INVESTOR DIGEST HIGHLIGHT ECONOMY. Equity Research 16 September 2016

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1 INVESTOR DIGEST Equity Research 16 September 2016 Economic Data Latest 2016F 7-DRRR, eop Inflation (YoY %) US$ 1 = Rp, period avg 13,175 13,348 Stock Market Data (15 Sep 2016) JCI Index 5, % Trading T/O ( Rp bn ) 6,204.0 Market Cap ( Rp tn ) 5, ,016.2 HIGHLIGHT Upgrade CAD and Rupiah Forecasts Arwana Citramulia: Margin Unlocked! (ARNA; Rp525; Buy; TP:Rp610) Bank Jatim: 8M16 Results Above Expectations (BJTM; Rp590; Sell; TP:Rp540) Media Nusantara Citra: Meeting Key Takeaways (MNCN; Rp1,960; Buy; Under Review) Tax amnesty progress: Revenue Increased Significantly on Different Recording Method Market Recap Sep 15 th 2016; JCI: 5, (+2.33%); USD/IDR: 13,175; Total Value: Rp9.98tn ECONOMY 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 70.9% of JCI s market capitalization Upgrade CAD and Rupiah Forecasts Aug16 trade surplus came in line. The Statistics Indonesia announced US$290mn trade surplus in Aug16, in line with Mandiri Sekuritas estimate. Trade values rebounded from Jul16 s plunge as business returned to normal post festivity holiday. Export and import contractions narrowed to -0.7% YoY (from % YoY) and -0.5% YoY (from -11.6% YoY), respectively. The result brings up cumulative trade surplus to US$4.5bn (8M15: US$6.2bn). Demand drove export and import. Unlike what we expected, export volume saw substantial bounce as it grew 7.5% YoY relative to -4.6% YoY in Jul16 with price also improving in the period (-7.7% YoY vs % YoY). The biggest contributors by country were China, Japan, and India while by commodity were precious stone, ores, vehicles and components, and CPO. Similarly, demand also drove import given that volume went up 12.3% YoY from 3.7% YoY with slight betterment in term of price (-11.4% YoY from -13.5% YoY). Capital goods import expanded 1.1% YoY (vs % YoY in Jul16), among others from electrical machinery that contributed the most to annual import (0.8ppt). Upgrade CAD and rupiah forecasts. We revise our FY16 CAD to GDP projection to -2.0% from initially -2.4% for two reasons. First, lower than expected 1H16 realization, at -2.1% compared with our expected -2.3%. Second, potentially smaller 2H16 CAD as economic growth rate in the period is expected to be similar or slightly lower than 1H16. Narrower CAD aside, we also see solid financial account surplus provided existing push and pull factors. The former include flush global liquidity and smaller than anticipated FFR hike (one vs. two this year) while the latter are attractive interest rate differential and better economic fundamental. They had and will continue to attract capital inflows until YE16. For information, YtD capital inflow has reached US$11.1bn relative to US$4.5bn in the same period last year. On the back of healthier balance of payment, we are now seeing YE16 rupiah at Rp13,100/US$ instead of Rp13,400/US$. Page 1 of 11

2 Expect 25bps benchmark rate cut. Manageable external balance as above provides data-dependent Bank Indonesia with a firmer reason to relaxing monetary policy stance, complementing already subdued inflation outlook (FY16F: 3.3%, 8M16: 1.7%). We anticipate 25bps benchmark rate cut to 5.0% next Thursday and likewise the consensus. TRADE SUMMARY Jul-16 Aug-16 MS Forecast Market Consensus Actual Exports (% YoY) Imports (% YoY) Trade balance (US$ mn) Sources: Bloomberg, Mandiri Sekuritas Estimate Leo Rinaldy( ) Wisnu Trihatmojo ( ) leo.rinaldy@mandirisek.co.id wisnu.trihatmojo@mandirisek.co.id