Equity SNAPSHOT Friday, June 08, 2018

Transcription

1 FROM EQUITY RESEARCH Bumi Serpong Damai: Right on Track (BSDE IJ. IDR 1,750. BUY. TP IDR 1,930) We believe that BSDE will record indicative marketing sales of ~Rp3.5tn in 1H18, largely in-line. In 2H18, the marketing sales will mostly come from residential launchings and potentially Rp1.8tn of land plot sales. We like BSDE for its huge landbank, providing operational flexibility & sustainability, and good stock liquidity. Maintain BUY with a lower TP of Rp1,930. To see the full version of this report, please click here Perusahaan Gas Negara: Acquisition options (Not Rated) We visited PGN to discuss about the current acquisition of Pertagas. The progress of the due diligence is still on going and the valuation is expected to be finalized by the end of June. PGN mentioned the possible schemes that might be used to acquire Pertagas. Besides this, PGN has another option which is to acquire Pertagas partially with several funding alternatives. To see the full version of this report, please click here Pakuwon Jati: Support from Recurring Income (PWON IJ. IDR 620. BUY. TP IDR 710) We expect PWON s FY18 revenues to be boosted by its new source of recurring income (Pakuwon Mall 2 & 3 and Tunjungan Plaza 6) and the recognition of its high-rise projects. As for its FY18 marketing sales target, the company remains cautious given the prospect of sluggish demand in the pre-election period. All in all, we like PWON for its large recurring income streams and healthy financials. Maintain BUY with a lower TP of Rp710. To see the full version of this report, please click here Waskita Karya: Trying to remain healthy (WSKT IJ. IDR 2,410. BUY. TP IDR 3,000) WSKT plans to issue IDR3.5tn of bonds in 2H18 for debt restructuring. This issuance will be the second stage of the shelfregistered bonds issuance, with the coupon rate in the range of 8%- 9%. As of Mar 18, around 71% of WSKT s debts were bank loans bearing an interest rate ranging from 7.9% to 10.0%. We believe that the company s strategy to issue bonds is appropriate in view of the upward trend in domestic interest rates. BUY maintained on WSKT as we expect to see gains from the issuance of RDPT in Apr 18 to be booked in the 1H18 financial result. To see the full version of this report, please click here MARKET NEWS Corporate Summarecon Agung (SMRA) recorded marketing sales of Rp1tn in 5M18 Ciputra Development (CTRA) to launch 2 projects KEY INDEX Close Chg Ytd Vol (%) (%) (US$ m) Asean - 5 Indonesia 6, (3.9) 472 Thailand 1,733 (0.3) (1.2) 1,593 Philippines 7, (8.8) 123 Malaysia 1, (0.6) 758 Singapore 3, Regional China 3,109 (0.2) (6.0) 30,958 Hong Kong 31, ,480 Japan 22, ,838 Korea 2,464 (0.3) (0.2) 6,858 Taiwan 11, ,336 India 35, NASDAQ 7,635 (0.7) ,600 Dow Jones 25, ,700 CURRENCY AND INTEREST RATE Rate w-w m-m ytd (%) (%) (%) Rupiah Rp/1US$ 13, (2.4) SBI rate % y Gov Indo bond Unit HARD COMMODITY Price d-d m-m ytd (%) (%) (%) Coal US$/ton Gold US$/toz 1,297 (0.0) (1.3) (0.5) Nickel US$/mt.ton 15,456 (0.7) Tin US$/mt.ton 21, Unit SOFT COMMODITY Price d-d m-m ytd (%) (%) (%) Cocoa US$/mt.ton 2, (15.1) 22.2 Corn US$/mt.ton 132 (0.9) (7.2) 5.7 Oil (WTI) US$/barrel (4.2) 9.5 Oil (Brent) US$/barrel Palm oil MYR/mt.ton 2, (0.2) Rubber USd/kg (0.8) (2.7) Pulp US$/tonne 1,186 N/A Coffee US$/60kgbag (3.6) Sugar US$/MT 336 (3.4) 4.5 (15.0) Wheat US$/ton Soy Oil US$/lb (7.4) Soy Bean US$/by (3.7) 2.4 Source: Bloomberg

