Equity Research 16 January 2017

INVESTOR DIGEST Equity Research 16 January 2017 Economic Data Latest 2017F 7-DRRR (%), eop 4.75 4.75 Inflation (YoY %) 3.0 4.2 US$ 1 = Rp, period avg 13,330 13,450 HIGHLIGHT Outlook 2017: In Search of Growth Market Recap Jan 13 th 2016; JCI: 5,272.983 (-0.37%); USD/IDR: 13,330; Total Value: Rp5.86tn Stock Market Data (13 Jan 2017) JCI Index 5,273.0-0.37% Trading T/O ( Rp bn ) 4,986.0 Market Cap ( Rp tn ) 5,727.7 3,941.8 Market Data Summary* 2017 2018 EBITDA growth (%) 8.1 6.4 EPS growth (%) 15.4 13.7 EV/EBITDA (x) 9.4 8.9 P/E (x) 16.9 15.0 P/BV (x) 2.5 2.3 Div. Yield (%) 1.8 2.0 Earnings Yield (%) 5.9 6.7 Net Gearing (%) 27.5 23.1 ROE (%) 17.7 18.0 * Aggregate of 80 companies in MS research universe, representing 68.6% of JCI s market capitalization STRATEGY Outlook 2017: In Search of Growth Fiscal stimulus, stable currency, and inflation control are imperative to support Indonesian equity in the absence of monetary loosening. Earnings growth acceleration could support the index, but not without headwinds. We prefer defensives and selected cyclical/construction to outperform the market. Lower fixed income support. In a rising domestic inflation and the U.S. Fed s more hawkish stance, the fixed income support to equity valuation will diminish, while risk premium may stay high amidst the higher external uncertainties. We expect no monetary policy reversal, but inflation control is imperative to reward the yield seekers. Should we fear yield reversal, if any? While yield reversal is a risk, our 15 year observation (page 24-25) suggests that monetary tightening and risk-free rate hikes did not always lead to equity underperformance and PE contraction, unless earnings growth upsets and real government bond yield spread to the U.S. is low. We observed that JCI s PE is more sensitive to the change in real Indonesia- US government bond yield spread than the change in Indonesia yield alone. Relative to the region, JCI s EPS growth still stands out, but fiscal stimulus and stable IDR are imperative to mitigate the risks. We forecast accelerating earnings growth to 15% this year from 12% last year, but not without risks. Earnings growth expectations are high. In the absence of fixed income support, the direction of JCI largely depends on earnings growth. Our 10 year observation (page 10-11) suggests that the correlation of government spending growth and IDR appreciation to JCI net profit growth jumped to 0.96 after the end of the commodity booms. With the lower real minimum wage growth this year, we think the dependency would remain strong. There is risk to MANSEK's/Consensus' 15%/19% EPS growth forecast for 2017 if fiscal spending disappoints and IDR depreciates. 2017 fiscal spending budget implies growth acceleration to 12% from 3% in 2016, but this could fall to 6% using 95% absorption level. Where to look for growth? Four themes: 1) potential surprise from private investments and Rp600tn SOE capex (+44% YoY increase to reach 29% of 2017 central government spending budget); 2) positive tailwind from strong Page 1 of 9

