,448, , , % 14.9% % 2.5% Banking 797,908 61,053 71, % 17.0% N.A. N.A % 1.9% BBCA Neutral 13,375 12, ,761 17,796 20, % 12.6% N.A. N.A % 1.5% BBNI Buy 4,950 5,900 92,311 8,971 11, % 33.5% N.A. N.A % 1.9% BBRI Buy 11,575 11, ,546 24,023 26, % 11.6% N.A. N.A % 2.1% BBTN Buy 1,310 1,500 13,844 1,891 2, % 29.6% N.A. N.A % 2.7% BDMN Neutral 3,110 3,150 29,808 2,589 3, % 36.2% N.A. N.A % 2.6% BJBR Buy 780 1,100 7,563 1,257 1, % 20.9% N.A. N.A % 10.0% BJTM Neutral ,395 1,015 1, % 13.6% N.A. N.A % 9.5% BTPN Neutral 2,420 3,000 14,134 1,755 1, % 10.8% N.A. N.A % 0.0% PNBN Neutral 770 1,000 18,547 1,755 1, % 13.0% N.A. N.A % 0.0% Building Materials 150,568 9,823 10, % 8.2% % 3.6% SMCB Sell , N/M N/M % -0.1% INTP Neutral 20,875 21,600 76,846 4,972 5, % 3.2% % 5.2% SMGR Neutral 11,150 12,100 66,136 4,880 5, % 4.2% % 2.2% Constructions 72,941 2,624 3, % 20.7% % 0.5% ADHI Buy 2,155 2,880 7, % -26.7% % 1.6% PTPP Buy 3,830 4,200 18, , % 45.3% % 0.0% WIKA Neutral 2,745 3,000 16, % 25.2% % 1.1% WSKT Buy 1,645 1,900 22, % 8.3% % 0.0% WTON Neutral , % 49.9% % 0.7% Toll road 35,700 1,569 2, % 30.2% % 1.8% JSMR Buy 5,250 8,650 35,700 1,569 2, % 30.2% % 1.8% Rice Mill 3, % 29.3% % 0.0% AISA Neutral 1,180 2,500 3, % 29.3% % 0.0% Consumer 965,998 29,560 32, % 9.7% % 2.2% ICBP Neutral 13,000 14,000 75,802 3,086 3, % 6.9% % 2.0% INDF Neutral 5,475 6,000 48,076 3,272 4, % 27.1% % 3.4% MYOR Sell 28,775 24,500 22,058 1, % -29.0% % 1.0% ULTJ Buy 3,950 5,100 11, % 27.0% % 0.4% UNVR Neutral 35,675 41, ,200 5,808 6, % 4.2% % 2.1% GGRM Buy 53,400 56, ,746 5,256 5, % 7.8% % 1.8% HMSP Buy 93, , ,817 10,484 11, % 12.1% % 2.4% WIIM Buy % 31.5% % 6.6% Healthcare 75,568 3,028 3, % 8.3% % 1.7% KLBF Neutral 1,275 1,500 59,766 2,004 2, % 7.6% % 1.3% SIDO Neutral , % 11.4% % 2.8% TSPC Neutral 1,745 2,100 7, % 8.6% % 3.0% Hospital 43, % 32.4% % 0.7% MIKA Buy 2,235 3,400 32, % 29.7% % 0.9% SILO Buy 9,350 11,000 10, % 49.1% % 0.1% Retail 89,039 3,569 4, % 17.2% % 1.9% ACES Neutral , % 16.3% % 1.4% ERAA Neutral , % -11.1% % 3.3% LPPF Neutral 16,500 17,600 48,131 1,808 2, % 12.6% % 2.1% MAPI Sell 3,970 2,700 6, % 431.2% % 0.1% MPPA Neutral 1,800 2,175 9, % 14.0% % 1.0% RALS Neutral , % 0.9% % 3.9% TELE Buy 720 1,040 5, % 35.3% % 3.4% Automotive 253,907 18,146 20, % 11.9% % 3.5% ASII U/R 6,125 U/R 247,962 17,717 20, % 11.0% % 3.5% IMAS U/R 2,150 U/R 5, N/M 47.0% % 1.9% Heavy Equipment 62,038 8,021 6, % #### % 3.0% HEXA* Buy 1,250 4,250 1, % 61.1% % 12.7% 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 16,350 13,250 60,988 7,469 5, % -26.9% % 2.7% Plantation 38,270 5,063 5, % 12.5% % 6.3% AALI Buy 16,675 30,800 26,259 3,181 3, % 12.4% % 6.5% LSIP Buy 1,295 2,700 8,836 1,378 