Equity SNAPSHOT Friday, February 17, 2017

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1 Friday, February 17, 2017 FROM EQUITY RESEARCH Market Outlook: Jakarta Gubernatorial Election The Jakarta gubernatorial election will go to the second round, a play-off between Ahok and Anies Baswedan after Agus Yudhoyono was eliminated in Wednesday s vote. Political tensions may heighten and polarization in the community may bring up memories of the 2014 presidential elections. As such, if Agus Yudhoyono enters into a coalition with Anies, then Ahok will face stiff competition. Meanwhile, demonstrations against Ahok may continue with the uncertainty surrounding his court case overhanging the market. To see the full version of this report, please click here Mitra Adiperkasa: Shaping up for a better future (MAPI IJ. IDR5,750. HOLD. TP IDR 5,800) We maintain our HOLD recommendation on MAPI with a higher TP of IDR5,800 from IDR5,000, implying 32x PE After meeting the management recently, we note the following positives: 1) more aggressive expansion in 2017 and 2) continued efficiency improvements. We advise investors to HOLD the stock. To see the full version of this report, please click here FLASH NOTES Bank Mandiri: The uncertainties end (BMRI IJ. IDR 11,425. HOLD. TP IDR 11,500) Waskita Karya: Net income up 63.5%yoy in 2016 (WSKT IJ. IDR2,580. BUY. TP IDR3,700) Waskita Beton Precast: 2016 net income up 90%yoy (WSBP IJ. IDR 565. BUY. TP IDR 770) Wijaya Karya Beton: Strong 2016 net income growth (WTON.IJ. IDR820. BUY. TP IDR1,300) MARKET NEWS Sector Construction: Ministry of Transportation agrees on LRT Palembang value of Rp11tn Construction: progress of Palembang-Indralaya section 1 reached 74.99% as of 15 February 2017 Property: Indonesian Property Association estimates residential house prices to increase by 10-20% Corporate Bank Tabungan Negara: Targets IDR 17tn of non-third party funds Bank Mandiri: Optimistic net profits will grow by 44% this year Malindo Feedmill: Higher capex in 2017 (USD50mn) PP Properti aims to acquire an additional 80ha of land bank Pembangunan Perumahan aims for Rp21tn of investments KEY INDEX Close Chg Ytd Vol (%) (%) (US$ m) Asean - 5 Indonesia 5,381 (0.5) Thailand 1, ,885 Philippines 7,174 (0.5) Malaysia 1, Singapore 3, ,012 Regional China 3,213 (0.2) ,859 Hong Kong 23, ,355 Japan 19, ,996 Korea 2, ,934 Taiwan 9, ,775 India 28,156 (0.6) NASDAQ 5, ,921 Dow Jones 20, ,010 CURRENCY AND INTEREST RATE Rate w-w m-m ytd (%) (%) (%) Rupiah Rp/1US$ 13, SBI rate % (1.3) 10y Gov Indo bond (0.4) Unit HARD COMMODITY Price d-d m-m ytd (%) (%) (%) Coal US$/ton (4.2) (9.5) Gold US$/toz 1,234 (0.0) Nickel US$/mt.ton 10, Tin US$/mt.ton 19,843 (0.3) (6.2) (6.4) Unit SOFT COMMODITY Price d-d m-m ytd (%) (%) (%) Cocoa US$/mt.ton 1,936 (0.6) (12.5) (9.9) Corn US$/mt.ton Oil (WTI) US$/barrel 53 (0.1) 1.3 (1.3) Oil (Brent) US$/barrel 56 (0.4) 0.5 (1.9) Palm oil MYR/mt.ton 3,286 (0.5) Rubber USd/kg 228 (1.6) Pulp US$/tonne 817 N/A Coffee US$/60kgbag 143 (2.0) (12.2) (9.0) Sugar US$/MT Wheat US$/ton