CORPORATE Arwana Citramulia: Margin Unlocked! (ARNA; Rp525; Buy; TP:Rp610) Softening gas price, product mix repositioning, and industry volume recovery place the company in a sweet spot to clock margin expansion. Hence, we forecast earnings to grow by 58% CAGR in FY15A-18F. Initiate with a BUY rating. Initiate with BUY with PT of Rp610. We are positive on ARNA due to softening gas price, product mix repositioning, and industry volume recovery. We estimate revenue CAGR of 18% over FY15A-18F as well as EBITDA and EPS CAGR of 39% and 58%, respectively. Our target price implies 19-20x 12-month forward FY17F earnings. Benefiting from falling gas price. ARNA is expected to benefit significantly from the revised industrial gas price set by Ministry of Energy and Mineral Resources. Consequently, post this new ruling, gas price could fall from US$9/MMBtu to US$6/MMBtu, - or even as low as US$4/MMBtu. We highlight that our estimates reflect only a 33% cut from US$9/MMBtu to US$6/MMBtu. There is further scope of earnings upgrade if gas price was cut to US$4/MMBtu (every US$1 cut translates to 13-16% upside in earnings over FY17-18F). Further margin expansion through a more profitable product mix. Previously, the company focused on its low margin Best Buy business (53% of total sales in FY15A). However, the company is shifting gear towards a more profitable UNO business. We forecast contribution from UNO to increase to 35%, while Best Buy to decline to 44% by FY18F. With softening gas price and better margin mix, we estimate gross margin to expand from its low 22% in FY15A to 30% by FY18F. Volume recovery is seen. ARNA's volume is expected to grow by 14% CAGR over FY15A-18F. Industry-wise, the business is expected to grow by 16% CAGR in volume over FY15A-18F. Price war has also ceased to occur, as industry utilization improves from 64% in FY15A to 70-83% in FY16-18F. Risk to our call. 1) Less than US$3/MMBtu gas price cut risk; 2) Slowdown in overall economy; 3) Delay in capacity expansion; 4) Inefficacy in passing down raw material price hikes; 5) High currency exposure. Page 2 of 11

3 FINANCIAL SUMMARY YE Dec (Rp Bn) 2014A 2015A 2016F 2017F 2018F EBITDA Net Profit Fully-diluted EPS (Rp) Fully-diluted EPS growth 10.4 (73.1) P/E Ratio (x) EV/EBITDA (x) P/B Ratio (x) Dividend Yield ROAE Source: Company ( ), Mandiri Sekuritas ( ) Ferdy Wan ( ) Bank Jatim: 8M16 Results Above Expectations (BJTM; Rp590; Sell; TP:Rp540) Bank Jatim booked net income of Rp748bn in 8M16, +21% yoy, accounting for 74% of FY16 consensus and 71% of our FY16 forecast. Strong net income was driven by decline in provision expense of -30%yoy. On the monthly basis, net income came in at Rp136bn, +30% yoy, +165% mom. Loan growth +2% yoy, deposit growth -1% yoy. Loan growth was supported by consumer loans at +6.9%yoy, meanwhile commercial and SME loans declined by 7.3% yoy and 2.6% yoy, respectively. In contrast, decline in deposit growth was mainly driven by decline in time deposits of at 7.9%yoy and demand deposits at 9.8%yoy. Meanwhile, savings account grew by +21.1%yoy bringing CASA to 69% in Aug16 from 67% in Aug15. LDR stood at 73% in Aug16 vs. 71% in Aug15. NPL slightly improved to 4.80% in Aug16 from 4.83% in Jul16. Based on loan segment, commercial NPL declined to 11.72% in Aug16 (from 11.90% in Jul16), while SME NPL slightly increased to 11.61% (from 11.60% in Jul16) and consumer NPL remains relatively stable at 0.91%. Provisioning expenses declined by 30% yoy to Rp333bn in 8M16 while provisioning level remained stable