INVESTOR DIGEST HIGHLIGHT ECONOMY. Equity Research 19 August 2016

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1 INVESTOR DIGEST Equity Research 19 August 2016 Economic Data Latest 2016F BI Rate, eop Inflation (YoY %) US$ 1 = Rp, period avg 13,117 14,150 Stock Market Data (18 Aug 2016) JCI Index 5, % Trading T/O ( Rp bn ) 8,724.0 Market Cap ( Rp tn ) 5, ,024.4 HIGHLIGHT BI to Change Its Policy Rate Bank Negara Indonesia 7M16 results- below expectations on provisioning (BBNI; Rp5,875; Neutral; TP:Rp6,000) Indofood CBP: 2Q16 results ahead at EBIT level, in-line at EPS (ICBP; Rp9,200; Under Review) Indofood Sukses Makmur: 2Q16 results in-line (INDF; Rp8,250; Under Revieew) Tower Bersama: 6M16 EBITDA inline (TBIG; Rp5,975; Neutral; TP: Rp6,000) Wijaya Karya: Below-than-expected 1H16 result (WIKA; Rp3,270; Buy; TP: Rp3,000) WIKA Beton: Slightly below 1H16 Results (WTON; Rp960; Buy; TP:Rp1,125) 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 68.4 JCI s market capitalization ECONOMY BI to Change Its Policy Rate Change from BI rate to 7 day reverse repo rate. In today s governor board meeting, the central bank will change its policy rate from BI rate (currently at 6.50%) to 7 day reverse repo (currently 5.25%). The goal is to strengthen monetary framework and regaining policy rate credibility. For information, since mid-2011 until now, the relationship between BI rate and O/N interbank rate started to decouple and the latter instead moves closer with BI s deposit facility (FASBI). Meanwhile, BI rate is currently more aligned to the 12-month interbank rate. What are the implications? We believe the policy rate change will result in a proper monetary transmission from short to long tenors (not the other way around). As a result, the transmission should be faster effecting money market and banking rates, especially supported by BI s regulation including ruling instruments such as BI certificates, repo, and NCD which aims to create a more liquid money market. Our view: a potential rate cut by 25bps to 5.00%. In the quarterly governor board meeting today BI will assess the national & regional economic condition and also its macro economic forecasts. Besides of the rate change, we also expect the central bank to cut its 7 days reverse repo rate to 5.00% due to sound macroeconomic condition (inflation remains at 3.2% while CAD eased to 2.0 GDP). Moreover, the concern on electricity tariff adjustment this year has been fading away and this gives more certainty for rate cut. Page 1 of 11

2 Movement of interest rates JIBOR O/N, avg BI rate Deposit Facility Rate The beginning when BI rate starts to decouple from O/N interbank market rate - Jan-08 Mar-09 May-10 Jul-11 Sep-12 Nov-13 Jan-15 Mar Lending facility rate: 7.00% BI rate: 6.50% Overnight deposit facility week SUN 2-weeks SUN reverse repo reverse repo Rupiah Open Market Instrument Interest Rate 1-month SUN 3-months reverse repo SUN reverse repo months BI Deposit Certificate Deposit facility rate: 4.50% 17-Dec Day Reverse Repo Rate: 5.25% 9-Aug-16 9-months BI 12-months BI Certificate