1, % 10.8% % 6.3% SGRO Buy 1,680 3,050 3, % 17.2% % 4.8% Property 139,571 12,096 14, % 19.5% % 1.5% APLN Buy ,724 1,031 1, % 19.8% % 3.1% ASRI Buy ,038 1,240 1, % 46.0% % 8.7% BSDE Buy 1,820 2,400 33,437 2,499 3, % 23.0% % 1.9% CTRA Neutral 1,435 1,350 21,763 1,436 1, % 8.4% % 1.3% CTRS Buy 2,160 3,600 4, % -23.8% % 3.5% JRPT Buy 740 1,350 10, , % 27.3% % 1.1% LPCK Buy 7,025 13,500 4, % -10.0% % 0.0% MDLN Buy , % 63.3% % 0.0% PWON Buy ,598 1,714 2, % 32.2% % 1.7% SMRA Neutral 1,575 1,600 22,719 1,183 1, % -3.9% % -1.2% Industrial 16,724 1,700 1, % 12.8% % 2.8% DMAS Buy ,363 1,016 1, % 20.2% % 3.5% BEST Neutral , % 5.4% % 0.4% SSIA Buy 745 1,100 3, % 0.3% % 2.7% Poultry 52,911 4,336 5, % 34.8% % 2.4% CPIN Buy 2,700 6,000 44,342 3,548 4, % 24.7% % 2.3% JPFA Buy 595 1,600 6, , % 77.0% % 3.3% MAIN Sell 1,370 2,100 2, % 89.8% % 1.7% Coal 34,729 6,178 6, % 12.1% % 10.6% ADRO* Neutral , % 10.3% % 7.7% HRUM* Neutral , N/M 59.2% % 0.0% ITMG* Neutral 5,775 8,300 6, % 10.4% % 21.0% PTBA Buy 4,510 10,000 10,393 1,938 2, % 10.5% % 10.3% Oil & Gas 65,088 7,021 7, % 2.6% % 5.7% PGAS* Sell 2,685 3,400 65, % 1.1% % 5.7% Shipping 3, % 12.2% % 3.9% SOCI* Buy , % 10.5% % 3.9% Metal 18, , % 97.4% % 6.0% ANTM Neutral , % 67.8% % 0.0% INCO* U/R 1,545 U/R 15, % 30.8% % 7.1% Telco 372,795 15,872 20, % 31.9% % 3.4% EXCL Buy 3,670 4,000 31, , % N/M % 0.7% ISAT U/R 5,400 U/R 29, ,147 N/M 237.1% % 1.5% TLKM Buy 3,195 3, ,138 15,947 18, % 16.1% % 3.9% Tower 75,684 2,535 2, % 14.9% % 0.0% TBIG Neutral 5,675 8,000 27,220 1,101 1, % 5.9% % 0.0% TOWR Buy 4,750 5,000 48,464 1,434 1, % 21.9% % 0.0% Media 73,219 3,037 3, % 23.6% % 2.3% SCMA Neutral 3,235 3,000 47,301 1,534 1, % 15.3% % 2.2% MNCN Buy 1,760 2,200 25,918 1,503 1, % 32.0% % 2.3% Textile 7, % 17.7% % 0.0% SRIL* Buy , % 16.0% % 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 Research), (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 Aditya Sastrawinata Shipping, Construction aditya.sastrawinata@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 INSTITUTIONAL SALES Lokman Lie Co-Head Institutional Equities lokman.lie@mandirisek.co.id Silva Halim Co-Head Institutional Equities silva.halim@mandirisek.co.id Andrew Handaya Institutional Sales andrew.handaya@mandirisek.co.id Cindy Amelia P. Kalangie Institutional Sales cindy.amelia@mandirisek.co.id Jane Theodoven Sukardi Institutional Sales jane.sukardi@mandirisek.co.id Janefer Amanda Soelaiman Institutional Sales janefer.soelaiman@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 Yohan Setio, CFA Institutional Sales yohan.setio@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 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.