at 4.1% in Aug16. NIM improved to 6.71% in 8M16 vs. 6.60% in 8M15 (based on bank s calculation). Cost to income ratio deteriorated to 47% in 8M16 vs. 45% in 8M15. However, on a monthly basis, Aug16 s cost to income ratio improved to 42% from 48% in Jul16. Maintain Sell for the counter which is trading at 1.2x P/BV Income Statement (Rp bn) Aug-15 Jul-16 Aug-16 % MoM % YoY 8M15 8M16 % YoY FY16F % of FY16F Net interest income ,101 2, , Non interest income (3) Operating income ,399 2, , , Provision expenses (47) (88) (12) (87) (75) (475) (333) (30) (515) 65 Operating expenses (123) (149) (136) (8) 11 (1,089) (1,197) 10 (1,874) 64 Operating profit , , , PPOP ,310 1, , Pre-tax profit , , , FY16 Cons % of FY16F Cons Net profit , , Page 3 of 11

4 Balance Sheet (Rp bn) Aug-15 Jul-16 Aug-16 % MoM % YoY Gross loans 29,038 29,291 29, Demand deposits 16,947 17,876 15,290 (14) (10) Saving deposits 10,444 11,940 12, Time deposits 13,531 12,721 12,465 (2) (8) Total deposits 40,922 42,537 40,407 (5) (1) CASA to deposits Ratio Aug-15 Jul-16 Aug-16 8M15 8M16 LDR NIM ROE Cost to income Priscilla Thany ( ) priscilla.thany@mandirisek.co.id Media Nusantara Citra: Meeting Key Takeaways (MNCN; Rp1,960; Buy; Under Review) MNCN is confident on both its earnings outlook as well as the industry outlook. Its strong audience share from 4 FTA TV Networks, coupled with a bottoming industry growth in FY15 should boost revenue growth. Monetization of strong audience share. MNCN s strong audience share since Nov 15 has only translated into double digit revenue growth in 2Q16 as the re-negotiation phase using its new and stronger audience share data only took place in Mar 16. RCTI and MNC TV usually give fixed rate card contracts; while Global TV uses CPRP (Cost per Rating Point). MNCN expects stronger 3Q16 earnings as it stated that Aug-Sep 16 adex seems good while it keeps maintaining good audience share with the new drama series, Anugerah Cinta, becoming a hit. Management sees upside risk to its FY16F Revenue/NPAT target of Rp6.9tn/Rp1.7tn. Who s spending?? Consumer companies (including telco) are still the biggest contributors of revenue for the Group, with estimated revenue of c % to total revenue. Local ad spenders represent around 60% to total revenue, while the rest are foreign. Revenue from cigarettes represent c. 8% of total, as they are being more aggressive in TV ad spending this year on the back of the billboard ban in several cities in Indonesia. Deleveraging plans. MNCN plans to partially repay US$100mn of its US$250mn loan due in Sep 17; while the remaining US$150mn will be refinanced. Management believes it will be debt-free by FY19F. Legal case update. MNCN clarified that PT Berkah has won the case in the Supreme Court. It is confident in maintaining its stake in MNC TV. Broadcasting license and Digital TV update. Broadcasting license for national TV is going to be reviewed in Oct 16, with renewal period of 10 years. MNCN is confident that the process will go smoothly without any unexpected setback. In relation to Digital TV, the Company thinks that the shift will be delayed from the initial FY18 plan as the Government would need to create a new Regulation in regards to TV digitalization since the earlier Regulation was cancelled in 2015 by the Judge panel of the State Administrative Court. Improving outlook for ad spend. MNCN is feeling upbeat on FY17 adex outlook for the industry. According to the Company, the industry is gaining traction on the back of economic recovery (as proven in local consumer companies revenue growth); while the Company also thinks that FY15 was the bottoming of the industry, just like FY08. Page 4 of 11