Certificate Leo Rinaldy( ) Wisnu Trihatmojo ( ) leo.rinaldy@mandirisek.co.id wisnu.trihatmojo@mandirisek.co.id CORPORATE Bank Negara Indonesia 7M16 results- below expectations on provisioning (BBNI; Rp5,875; Neutral; TP:Rp6,000) BNI posted Rp4.68tn, +43% yoy, net profit in 7M16, accounting for 44 FY16 consensus and 47 our forecast. PPOP increased by +20%yoy while provisioning expenses declined 4% yoy in 7M16. On the monthly basis, net profit reached Rp526bn in July, -47% yoy, still burdened with heavy provisioning charges. Loan growth +24%yoy (-1% mom), deposit growth +18%yoy (-2% mom). Loan growth came from the medium and SOE loans segments with infrastructure sector loans as the main growth contributor. In deposits, time deposit continue to grow at 24% yoy, followed by savings deposit at +16% yoy, and demand deposit at +13%yoy. We believe the Lebaran had affected both declining loans and deposits in July compared to June. LDR continued to increase to 92% in Jul 16 from 91% in Jun 16 and 88% in Jul 15. NIM declined to 6.1% in 7M16 from 6.4% in 7M15 as cost of fund remained stable while assets yield continue to slide. On a monthly basis, NIM declined to 5.9% in Jul from 6.1% in Jun 16. Higher time deposits and corporate loan growth are the reasons for the declining NIM, which is expected already. Provisioning expenses -4%yoy to Rp5.7tr in 7M16. Monthly provisioning is still high at Rp1.1tr in July, indicating rising NPL, which stood at 3.0% in June (note that the amount of restructured loans tripled in the past one year and accounted for 8.4 total unconsolidated loans in June). We estimate BNI to have written off about Rp1.9tr in 7M16 vs. Rp1.1tr in 7M15. Annualized cost of credit is around 2.8% in July, up from 2.7% in June while provisioning level was at 4.5 total loans in July, up from 4.2% in June. Cost to income ratio improved to 42% in 7M16 from 45% in 7M15. Maintain Neutral with TP of Rp6,000 for the counter which is trading at 1.3x P/BV 2016F. Page 2 of 11

3 Income Statement (Rp bn) Jul-15 Jun-16 Jul-16 % MoM % YoY 7M15 7M16 % YoY FY16F FY16F Net interest income 1,889 2,235 2,183 (2) 16 13,331 15, , Non-interest income 685 1, (84) (64) 4,499 5, , Operating income 2,574 3,811 2,431 (36) (6) 17,830 20, , , Provision expenses (206) (2,027) (1,051) (48) 411 (5,950) (5,688) (4) (6,447) 88 Operating expenses (1,107) (1,223) (1,183) (3) 7 (8,049) (8,641) 7 (18,518) 47 Operating profit 1, (65) (84) 3,831 6, , , PPOP 1,467 2,588 1,248 (52) (15) 9,780 11, , Pre-tax profit 1,262 (177) 660 nm (48) 4,123 5, , , Net profit 995 (138) 526 nm (47) 3,280 4, , , FY16 Cons FY16F Cons Balance Sheet (Rp bn) Jul-15 Jun-16 Jul-16 %MoM %YoY Gross loans 271, , ,031 (1) 24 Demand deposits 81,141 93,478 92,075 (2) 13 Saving deposits 111, , ,926 (3) 16 Time deposits 115, , ,831 (1) 24 Total deposits 307, , ,832 (2) 18 CASA to deposits Ratio Jun-15 Jun-16 Jul-16 7M15 7M16 LDR NIM ROE 21.1 (2.1) Cost to income Tjandra Lienandjaja ( ) tjandra.lienandjaja@mandirisek.co.id Indofood CBP: 2Q16 results ahead at EBIT level, in-line at EPS (ICBP; Rp9,200; Under Review) Indofood CBP (ICBP) s 1H16 net profit of Rp1,979bn (+15% YoY) achieved 56 consensus forecast, in-line relative to 3- year historical average of 55%. Core profit is not known yet, as detailed financials have not been released. At EBIT level, which reflects a better operational performance, ICBP beats the street. 