2 Equity Research Tuesday, 16 February 2017 JCI Index (as of Feb 14, 2017) 5,381 JCI PE Band Market Outlook Jakarta Gubernatorial Election The Jakarta gubernatorial election will go to the second round, a play-off between Ahok and Anies Baswedan after Agus Yudhoyono was eliminated in Wednesday s vote. Political tensions may heighten and polarization in the community may bring up memories of the 2014 presidential elections. As such, if Agus Yudhoyono enters into a coalition with Anies, then Ahok will face stiff competition. Meanwhile, demonstrations against Ahok may continue with the uncertainty surrounding his court case overhanging the market. Indonesia held provincial and district elections on 15 February 2015 with a total of 101 elections in 7 provinces, 76 regencies and 18 cities. However, it is the gubernatorial election in Jakarta that will have the biggest impact on Indonesia s political landscape. Political tensions have heightened in Jakarta, as evident in the rallies held against the incumbent candidate Basuki Tjahaja Purnama (Ahok) for blasphemy allegations in November and December The Jakarta gubernatorial election will go to the second round. Quick counts done by some TV stations and newspapers show that Ahok and Anies Baswedan will proceed to the second round since Ahok got 43.1% of the vote, Anies 39.8% and Agus Yudhoyono 17.1%. The second round election will be held on 19 April Despite some problems (some people couldn t vote due to insufficient election forms), the matter could be contained. However, the Election Committee will need to solve the problem and prevent a recurrence in the second round. We think political tensions will mount, as was the case in the presidential elections in 2014, especially if Agus Yudhoyono enters into a coalition with Anies. Why is the Jakarta election very important? The Jakarta election is deemed very important since people believe the governor of Jakarta will have a high chance to run for presidency in the next presidential election. This is because Joko Widodo was elected president following his election as the governor of Jakarta in At the same time, Jakarta also has the largest economy among the provinces in Indonesia. As the capital of Indonesia and the headquarters for most corporations, Jakarta is a very important asset for presidential candidates to demonstrate their administrative and management abilities. Furthermore, Ahok is an ally of Jokowi. Hence, if Jakarta's governor is from the opposition, then President Jokowi will have a rival prior to the 2019 presidential election. Agus Pramono, CFA ext agus.pramono@danareksa.com Our take and its impact on the market. The rallies against Ahok and his current court case have worried some foreign investors. However, we have seen that the government has been able to handle the problems smoothly. The peaceful rally in December and campaigns by the candidates are evidence of this. We should see democracy and the rule of law strengthen in Indonesia. Nevertheless, we cannot rule out the possibility that heightened political tensions create an overhang in the market. See important disclosure at the back of this report

3 Equity Research Company Update Thursday, 16 February 2017 HOLD Maintain Last price IDR 5,750 Target Price IDR 5,800 Previous target price Upside/Downside Stock Statistics Sector Bloomberg Ticker IDR 5, % Retail MAPI.IJ No of Shrs (mn) 1,613 Mkt. Cap (Rpbn/USDmn) 9,274/687 Avg. daily T/O (Rpbn/USDmn) 20.1/2.1 Major shareholders PT Satya Mulia Gema Gemilang 56.0% Estimated free float (%) 44.0% Net Profit Consensus 2016F 2017F 2018F Danareksa Consensus Danareksa/Cons -0.5% -12.1% -22.4% MAPI relative to JCI Index Source : Bloomberg Adeline Solaiman (62-21) ext 3503 adeline.solaiman@danareksa.com Natalia Sutanto (62-21) ext 3508 natalia.sutanto@danareksa.com