5 FINANCIAL SUMMARY YE Dec (Rp Bn) 2014A 2015A 2016F 2017F 2018F EBITDA 2,778 2,403 2,750 3,173 3,572 Net Profit 1,761 1,186 1,680 1,980 2,285 Fully-diluted EPS (Rp) Fully-diluted EPS growth 4.1 (32.7) P/E Ratio (x) EV/EBITDA (x) P/B Ratio (x) Dividend Yield ROAE Source: Company ( ), Mandiri Sekuritas ( ) Kevin Halim ( ) TAX AMNESTY Tax amnesty progress: Revenue Increased Significantly on Different Recording Method Tax amnesty revenue jumped big time. Tax amnesty revenue recorded a significant increase to Rp22.7tn as of yesterday from Rp11.3tn the day before (please see the screenshot below). Big taxpayers aside, recording method also affected the rise. The Ministry of Finance now displays two versions of tax amnesty revenue: one based on amnesty filing paper (Rp13.1tn) and one based on actual proceeds (Rp22.7tn). The former lags from the latter. Keep in mind that penalty payment is required before taxpayer could submit an amnesty filing paper to the tax office. In other words, there is a chance that the penalty payment has already been recorded by the tax office (actual proceeds) while the amnesty filing paper has yet to be submitted due to the fulfillment of other requirements. The reason of difference between tax amnesty revenue and asset declaration data. If we see the dashboard data, the tax amnesty revenue increased by Rp11.4tn while the asset declaration only increased by Rp124tn (Rp552tn vs. Rp428tn yesterday). Even with 4% penalty fee, the tax amnesty revenue should only have increased by Rp5tn. Again, this is because for the same reason mentioned above. Tax amnesty revenue potentially around Rp40tn this year. Overall, we believe our forecast of Rp80tn for the whole nine months could be lower by Rp10tn Rp20tn. Leo Rinaldy( ) leo.rinaldy@mandirisek.co.id Page 5 of 11

6 MARKET Market Recap Sep 15 th 2016; JCI: 5, (+2.33%); USD/IDR: 13,175; Total Value: Rp9.98tn After four depressing day, the JCI rebounded by 2.3% to close at 5265 level. We experienced better afternoon session than morning. Buying appetite was getting ferocious by the minute. We can t say which has the better influence, whether it s the better-than-expected trade data (in term of export performance) and/or significant jump in tax amnesty (double at Rp21.3tn). All major sectors rebounded hard especially the ones benefited from tax amnesty: property (+2.8%) and construction (+2.7%). Also, big caps rebounded from two-month lows led by ASII (+5.5%), TLKM (+4.3%) and HMSP (+3.7%). Market turnover rose 21% d/d at US$469mn (excluding US$19mn IIKP; US$16mn SMBR; US$6mn BGTG; US$4.6mn MYRX; and US$3.3mn MYRX crossing). Regular market transaction was recorded at Rp6.2tn (US$470.59mn) and foreign posted a net sell of Rp527.8bn (US$40.1mn). Foreign participants rose to 40% and came up slightly better seller. Gainers beat losers by 3 to 1. While, other Asian stocks wavered as investors grappled with the seemingly diminishing ability of major central banks to stimulate growth, while a tumble in crude oil inflamed already heightened risk aversion. Global yields have risen in sympathy with depressed sentiment, adding to nervousness over when the Fed might decide to raise rates. While expectations over a Fed rate hike at next week s meeting have faded, investors have been bracing for a tightening before year-end. Perceived limits to the extensive monetary easing led by major central banks like the ECB and the BoJ have also soured broader risk sentiment, driving global debt yields higher. TOP TURNOVER: BBCA TLKM ASII BBNI BBRI BMRI WIKA LPPF INDF PPRO PGAS BSDE SMGR UNVR WSKT ICBP BNGA UNTR (40%) ADVANCING SECTOR: property+2.8%; construction+2.7%; auto+2.4%; consumer+2.6%; cement+2%; telco+1.8%; financial+1.7%; mining+1.4%; plantation+1.1% DECLINING SECTOR: NONE The yield of 10-year government went up to 7.073% (-0.31%) and Rupiah strengthened to Rp13,175 (+0.235%). Sales Team FROM THE PRESS Transportation Ministry has not allocated budget for Greater Jakarta LRT Sugihardjo, the Secretary General for the Ministry of Transportation, stated that his Ministry has not allocated budget for the development of Light Rail Transit (LRT) project in Jakarta, Bogor, Depok and Bekasi due to budget limitation. Currently, the Transportation Ministry is reviewing availability payment scheme to finance the Rp20tn project. (Bisnis Indonesia) Aneka Tambang (ANTM) grants Haltim ferronickel plant to Kawasaki and Wijaya Karya (WIKA) The new plant will increase output capacity to 40,500-43,500 tons nickel per year from 27,000-30,000 tons. Meanwhile, total contract awarded is worth Rp3.4tn. (Bloomberg) Banks start lowering lending rate on micro loans Based on prime lending rate data published by BI, the majority of banks have lowered lending rates on micro loans. President Director of BJBR Ahmad Irfan states that they have lowered micro lending rates to 8.71% through their micro commercial loan program. Furthermore, a number of regional development banks such as BPD Jawa Tengah, BPD Kalimantan Selatan, Bank Nusantara Parahyangan, and BPD Yogyakarta offer micro lending rate of %. (Investor Daily) Page 6 of 11

7 Bank Jabar (BJBR) to expand micro segment BJBR will expand its micro segment in 2H16, as per Aug16 distribution of micro loans has reached Rp4.5tn. President Director of BJBR Ahmad Irfan states that in 2015 the bank consolidated micro loans and will start to expand the segment again this year. Irfan states that new micro loans booked during have an NPL ratio of 0%. (Bisnis Indonesia) Bank Mandiri (BMRI) to focus on infrastructure loans Director of Corporate Banking Royke Tumilaar states that they anticipate higher loan growth from the corporate segment next year compared to this year as BMRI expects more infrastructure projects and lower lending rates ahead. BMRI will focus on distributing loans to both private and SOE infrastructure companies. The bank targets corporate loan growth of +15%yoy in 2017, micro loan growth of +15%yoy, consumer loan growth of +10%yoy, while commercial and SME loan growth will relatively slower due to high NPL. (Bisnis Indonesia) Kawasaki and Wijaya Karya (WIKA) appointed to construct Phase 1 East Halmahera Ferronickel Plant Kawasaki and Wijaya Karya (WIKA) has been appointed by ANM to construct Phase 1 of East Halmahera Ferronickel plant, with contract value of Rp3.42tn. Phase 1 of the project is expected to contain capacity of 13,500 Tni Ferronickel, which will increase ANTM total ferronickel capacity to 40,500-43,500 Tni Ferronickel. Commissioning stage is expected to be reached by end of FY18. (Investor Daily) Ministry of Public Work and Public Housing (PUPR) to commence dam project groundbreaking PUPR Ministry aims to commence groundbreaking for 4 dam projects by December 2016, namely Kuwil Kangkoan (Rp1.42tn), Tapin (Rp896bn), Leuwikeris (Rp1.13tn), and Ladongi (Rp907bn). The Ministry s representative stated that Landongi Dam tender has been won by one of Karya SOEs. Meanwhile for Kuwil