1H16 EBIT of 2,733 implies a strong 28% YoY growth, achieving 59 consensus forecast, 3ppt higher than 3-year average realisation of 56%. Stellar EBIT performance translate down from gross profit level, which rose 0.4ppt QoQ to 31.9% in 2Q16, likely reflecting benign raw material costs pressures. Top-line growth, however, slowed to 7.8% YoY in 2Q16, from 12.0% YoY in 1Q16, despite the shift in Ramadan seasonality as experienced by other consumer companies. Our rating and target price are Under Review. (Rp bn) 1H16 1H15 YoY 2Q16 2Q15 YoY 1Q16 QoQ Cons Cons Revenues 18,175 16, % 9,253 8, % 8, % 35,279 52% Gross profit 5,760 5, % 2,951 2, % 2, % 10,663 54% Operating profit 2,733 2, % 1,436 1, % 1, % 4,646 59% Pretax profit 2,724 2, % 1,421 1, % 1, % 4,800 57% Net profit 1,979 1, % 1, % % 3,562 56% Gross margin 31.7% 30.7% 1.0% 31.9% 31.8% 0.1% 31.5% 0.4% EBIT margin 15.0% 12.9% 2.1% 15.5% 13.6% 2.0% 14.5% 1.0% Adrian Joezer ( ) adrian.joezer@mandirisek.co.id Page 3 of 11

4 Indofood Sukses Makmur: 2Q16 results in-line (INDF; Rp8,250; Under Revieew) Indofood Sukses Makmur (INDF) s 1H16 net profit of Rp2,231bn (+29% YoY) achieved 57 consensus forecast, in-line relative to history. Operationally, results were in-line with EBIT growing 14% YoY in 1H16, achieving 52 consensus forecast. Profitability margins were also healthy, while operating costs-to-sales ratio relatively remained manageable. Our rating and target price are Under Review. INDF IJ (Rp bn) 1H16 1H15 YoY 2Q16 2Q15 YoY 1Q16 QoQ Cons Cons Revenues 34,084 32, % 17,568 17, % 16, % 70,073 49% Gross profit 9,800 8, % 5,186 4, % 4, % 18,581 53% Operating Profit 4,150 3, % 2,258 2, % 1, % 8,040 52% Pretax profit 3,589 2, % 1,858 1, % 1, % 7,000 51% Net profit 2,231 1, % 1, % 1, % 3,929 57% Gross margin 28.8% 27.4% 1.3% 29.5% 27.5% 2.0% 27.9% 1.6% EBIT margin 12.2% 11.1% 1.1% 12.9% 11.4% 1.4% 11.5% 1.4% Adrian Joezer ( ) adrian.joezer@mandirisek.co.id Tower Bersama: 6M16 EBITDA inline (TBIG; Rp5,975; Neutral; TP: Rp6,000) 6M16 EBITDA inline. Tower Bersama (TBIG) reported 2Q16 EBITDA of Rp789bn (+1%qoq, +10%yoy). This brings 6M16 EBITDA to Rp1.6tr(+10%yoy), accounting for 47/49 our/consensus full year forecast.6m16 revenue increased by 9%yoy while EBITDA margin improved to 86.2% (from 85.0% in 6M15). Its 6M16 net profit rose to Rp842bn (+48%yoy) due to Rp255bn income tax benefit (vs Rp108bn tax expense in 6M15). Net debt was Rp15.9tr (at hedged rate) with net debt to EBITDA (4Q15 annualized EBITDA) of 5.0x still below its net debt covenant of 6.25x. TBIG also plans to distribute Rp77/share interim dividend, yielding 1.2% (25 Aug Ex-dividend date and 16 Sept payment date) Lack of catalyst. As of June 16, TBIG has 19.9k telco tenants and 12.1k telco towers with 1.65x co-location