2 Equity Research Transfer Coverage Friday,08 June 2018 BUY Maintain Last price (IDR) 1,750 Target Price (IDR) 1,930 Upside/Downside +10.3% Previous Target Price (IDR) 2,000 Stock Statistics Sector Bloomberg Ticker Property BSDE IJ No of Shrs (mn) 19,247 Mkt. Cap (IDRbn/USDmn) 33,682/2,428 Avg. daily T/O (IDRbn/USDmn) 29.3/2.1 Major shareholders (%) Paraga Artamida 26.6 Ekacentra Usahamaju 25.0 Estimated free float 39.0 EPS Consensus (IDR) 2018F 2019F 2020F Danareksa Consensus Danareksa/Cons (4.9) (31.7) (22.2) BSDE relative to JCI Index Bumi Serpong Damai(BSDE IJ) Right on Track We believe that BSDE will record indicative marketing sales of ~Rp3.5tn in 1H18, largely in-line. In 2H18, the marketing sales will mostly come from residential launchings and potentially Rp1.8tn of land plot sales. We like BSDE for its huge landbank, providing operational flexibility & sustainability, and good stock liquidity. Maintain BUY with a lower TP of Rp1,930. 1H18 marketing sales should be in-line. We expect BSDE s 1H18 marketing sales to be in-line with its FY18 target of Rp7.2tn, underpinned by the strong 1Q18 marketing sales of Rp2.5tn. For 2Q18, the company has provided guidance for marketing sales of Rp1.0tn, primarily from the sale of existing products (high-rise: Klaska, Southgate and Casa De Parco and residential property), culminating in expected 1H18 marketing sales of ~Rp3.5tn (49% of the FY18 target). In 2Q18, BSDE only launched the cluster The Savia on 3 Jun 18. According to our checks, from a total of 82 units on sale (with prices ranging from Rp bn/unit), 52 units have been sold (63% take-up rate), implying marketing sales of around Rp73bn. The 2H18 marketing sales will mostly come from land plot and residential sales. In 2H18, we expect more land plot sales and residential launchings to contribute towards the 2H18 marketing sales. The company indicated another Rp1.8tn of land plot marketing sales in 2Q18 and 2H18. Land plot sales typically range from between Ha, but BSDE will focus on selling smaller plots. The remaining portion of marketing sales will come from new residential launchings in BSD City and from existing high-rise projects. FY18 revenues guidance of Rp8.4tn; boosting its recurring income. For FY18, BSDE has provided guidance for revenues of Rp8.4tn vs. ours Rp7.9tn (FY17 revenues reached Rp10.3tn). The lower expected FY18 revenues reflects the expectation of lower revenues recognition from land plot sales in FY18. Land plot sales revenues reached 44% of BSDE s FY17 revenues of Rp10.3tn. Overall, we expect the development revenues to fall by 29% YoY to Rp6.3tn, with the recurring income to grow by 13%YoY to Rp1.6tn, mainly bolstered by: 4% higher rental rates, the higher occupancy of BSDE office towers and additional revenues streams (~Rp130bn) from the newly acquired MSIG and Bakrie office Towers. As of Mar 18, BSDE s net gearing was 21.5%. Source : Bloomberg x Yudha Gautama (62-21) ext 3509 yudha.gautama@danareksa.com Maintain BUY with a lower TP of Rp1,930. We maintain our BUY call on BSDE with a lower TP of Rp1,930 (reduced from Rp2,000), based on a higher discount to NAV of 69% (from 68%) to account for higher interest rates. BSDE currently trades at a 73% discount to NAV vs. the sector s 70%. We like BSDE for its huge landbank, providing operational flexibility and long-term sustainability, as well as its good stock liquidity. BSDE has total landbank of 4,740 Ha as of Dec 17. Key Financials Year to 31 Dec 2016A 2017A 2018F 2019F 2020F Revenue (IDRbn) 6,603 10,347 7,904 6,965 7,502 EBITDA (IDRbn) 3,035 5,783 3,912 3,248 3,584 EBITDA Growth (%) (2.2) 90.5 (32.4) (17.0) 10.3 Net profit (IDRbn) 1,796 4,920 2,842 2,126 2,379 EPS (IDR) EPS growth (%) (16.0) (42.2) (25.2) 11.9 BVPS (IDR) 1, , , , ,670.9 DPS (IDR) PER (x) PBV (x) Dividend yield (%) EV/EBITDA (x) Source : BSDE, Danareksa Estimates See important disclosure at the back of this report 1

3 6/5/2017 7/5/2017 8/5/2017 9/5/ /5/ /5/ /5/2017 1/5/2018 2/5/2018 3/5/2018 4/5/2018 5/5/2018 6/5/2018 Equity Research PGAS Visit Note Friday,08 June 2018 Not Rated Last price (IDR) 2,200 Stock Statistics Sector Bloomberg Ticker Utilities PGAS No of Shrs (mn) 24.,241 Mkt. Cap (IDRbn/USDbn) 53,331/3.98 Avg. daily T/O (IDRbn/USDmn) /13.03 Major shareholders (%) Government Public Estimated free float PGAS relative to JCI Index Source : Bloomberg x JCI Index PGAS (IDR/Sh) Ignatius Teguh Prayoga (62-21) ext ignatius.prayoga@danareksa.co.id Perusahaan Gas Negara (PGAS) Acquisition options We visited PGN to discuss about the current acquisition of Pertagas. The progress of the due diligence is still on going and the valuation is expected to be finalized by the end of June. PGN mentioned the possible schemes that might be used to acquire Pertagas. Besides this, PGN has another option which is to acquire Pertagas partially with several funding alternatives. Delayed, but progressing. The acquisition is still in progress but behind schedule due to negotiations at the executive level, especially regarding the valuation and other internal issues. However, government has set a deadline to finish the acquisition by the end of June 2018 which before regional election to avoid political risk. New alternative. PGN initially planned to acquire the entire shares of Pertagas using external funding or assets swap. However, due to limited time (the Lebaran holidays in June) and tough due diligence, PGN is looking at an alternative option: to partially acquire Pertagas. Nonetheless, the portion to be acquired has not been announced. With this option, PGN does not need to hold Extraordinary General Shareholders Meeting to acquire Pertagas, since the possible acquiring cost is less than 50% of PGN equity book value which translates to USD 1.6bn, which, therefore, PGN may meet the deadline. Funding possibilities. PGN has two financing options to complete the deal: issuance of syndicated loans or holding loans. A rights issue at a later date also remains possible. However, the timing of a rights issue is still unknown, most likely after the general election. A rights issue would require approval from the House of Representatives according to PP 72/2016. Through the rights issue PGN would be expected to repay 43% of the loan used to acquire Pertagas. The other 57% might be converted to shares (owned by Pertamina). Details on whether PGN will use a convertible bond or not are still unavailable. Partial acquisition looks most likely. We still have concerns on a partial acquisition of Pertagas since there is uncertainty on the equity portion which will not be acquired. Nonetheless, in view of the short period given by the government and because of difficulties in the acquisition process, partial acquisition looks most likely for PGN. Key Financials Q2018 Revenue, USD EBITDA, USD 1, EBITDA Growth (%) Net profit, USD mn EPS, USD EPS growth (%) BVPS, USD DPS, USD PER (x) PBV (x) Dividend yield (%) EV/EBITDA (x) Source : Company See important disclosure at the back of this report 1