Mitra Adiperkasa (MAPI IJ) Shaping up for a better future We maintain our HOLD recommendation on MAPI with a higher TP of IDR5,800 from IDR5,000, implying 32x PE After meeting the management recently, we note the following positives: 1) more aggressive expansion in 2017 and 2) continued efficiency improvements. We advise investors to HOLD the stock. Better-than-expected 2016 performance. At a recent meeting, the company provided guidance for strong 4Q16 top and bottom line growth with SSSG maintained at 3%. As a result, we estimate that the FY16 top line will be 2.1% higher with a better gross margin of 46.0%. This, in turn, will filter through to solid bottom line growth. Consequently, we have revised up our FY16 net profits estimate by 10.6%. More aggressive expansion in For 2017, we expect net additional gross space of around 36,000 sqm, lower than the management s guidance but higher than our previous estimate of 25,000 sqm. In this regard, MAPI plans to add around 40,000 sqm of floor space for specialty stores (ZARA and Sport stations), 20,000 sqm for dept. stores (SOGO), and 10,000 sqm for F&B stores (mostly Starbucks). Recently, however, MAPI closed a Lotus store with 10,000 sqm of floor space in Jan This year s more aggressive expansion F s additional gross space was 10,000 sqm - should translate into higher revenues growth (we have revised up our FY17F revenues growth estimate by 5.1%). FY17F earnings revised up by 12.5%. We expect the gross margin to further improve by 50 bps yoy in 2017 (2016F: +95 bps yoy) due to: 1) less discounting in MAPI s specialty stores; 2) the recent closure of around 230 non-performing specialty stores as well as Debenhams in Lippo Kemang, totaling 50,000 sqm; 3) improved inventory management that will filter through to normalized inventory days of an estimated 160 days in 2017 (2016F: 160 days). In addition, we expect the SSSG to improve from 3% in 2016F to 5% in 2017F. Recommendation: HOLD with a TP of IDR5,800. The stock is currently trading at 31.8x PE 2017F. We maintain our HOLD recommendation with a higher TP of IDR5,800, implying 32x PE 2017F. The risks to our call include weaker-thanexpected purchasing power and IDR depreciation which would lead to lower margins. Key Financials Year to 31 Dec 2014A 2015A 2016F 2017F 2018F Revenue, IDR bn 11,822 12,833 13,987 15,281 16,613 EBITDA, IDRp bn 1,079 1,102 1,313 1,391 1,495 EBITDA growth, (%) (33.8) Net profit, IDR bn EPS, IDR EPS growth (%) (83.3) BVPS, (IDR) DPS, (IDR) PER (x) PBV (x) Dividend yield (%) EV/EBITDA (x) Source : MAPI, Danareksa Estimate 1

4 FLASH NOTES Bank Mandiri: The uncertainties end (BMRI IJ. IDR 11,425. HOLD. TP IDR 11,500) Bank Mandiri (BMRI) reported FY16 net earnings of IDR13.8tn, a 32.1% yoy decline, 3.4% and 10.4% below our estimate and the consensus, respectively. The 4Q16 net earnings dropped 63.6% yoy due to a 45.0% qoq increase in provisioning expenses. Why was the result below our estimate? o Large loan provisioning expenses as the bank s NPLs swelled to 4.0% in Dec 16 and its NPL coverage was still below its peers at 124.5%. o 3.4% qoq decline in interest income (RGM s repayment was booked in 3Q16), as well as higher interest expenses (+9.1% qoq) due to a lower LDR of 86.5%. Is the worst over? o We think the worst is over following the kitchen sink approach followed by the management last year. However, at 124.5% NPLs coverage, the bank may still need to book