INVESTOR DIGEST HIGHLIGHT ECONOMY. Equity Research 30 January 2017

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1 INVESTOR DIGEST Equity Research 30 January 2017 Economic Data Latest 2017F 7-DRRR (%), eop Inflation (YoY %) US$ 1 = Rp, period avg 13,359 13,450 HIGHLIGHT Outlook and Strategy 2017: Another Year of Fiscal Consolidation Market Recap Jan 27 th 2016; JCI: 5, (-0.09%); USD/IDR: 13,359; Total Value: Rp5.5tn Stock Market Data (27 Jan 2017) JCI Index 5, % Trading T/O ( Rp bn ) 4,292.1 Market Cap ( Rp tn ) 5,770.0 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 80 companies in MS research universe, representing of JCI s market capitalization ECONOMY Outlook and Strategy 2017: Another Year of Fiscal Consolidation Year 2016: A modest year for Indonesian economy. Macroeconomic indicators improved modestly in Economic growth has reached 5.04% in 9M16 and is likely to end FY16 at 5.0% from 4.8% in FY15 while inflation remained low at 3.02%. Externally, the current account deficit has trimmed, possibly reaching -2.0% of GDP for FY16 (vs. -2.1% in 2015). Balance of payments was in surplus along last year as capital flows were still pouring into Indonesia for a good part of the year, leading to higher level of foreign exchange reserves and slightly strengthening currency. For many, including the International Monetary Funds (IMF), this economic performance looks solid, as the policymakers could manage the economy through a volatile We, however, still cautiously see some weaknesses in the economy, as the improvements in current account deficit, below normal level of inflation, low amount of 'normal' tax revenues (excluding the additional revenues from the ad-hoc tax amnesty), much slower bank credit growth, and deterioriating bank's asset quality are all reflecting a subdued domestic demand and business condition. Rising global uncertainty and protectionist sentiment. Moreover, from the global perspective, there were at least three significant events and starting trends in 2016 that will change the shape and direction of global economic environment going forward. The decision of Britain to exit the European Union (EU) and the election of Donald J. Trump as the President of the United States of America (U.S.) are the top two events that are expected to increase global uncertainty and protectionist sentiment. Drastically inward looking policies, along with the promise of rising role of fiscal policies vis-a-vis monetary policies are expected to accelerate U.S. economic recovery and inflation in the short run, resulting to faster interest rates normalization. The strengthening trend of the greenback is expected to continue as global capital will partly search for safe haven assets, leading to potential financial market volatilities in emerging market economies. Asia Emerging Markets, including Indonesia, may still look attractive for some investors who are looking for higher risks and returns. The FY16 significant increase in the prices of commodities, especially the ones exported by Indonesia, looks softening in FY17. But, it has raised some optimism in some commodity-based regions in Indonesia, which have suffered since commodity busts. Page 1 of 10