4 Equity Research Transfer Coverage Friday,08 June 2018 BUY Maintain Last price (IDR) 620 Target Price (IDR) 710 Upside/Downside +14.5% Previous Target Price (IDR) 730 Stock Statistics Sector Bloomberg Ticker Property PWON IJ No of Shrs (mn) 48,160 Mkt. Cap (IDRbn/USDmn) 29,859/2,152 Avg. daily T/O (IDRbn/USDmn) 17.2/1.2 Major shareholders (%) Pakuwon Arthaniaga 69.7 Alexander Tedja 0.0 Estimated free float 30.2 EPS Consensus (IDR) 2018F 2019F 2020F Danareksa Consensus Danareksa/Cons (4.3) PWON relative to JCI Index Pakuwon Jati(PWON IJ) Support from Recurring Income We expect PWON s FY18 revenues to be boosted by its new source of recurring income (Pakuwon Mall 2 & 3 and Tunjungan Plaza 6) and the recognition of its high-rise projects. As for its FY18 marketing sales target, the company remains cautious given the prospect of sluggish demand in the preelection period. All in all, we like PWON for its large recurring income streams and healthy financials. Maintain BUY with a lower TP of Rp710. More mall revenues coming on stream. We expect Tunjungan Plaza 6 and Pakuwon Mall 2 & 3 to start fully contributing to PWON s revenues in FY18, after they opened on 23 Sep 17 and 22 Feb 17 respectively. For Tunjungan Plaza 6 (NLA: 23,800sqm), we estimate revenues of Rp83.6bn in FY18 (assuming an 80% occupancy rate), while for Pakuwon Mall 2 & 3 (NLA: 73,379sqm) we forecast revenues of Rp261.4bn in FY18 (assuming a 94% occupancy rate). PWON typically provides a rent free period of 3-6 months for its newly-opened malls. There are several future recurring income projects in the pipeline, including: Pakuwon Mall 4 (NLA: 12,400sqm), East Coast F&B Center 2 (NLA: 20,472sqm), Kota Kasablanka Tower C office (GSA: 48,000sqm), Tunjungan 6 Office Tower (GSA: 24,000sqm) as well as an increase in the number of hotel rooms to 1,771 by 2020 (from 1,251 rooms currently). Cautious on its FY18 marketing sales. PWON remains cautious on its FY18 marketing sales due to oversupply in the high-rise market and potentially slower demand in the pre-election period. The company targets marketing sales of Rp2.5tn (+0% YoY), mainly driven by sales of its existing inventories (mostly condos in Kota Kasablanka, Tunjungan, Pakuwon City and Pakuwon Mall). As such, the company will not have any new product launches in FY18. The indicative 1H18 marketing sales are around Rp1.2tn. Solid growth in consolidated revenues in FY18. We still expect PWON to book FY18 revenues of Rp6.5tn (+14.6% YoY), boosted by growth in recurring income of 18.3% (Pakuwon Mall 2&3 and Tunjungan Plaza 6) and the development revenues growth of 10.7% (mostly on-progress completion of its high-rise projects). We foresee a recurring income to development income ratio of 53:47 in FY18, in-line with the company s target of 50:50. As of Mar 18, PWON s balance sheet was healthy with net gearing of 11.9%. Source : Bloomberg x Yudha Gautama (62-21) ext 3509 yudha.gautama@danareksa.com Maintain BUY with a lower TP of Rp710. We maintain our BUY call on PWON with a lower TP of Rp710 (reduced from Rp730), based on a higher discount to NAV of 41% (from 40%) to account for higher interest rates. We like PWON given its large portion of recurring income which provides future earnings sustainability and protection against a downturn in property demand, as well as its healthy financials. PWON currently trades at a 56% discount to NAV vs. the sector s 70%. Key Financials Year to 31 Dec 2016A 2017A 2018F 2019F 2020F Revenue (IDRbn) 4,841 5,718 6,555 7,405 7,268 EBITDA (IDRbn) 2,593 3,175 3,528 3,848 3,787 EBITDA Growth (%) (1.6) Net profit (IDRbn) 1,671 1,873 2,394 2,655 2,655 EPS (IDR) EPS growth (%) BVPS (IDR) DPS (IDR) PER (x) PBV (x) Dividend yield (%) EV/EBITDA (x) Source : PWON, Danareksa Estimates See important disclosure at the back of this report 1