provisions in the coming quarters while we do not think there will be a quick improvement in assets quality. o BMRI wrote off IDR5.4tn of NPLs in 4Q16 (vs. IDR6.1tn in 9M16) and restructured loans/total loans increased to 7.1% in Dec 16 from 6.3% in Sep 16. The NPLs of the restructured loans deteriorated to 33.0% in Dec 16 from 23.6% in Sep 16. o The ROE fell to 10.6% due to IDR25.1tn of assets revaluation in 2Q16 (16% of FY16 s total equity) and high provisioning expenses. Hence, we think ROE may only increase gradually going forwards. Ultimately, BMRI has a strong franchise in both lending and funding with a better CASA ratio of 70%, with the bank able to lower its LDR further in 4Q16. However, at 1.7x PB FY17F, we believe the bank is trading at its fair valuation. Maintain HOLD. 4Q15 4Q16 YoY (%) 3Q16 4Q16 QoQ (%) FY16 FY16F A/F in IDR bn Interest Income 18,933 19, ,518 19,825 (3.4) 76,710 75, Interest Expense (6,022) (6,657) 10.5 (6,104) (6,657) 9.1 (24,885) (26,020) 95.6 Net Interest Income 12,911 13, ,414 13,168 (8.6) 51,825 49, Non-Interest Income 6,175 6, ,787 6, ,700 22, Total Operating Income 19,086 19, ,201 19,346 (4.2) 74,525 71, Operating Expenses (8,080) (7,962) (1.5) (7,676) (7,962) 3.7 (31,268) (31,101) Operating Profit Pre- Provisions 11,006 11, ,525 11,384 (9.1) 43,257 40, Provisions and allowances (3,552) (8,734) (6,023) (8,734) 45.0 (24,645) (21,521) Operating Profit 7,454 2,650 (64.4) 6,502 2,650 (59.2) 18,612 18, Pre-Tax Profit 7,478 2,634 (64.8) 6,486 2,634 (59.4) 18,573 14, Reported Net Profit 5,752 1,794 (68.8) 4,933 1,794 (63.6) 13,807 14, Loan 595, , , , , , Third Party Funds 676, , , , , , In % NIM NPL-Gross NPL Coverage LDR ROAE Agus Pramono Agus.pramono@danareksa.com (62-21) ext.3500

5 Equity Research FLASHNOTE Waskita Beton Precast: 2016 net income up 90%yoy (WSBP IJ. IDR 565. BUY. TP IDR 770) WSBP s 2016 net income grew 89.9%yoy to Rp635bn (FY15: Rp334bn), above our target (116.1%) and the consensus (116.1%). The net income was also in-line with the management s target of Rp620bn. The strong 2016 net income was supported by solid revenues. On a qoq basis, the 4Q16 net income of Rp243bn was up by 97.0%yoy. Revenues in 2016 reached Rp4.7tr, up 78.4%yoy (FY15: Rp2.6tr), above our target (105.2%) and the consensus (117.6%). WSBP booked higher interest expenses of Rp45bn in FY16 compared to Rp20bn in FY15 due to higher debt. Total debt as of Dec 16 reached Rp3.4tr, higher than the Rp761bn in FY15. However, the debt to equity ratio as of Dec 16 of 0.45x is lower than the 0.57x in Dec 15 given that the company s IPO was held in 2H16. Also, interest coverage was higher at 21.5x in FY16 compared to 18.6x in FY15. WSBP s management targets 2017 revenues to reach Rp7.7tr (+63.2%yoy) and net income to reach Rp1.13tr (+78.0%yoy), backed by the strong new contracts booked in WSBP booked 2016 new contracts of Rp12.2tr, up 360%yoy (FY15: Rp2.65tr), 154% higher than the management s target of Rp7.9tr. We have a BUY call on WSBP with a TP of Rp770. Results Highlights YoY YoY FY16/ FY16/ Danareksa Cons. Rp bn 4Q15 4Q16 Chg FY16 Chg FY16F Cons. FY16 FY16 % % % % Revenue 1,028 1, , ,485 4,012 Gross profit , Operating profit Net profit Gross margin (%) Operating margin (%) Net margin (%) Source: Danareksa, Company Maria Renata (62-21) ext 3513 maria.renata@danareksa.com Danareksa Sekuritas Equity Research