2 Year 2017: Continuing the positive vibe, on a softer tone. All in all, we think the country s economy has passed its bottom and would carry on the positive vibe in The only tweak is the degree of the economic pace which will be slower than anticipated; that's why we conservatively forecast the FY17 economic growth at 5.1% YoY. Private consumption may be difficult to accelerate amid lower real income, as proxied by real minimum wage. Despite the 2016 tax amnesty result, we think that the government s tax revenue target this year remains slightly too high, potentially hampering fiscal spending, including capital expenditures (Macroscope: 2017 Government Budget Review: Relying on Reforms on 15 Nov16). That said, private investment would be the source of the incremental increase for the economy, in our opinion. It will gain momentum due to the lagging impact of Bank Indonesia s loosening policy (both policy rate and macroprudential measures) and rising direct investment (both from domestic and foreign investors especially from countries such as China and Japan). Furthermore, deregulations stipulated in the policy packages have yet to materialize and we expect them to benefit investment activities to some extent. Change in paradigms and reviving private investments. Since President Joko Widodo (Jokowi) took office in Oct14, we have seen two significant changes in the direction of Indonesia development policies: (i) the Archipelagic concept of development with a big emphasis of promoting inter-connectivity across many islands in Indonesia, and (ii) the shift of subsidy program from a general price subsidy program to one that is directly targeted is in line with the effort to improve the quality of public expenditures and at the same time freeing up some money for a more productive spending. We are seeing continuing government's focus on building infrastructures and improving logistics in 2017, especially outside Java regions, in order to reduce regional inequality (Java vs. outside-java and Western vs. Eastern Indonesia) and to push higher national economic growth as well. We have also seen the Jokowi administration reducing the bulk of subsidies on several commodities (fuel in 2014/15 and electricity in 2017) on the basis of unfair treatment, where non-poor households get more of the benefits. This is ultimately done through the change of subsidy approach from price mechanism to a more targeted subsidy approach. Furthermore, in the case of fuel subsidies, it also gives a privilege to Jakarta and Java regions in which roads and road transportation are significantly better and plenty, as fuel subsidies are given those posts. Thus, by slashing the fuel subsidies, relatively ample of fund could be reallocated for more productive spending such as infrastructures and social security system. However, the government's drive of infrastructure investments cannot stand alone; it needs to be accompanied by increasing private investments. The government has to choose what type of public (infrastructure) investments that can generate or crowd in the highest private investments. The location of these infrastructure investments are also important, and again the archipelagic concept of development can play a big role as well. Reviving domestic and foreign private investments are deemed necessary and better investment climate has to be pursued further to improve them. Monetary policy to remain unchanged. We see that Bank Indonesia will keep policy rate unchanged at 4.75% in 2017 after aggressive 150bps cut. We calculate that inflation may rise to 4.2% as a consequence of electricity price adjustment whereas core inflation is expected to remain subdued, below 4%, due to flat private consumption (Macroscope: Update on Electricity Tariff Adjustment on 9 Nov16). Moreover, we forecast the rupiah to be relatively flat compared to YE16, particularly at Rp13,400/US$ in YE17 with slightly higher average of Rp13,450/US$. The unexpected US political outcome that may as well cause economic uncertainty in a global scale and Fed s policy normalization could trigger financial sector volatility along The current account deficit, on the other hand, would remain manageable at -2.2% of GDP. What are the risks? The main risk to Indonesia economy would be commodity prices that would act as a double-edged sword to our forecasts. We assume oil, coal, and CPO prices at US$56/barrel, US$70/metric ton, and US$670/metric ton, respectively, for The upside risk to our GDP forecast is if coal and CPO prices turn out to be higher than our assumptions as we believe they could have a positive effect to private consumption. We are seeing some more optimism starting to build up in several commodity-based regions (especially outside Java) due to relatively significant rise of commodity prices in The impact to investment could be minor if commodity price increase is driven by the supply side. The downside risk is if the international oil price increases and persists around US60/barrel because it could risk our inflation forecast. Such oil price level may force the government to increase the retail fuel price as the economical price would be higher than the current price. Despite the needs for continuing fiscal consolidation and a more broad based tax Page 2 of 10

3 reforms, we think that the government do not need stringent spending cut as in Tax revenue gap is expected to be milder in 2017 and there is possibility that mid-year budget revision might not even be needed. A tale of two halves in the equity market. Translating the macro story to the equity side, we project JCI to end 2017 at 5,800 with the entire gain made up of EPS growth. Our base scenario expects slight de-rating in forward PE to 14.8x. Our optimistic scenario suggests JCI could end the year at 6,100, but could fall to 4,925 if fiscal spending upsets and U.S. yield rises more than expected. FY17 could be a tale of two halves, with tailwind from commodity prices and tax amnesty benefitting 1H, while fiscal and external risks weighing 2H. Fiscal stimulus, stable currency, and inflation control are imperative to support Indonesian equity in the absence of or limited monetary loosening. Earnings growth acceleration could support the index, but not without headwinds. We prefer owning the big caps, advising defensives (GGRM, INDF, TLKM) that exhibit low earnings volatility, and selected construction, cyclical and bank (PTPP, WIKA, MAPI, SCMA, BBTN) to get the growth exposures. Still positive, but less catalyst in the government bond market. Meanwhile from the bond market, we still expect returns from investing in the rupiah bond market to remain positive. However, we think it is unlikely to repeat 2016's performance as several positive catalysts might move away. These include global bond yields that might have bottomed on tightening global monetary conditions and weaker currency from Fed Fund Rate hikes. Volatility might also be high this year on higher uncertainty following the outcome of the Brexit process and political agenda in the U.S. and European countries. Our fair value estimate for the 10-yr rupiah government bond yield is 7.25% (range: % vs. 7.97% by YE2016), assuming the 10-yr UST yield at 2.6%, 7-day reverse repo rate at 4.75%, 5-yr CDS at 157, and rupiah against US$ at 13,400 by YE17. This gives an average returns from investing in rupiah government bonds in a range of % in Positive sentiment is still coming from attractive real yield offering by rupiah government bond and expectation of upgrade on Indonesian sovereign rating in The main risks are faster than market expectation Fed Fund Rate hike, China s hard landing, CNY currency devaluation, and if the rupiah depreciated to over Rp14,000 against the US$. The year 2018 is expected to be a stronger one. We believe in a higher economic improvement as a consequence of post-consolidation period and fading