5 Equity Research Company Update Friday,08 June 2018 BUY Maintain Last price (IDR) 2,410 Target Price (IDR) 3,000 Upside/Downside +24.5% Previous Target Price (IDR) 3,000 Stock Statistics Sector Bloomberg Ticker Construction WSKT IJ No of Shrs (mn) 13,574 Mkt. Cap (IDRbn/USDmn) 32,713/2,358 Avg. daily T/O (IDRbn/USDmn) 84.4/6.1 Major shareholders (%) Govt. Indonesia 66.0 Public 34.0 Estimated free float 34.0 EPS Consensus (IDR) 2018F 2019F 2020F Danareksa Consensus Danareksa/Cons WSKT relative to JCI Index Source : Bloomberg x Maria Renata (62-21) ext.3513 maria.renata@danareksa.com Waskita Karya(WSKT IJ) Trying to remain healthy WSKT plans to issue IDR3.5tn of bonds in 2H18 for debt restructuring. This issuance will be the second stage of the shelf-registered bonds issuance, with the coupon rate in the range of 8%-9%. As of Mar 18, around 71% of WSKT s debts were bank loans bearing an interest rate ranging from 7.9% to 10.0%. We believe that the company s strategy to issue bonds is appropriate in view of the upward trend in domestic interest rates. BUY maintained on WSKT as we expect to see gains from the issuance of RDPT in Apr 18 to be booked in the 1H18 financial result. Plans to undertake debt restructuring by replacing short-term debts (which carry high interest rates) with long-term debts (which carry lower interest rates). With this goal in mind, WSKT plans to issue IDR3.5tn of bonds in 2H18. This will be the second stage of the shelf-registered bonds issuance with targeted proceeds of IDR10.0tn, of which IDR3.0tn were issued in the first stage in The shelf-registered bonds to be issued in the second stage will have a coupon rate in the range of 8%-9%. Debt profile. WSKT s total interest bearing debts as of Mar 18 reached IDR49.4tn, resulting in a DER of 2.02x. The leverage is still below the level stipulated in its internal policy at a maximum level of 2.5x to 3.0x. Around 71% of the debts are bank loans (with 83.8% of them channelled by top-10 creditors). BNI is the largest creditor with loans extended to WSKT reaching IDR10.1tn (including loans channelled to subsidiaries). This amount is 29% of WSKT s total bank loans (the details can be seen in exhibits 7 and 8). WSKT currently owns 18 toll roads through its subsidiary, Waskita Toll Road (WTR). The total investment needed for these toll roads is IDR130tn (only 5 of them have started to be operated). As such, WSKT has no plans to acquire new toll road concessions this year and will instead focus on the development of its toll roads. This is reflected in the new contracts obtained in 4M18 of IDR4.2tn or only 6% of the full year target of IDR70.0tn. More toll roads being operated. WSKT seeks to operate 437.5km of toll roads by end-2018 and then 889km by At the same time, WSKT is also trying to reduce its ownership in several toll roads so it becomes a minority shareholder. The capex needed this year is approximately IDR28.0tn funded by: 1) ~IDR10.5tn from the repayment of turnkey projects, 2) ~IDR6.7tn from the receipt of land acquisition bailout funds, 3) payment for the Palembang