commodity prices to consumption and banks NPL; 3) tax reforms; and 4) low-base factor from poor harvests. We centralized our growth-stock picks on these themes. A tale of two halves. 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. 2017 could be a tale of two halves, with tailwind from commodity prices and tax amnesty benefitting 1H, while fiscal and external risks weighing 2H. What to own? We prefer 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. MANSEK TOP PICKS Stocks Price PT Mkt cap (USD m) PE (x) PBV (x) EV/EBITDA (x) EPS growth Rel. performance to JCI 17F 18F 17F 18F 17F 18F 17F 18F 1M 3M 6M GGRM 63,050 75,500 9,101 16.7 15.3 2.7 2.4 10.6 9.8 20.8% 8.9% -5.3% -0.4% -14.3% INDF 7,875 11,050 5,188 16.4 14.7 2.1 2.0 7.8 7.3 5.5% 11.5% -1.6% -8.4% 5.8% TLKM 3,950 4,700 29,103 18.1 15.8 4.3 4.0 6.2 5.6 11.2% 14.9% 0.7% -3.8% -7.4% MAPI 5,325 6,400 663 26.4 19.4 2.5 2.3 7.6 6.9 84.0% 35.5% 5.6% 13.5% 26.7% SCMA 2,790 3,500 3,060 21.8 19.2 9.2 7.8 15.4 13.5 16.9% 13.6% 9.5% 7.6% -15.4% PTPP 3,650 4,700 1,698 17.1 13.9 2.1 1.9 9.3 7.9 9.9% 22.7% -4.8% -6.2% -2.0% WIKA 2,490 3,000 1,674 18.0 16.1 1.8 1.7 10.4 9.7 17.4% 11.9% -1.9% -0.2% -9.5% BBTN 1,900 2,350 1,509 7.1 6.0 1.1 1.0 N.A. N.A. 17.0% 18.6% 10.4% -0.2% 2.7% Simple average 17.7 15.1 3.2 2.9 9.6 8.7 22.9% 17.2% 1.6% 0.2% -1.7% Source: Bloomberg, Mandiri Sekuritas estimates Adrian Joezer (+6221 5296 9415) adrian.joezer@mandirisek.co.id TAX AMNESTY Page 2 of 9

MARKET Market Recap Jan 13 th 2016; JCI: 5,272.983 (-0.37%); USD/IDR: 13,330; Total Value: Rp5.86tn Indo shares dipped on Friday while the rupiah was poised for a winning week given President-elect Donald Trump s policy outlook uncertainty. Nevertheless, many investors remained hopeful that markets will get a lift from a wave of financial deregulation that could follow Trump's inauguration, including a rollback of some of the Dodd-Frank financial reform that Congress enacted after the financial crisis and bank bailouts. The share price of INCO dropped as much as 15.9%, its biggest intraday retreat since Aug15, after Indo revamped its mineral export rules, rattling mining companies from Canada to Japan and sending copper prices to the highest in a month. Southeast Asia s biggest economy said it will allow some exports of nickel ore and bauxite, easing a ban on unprocessed ore shipments in place since 2014. The regulation is negative for INCO as nickel price will be under pressure. On the other hand, ANTM should benefit from the current development as nickel ore export will improve cash flow and its share price rose by 6.4%. Besides mining, investors actively chased smaller caps than big caps, notably BNLI which surged 22.9% in heavy volume (4.5x average five-week volume). In the end, the JCI lost 0.4% to close at 5272, thanks to last minute selling into UNVR (from +0.13% to close -0.9%), after spending the entire time around flat position. Market turnover was better at US$374mn (excluding US$7.6mn BJBR; US$6.5mn CPRO crossing). Foreign posted a net sell of Rp364.6bn (US$27.35mn) totaling to a net sell of Rp794.8bn (US$59.6mn) for the week (YTD net sell US$86.77mn). Foreign participants rose to 30% and came up better seller for 12%. Losers beat gainers by 3 to 2. The dollar wallowed around five week lows against a currency basket, even as the dollar index edged up 0.2% to 101.52. It was down 0.7% for the week. The dollar index scaled 14-year peaks this month, on