6 Equity Research FLASHNOTE Waskita Karya: Net income up 63.5%yoy in 2016 (WSKT IJ. IDR2,580. BUY. TP IDR3,700) WSKT booked a strong 2016 result. Net income surged 63.5%yoy to Rp1.7tr (FY15: Rp1.0tr), in-line with our estimate (101.5%) and the consensus (99.0%). On a qoq basis, the 4Q16 net income of Rp779bn jumped 20.3%yoy. Revenues in 2016 increased by 68.1%yoy to Rp23.8tr from Rp14.2tr in In-line with our target (98.4%), but below the consensus (91.4%). The strong result was also supported by WSBP s sound performance. WSBP s 2016 net income rose 89.9%yoy to Rp635bn. WSKT owns a 60% stake in WSBP. WSKT s interest expenses in 2016 soared 189.1%yoy to Rp983bn (FY15: Rp340bn) due to higher interest bearing debt. Total debt as of Dec 16 stood at Rp35.1tr compared to Rp13.1tr in Dec 15. Consequently, the debt to equity ratio as of Dec 16 stood at 3.17x, or much higher than the 1.37x in Dec 16 and 2.68x as of Sep16. However, the higher debt was offset by higher income, as reflected in the strong interest coverage. Interest coverage in Dec 16 stood at 3.23x or higher than 3.06x in Sep16, but lower than 4.16x as of Dec 15. We have a BUY call on WSKT with a TP of Rp3,700. Results Highlights YoY QoQ YoY Danareksa 4Q16/ FY16/ Rp bn 4Q15 4Q16 Chg 3Q16 Chg FY16 Chg 4Q FY 4Q16F FY16F % % % % % Revenue 6,731 9, , , ,164 24, Gross profit 1,027 1, , , Operating profit 731 1, , , Net profit , , Gross margin (%) (0.1) Operating margin (%) (2.5) Net margin (%) (1.7) (0.2) Source: Danareksa, Company Maria Renata (62-21) ext 3513 maria.renata@danareksa.com Danareksa Sekuritas Equity Research

7 Equity Research FLASHNOTE Wijaya Karya Beton: Strong 2016 net income growth (WTON.IJ. IDR820. BUY. TP IDR1,300) WTON booked strong 2016 net income growth of 56.7%yoy to Rp272bn, in line with our estimate (101.6%), but lower than the consensus (89.8%). Our FY16 net income target was Rp268bn and the consensus was Rp304bn. The strong net income growth in 2016 owed largely to the low base in 2015 when net income dropped by 47.3%yoy (FY15: Rp174bn, FY14: Rp330bn). On a qoq basis, the net income in 4Q16 was up by 25.4%yoy. FY16 revenues jumped 31.3%yoy to Rp3.5tr; in-line with our estimate (101.8%), but below the consensus (83.6%) of Rp3.4tr and Rp4.2tr, respectively. The strong revenues growth in 2016 owed to the low base in 2015, when revenues were down by 19.1%yoy (FY15: Rp2.7tr, FY14: Rp3.3tr). Margins improved. The gross margin reached 14.5% in FY16, or higher than FY14 s 12.4%. Consequently, the net margin in FY16 improved to 7.8% from 6.6% in FY15. WTON s management targets 2017 revenues of Rp5.0tr (up 43.6%yoy) and net income of Rp330bn (up 21.1%yoy). The targets are supported by Rp6.0tr of new contracts booked in FY16, which resulted in Rp4.0tr of carry over contracts in WTON s 2017 order book. The 2016 new contracts of Rp6.0tr are higher than the company s target of Rp4.0tr and 72.4%yoy higher than 2015 s Rp3.48tr. WTON targets 2017 new contracts of Rp6.3tr. We have a BUY recommendation on WTON with a TP of Rp1,300. Results Highlights YoY QoQ YoY Danareksa 4Q16/ FY16/ Rp bn 4Q15 4Q16 Chg 3Q16 Chg FY16 Chg 4Q FY16 4Q16F FY16F % % % % % Revenue 1,104 1, , ,178 3, Gross profit Operating profit Net profit Gross margin (%) Operating margin (%) Net margin (%) Source: Danareksa, Company Maria Renata (62-21) ext 3513 maria.renata@danareksa.com Danareksa Sekuritas Equity Research