uncertainties. Specifically, government expenditure is expected to be more contributive to economic growth on larger fiscal space post-consolidation, especially revenue, in Moreover, easing global and domestic politics uncertainties and lower financial sector volatility after Fed s 2017 policy normalization will provide a solid platform for higher investment. The more conducive investment environment is coupled with stable inflation and manageable current account deficit levels. That said, we expect economic growth to reach 5.3% in 2018 which is followed by a stable inflation and stronger exchange rate. MACROECONOMIC FORECASTS SUMMARY F 2018F Real GDP (%) Rp/US$ (eop) 9,670 12,189 12,440 13,795 13,436 13,400 13,200 Rp/US$ (avg) 9,380 10,452 11,878 13,392 13,308 13,450 13,250 7-day repo rate CPI inflation (%, eop) CPI inflation (%, avg) CAD (% of GDP) (2.8) (3.2) (3.0) (2.0) (2.0) (2.2) (2.5) Sources: CEIC, Mandiri Sekuritas estimate Note: red figures are forecasts Leo Rinaldy( ) Wisnu Trihatmojo ( ) leo.rinaldy@mandirisek.co.id wisnu.trihatmojo@mandirisek.co.id Page 3 of 10

4 TAX AMNESTY MARKET Market Recap Jan 27 th 2016; JCI: 5, (-0.09%); USD/IDR: 13,359; Total Value: Rp5.5tn Indo shares were steady on Friday, while oil and the dollar held onto gains in the wake of strong US corporate earnings. The dollar index DXY, which tracks the greenback against its trade-weighted rivals, was up 0.1% at early on Friday, adding to Thursday's 0.35% gain. It is still set to end the week 0.2% lower, thanks to market jitters earlier this week on Trump's protectionist inauguration speech. The JCI ended around flat at 5312 in thin volume of US$320mn (excluding US$16.6mn BMRI; US$11.6mn ICBP; US$7.3mn MYRX). Big banks got a boost after BBNI reported better-than-expected FY16 results: BBNI (+2.7%), BMRI (+0.7%), BBRI (-0.2%) and BBCA (+0.7%). Foreign posted a net buy of Rp379.9bn (US$28.4mn) totaling to a net buy of Rp106.4bn (US$7.96mn) for the week, the first since the beginning of the year (YTD foreign net sell Rp1.5tn or US$112.3mn). Foreign participants at 25% came up better buyer for 11%. Losers beat gainers by 11 to 10. South Korean markets are closed for holidays today and Monday. Chinese markets are shut for the Lunar New Year holiday and will resume trade next Friday Feb 3 rd. Taiwan is also closed for Lunar New Year and will reopen on Thursday Feb 2 nd. Gong Xi Fa Cai. TOP TURNOVER: BUMI BRMS BBNI TLKM ELTY ENRG DEWA BBCA BBRI ASII PGAS SMGR BMRI BWPT SCMA LSIP UNVR (45%) ADVANCING SECTOR: cement +2.6%; financial +0.5%; mining & plantation +0.2%; auto +0.1% DECLINING SECTOR: telco -1.1%; consumer -0.9%; property & construction -0.6% The yield of 10-year government went up to 7.617% (+0.09%) and Rupiah depreciated to Rp13,359 (-0.17%). Sales Team Page 4 of 10

5 FROM THE PRESS Dec16 NPL at 2.93%, loan growth +2%mom Chairman of Board of Commissioners Muliaman D Hadad states that as per Dec16, NPL stood at 2.93%. Meanwhile, loan growth was approximately at 7-8%yoy in 2016 and +2%mom in December alone. (Kontan) Government to issue e-commerce tax law in 1H17 This issuance is related to the 14 th economic policy package that has been released. A representative from the Ministry of Trade explained that later on, not only companies with e-commerce platform that would be subjected to tax, but also all parties who are involved in digital/online business. (Kontan) Government still waits commitment from 3 companies to absorb gas from Masela Block The Energy and Mineral Resources (ESDM) Ministry is still waiting for commitment from three companies (Pupuk Indonesia, Kaltim Methanol Industri and Elsoro Multi Pratan) prior to decide the best scenario for Masela block. Currently, ESDM