speculation that Trump's policies would spur growth and inflation, and prompt the Fed to raise interest rates at a faster pace than previously expected. Crude oil prices extended gains, bolstered by the weaker dollar as well as news that Saudi Arabia has cut oil output to its lowest in almost two years and plans further reductions. Brent crude was trading 1.8% at $56.11 a barrel, while U.S. crude was up slightly at $53.03. TOP TURNOVER: INCO TLKM ASII BBRI ANTM BBCA BMRI BNLI UNVR UNTR WSKT LPPF BBNI KAEF BWPT HMSP DMAS (40%) ADVANCING SECTOR: auto & telco +0.1% DECLINING SECTOR: cement -1.5%; mining -1.2%; consumer -0.6%; financial -0.5%; construction -0.4%; plantation -0.2%; property -0.1% The yield of 10-year government went down to 7.619% (-0.4%) and Rupiah depreciated to Rp13,330 (-0.3%). Sales Team +6221 527 5375 FROM THE PRESS As of Nov16, debt rises to Rp3,485tn The government debt rose by Rp45.6tn to Rp3,485tn in Nov16 from Rp3,439.8tn in Oct16. (Kontan) ATM mergers within state banks is done The state banks association (Himbara) stated that they just finalized the merger of 10,000 ATMs (of total 59,500 units) within the four banks plus 10,000 EDCs (of total 626,624 units). The launching of such products is pending the Ministry of State owned enterprises. Bank Indonesia approval for the merged services by PT Jalin Pembayaran Nasional (JPN, subsidiary of Telkom) is slated for end January while tariff for the use of other bank s ATMs has yet to be decided. Page 3 of 9

Compliance rate for the submission the Annual Declaration Letter (SPT) this year is targeted at 75% Director of Services and Public Relations of the Directorate General of Taxation Hestu Yoga Saksama, hopes that the ratio of SPT submission this year could rise to 75%. The number is the ratio of taxpayers that submit SPT to the number of taxpayers who are required to submit SPT. In the previous years, the compliance rate are as follows: 2016 (63.2%), 2015 (60.4%), and 2014 (59.2%). (Kontan) Government prepares to subsidize Light Rail Transit (LRT) operation through public service obligation (PSO) The Ministry of Transportation currently calculates total amount of public service obligation (PSO) which is required to subsidize the Jakarta and Palembang LRT operations. The Ministry expects LRT tariffs of Rp10,000-15,000 per passenger, compare to commercial tariff of LRT which could reach Rp50,000 for Jakarta LRT and Rp25,000-30,000 for Palembang LRT. (Bisnis Indonesia, Kontan) Indonesia eyes Japan for infrastructure boost Indonesian government aims to get further support for various strategic projects such as Jakarta s MRT system, Patimban deep-sea port, a semi high-speed railway connecting Jakarta-Surabaya, and the development of the gas-rich Masela block. However, no deals had been signed during the bilateral meeting. (Jakarta Post) Ministry of Transportation targets to develop 1,027km rail-tracks in 2017-19 With total investment costs of Rp51.35tn, the government expects more contribution from foreign and domestic investors to compliment ministerial budget. The Transportation Ministry has earmarked Rp16tn budget to support its 2017 program such as development of Light Rail Transit in Jakarta and Palembang, Trans Sumatra railways system and