8 MARKET NEWS SECTOR Construction: Ministry of Transportation agrees on LRT Palembang value of Rp11tn The value corresponds to the cost calculation performed by an independent consultant. The financing will come from the state budget. The terms of payment will be based on a turnkey scheme. The Director General of Railways from the Ministry of Transportation proposed that the payment is made in installments over 5 years ( ) with a Rp2tn payment in 2017 and a Rp2.5tn payment in The signing of the contract will be conducted by the President Director of Waskita Karya (WSKT) and the Director General of Railways from the Ministry of Transportation. The construction of LRT Palembang is expected to be completed by mid (Investor Daily). Construction: progress of Palembang-Indralaya section 1 reached 74.99% as of 15 February 2017 Hutama Karya (HK) estimates that given the encouraging progress on the construction of the 7km Palembang- Indralaya section I (Palembang-Pemulutan) toll road, this toll road section will commence operation by May Nevertheless, the other two sections of the Palembang Indralaya toll road have not yet seen the land acquisition completed. The construction progress of section II (Pemulutan-Desa Talang Pangeran Hilir) has reached 1.56%, while section III (Desa Talang Pangeran Hilir-Indralaya) has reached 48.76%. (Investor Daily) Property: Indonesian Property Association estimates residential house prices to increase by 10-20% The Indonesian Property Association (REI) believes the repatriated assets from the tax amnesty program will drive the increase in residential house prices. The Association further believes that demand for property will improve this year after completion of the tax amnesty program. (Kontan) CORPORATE Bank Tabungan Negara: Targets IDR 17tn of non-third party funds The non-third party funds are equal to 15% of all funds, consisting of securitization, bilateral loans, negotiable certificates of deposits and bonds. The total amount is IDR 17tn. The aim of undertaking fund diversification is to lower its cost of funds. (Investor Daily) Bank Mandiri: Optimistic net profits will grow by 44% this year The CEO of Bank Mandiri is optimistic that the bank can book IDR 20tn of net profits in 2017 or up 44.8% yoy from IDR tn. In 2016, net profits declined - mostly due to an increase in provisioning. However, the pre-provision operating profits grew by 12.7%. The CEO also believes that NPLs should decline significantly in (Investor Daily) Malindo Feedmill: Higher capex in 2017 (USD50mn) Malindo Feedmill (MAIN) is targeting revenues growth of 5-15% yoy and capital expenditure (capex) of USD50mn (equivalent to Rp675bn, assuming an IDR/USD rate of Rp13,500/USD). Capex will be used to build silos, dryers, a breeding farm and boiler farm. (Investor Daily) PP Properti aims to acquire an additional 80ha of land bank PP Properti (PPRO) stated that the company plans to acquire 30ha (each) of land bank in two locations. Nevertheless, the company has not disclosed details on the land bank locations. The land acquisition will be done using part of this year s budgeted capex of Rp1.9tn. (Kontan)