Ministry has two scenarios for operation of Masela Block: 1) 7.5mtpa LNG and 474MMscfd, 2) 9.5mtpa LNG and 150 MMscfd. (Bisnis Indonesia) Government to review Mass Rapid Transit (MRT) Balaraja-Cikarang The government has received loan from Japan International Cooperation Agency (JICA) to appoint consultant to develop basic design for the first phase of Balaraja-Cikarang MRT project. Total investment cost for the 80km project is expected to reach USD3bn with completion target in On the other hand, MRT Jakarta plans to ground break phase 2A of north-west MRT Jakarta project (Bundaran HI-Kampung Bandan) in February 2019 with total investment of JPY199bn. (Investor Daily, Bisnis Indonesia) No more decline in deposit rates Chief Executive of Deposit Insurance Agency (LPS) Fauzi Ichsan states that deposit rates, particularly special rates, have been increasing since the end of last year, approximately by 5-10bps. He concludes that this is the end of the declining interest rate trend, however he still cannot conclude whether interest rates will continue increasing in the future. Furthermore, he states that the increase is deposit rates is due to expected tighter liquidity conditions in the future, especially since banks have to compete with securities issued by the government. (Bisnis Indonesia) Asian Infrastructure Investment Bank (AIIB) to provide USD400mn loan for Padang-Pekanbaru toll road project The 240km Padang-Pekanbaru toll road is part of Trans-Sumatra toll road network which would be taken over by government and finance through loan scheme. First phase of construction is expected to be commenced from Padang-Sicincin (27km) and Pekanbaru-Kampar (17km). (Bisnis Indonesia) Bumi Serpong Damai (BSDE) raked in Rp6.3tn of marketing sales last year Last year, residential segment made up around 58% of total marketing sales or about Rp3.6tn. Based on location, Serpong contributed up to 73% of total marketing sales while BSD City, Grand Wisata Bekasi, and Kota Wisata Cibubur contributed 7%, 5%, and 4%, respectively. (Bisnis Indonesia) Pembangunan Perumahan (PTPP) expects 2016 net profit pre-minority interest of Rp1.15tn (+36% y-y); ytd new contracts reached Rp4.3tn Tumiyana, the CEO of PTPP, stated that PTPP was able to book 2016 net profit pre-minority interest of Rp1.15tn, an increase of 36% y-y to its 2015 numbers of Rp845.6bn. Nevertheless, PTPP s 2016 sales only reached Rp17.6tn (-8% y-y). For 2017, PTPP targets both sales and net profit to increase 40-50% y-y, while 2017 new contracts is targeted to reach Rp40tn. The company also stated that it has received Rp4.3tn new contracts ytd from the signing of three major projects, reconstruction of Page 5 of 10

6 Karangnongko-Wangon road (Rp1.19tn), Cisumdawu toll road (Rp1.5tn) and Bangkai Power Plant 140 MW Stage 2 (Rp1.7tn). (Kontan) Comment: PTPP s 2016 comprehensive net profit of Rp1.15tn is slightly higher than our assumption of Rp1.07tn. However, PTPP s 2016 sales of Rp17.6tn is lower than our forecast of Rp18.6tn. PP Properti (PPRO) s Jan 27 th, 2017 extraordinary general meeting (EGM) results This EGM was attended by 75% shareholders who agreed on these following points: 1) conducting 1:4 stock splits with Rp25 nominal value, hence bringing the new outstanding shares to 56bn, 2) approving the rights issue with a maximum 7.3bn new shares issuance, 3) appointing Lukman Hidayat as the president commissioner, Betty Ariana as commissioner, and Kelik Wirawan Wahyu Widodo as independent commissioner. (Bisnis Indonesia) Total Bangun Persada (TOTL) aims to book Rp4tn new contracts in 2017 The private construction company is eyeing to book Rp4tn new contracts (+33%yoy) with unchanged focus in high-rise premium building. In addition, TOTL aims to achieve Rp3tn revenue and Rp250bn net profit in (Investor Daily) Page 6 of 10