LRT project amounting to IDR9.0tn, and 4) the remaining IDR1.8tn from debt raising. Maintain BUY. We maintain our forecast and BUY call on WSKT. In Apr 18, WSKT launched a financial instrument called RDPT which generated proceeds of IDR5.0tn through the sale of 70% ownership in three toll roads. We expect WSKT to book gains from the transaction of around IDR1.7tn (based on our calculations) in the 1H18 unaudited financial result. Key Financials Year to 31 Dec 2016A 2017A 2018F 2019F 2020F Revenue (IDRbn) 23,788 45,213 51,046 58,471 64,309 EBITDA (IDRbn) 2,974 7,034 8,324 9,541 10,431 EBITDA Growth (%) Net profit (IDRbn) 1,713 3,882 4,369 5,038 5,934 EPS (IDR) EPS growth (%) (3.7) BVPS (IDR) , , , ,972.1 DPS (IDR) PER (x) PBV (x) Dividend yield (%) EV/EBITDA (x) Source : WSKT, Danareksa Estimates See important disclosure at the back of this report 1

6 MARKET NEWS CORPORATE Summarecon Agung (SMRA) realized 5M18 marketing sales of Rp1tn SMRA booked 5M18 marketing sales of Rp1.0tn or 25% of its FY18 target of Rp4.0tn, in which more than 50% are contributed from its Serpong project. The company remains optimistic that it can achieve the remaining Rp3.0tn in 2H18 through product launches aiming for end-user segment priced below Rp2.0bn/unit, easing of payment method and launching of new projects in Makassar. (Bisnis Indonesia) Ciputra Development (CTRA) to launch 2 projects CTRA is planning for 2 product launches aiming for millenials and workers: 1) Transit Oriented Development (TOD) in Ciracas, East Jakarta and 2) Newton Apartment in Kuningan, South Jakarta. The Ciracas TOD project will be located in close proximity to LRT station and will target younger generation workers, in which pricing will start at Rp350mn/unit. Meanwhile, Newton apartment Tower II will be aimed towards millenials working in the digital technology sectors at price range of Rp900mn-1.1bn/unit. (Bisnis Indonesia)

7 DANAREKSA VALUATION GUIDE Equity Valuation Rating Price (Rp) Price Mkt Cap Net profit, Rp bn EPS (Rp) Core EPS (Rp) EPS Growth PER (x) EV / EBITDA (x) PBV (x) ROE Target Rp Bn Danareksa Universe 3,915, , , % 11.9% Auto 282,373 18,881 20, % 8.4% Astra International BUY 6,975 9, ,373 18,881 20, % 8.4% Banks 1,537,426 90, , % 14.0% BCA HOLD 22,975 22, ,449 23,620 27, , , % 14.6% N/A N/A BNI BUY 8,450 10, ,581 13,616 15, % 15.6% N/A N/A BRI BUY 3,270 4, ,341 29,044 31, % 8.9% N/A N/A Bank Tabungan Negara BUY 3,070 4,200 32,511 3,135 3, % 16.7% N/A N/A Bank Mandiri HOLD 7,375 8, ,167 20,640 24, % 18.7% N/A N/A BTPN BUY 3,920 3,900 22,895 1,273 1, % 27.8% N/A N/A BPD Jatim BUY ,483 1,282 1, % 3.0% N/A N/A Cement 147,625 4,000 4, % 4.9% Indocement SELL 16,925 14,700 62,305 1,887 1, % 2.7% Semen Indonesia SELL 8,725 8,600 51,753 1,945 2, % 8.4% Semen Baturaja SELL 3, , % -11.0% Cigarettes 565,207 20,595 22, % 10.7% Gudang Garam BUY 70,075 80, ,830 7,498 8,487 3,897 4,411 3,897 4, % 13.2% HM Sampoerna BUY 3,700 3, ,377 13,097 14, % 9.2% Construction 119,410 8,554 10, % 21.0% Wijaya Karya BUY 1,645 2,300 14,756 1,225 1, % 45.5% Pembangunan Perumahan BUY 2,650 3,600 16,430 1,295 1, % 21.2% Adhi Karya BUY 1,930 2,900 6, % 37.3% Waskita Karya BUY 2,410 2,440 32,713 2,383 3, % 27.4% Waskita Beton BUY ,861 1,104 1, % 19.5% Wika Beton BUY , % 20.2% Jasa Marga BUY 4,660 7,800 33,822 1,747 1, % -8.1% Consumer 591,079 16,992 19, % 12.0% Indofood CBP BUY 9,000 9, ,957 3,894 4, % 10.3% Indofood BUY 7,100 8,000 62,341 4,381 4, % 10.6% Unilever HOLD 46,200 52, ,506 