9 Pembangunan Perumahan aims for Rp21tn of investments Pembangunan Perumahan (PTPP) expects investments to result in potential new contracts in The investments will be in several segments: (i) low income housing (42%), (ii) infrastructure (34%) and (iii) energy (24%). PTPP aims to record Rp40tn of new contracts this year, up 22.7% yoy. Up to the third week of January, the company had recorded Rp4.3tn of new contracts, or equivalent to 10.7% of the targeted new contracts. PTPP is currently engaged in the construction of several toll roads: (i) Medan-Kuala Namu Tebing Tinggi, (ii) Pandaan-Malang, (iii) Depok-Antasari, (iv) Cileunyi-Sumedang-Dawuan, and (v) Serang-Panimbang. One of PTPP s subsidiaries, PP Pracetak (or PP Urban), will enter into the precast business for high-rise development. In developing its products, PP Pracetak has partnered Hanwha Engineering and Construction. The company expects to develop 150,000 units of low cost residential property over the next 5 years. (Bisnis Indonesia) Wijaya Karya to expand its foreign market Wijaya Karya (WIKA) aims to record new contract of Rp1.8tn from the foreign market. On 2016, the company recorded new contract of Rp2tn from the foreign infrastructure projects. In developing foreign projects, the company applies project management system, in which company will conduct the project construction, meanwhile its partnered company will supply the equipment and materials. (Bisnis Indonesia) Waskita Karya to focus on the domestic market Waskita Karya (WSKT) stated that they will focus on the domestic market. Meanwhile, the company freezes its foreign projects considering it does not exhibit good performance. The company stated that construction in Saudi Aribia is delayed following financial difficulty from the project owner. (Bisnis Indonesia)

10 DANAREKSA VALUATION GUIDE Rating Price (Rp) Price Mkt Cap Net profit, Rp bn EPS (Rp) Core EPS (Rp) EPS Grow th PER (x) EV / EBITDA (x) PBV (x) Net Gearing ROE Target Rp Bn Danareksa Universe 3,124, , , % 17% Auto 326,905 15,508 18, % 18% Astra International ASII HOLD 8,075 8, ,905 15,508 18, % 18% Banks 1,083,750 77,027 91, % 19% BCA BBCA BUY 15,500 17, ,153 18,931 20, % 10% N/A N/A N/A BNI BBNI BUY 6,300 6, ,487 10,994 14, % 28% N/A N/A N/A BRI BBRI BUY 12,000 15, ,030 26,092 31,100 1,058 1,261 1,058 1,261 3% 19% N/A N/A N/A Bank Tabungan Negara BBTN BUY 2,030 2,400 21,498 2,200 2, % 17% N/A N/A N/A Bank Mandiri BMRI HOLD 11,425 11, ,583 18,811 23, % 24% N/A N/A N/A Cement 133,768 7,993 5, % -31% Indocement INTP SELL 15,500 13,000 57,059 3,863 2,561 1, , % -34% net cash Semen Indonesia SMGR SELL 9,350 8,000 55,460 3,885 2, % -28% Semen Baturaja SMBR SELL 2, , % -39% Cigarettes 566,156 18,145 19, % 8% Gudang Garam GGRM BUY 61,500 79, ,331 6,342 6,860 3,296 3,565 3,296 3,565-1% 8% HM Sampoerna HMSP HOLD 3,850 3, ,825 11,803 12, % 8% net cash Construction 145,388 6,753 8, % 29% Wijaya Karya WIKA BUY 2,510 3,900 22, , % 31% net cash Pembangunan Perumahan PTPP BUY 3,710 5,700 23, , % 34% net cash Adhi Karya ADHI BUY 2,280 3,500 8, % 40% net cash Waskita Karya WSKT BUY 2,580 3,700 35,020 1,688 2, % 39% Waskita Beton WSBP BUY , % 44% net cash Wika Beton WTON BUY 820 1,300 7, % 35% net cash Jasa Marga JSMR BUY 4,780 6,300 34,693 1,674 1, % 4% Consumer 426,589 10,394 11, % 11% Indofood INDF BUY 7,975 9,650 70,024 4,141 4, % 14% Indofood CBP ICBP BUY 8,450 10,850 98,543 3,714 4, % 16% net cash Unilever UNVR BUY 42,425 47, ,703 6,490 7, % 8% Kino Indonesia KINO SELL 3,040 2,800 4, % 4% Healthcare 80,582 2,490 2, % 9% Kalbe Farma KLBF SELL 1,475 1,400 69,141 2,210 2, % 10% net cash Kimia Farma KAEF SELL 2,060 1,510 11, % 8% Heavy Equipment 85,886 4,481 5,676 1,201 1,522 16% 27% United Tractors UNTR HOLD 23,025 23,500 85,886 4,481 5,676 1,201 1,522 1,231 1,556 16% 27% net cash Mining 