Dam, the first package worth Rp783bn will be constructed by Wijaya Karya (WIKA) and DMT Exploration Engineering Consulting Indonesia, while the second package worth Rp649bn will be constructed by Nindya Karya. (Bisnis Indonesia) Pembangunan Perumahan (PTPP), The Workers Social Security Agency (BPJSTK), and Bank Tabungan Negara (BBTN) signed workers housing development contract BPJSTK, PTPP, and BBTN aim to provide housing solution for industrial workers by developing Rp360bn housing projects for 9,600 industrial workers in 6 provinces. PTPP aims to develop 100k unit housing in the next five year with support from BPSJTK which provide most of the financing needs by using pension funds and BBTN which provide additional construction and land clearing funds as well as credit facility for the workers. (Bisnis Indonesia, Investor Daily) Pembangunan Perumahan (PTPP) to allocate Rp14-18tn capital expenditure per annum To support this effort, PTPP aims to raise the required funds by conducting right issue of both subsidiary (PP Property - Rp1.6tn) and parent entity (PTPP - Rp4tn), as well as initial public offering of its subsidiary (Rp6.25tn), namely PP Precast, PP Equipment, and PP Energy in Meanwhile, PTPP managed to book Rp19.42tn of new contracts in 8M16 (7M16: Rp15.7tn, 8M15: Rp16tn). (Kontan) Waskita Karya (WSKT) reviews potential investors for Waskita Toll Road Muhammad Choliq, CEO of WSKT, stated that the company would sell less than 40% stake in Waskita Toll Road given lower proceeds target from previous expectation of Rp4.5tn. Nevertheless, this should be offset by larger proceeds from the IPO of Waskita Beton Precast which able to raise Rp5.2tn. (Investor Daily) 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$/mt) 9, Nikkei 16, YEN/US$ 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 40,995 2,130 2,350-52% 4,475 38% 1, % 11.6% PWON Buy 30, % 1,207 49% % 24.7% SMRA Neutral 24,522 1,700 1,600-57% 3, % % 14.7% CTRA Buy 23,356 1,540 1,600-41% 2,628 97% % 14.0% JRPT Buy 11, ,300-75% 3,242 18% % 20.4% ASRI Neutral 8, % 1, % % 6.3% LPCK Buy 4,402 6,325 10,000-74% 24,683 35% 4, % 14.6% MDLN Buy 4, % 1,165 26% % 6.6% CTRS Buy 4,789 2,420 4,000-82% 13,390-40% 4, % 13.9% Simple Average -62% % 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 11, % % % 12.5% BEST Buy 2, % % % 9.0% SSIA Neutral 2, % 1,701-36% % 8.1% LPCK Buy 4,402 6,325 10,000-74% 24,683 35% 4, % 14.6% MDLN Buy 4, % 1,165 26% % 6.6% Simple Average -68% % 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 5,266 5,450 4,019, , , % 14.8% % 2.2% Banking 886,795 65,368 77, % 18.6% N.A. N.A % 2.2% BBCA Neutral 15,100 13,000 (13.9) 372,291 18,174 21, % 17.7% N.A. N.A % 1.5% BBNI Neutral 5,525 6, ,034 9,953 13, % 32.4% N.A. N.A % 2.9% BBRI Neutral 11,975 11,300 (5.6) 295,413 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 3,700 3,500 (5.4) 35,463 3,375 3, % 9.5% N.A. N.A % 2.0% BJBR Neutral 1,635 1,500 (8.3) 15,853 1,772 2, % 15.6% N.A. N.A % 4.5% BJTM Sell (8.5) 8,801 1,047 1, % 10.0% N.A. N.A % 8.0% BTPN Sell 2,520 2,200 (12.7) 14,718 1,648 1, % 10.4% N.A. N.A % 0.0% PNBN Buy 865 1, ,836 2,129 2, % 11.3% N.A. N.A % 0.0% Building Materials 135,609 9,374 10, % 7.0% % 3.7% INTP Neutral 17,625 20, ,882 4,368 4, % 5.3% % 5.4% SMCB Sell 1, (12.2) 7, N/M 10.1% % 1.6% SMGR Neutral 9,950 11, ,019 4,501 4, % 5.4% % 2.3% ARNA Buy , % 147.5% % 1.8% Constructions 90,033 4,132 5, % 21.8% % 0.6% ADHI Buy 2,660 3, , % 32.0% % 1.1% PTPP Buy 4,360 5, , , % 19.2% % 0.9% WIKA Buy 2,710 3, , % 23.9% % -1.3% WSKT Buy 2,620 3, ,058 1,634 1, % 