ratio. Maintain Neutral, Rp6,000TP. TBIG is trading at 15.8x FY16F EV/EBITDA inline with 3-year average of 16.0x. We believe that key risk for TBIG will come from rising pressure to lower rental rates. TBIG quarterly results in Rpbn 2Q16 2Q15 %YoY 1Q16 %QoQ 6M16 6M15 %YoY FY16F % ours Revenue % 901 2% 1,818 1,672 9% 3,913 46% 48% COGS % 102 0% % % 46% Gross profit % 800 2% 1,614 1,462 10% 3,450 47% 49% Operating profit % 726 1% 1,462 1,308 12% 3,094 47% 49% EBITDA % 779 1% 1,568 1,422 10% 3,330 47% 49% Net profit (loss) % % % 1,120 75% 59% Gross margin 88.9% 87.4% 88.7% 88.8% 87.4% 88.2% Operating margin 80.4% 78.5% 80.5% 80.4% 78.2% 85.1% EBITDA margin 86.1% 85.1% 86.4% 86.2% 85.0% 85.1% Net margin 10.4% 29.7% 82.8% 46.3% 34.1% 28.6% ` % to cons Ariyanto Kurniawan ( ) ariyanto.kurniawan@mandirisek.co.id Page 4 of 11

5 Wijaya Karya: Below-than-expected 1H16 result (WIKA; Rp3,270; Buy; TP: Rp3,000) Slow net profit growth. WIKA booked an improvement in 2Q16 net profit to Rp184bn (+33% y-y, +157% q-q). However, this translated to 1H16 net profit of Rp256bn (+28% y-y) or translating to 35 our and 33 consensus estimate. This is below our expectation as in the past three years WIKA booked on average 42 their net profit in 1H. Lower-thanexpected revenues growth (1H16: Rp6tn, +26% y-y) was partly attributed to this 1H16 achievement. Stable net margin. WIKA recorded improvement in 1H16 gross margin to 12.1% (1H15: 10.4%). However, higher debt levels in 1H16 to Rp5tn (+38% y-y) has translated to higher interest costs to Rp172bn (+66% y-y). As a result, WIKA s 1H16 net margin was stable at 4.2% (1H15: 4.2%). Note that WIKA s 1H16 cash levels also fell to Rp1.3tn (1H15: Rp1.7tn) which indicating that the company would need to raise additional funding in 3Q16. Progress on High Speed Railways (HSR) project. The Ministry of Transportation stated that they have issued construction permit for the whole HSR projects (142km) although only 60 total land bank has been secured by Kereta Cepat Indonesia China (KCIC). The government requires KCIC to acquire the remaining land by December 2017 with concession period to start on 31 May Based on our discussion, WIKA is expecting to sign financial closing with China Development Bank in September 2016 with the company plans to take contractor pre financing to commence the construction earlier. Reviewing our numbers for Although we maintain our expectation that the HSR project would be able to give added boost to WIKA s revenues, we will review our numbers and recommendation due to the underperforming result in 1H16. Currently, WIKA has also broke our TP of Rp3,000 while trading at 27x FY16F and 22x FY17F PER. Rpbn 1H16 1H15 %yoy 2Q16 1Q16 %qoq 2Q15 %yoy FY16F Revenue 6,034 4, ,307 2, , , , Gross profit , , Operating profit , , Pretax profit , , Net profit ours FY16C cons. Gross margin Operating margin Pretax margin Net margin Bob Setiadi ( ) bob.setiadi@mandirisek.co.id WIKA Beton: Slightly below 1H16 Results (WTON; Rp960; Buy; TP:Rp1,125) 1H16 net profit grow 104% y-y from low base. The company booked 2Q16 net earnings