7 Indices Currencies and ADRs Major Commodities Last Chg (%) YTD Chg (%) Currency Last Chg (%) YTD Chg (%) Last Chg (%) YTD Chg (%) JCI 5, Rp/US$ 13, Oil spot (US$/bl) Dow Jones 20, US$/EUR Nickel spot (US$/mt) 9, Nikkei 19, YEN/US$ Gold spot (US$/oz) 1, SET 1, SGD/US$ Tin 3-month (US$/mt) 19, Hang Seng 23, CPO futures (Ringgit/ton) 3, STI 3, ADR Stocks Soybean oil (US$/100gallons) S&P 500 2, TLK in Rp 9, 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 17F 18F 17F 18F BSDE Buy 35,799 1,860 2,570-60% 4,673 20% 1, % 10.5% PWON Buy 27, % 1,207 36% % 25.5% SMRA Neutral 19,690 1,365 1,575-65% 3, % % 17.2% CTRA Buy 19,943 1,315 1,600-57% 3,073 68% % 14.0% JRPT Buy 12, ,300-73% 3,242 26% % 18.7% ASRI Neutral 7, % 1,161 69% % 5.3% LPCK Buy 3,532 5,075 10,000-79% 24,683 8% 4, % 11.9% MDLN Buy 4, % 1,165 19% % 7.9% CTRS Buy 5,363 2,710 4,000-80% 13,390-33% 4, % 12.2% Simple Average -67% % 13.7% 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 17F 18F 17F 18F DMAS Buy 10, % % % 11.8% BEST Buy 3, % % % 9.9% SSIA Buy 2, % 1,701-29% % 5.6% LPCK Buy 3,532 5,075 10,000-79% 24,683 8% 4, % 11.9% MDLN Buy 4, % 1,165 19% % 7.9% Simple Average -69% % 9.4% Page 7 of 10

8 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) MANSEK universe 5,313 5,550 4,031, , , % 13.1% % 2.0% Banking 942,443 81,172 95, % 17.5% N.A. N.A % 2.0% BBCA Neutral 15,400 15,150 (1.6) 379,687 21,729 24, % 11.2% N.A. N.A % 1.3% BBNI Buy 5,750 6, ,230 12,995 15, % 17.9% N.A. N.A % 3.6% BBRI Buy 11,725 13, ,246 28,258 34, % 22.2% N.A. N.A % 2.4% BBTN Buy 1,925 2, ,386 2,843 3, % 18.6% N.A. N.A % 2.8% BDMN Neutral 4,270 3,575 (16.3) 40,926 4,060 4, % 13.2% N.A. N.A % 1.8% BJBR Sell 2,300 1,600 (30.4) 22,301 1,780 1, % 10.5% N.A. N.A % 3.2% BJTM Neutral (11.3) 9,249 1,107 1, % 12.2% N.A. N.A % 7.4% BNGA Buy 955 1, ,001 3,290 3, % 21.2% N.A. N.A % 0.0% BNLI Buy , ,434 N/M 75.7% N.A. N.A % 0.5% BTPN Neutral 2,580 2, ,068 1,730 1, % 10.5% N.A. N.A % 0.0% PNBN Buy 800 1, ,270 2,565 2, % 11.8% N.A. N.A % 0.0% Building Materials 123,670 6,308 7, % 11.9% % 1.7% INTP Neutral 15,900 14,400 (9.4) 58,532 3,252 3, % 10.4% % 1.8% SMCB Sell (11.1) 6, % 14.2% % 0.0% SMGR Neutral 9,225 8,600 (6.8) 54,718 3,207 3, % 8.4% % 1.8% ARNA Buy , % 51.9% % 2.4% Constructions 110,404 6,339 7, % 15.2% % 1.4% ADHI Neutral 2,100 2,020 (3.8) 7, % 35.2% % 1.4% PTPP Buy 3,450 4, ,390 1,323 1, % 22.7% % 1.2% WIKA Buy 2,460 3, ,042 1,239 1, % 11.9% % 1.1% WSKT Buy 2,570 3, ,389 1,842 2, % 10.2% % 1.2% WTON Buy 825 1, , % 13.8% % 1.4% WSBP Buy , % 7.8% % 1.6% TOTL Buy 770 1, , % 14.1% % 5.4% Toll road 30,628 1,805 1, % 4.6% % 1.8% JSMR Buy 4,220 5, ,628 1,805 1, % 4.6% % 1.8% Rice Mill 6, % 27.9% % 0.7% AISA U/R 1,965 U/R U/R 6, % 27.9% % 0.7% Consumer 1,117,891 37,839 41, % 10.8% % 1.1% ICBP Neutral 8,550 9, ,709 3,904 4, % 14.0% % 1.8% INDF Buy 8,000 11, ,256 4,221 4, % 11.5% % 3.2% MYOR Neutral 1,760 1,550 (11.9) 39,352 1,443 1, % 19.7% % 1.5% ULTJ U/R 4,390 U/R U/R 12, % 10.2% n/a 0.5% 0.6% UNVR Neutral 41,700 41, ,171 7,274 8, % 11.1% % -2.3% GGRM Buy 62,800 75, ,833 7,272 7, % 8.9% % 1.6% HMSP Neutral 3,920 3,850 (1.8) 455,967 12,996 14, % 9.7% % 2.8% WIIM U/R 440 U/R U/R 924 n/a n/a 0.0% 0.0% n/a n/a n/a n/a n/a n/a 0.0% 0.0% Healthcare 86,385 3,779 4, % 11.9% % 2.5% KLBF U/R 1,480 U/R U/R 69,375 2,569 2, % 11.2% % 2.0% SIDO Buy , % 15.0% % 5.0% TSPC U/R 1,880 U/R U/R 8, % 12.4% % 3.8% Hospital 49, , % 21.7% % 0.7% MIKA Buy 2,470 3, , % 16.1% % 1.0% SILO Neutral 11,900 10,820 (9.1) 13, % 49.4% % 0.0% Retail 89,310 4,637 5, % 17.9% % 3.4% ACES Neutral , % 15.3% % 2.4% ERAA U/R 610 U/R U/R 1, % 25.2% n/a n/a 5.7% 6.9% LPPF Buy 14,950 19, ,623 2,355 2, % 17.0% % 4.9% MAPI Buy 5,275 6, , % 35.5% % 0.6% MPPA Sell 1, (27.1) 6, % 55.4% % 0.3% RALS Neutral 1,360 1,180 (13.2) 9, % 6.5% % 2.8% TELE U/R 855 U/R U/R 6, % 14.2% % 2.2% Automotive 331,567 18,303 19, % 6.0% % 2.5% Page 8 of 10