Double-double track Manggarai-Cikarang. Note that realization of railroad construction has reached 85km in 2015 and 115km in 2016. (Investor Daily, Bisnis Indonesia) OJK will set new capping for deposit rates As they expect banks to intensify deposit taking, OJK will likely lower the capping between bank BUKU 3 and 4 to 15bps from 25bps currently. Capping on BUKU 4 is set at 12-M BI rate plus 75bps and for BUKU 3 will either be 12-M BI rate plus 80bps, 85bps or 90bps. Adhi Karya (ADHI) to raise Rp5tn from bond issuance in the next couple of years In 2017, the company would issue Rp2.5tn for loan refinancing, capital injection to subsidiaries and capex for the Greater Jakarta Light Rail Transit (LRT) project. In 2017, ADHI expects to book Rp44tn in new contracts (Mansek estimate: Rp41.3tn) as well as total revenues of Rp14.5tn (Mansek estimate: Rp15.6tn) and net profit of Rp505bn (Mansek estimate: Rp513bn). (Bisnis Indonesia) Agung Podomoro (APLN) to launch 11 th cluster of Vimala Hills Take up rate for Vimala Hills Villa & Resort in Simpang Gadong, Ciawi, West Java has reached 80%. After successful with 10 clusters, APLN plans to release the 11 th cluster in Vimala Hills. Currently, tag price per unit in Vimala View stands from Rp1-2bn per unit while tag price in Vimala Hills stands higher from Rp2.5-7bn per unit. (Bisnis Indonesia) Ciputra Residence to open new development area in Citra Raya Tangerang The company aims to open new development area of 100ha near Citra II Esa Unggul University and the new Ciputra Mall in Citra Raya Tangerang this year, targeting a 4Q17 launch for the first phase. (Bisnis Indonesia) Page 4 of 9

Mayapada Group is reported to be interested in taking over Bank Permata (BNLI). The chairman, Dato Sri Tahir, is cited to have accumulated the shares since November and they plan to talk to Standard Chartered Bank (which owns 44.6%) to buy more shares from them. Mayapada Group controls 26.4% of Bank Mayapada (the largest shareholder is Cathay Life Insurance of Taiwan at 40%) which maybe later merged with Bank Permata. Bank Permata is trading at 0.6x P/BV 2017F. Pembangunan Perumahan (PTPP) booked Rp32.6tn new contracts in 2016 The 2016 new contracts of Rp32.6tn translate to 20% y-y increase with 2016 total order books reached Rp71.5tn. PTPP s construction business booked Rp27.3tn new contracts in 2016 followed by PP Properti (Rp2.4tn), PP Pracetak (Rp2.1tn) and PP Peralatan (Rp739bn). For 2017, PTPP target total new contracts to grow by 14% y-y to Rp37.1tn, meanwhile revenues and net profit are expected to grow by 50% and 40-50% respectively. Nevertheless, PTPP expects to only book Rp17-19tn sales in 2016 (Mansek estimate: Rp18.6tn), lower than company s initial guidance of Rp21.1tn. (Bisnis Indonesia) Page 5 of 9

Indices Currencies and ADRs Major Commodities Last Chg (%) YTD Chg (%) Currency Last Chg (%) YTD Chg (%) Last Chg (%) YTD Chg (%) JCI 5,273.0-0.4-0.4 Rp/US$ 13,440 +0.30 +1.3 Oil spot (US$/bl) 52.4-1.2-2.5 Dow Jones 19,885.7-0.0 +0.6 US$/EUR 1.06 +0.28-1.2 Nickel spot (US$/mt) 10,399.5 +1.7 +4.4 Nikkei 19,287.3 +0.8 +0.9 YEN/US$ 114.49-0.20 +2.2 Gold spot (US$/oz) 1,197.6 +0.2 +3.9 SET 1,575.2 +0.4 +2.1 SGD/US$ 1.43 +0.07 +1.3 Tin 3-month (US$/mt) 21,145.0 +0.4 +0.1 Hang Seng 22,937.4 +0.5 +4.3 CPO futures (Ringgit/ton) 3,280.0 +0.8 +1.9 STI 3,025.1 +1.1 +5.0 ADR Stocks Soybean oil (US$/100gallons) 35.4-1.3 +2.8 S&P 500 2,274.6 +0.2 +1.6 TLK in Rp 9,814 +0.00 +1.0 Rubber forward (US /kg) 256.0-1.3 +14.0 Coal (US$/ton) 83.5-0.7-5.5 Ishares indo 24.5 +0.0 +1.5 Baltic Dry Index 910.0 +2.0-5.3 Property Valuation JCI Code Rec. Market Cap (Rp bn) Share price Target Price Discount to NAV RNAV per share Premium (discount) to replacement cost Replacement cost per share PE (x) ROE 17F 18F 17F 18F BSDE Buy 33,297 1,730 2,570-63% 4,673 12% 1,546 12.6 13.4 12.3% 10.5% PWON Buy 28,655 595 720-51% 1,207 42% 420 11.8 9.3 24.7% 25.5% SMRA Neutral 19,257 1,335 1,575-66% 3,933 96% 681 37.2 15.0 7.9% 17.2% CTRA Buy 19,261 1,270 1,600-59% 3,073 63% 781 13.5 12.1 14.0% 14.0% JRPT Buy 12,031 875 1,300-73% 3,242 26% 695 11.2 10.2 20.4% 18.7% ASRI Neutral 7,349 374 450-68% 1,161 63% 229 9.3 17.2 10.3% 5.3% LPCK Buy 3,584 5,150 10,000-79% 24,683 10% 4,700 5.2 5.5 14.6% 11.9% MDLN Buy 4,061 324 470-72% 1,165 16% 280 9.2 7.1 6.6% 7.9% CTRS Buy 5,363 2,710 4,000-80% 13,390-33% 4,018 10.4 10.7 13.9% 12.2% Simple Average -68% 15.1 11.8 13.9% 13.7% Industrial Estate Valuation JCI Code Rec. Market Cap (Rp bn) Share price Target Price Discount to NAV RNAV per share Premium (discount) to replacement cost Replacement cost per share PE (x) ROE 17F 18F 17F 18F DMAS Buy 11,086 230 350-68% 710 26% 182 11.2 10.9 12.5% 11.8% BEST Buy 2,605 270 410-67% 826-40% 448 8.4 7.0 9.0% 9.9% SSIA Neutral 2,400 510 700-70% 1,701-41% 869 9.3 6.8 8.1% 10.3% LPCK Buy 3,584 5,150 10,000-79% 24,683 10% 4,700 5.2 5.5 14.6% 11.9% MDLN Buy 4,061 324 470-72% 1,165 16% 280 9.2 7.1 6.6% 7.9% Simple Average -71% 9.5 8.6 10.2% 10.4% Page 6 of 9

Equity Valuation Price Price % of Mkt Cap Net Profit EPS Growth PER (x) EV/EBITDA (x) P/BV (x) Div.Yield Code Rating Target PT (Rp Bn) 2017 2018 2017 2018 2017 2018 2017 2018 2017 2018 2017 2018 MANSEK universe 5,273 5,550 3,998,998 236,511 266,893 15.4% 13.7% 16.9 15.0 9.4 8.8 2.5 2.3 1.8% 2.0% Banking 933,225 81,172 95,390 20.3% 17.5% 11.5 9.8 N.A. N.A. 1.6 1.4 1.7% 2.0% BBCA Neutral 15,275 15,150 (0.8) 376,605 21,729 24,163 12.4% 11.2% 17.3 15.6 N.A. N.A. 3.1 2.7 1.3% 1.3% BBNI Buy 5,475 6,300 15.1 102,101 12,995 15,316 20.5% 17.9% 7.9 6.7 N.A. N.A. 1.1 1.0 3.2% 3.8% BBRI Buy 11,950 13,800 15.5 294,797 28,258 34,539 10.9% 22.2% 10.4 8.5 N.A. N.A. 1.7 1.5 1.7% 2.4% BBTN Buy 1,900 2,350 23.7 20,121 2,843 3,370 17.0% 18.6% 7.1 6.0 N.A. N.A. 1.1 1.0 2.4% 2.8% BDMN Neutral 3,650 3,575 (2.1) 34,984 4,060 4,596 31.1% 13.2% 8.6 7.6 N.A. N.A. 0.9 0.8 2.1% 2.1% BJBR Sell 2,600 1,600 (38.5) 25,210 1,780 1,966 16.9% 10.5% 14.2 12.8 N.A. N.A. 2.3 2.0 2.4% 2.8% BJTM Neutral 605 550 (9.1) 9,025 1,107 1,242 7.2% 12.2% 8.2 7.3 N.A. N.A. 1.2 1.1 7.7% 7.6% BNGA Buy 880 1,130 28.4 22,116 3,290 3,986 97.0% 21.2% 6.7 5.5 N.A. N.A. 0.6 0.5 0.0% 0.0% BNLI Buy 645 690 7.0 14,409 816 1,434 N/M 75.7% 17.7 10.1 N.A. N.A. 0.6 0.6 0.0% 0.6% BTPN Neutral 2,580 2,635 2.1 15,068 1,730 1,910-1.5% 10.5% 8.7 7.9 N.A. N.A. 0.9 0.8 0.0% 0.0% PNBN Buy 780 1,190 52.6 18,788 2,565 2,868 13.5% 11.8% 7.3 6.6 N.A. N.A. 0.6 0.5 0.0% 0.0% Building Materials 117,636 6,356 7,051-23.1% 10.9% 18.5 16.7 9.5 8.4 1.7 1.6 2.4% 1.8% INTP Neutral 14,950 14,400 (3.7) 55,034 