of Rp59bn (+17.6% q-q, 62% y-y) which translated to 1H16 net profit of Rp109bn (+104% y-y). This accounted to 35 our and 37 consensus numbers. Note that WTON is coming from a very low base as the company has difficulty to obtain new contracts in 1H15. Meanwhile, WTON also able to record improvement in tis 2Q16 gross margin to 13.9% (1Q16: 12.4%). Relative stable q-q revenues growth. WTON booked 2Q16 sales of Rp786bn (+7.3% q-q, +69.5% y-y) which translated to 1H16 sales of Rp1.5tn (+70.4% y-y). This accounting to 39 our and 41 consensus estimate. We believe that WTON is still on-track to reach our 2016FY revenues target of Rp3.8tn as the company normally booked around their revenues in 1H. Note that WTON booked Rp171bn in revenues from the Sumatra train project. Maintain BUY recommendation. At this stage, we decided to maintain our forecast for WTON on expectation that the company would be able to improve revenue recognition from the government and SOEs projects in 2H16. We also believe that the HSR projects would provide substantial increase in the company s revenues growth in Maintain BUY call with TP of Rp1,125. WTON is currently trading at 27x FY16F or 18x FY17F PER. Page 5 of 11

6 WTON 1H16 results Rpbn 1H16 1H15 %yoy 2Q16 1Q16 %qoq 2Q15 %yoy FY16F Revenue 1, , , Gross profit Operating profit Pretax profit Net profit ours FY16C cons. Gross margin Operating margin Pretax margin Net margin Bob Setiadi ( ) MARKET Market Recap Aug 18 th 2016; JCI: 5, (+1.67%); USD/IDR: 13,117; Total Value: Rp11.78tn Indo market is the best performer in Asia, with a 1.7% rise in JCI to end at 5461 level. Cigarette makers are on the move (HMSP +4.6% and GGRM +4.2%) after conservative tobacco excise growth target vs market s expectation of high tobacco excise tax growth assumption. The MoF released the 2017 draft budget last Tuesday and aimed for a more conservative tobacco excise tax of Rp150tn (or around +5.8% vs +9% the lowest growth target average ). In addition, ASII (+5.4%, off day-high of 8650, or +9.8%) also performed well thanks to better-than-expected July 4W wholesale volume from its Toyota brand (+89% YoY and market share improved from 35% in June to 41%). At the same time, PGAS rose 7.5% on speculation of potential merger with Pertagas (Pertamina s gas subsidiary). Market turnover (excluding US$76mn BMRI; US$8.4mn LPPF; US$8mn MYRX; US$6.9mn BCIP; US$6.9mn ARTI; and US$5.1mn PLAS crossing) improves by 57% d/d to US$661mn and the afternoon portion (70%) is heavier than morning one. Regular market transaction was recorded at Rp8.7tn (US$663.26mn) and foreign posted a net buy of Rp1.4tn (US$106.7mn). Foreign participants also jumped to 50% and came up strong better buyer at 26%. Gainers beat losers by 13 to 10. Asian stocks rose and the greenback languished near two-month lows after minutes of the US Federal Reserve s latest meeting showed policymakers were in no rush to raise interest rates. Earlier, HK was the top gainer in Asia with a 1.6% rise then settling up 1% for the day. While a stronger yen thanks to the Fed s cautious outlook pulled