9 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) ASII Neutral 8,100 8, ,917 18,054 18, % 4.5% % 2.5% IMAS U/R 1,320 U/R U/R 3, % 267.7% % 0.2% Heavy Equipment 87,107 5,799 5, % -0.3% % 2.1% HEXA* U/R 3,340 U/R U/R 2, % 0.0% % 3.9% UNTR Neutral 22,600 21,000 (7.1) 84,301 5,623 5, % -0.4% % 2.0% Plantation 45,083 3,099 3, % 14.0% % 2.4% AALI Buy 15,800 16, ,410 2,008 2, % 14.0% % 2.3% LSIP Buy 1,600 1, , % 7.5% % 2.9% SGRO U/R 1,990 U/R U/R 3, % 31.4% % 2.0% Property 140,170 11,535 12, % 9.3% % 0.8% APLN U/R 222 U/R U/R 4, % -12.6% % 2.9% ASRI Neutral , % -46.1% % 1.5% BSDE Buy 1,860 2, ,799 2,648 2, % -6.4% % 0.9% CTRA Buy 1,315 1, ,943 1,429 1, % 11.4% % -1.4% CTRS Buy 2,710 4, , % -3.1% % 2.2% JRPT Buy 875 1, ,031 1,074 1, % 9.4% % 0.9% LPCK Buy 5,075 10, , % -7.1% % 0.0% MDLN Buy , % 14.7% % 0.0% PWON Buy ,451 2,435 3, % 27.1% % 2.0% SMRA Neutral 1,365 1, , , % 148.5% % 0.0% Industrial Estate 16,816 2,814 1, % -41.9% % 3.7% DMAS Buy , , % 2.8% % 2.7% BEST Buy , % 20.4% % 0.5% SSIA Buy ,894 1, % -83.7% % 10.5% Poultry 73,731 5,544 6, % 18.8% % 2.4% CPIN U/R 3,160 U/R U/R 51,818 3,525 4, % 17.6% % 2.4% JPFA U/R 1,685 U/R U/R 19,227 1,688 2, % 22.2% % 2.3% MAIN U/R 1,200 U/R U/R 2, % 12.8% % 2.7% Coal 101,894 8,370 8, % 3.4% % 4.1% ADRO* Sell 1,725 1,200 (30.4) 55, % 2.9% % 2.6% HRUM* Sell 1,985 1,600 (19.4) 5, % 7.3% % 5.2% ITMG* Sell 14,525 12,250 (15.7) 16, % -9.3% % 7.6% PTBA Sell 10,825 9,500 (12.2) 24,946 2,256 2, % 12.4% % 5.1% Oil & Gas 67,876 5,529 5, % 5.9% % 4.2% PGAS* U/R 2,800 U/R U/R 67, % 5.9% % 4.2% Shipping 2, % N/A % 0.0% SOCI* U/R 308 U/R U/R 2, n/a 0.0% % 4.7 n/a 6.8 n/a n/a n/a 0.0% 0.0% Metal 30, % N/M ### % 1.1% ANTM Neutral (37.9) 7, % -13.3% % -3.9% INCO* U/R 2,340 U/R U/R 23, % 125.0% % 2.8% Telco 446,366 23,840 27, % 17.6% % 3.9% EXCL Neutral 2,870 2,400 (16.4) 30, % 37.7% % 0.5% ISAT U/R 6,200 U/R U/R 33,690 1,871 2, % 43.5% % 3.4% TLKM Buy 3,890 4, ,046 21,439 24, % 14.9% % 4.2% Tower 59,447 4,471 5, % 16.1% % 0.0% TBIG Neutral 4,970 6, ,839 1,558 1, % 25.6% % 0.0% TOWR Buy 3,490 5, ,608 2,913 3, % 11.0% % 0.0% Media 67,100 3,681 4, % 14.8% % 3.0% SCMA Buy 2,900 3, ,403 1,870 2, % 13.6% % 3.1% MNCN Buy 1,730 2, ,698 1,812 2, % 16.0% % 2.9% Textile 4, % N/A % 0.0% SRIL* U/R 238 U/R U/R 4, n/a 33.3% % 4.5 n/a 5.6 n/a 0.8 n/a 5.5% 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 9 of 10

10 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 Tjandra Lienandjaja Deputy Head of Equity Research, Banking tjandra.lienandjaja@mandirisek.co.id Liliana S Bambang Property, Building Material liliana.bambang@mandirisek.co.id Adrian Joezer Consumer, Strategy 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 Quant, Health Care, Hospital francis.lim@mandirisek.co.id Yudha Gautama Mining, Plantation yudha.gautama@mandirisek.co.id Laura Taslim Retail laura.taslim@mandirisek.co.id Priscilla Thany Banking priscilla.thany@mandirisek.co.id Ferdy Wan Building Material, Industrial Est., Media 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 Chief Economist leo.rinaldy@mandirisek.co.id Wisnu Trihatmojo Economist wisnu.trihatmojo@mandirisek.co.id Aziza Nabila Amani Research Assistant aziza.amani@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 Kevin Halim Institutional Sales kevin.halim@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 (15% or higher), Neutral (-15% to15%) and Sell (-15% 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.