154,783 6,767 9, % 41% Adaro Energy ADRO BUY 1,645 1,900 52,617 3,615 4, % 18% Timah TINS BUY 1,060 1,250 7, % 110% Vale Indonesia INCO HOLD 2,750 2,800 27, % 116% net cash Aneka Tambang ANTM HOLD ,225 (307) (147) (13) (6) (13) (6) -79% -52% (62.7) (130.5) (1.7) (0.8) Bukit Asam PTBA BUY 10,925 14,500 25,173 1,446 2, , ,149-29% 73% net cash Indo Tambangraya Megah ITMG HOLD 15,075 15,800 17,034 1,363 1,661 1,207 1,470 1,207 1,470 64% 22% net cash Harum Energy HRUM SELL 2,040 2,000 5, % 56% net cash Property 117,786 4,954 7, % 43% Alam Sutera ASRI HOLD , , % 65% Bumi Serpong Damai BSDE BUY 1,885 2,200 36,280 1,669 2, % 62% Ciputra Development CTRA BUY 1,400 1,530 25, % 21% Pakuw on Jati PWON BUY ,451 1,757 2, % 16% Summarecon SMRA HOLD 1,420 1,300 20, % 20% Retail 83,887 3,367 3, % 14% Mitra Adi Perkasa MAPI HOLD 5,750 5,000 9, % 54% Ramayana RALS BUY 1,365 1,700 9, % 22% net cash Matahari Department Store LPPF SELL 15,150 12,000 44,206 2,080 2, % 14% net cash Matahari Putra Prima MPPA SELL 1,315 1,100 7, % 92% net cash Ace Hardw are ACES SELL , % -5% net cash

11 COVERAGE PERFORMANCE LEADERS Price as on Code 14-Feb Feb-17 Chg, % w-w, % m-m, % YTD, % Rating Adhi Karya ADHI 2,280 2, BUY Kino Indonesia KINO 3,040 2, (6.2) 0.3 BUY Bank Tabungan Negara BBTN 2,030 1, BUY Harum Energy HRUM 2,040 2, (2.9) 3.3 (4.7) SELL Pembangunan Perumahan PTPP 3,710 3, (0.5) 3.6 (2.6) BUY Semen Baturaja SMBR 2,160 2, (1.4) (0.9) (22.6) SELL Waskita Karya WSKT 2,580 2, (1.9) 1.2 BUY Indo Tambangraya Megah ITMG 15,075 15, (3.4) (4.6) (10.7) HOLD Bank Negara Indonesia BBNI 6,300 6, BUY Wika Beton WTON (0.6) (0.6) BUY Sources: Bloomberg LAGGARDS Price as on Code 14-Feb Feb-17 Chg, % w-w, % m-m, % YTD, % Rating Semen Indonesia SMGR 9,350 9,825 (4.8) SELL Indocement INTP 15,500 15,950 (2.8) SELL Vale Indonesia INCO 2,750 2,810 (2.1) (2.5) HOLD Ciputra Development CTRA 1,400 1,430 (2.1) BUY Adaro Energy ADRO 1,645 1,680 (2.1) (4.9) (3.2) (2.9) BUY Summarecon Agung SMRA 1,420 1,450 (2.1) HOLD Alam Sutera ASRI (1.5) HOLD Bukit Asam PTBA 10,925 11,075 (1.4) (0.7) (10.5) (12.6) BUY Kalbe Farma KLBF 1,475 1,495 (1.3) 0.3 (2.0) (2.6) SELL United Tractors UNTR 23,025 23,325 (1.3) (0.3) HOLD Sources: Bloomberg

12 PREVIOUS REPORTS Bank Tabungan Negara: Great on all fronts, Cement: No sign of improvement Snapshot Adhi Karya: LRT included in ADHI s February book, Ramayana Lestari Sentosa: In-line 1M17 revenues Snapshot Property: Slow recovery Snapshot Bumi Serpong Damai: Driven by commercial segment, Jasa Marga: Strong 4Q16 results Snapshot

13 PT Danareksa Sekuritas Jl. Medan Merdeka Selatan No. 14 Jakarta Indonesia Tel (62 21) Fax (62 21) Equity Research Team Agus Pramono, CFA (62-21) ext.3500 Head of Research, Strategy, Banking Stefanus Darmagiri (62-21) ext Auto, Coal, Heavy Equip., Metal, Cement Natalia Sutanto (62-21) ext.3508 Consumer, Tobacco, Property Maria Renata (62-21) ext.3513 Construction Adeline Solaiman (62-21) ext Retail Puti Adani (62-21) ext Consumer Antonia Febe Hartono (62-21) ext.3504 Cement, Property Lucky Bayu Purnomo (62-21) ext.3512 Technical Analyst Melati Laksmindra Isnandari (62-21) ext Research Associate Sales team Novrita E. Putrianti (62-21) ext Laksmita Armandani (62-21) ext Ehrliech Suhartono (62-21) ext Muhammad Hardiansyah (62-21) ext Yunita L. Nababan (62-21) ext Tuty Sutopo (62-21) ext Upik Yuzarni (62-21) ext Kevin Giarto (62-21) ext 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.