Japan Nikkei back 1.6%. The July meeting minutes released on Wed showed that Fed policymakers were generally upbeat about the US economic outlook and labor market. But they also said they wanted to leave their policy options open as any slowdown in hiring would argue against near-term monetary tightening. Market participants interpreted the minutes as moderately positive for risk-taking appetite, with the Fed remaining divided on the timing of the next rate hike. TOP TURNOVER: TLKM ASII BBCA BBRI PGAS BMRI GGRM BBNI LSIP AALI ICBP MNCN HMSP KLBF WSKT ADHI (50%) ADVANCING SECTOR: auto+3.2%; consumer+2.9%; cement+2.5%; mining+2.2%; construction+2.1%; plantation+1.2%; financial+0.8%; telco+0.5%; property+0.4% DECLINING SECTOR: NONE The yield of 10-year government went down to 6.812% (-0.468%) and Rupiah remains weakened 0.16% to Rp13,117. Sales Team Page 6 of 11

7 FROM THE PRESS Ad spend up by 18% YoY in 1H16 According to Nielsen, total ad spend reached Rp67 tn, driven by an increase in government and political ad spend (+40% YoY) to Rp3.8 tn, followed by cigarette (+40% YoY), technology (+27% YoY), hair care (20% YoY), coffee and tea (24% YoY), and body care (31% YoY). (Bisnis Indonesia) Bank Indonesia switches benchmark rate today The central bank will switch benchmark rate from BI rate to the 7-days reverse repo rate starting today. The rate is expected to be more effective in affecting bank rate as it better reflects financial market conditions. The board of governor will conclude its monthly meeting today as well (Kontan) DimoPay to enable QR facility for more banking apps Digital payment service DimoPay plans to further expand its partnership with banks as it gears up to launch two new deals with major lenders. The technology will be included in the banks' e-money mobile applications, although the identity of the banks is still classified. The company has so far partnered with Smartfren, Indosat, and Telkom with Bank Sinarmas as its only banking partner. (Jakarta Post) RI's high-speed train secures permit The government revealed on Thursday (18/8) that a construction permit had been issued last month for the USD5.1 B Jakarta- Banding high-speed railway project, despite a failure to fully procure the land needed. So far, only 60 the total land required has been acquired. Indonesia China High-speed Train (KCIC) is given until December 2017 to secure the land needed and it has been given a fixed concession period of 50 years starting on 31 May the project's will be funded by China Development Bank. (Jakarta Post) RNI partners with WSKT for project in Cawang PT Rajawali Nusantara Indonesia partners with PT Waskita Karya Tbk (WSKT) to build an office building worth IDR650 B in Cawang. The contract with WSKT is valid for 4 years and the project can start groundbreaking this year. (Bisnis Indonesia) 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$/mt) 18, Hang Seng 23, CPO futures (Ringgit/ton) 2, STI 2, ADR Stocks Soybean oil (US$/100gallons) S&P 500 2, TLK in Rp 21, 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 42,920 2,230 