7,324 8, , , % 13.7% Kino Indonesia HOLD 2,000 2,100 2, % 25.8% Mayora Indah HOLD 3,060 2,790 68,418 1,277 1, % 10.4% Healthcare 83,668 2,700 2, % 11.5% Kalbe Farma HOLD 1,465 1,700 68,672 2,411 2, % 10.3% Kimia Farma SELL 2,700 1,910 14, % 12.7% Heavy Equipment 134,938 7,463 8,439 2,001 2, % 13.1% United Tractors BUY 36,175 39, ,938 7,463 8,439 2,001 2,262 2,001 2, % 13.1% Industrial Estate 12,747 2,352 1, % -49.5% Puradelta Lestari BUY , % 1.8% Bekasi Fajar BUY , % 11.3% Surya Semesta HOLD ,729 1,131 (103) 240 (22) (119) (32) % % 2.4 (26.6) (2.8) Media 51,934 2,965 3, % 13.5% Media Nusantara Citra BUY 2,390 3,100 34,946 1,491 1, % 7.6% Surya Citra Media BUY 1,190 1,415 16,989 1,474 1, % 19.5% Mining 218,993 14,754 17, % 15.5% Adaro Energy BUY 1,990 2,800 63,652 6,283 7, % 17.4% Timah BUY 995 1,400 7, % 3.0% Vale Indonesia HOLD 4,170 3,300 41,435 (74) 233 (7) 23 (7) % % (559.4) (0.3) 1.0 Aneka Tambang HOLD 945 1,000 22,709 (264) (68) (11) (3) (11) (3) % -74.4% (86.1) (335.9) (1.4) (0.4) Bukit Asam BUY 3,940 3,600 45,391 4,476 4, % 3.3% Indo Tambangraya Megah BUY 26,850 33,200 30,338 3,384 3,903 2,995 3,455 3,232 3, % 15.3% Harum Energy HOLD 2,980 3,100 8, % 2.1% Plantation 35,536 3,010 2, % -0.8% Astra Agro Lestari HOLD 12,000 14,800 23,096 1,908 1, % -3.0% Sampoerna Agro HOLD 2,340 2,700 4, % 6.4% PP London Sumatra BUY 1,175 1,700 8, % 1.7% Poultry 79,645 4,078 5, % 29.8% Charoen Pokphand HOLD 3,660 4,000 60,017 2,576 3, % 32.2% Japfa Comfeed BUY 1,575 1,850 17,972 1,463 1, % 23.8% Malindo Feedmill HOLD , % 91.5% Property 105,171 8,450 8, % -0.2% Alam Sutera HOLD ,231 1,379 1, % 4.1% Bumi Serpong Damai BUY 1,750 2,000 33,682 3,909 2, % -29.5% Ciputra Development BUY 1,080 1,350 20, , % 58.8% Pakuw on Jati HOLD ,859 1,937 2, % 24.0% Summarecon BUY 995 1,100 14, % 28.3% Retail 84,916 3,402 3, % 12.4% Mitra Adi Perkasa BUY ,000 15, % 46.8% Ramayana HOLD 1,490 1,500 10, % 4.9% Matahari Department Store BUY 8,925 12,500 26,042 1,928 2, % 5.3% Matahari Putra Prima SELL , % 2.7% Ace Hardw are BUY 1,330 1,550 22, % 9.3% Erajaya Sw asembada BUY 2,770 2,200 8, % 11.8%

8 COVERAGE PERFORMANCE LEADERS Bank Tabungan Pensiunan Nasional Price as on Code 07-Jun Jun-18 Chg, % w-w, % m-m, % YTD, % Rating BTPN 3,920 3, BUY Mitra Adi Perkasa MAPI BUY Pakuwon Jati PWON (9.5) HOLD Alam Sutera ASRI HOLD Kalbe Farma KLBF 1,465 1, (13.3) HOLD Bank Rakyat Indonesia BBRI 3,270 3, (10.2) BUY Bank Tabungan Negara BBTN 3,070 2, (3.2) 10.4 (14.0) BUY Erajaya Swasembada ERAA 2,770 2, BUY Gudang Garam GGRM 70,075 68, (16.4) BUY Surya Semesta SSIA HOLD Sources: Bloomberg LAGGARDS Price as on Code 07-Jun Jun-18 Chg, % w-w, % m-m, % YTD, % Rating Aneka Tambang ANTM (5.0) HOLD Puradelta Lestari DMAS (3.2) (10.5) BUY Indo Tambangraya Megah ITMG 26,850 27,650 (2.9) BUY Japfa Comfeed JPFA 1,575 1,615 (2.5) (3.4) BUY Charoen Pokphand CPIN 3,660 3,740 (2.1) HOLD Matahari Putra Prima MPPA (2.0) (12.2) 2.1 (36.3) SELL Mayora Indah MYOR 3,060 3,120 (1.9) HOLD Vale Indonesia INCO 4,170 4,250 (1.9) HOLD Wika Beton WTON (1.7) (9.2) BUY BPD Jatim BJTM (1.4) (1.4) BUY Sources: Bloomberg

9 PREVIOUS REPORTS Media: May 18: RCTI s audience share improves further, Danareksa Institute: Money Development Modest growth, Danareksa Institute: Trade Outlook Fairly stable SnapShot Kino Indonesia: Cautiously optimistic SnapShot Alam Sutra Realty: Modest 1Q18 results, Jasa Marga: Providing positive clarification, Danareksa Research Institute: Consumers Confidence Strengthened in May SnapShot Strategy: A Move To A Tightening Bias, Ciputra Development: Still More Upside, Media Nusantara: Slippery Start For The Year SnapShot Alam Sutra Realty: Relying on Land Sales, Mayora Indah: Exports boost SnapShot Bank Rakyat Indonesia: An unlikely deal, Poultry: New Regulation No. 58 Year 2018, United Tractor: Komatsu sales remain solid SnapShot