12.7% % 1.1% WTON Buy 900 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 2,020 U/R U/R 6, % 16.9% % 0.5% Consumer 1,138,934 32,460 36, % 12.6% % 2.1% ICBP Neutral 9,450 7,000 (25.9) 110,205 3,298 3, % 10.7% % 1.5% INDF Neutral 8,475 6,000 (29.2) 74,419 4,160 4, % 13.5% % 2.8% MYOR Sell 1, (31.9) 27, % 19.8% % 0.6% ULTJ U/R 4,500 U/R U/R 12, % 19.6% % 0.0% UNVR Neutral 44,425 41,000 (7.7) 338,963 6,051 7, % 18.4% % 1.8% GGRM Buy 62,500 56,000 (10.4) 120,256 5,665 6, % 11.7% % 1.7% HMSP Neutral 3,900 4, ,640 11,712 12, % 9.3% % 2.5% WIIM U/R 408 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 97,446 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 , % 12.9% % 3.2% TSPC Neutral 2,090 2, , % 12.1% % 2.7% Hospital 52, % 12.2% % 0.6% MIKA Buy 2,800 3, , % 11.1% % 0.7% SILO Neutral 10,400 10, , % 17.7% % 0.0% Retail 100,938 4,229 5, % 21.7% % 2.3% ACES Neutral (21.3) 15, % 14.4% % 1.3% ERAA Neutral (20.0) 2, % 49.7% % 3.6% LPPF Buy 18,550 21, ,110 2,154 2, % 15.1% % 2.8% MAPI Buy 4,400 5, , % 194.2% % 0.0% MPPA Neutral 1,720 2, , % 24.2% % 1.2% RALS Neutral 1, (40.6) 8, % 8.3% % 2.3% TELE Buy 610 1, , % 18.6% % 4.7% Automotive 333,840 16,763 18, % 10.0% % 2.2% ASII Neutral 8,150 8, ,941 16,492 18, % 9.5% % 2.2% IMAS U/R 1,410 U/R U/R 3, N/M 53.7% % 1.3% Heavy Equipment 67,453 4,686 4, % 2.9% % 2.1% 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) HEXA* U/R 2,590 U/R U/R 2, % 50.0% n/a n/a 0.0% 0.0% UNTR Sell 17,500 11,000 (37.1) 65,277 4,554 4, % 1.8% % 2.1% Plantation 41,318 2,145 3, % 40.5% % 1.7% AALI Buy 15,650 16, ,293 1,519 2, % 19.8% % 1.8% LSIP Buy 1,505 1, , % 85.0% % 1.4% SGRO U/R 1,990 U/R U/R 3, % 28.6% % 1.7% Property 158,504 11,167 11, % 6.1% % 0.6% APLN U/R 304 U/R U/R 6, , % 24.7% % 2.7% ASRI Neutral (25.5) 8,396 1, % -59.0% % 1.5% BSDE Buy 2,130 2, ,995 2,143 2, % 17.6% % 0.8% CTRA Buy 1,540 1, ,356 1,474 1, % -3.1% % -1.3% CTRS Buy 2,420 4, , % 1.8% % 2.4% JRPT Buy 820 1, , , % 11.6% % 1.0% LPCK Buy 6,325 10, , % -15.9% % 0.0% MDLN Buy , % -2.2% % 0.0% PWON Buy ,100 1,934 2, % 25.9% % 1.5% SMRA Neutral 1,700 1,600 (5.9) 24, , % 40.0% % 0.0% Industrial Estate 17,540 1,394 1, % 11.5% % 1.9% DMAS Buy , % 8.4% % 2.3% BEST Buy , % 18.8% % 0.4% SSIA Neutral , % 15.5% % 1.7% Poultry 79,121 3,547 4, % 22.2% % 1.3% CPIN U/R 3,590 U/R U/R 58,869 2,671 3, % 20.2% % 1.4% JPFA U/R 1,570 U/R U/R 16, % 25.8% % 0.9% MAIN U/R 1,570 U/R U/R 3, N/M 36.3% % 1.2% Coal 74,066 5,259 5, % 11.5% % 4.0% ADRO* Neutral 1,165 1,100 (5.6) 37, % 14.2% % 3.1% HRUM* Neutral 1,000 1, , N/M 43.3% % 3.4% ITMG* Neutral 10,500 7,600 (27.6) 11, % 8.0% % 7.2% PTBA Neutral 9,650 9,200 (4.7) 22,238 1,542 1, % 12.7% % 3.9% Oil & Gas 66,179 7,044 7, % 8.0% % 5.4% PGAS* Sell 2,730 3, , % 10.5% % 5.4% Shipping 2, % 8.5% % 4.9% SOCI* Buy , % 11.0% % 4.9% Metal 32, N/M N/M % 0.4% ANTM Neutral (21.9) 6, % N/M % 0.1% INCO* U/R 2,660 U/R U/R 26, % 33.3% % 0.5% Telco 462,554 20,500 23, % 16.7% % 3.1% EXCL Neutral 2,660 3, , ,179 N/M 172.1% % 0.8% ISAT U/R 5,450 U/R U/R 29,615 1,013 1,908 N/M 76.0% % 2.5% TLKM Buy 4,140 3,800 (8.2) 406,448 19,083 20, % 9.5% % 3.3% Tower 68,032 3,540 4, % 26.3% % 0.0% TBIG Neutral 5,675 6, ,220 1,120 1, % 39.1% % 0.0% TOWR Buy 4,000 5, ,812 2,420 2, % 20.4% % 0.0% Media 70,384 3,353 3, % 15.9% % 2.6% SCMA Neutral 2,900 3, ,403 1,674 1, % 13.9% % 2.8% MNCN Neutral 1,960 2, ,981 1,680 1, % 17.9% % 2.4% 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 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 Building Material 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.