2,200-50% 4,475 44% 1, % 12.0% PWON Buy 31, % % % 24.8% SMRA Neutral 26,974 1,870 1,600-53% 3, % % 14.7% CTRA Buy 25,555 1,685 1,600-36% 2, % % 14.0% JRPT Buy 11, ,300-74% 3,242 20% % 20.4% ASRI Neutral 9, % 1, % % 6.3% LPCK Buy 5,011 7,200 13,500-71% 24,683 53% 4, % 16.5% MDLN Buy 5, % 1,165 55% % 6.6% CTRS Buy 5,660 2,860 4,000-79% 13,390-29% 4, % 13.9% Simple Average -57% % 14.4% 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 13, % % % 12.5% BEST Buy 3, % % % 9.0% SSIA Neutral 3, % 1,701-23% % 8.1% LPCK Buy 5,011 7,200 13,500-71% 24,683 53% 4, % 16.5% MDLN Buy 5, % 1,165 55% % 6.6% Simple Average -62% % 10.5% Page 8 of 11

9 Equity Valuation Price Price 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 5,461 5,450 4,092, , , % 14.2% % 2.1% Banking 899,487 65,306 77, % 18.6% N.A. N.A % 2.2% BBCA Neutral 15,200 13,000 (14.5) 374,756 18,174 21, % 17.7% N.A. N.A % 1.5% BBNI Neutral 5,875 6, ,561 9,953 13, % 32.4% N.A. N.A % 2.7% BBRI Neutral 12,100 11,300 (6.6) 298,497 24,832 28, % 16.4% N.A. N.A % 2.9% BBTN Buy 1,925 2, ,386 2,439 2, % 21.0% N.A. N.A % 2.4% BDMN Sell 3,470 3, ,259 3,375 3, % 9.5% N.A. N.A % 2.2% BJBR Neutral 1,520 1,500 (1.3) 14,738 1,772 2, % 15.6% N.A. N.A % 4.8% BJTM Sell (12.2) 9,174 1,047 1, % 10.0% N.A. N.A % 7.6% BTPN Sell 2,800 2,200 (21.4) 16,353 1,648 1, % 10.4% N.A. N.A % 0.0% PNBN Buy 945 1, ,763 2,067 2, % 12.7% N.A. N.A % 0.0% Building Materials 143,742 9,279 9, % 5.6% % 3.5% SMCB Sell 1, (23.1) 8, N/M 10.1% % 1.4% INTP Neutral 18,525 20, ,195 4,368 4, % 5.3% % 5.1% SMGR Neutral 11,225 11,200 (0.2) 66,581 4,501 4, % 5.4% % 2.0% Constructions 97,378 4,006 4, % 21.8% % 0.2% ADHI Buy 2,780 3, , % 32.0% % 1.1% PTPP Buy 4,560 4,300 (5.7) 22, , % 13.5% % -0.8% WIKA Buy 3,270 3,000 (8.3) 19, % 23.9% % -1.1% WSKT Buy 2,770 2,600 (6.1) 37,065 1,516 1, % 15.5% % 0.9% WTON Buy 960 1, , % 54.2% % 1.1% Toll road 35,530 1,612 1, % -6.2% % 0.9% JSMR Neutral 5,225 5, ,530 1,612 1, % -6.2% % 0.9% Rice Mill 7, % 16.9% % 0.5% AISA U/R 2,240 U/R U/R 7, % 16.9% % 0.5% Consumer 1,092,852 32,460 36, % 12.6% % 2.1% ICBP Neutral 9,200 14, ,645 3,298 3, % 10.7% % 3.1% INDF Neutral 8,250 6,000 (27.3) 72,443 4,160 4, % 13.5% % 2.9% MYOR Sell 1,535 24,500 1, , % 19.8% % 13.7% ULTJ U/R 4,750 U/R U/R 13, % 19.6% % 0.0% UNVR Neutral 45,575 41,000 (10.0) 347,737 6,051 7, % 18.4% % 1.7% GGRM Buy 67,500 56,000 (17.0) 129,876 5,665 6, % 11.7% % 1.6% HMSP Neutral 4,070 4, ,415 11,712 12, % 9.3% % 2.4% WIIM U/R 400 U/R U/R n/a % 0.0% n/a n/a n/a n/a n/a n/a 0.0% 0.0% Healthcare 98,991 3,281 3, % 11.7% % 1.4% KLBF Neutral 1,715 1,500 (12.5) 80,391 2,156 2, % 11.2% % 1.1% SIDO Neutral (5.2) 8, % 12.9% % 2.8% TSPC Neutral 2,200 2,100 (4.5) 9, % 12.1% % 2.6% Hospital 51, % 17.3% % 0.6% MIKA Buy 2,580 3, , % 11.1% % 0.8% SILO Neutral 11,750 10,400 (11.5) 13, % 73.1% % 0.0% Retail 112,683 4,300 5, % 18.8% % 2.1% ACES Neutral (27.6) 17, % 14.4% % 1.2% ERAA Neutral (31.4) 2, % 49.7% % 3.1% LPPF Buy 21,000 21, ,257 2,154 2, % 15.1% % 2.5% MAPI Sell 4,480 2,700 (39.7) 7, % 56.1% % 0.5% MPPA Neutral 2,070 2, , % 24.2% % 1.0% RALS Neutral 1, (44.7) 8, % 8.3% % 2.2% TELE Buy 645 1, , % 18.6% % 4.5% Automotive 340,645 16,273 17, % 8.3% % 2.1% ASII Buy 8,300 7,200 (13.3) 336,013 16,001 17, % 7.8% % 2.1% IMAS U/R 1,675 U/R U/R 4, N/M 53.7% % 1.1% Heavy Equipment 67,419 4,695 4, % 2.9% % 2.1% HEXA* U/R 2,550 U/R U/R 2, % 50.0% n/a n/a 0.0% 0.0% Page 9 of 11