10 PT Danareksa Sekuritas Jl. Medan Merdeka Selatan No. 14 Jakarta Indonesia Tel (62 21) Fax (62 21) Equity Research Team Helmy Kristanto Stefanus Darmagiri Natalia Sutanto S helmy.kristanto@danareksa.com (62-21) ext Head of Research, Strategy stefanus.darmagiri@danareksa.com (62-21) ext Auto, Coal, Heavy Equip, Metal, Cement natalia.sutanto@danareksa.com (62-21) ext.3508 Consumer, Tobacco, Property Maria Renata maria.renata@danareksa.com (62-21) ext.3513 Construction Eka Savitri Eka.savitri@danareksa.com (62-21) ext.3506 Banking Yudha Gautama Yudha.gautama@danareksa.com (62-21) ext.3509 Plantation, Property Adeline Solaiman adeline.solaiman@danareksa.com (62-21) ext Media, Retail, Poultry Ignatius Teguh Prayoga ignatius.prayoga@danareksa.com (62-21) ext.3511 Research Associate Lucky Bayu Purnomo lucky.purnomo@danareksa.com (62-21) ext.3512 Technical Analyst Sales team Novrita E. Putrianti novrita@danareksa.com (62-21) ext Tuty Sutopo tuty@danareksa.com (62-21) ext Ehrliech Suhartono ehrliech@danareksa.com (62-21) ext Upik Yuzarni upik_y@danareksa.com (62-21) ext Laksmita Armandani laksmitaa@danareksa.com (62-21) ext Giovan Sitepu giovanp@danareksa.com (62-21) ext Rendy Ben Philips rendy.philips@danareksa.com (62-21) ext. 3148

11 Disclaimer The information contained in this report has been taken from sources which we deem reliable. However, none of P.T. Danareksa Sekuritas and/or its affiliated companies and/or their respective employees and/or agents makes any representation or warranty (express or implied) or accepts any responsibility or liability as to, or in relation to, the accuracy or completeness of the information and opinions contained in this report or as to any information contained in this report or any other such information or opinions remaining unchanged after the issue thereof. We expressly disclaim any responsibility or liability (express or implied) of P.T. Danareksa Sekuritas, its affiliated companies and their respective employees and agents whatsoever and howsoever arising (including, without limitation for any claims, proceedings, action, suits, losses, expenses, damages or costs) which may be brought against or suffered by any person as a results of acting in reliance upon the whole or any part of the contents of this report and neither P.T. Danareksa Sekuritas, its affiliated companies or their respective employees or agents accepts liability for any errors, omissions or misstatements, negligent or otherwise, in the report and any liability in respect of the report or any inaccuracy therein or omission there from which might otherwise arise is hereby expresses disclaimed. The information contained in this report is not be taken as any recommendation made by P.T. Danareksa Sekuritas or any other person to enter into any agreement with regard to any investment mentioned in this document. This report is prepared for general circulation. It does not have regards to the specific person who may receive this report. In considering any investments you should make your own independent assessment and seek your own professional financial and legal advice.