10 Price Price Mkt Cap Net Profit EPS Growth PER (x) EV/EBITDA (x) P/BV (x) Div.Yield Code Rating (Rp) Target PT (Rp Bn) UNTR Sell 17,500 11,000 (37.1) 65,277 4,554 4, % 1.8% % 2.1% Plantation 43,539 2,145 3, % 40.5% % 1.6% AALI Buy 16,600 16,500 (0.6) 28,950 1,519 2, % 19.8% % 1.7% LSIP Buy 1,585 1, , % 85.0% % 1.3% SGRO U/R 2,000 U/R U/R 3, % 28.6% % 1.7% Property 170,469 11,669 12, % 3.9% % 0.6% APLN U/R 316 U/R U/R 6, , % 24.7% % 2.6% ASRI Neutral (35.2) 9,646 1, % -59.0% % 1.3% BSDE Buy 2,230 2,200 (1.3) 42,920 2,594 2, % 3.0% % 0.8% CTRA Buy 1,685 1,600 (5.0) 25,555 1,474 1, % -3.1% % -1.2% CTRS Buy 2,860 4, , % 1.8% % 2.1% JRPT Buy 835 1, , , % 11.6% % 0.9% LPCK Buy 7,200 13, , % -5.7% % 0.0% MDLN Buy , % -2.2% % 0.0% PWON Buy (10.8) 31,304 1,965 2, % 24.9% % 1.4% SMRA Neutral 1,870 1,600 (14.4) 26, , % 40.0% % 0.0% Industrial Estate 20,271 1,394 1, % 11.5% % 1.6% DMAS Buy , % 8.4% % 2.0% BEST Buy , % 18.8% % 0.4% SSIA Neutral , % 15.5% % 1.4% Poultry 84,605 3,547 4, % 22.2% % 1.2% CPIN U/R 3,870 U/R U/R 63,460 2,671 3, % 20.2% % 1.3% JPFA U/R 1,595 U/R U/R 17, % 25.8% % 0.9% MAIN U/R 1,850 U/R U/R 4, N/M 36.3% % 1.0% Coal 77,948 4,767 5, % 9.6% % 3.6% ADRO* Neutral 1, (41.0) 37, % 13.4% % 2.5% HRUM* Neutral 1,090 1, , N/M 43.3% % 3.2% ITMG* Neutral 12,100 7,600 (37.2) 13, % 8.0% % 6.5% PTBA Neutral 10,375 9,200 (11.3) 23,909 1,542 1, % 12.7% % 3.6% Oil & Gas 76,846 7,517 7, % 5.9% % 4.9% PGAS* Sell 3,170 3, , % 10.5% % 4.9% Shipping 3, % 6.3% % 4.8% SOCI* Buy , % 11.0% % 4.8% Metal 35, N/M #### % 0.4% ANTM Neutral (36.3) 7, % N/M % 0.1% INCO* U/R 2,830 U/R U/R 28, % 33.3% % 0.5% Telco 483,644 21,249 24, % 15.3% % 3.0% EXCL Buy 3,690 4, ,484 1,153 1,754 N/M 52.1% % 1.1% ISAT U/R 6,425 U/R U/R 34,913 1,013 1,908 N/M 76.0% % 2.1% TLKM Buy 4,250 3,800 (10.6) 417,247 19,083 20, % 9.5% % 3.3% Tower 68,859 3,540 4, % 26.3% % 0.0% TBIG Neutral 5,975 6, ,659 1,120 1, % 39.1% % 0.0% TOWR Buy 3,940 5, ,200 2,420 2, % 20.4% % 0.0% Media 75,226 3,353 3, % 15.9% % 2.5% SCMA Neutral 3,280 3,000 (8.5) 47,959 1,674 1, % 13.9% % 2.4% MNCN Neutral 1,910 2, ,267 1,680 1, % 17.9% % 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 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 Health Care, Hospital francis.lim@mandirisek.co.id Yudha Gautama Mining, Plantation yudha.gautama@mandirisek.co.id Kevin Halim Media, Property, Industrial Estate kevin.halim@mandirisek.co.id Laura Taslim Retail laura.taslim@mandirisek.co.id Priscilla Thany Banking priscilla.thany@mandirisek.co.id Ferdy Wan Research Assistant 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 Economist leo.rinaldy@mandirisek.co.id Wisnu Trihatmojo Research Assistant 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 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.