3,252 3,589-23.2% 10.4% 16.9 15.3 9.4 8.2 1.9 1.8 2.7% 1.9% SMCB Sell 900 800 (11.1) 6,897-336 -289-204.8% 14.2% -20.5-23.9 12.8 11.8 0.9 0.9 0.0% 0.0% SMGR Neutral 8,775 8,600 (2.0) 52,049 3,207 3,475-20.7% 8.4% 16.2 15.0 9.0 8.0 1.7 1.5 2.3% 1.8% ARNA Buy 498 610 22.5 3,656 233 276 147.5% 18.2% 15.7 13.3 9.0 7.6 3.3 2.8 1.9% 2.3% Constructions 113,252 6,339 7,302 21.0% 15.2% 17.9 15.5 11.5 10.9 2.0 1.8 1.0% 1.3% ADHI Neutral 2,170 2,020 (6.9) 7,727 513 694 77.0% 35.2% 15.0 11.1 9.2 7.6 1.3 1.2 0.8% 1.3% PTPP Buy 3,650 4,700 28.8 22,630 1,323 1,623 9.9% 22.7% 17.1 13.9 9.3 7.9 2.1 1.9 0.8% 1.2% WIKA Buy 2,490 3,000 20.5 22,311 1,239 1,386 17.4% 11.9% 18.0 16.1 10.4 9.7 1.8 1.7 0.7% 1.1% WSKT Buy 2,640 3,200 21.2 35,326 1,842 2,031 12.7% 10.2% 19.2 17.4 14.2 15.2 2.3 2.1 1.0% 1.1% WTON Buy 825 1,000 21.2 7,190 345 392 33.8% 13.8% 20.9 18.3 12.1 10.5 2.7 2.4 1.1% 1.4% WSBP Buy 580 690 19.0 15,289 831 895 41.1% 7.8% 18.4 17.1 12.4 10.6 1.9 1.8 1.2% 1.6% TOTL Buy 815 1,040 27.6 2,779 247 282 17.4% 14.1% 11.3 9.9 6.2 5.3 2.6 2.3 4.4% 5.1% Toll road 30,846 1,805 1,889-1.7% 4.6% 17.1 16.3 12.5 12.4 2.1 1.9 1.1% 1.8% JSMR Buy 4,250 5,175 21.8 30,846 1,805 1,889-1.7% 4.6% 17.1 16.3 12.5 12.4 2.1 1.9 1.1% 1.8% Rice Mill 6,437 528 661 23.9% 27.9% 12.1 9.4 7.8 6.8 1.4 1.2 0.5% 0.7% AISA U/R 2,000 U/R U/R 6,437 528 661 23.9% 27.9% 12.1 9.4 7.8 6.8 1.4 1.2 0.5% 0.7% Consumer 1,098,427 37,839 41,950 11.1% 10.8% 29.0 26.2 17.8 16.3 7.4 6.9 1.1% 1.1% ICBP Neutral 8,525 9,350 9.7 99,418 3,904 4,450 6.6% 14.0% 25.5 22.3 15.4 13.6 5.0 4.4 1.7% 1.8% INDF Buy 7,875 11,050 40.3 69,158 4,221 4,705 5.5% 11.5% 16.4 14.7 7.8 7.3 2.1 2.0 3.0% 3.2% MYOR Neutral 1,755 1,550 (11.7) 39,240 1,443 1,727 7.2% 19.7% 27.2 22.7 13.9 12.1 5.7 4.9 1.4% 1.5% ULTJ U/R 4,350 U/R U/R 12,564 729 809 19.8% 10.2% 17.1 15.5 10.1 9.3 3.7 n/a 0.6% 0.6% UNVR Neutral 39,600 41,900 5.8 302,148 7,274 8,083 13.4% 11.1% 41.5 37.4 28.8 25.9 48.1 42.6-2.1% -2.4% GGRM Buy 63,050 75,500 19.7 121,314 7,272 7,916 20.8% 8.9% 16.7 15.3 10.6 9.8 2.7 2.4 1.6% 1.6% HMSP Neutral 3,900 3,850 (1.3) 453,640 12,996 14,259 8.1% 9.7% 34.9 31.8 25.3 23.1 12.9 12.4 2.6% 2.8% WIIM U/R 450 U/R U/R 945 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 87,891 3,779 4,211 12.8% 11.9% 23.4 20.9 14.9 13.3 4.1 3.8 2.0% 2.5% KLBF U/R 1,515 U/R U/R 71,016 2,569 2,869 12.3% 11.2% 27.6 24.8 17.7 16.0 5.3 4.9 1.6% 2.0% SIDO Buy 540 700 29.6 8,100 528 607 11.1% 15.0% 15.3 13.3 9.2 8.0 2.7 2.6 3.9% 5.2% TSPC U/R 1,950 U/R U/R 8,775 682 734 16.4% 12.4% 13.4 12.0 8.5 7.5 1.7 1.6 3.5% 3.6% Hospital 49,293 884 1,076 12.2% 21.7% 55.7 45.8 26.6 22.0 8.2 7.3 0.6% 0.7% MIKA Buy 2,470 3,070 24.3 35,940 736 855 11.1% 16.1% 48.8 42.1 37.2 30.6 9.0 8.0 0.8% 1.0% SILO Neutral 11,550 10,820 (6.3) 13,353 148 222 17.7% 49.4% 90.0 60.3 15.9 13.2 6.6 6.0 0.0% 0.0% Retail 90,039 4,846 5,717 17.8% 17.9% 18.6 15.8 11.0 9.7 4.5 4.0 2.5% 3.4% ACES Neutral 755 970 28.5 12,948 615 709 10.4% 15.3% 21.1 18.3 14.5 12.3 4.0 3.5 2.2% 2.4% ERAA U/R 615 U/R U/R 1,784 307 404 17.4% 25.2% 5.5 4.4 4.9 5.2 n/a n/a 5.7% 6.8% LPPF Buy 15,150 19,200 26.7 44,206 2,355 2,755 13.1% 17.0% 18.8 16.0 13.3 11.3 15.6 12.7 3.3% 4.8% MAPI Buy 5,325 6,400 20.2 8,840 335 455 84.0% 35.5% 26.4 19.4 7.6 6.9 2.5 2.3 0.0% 0.6% MPPA Neutral 1,410 1,900 34.8 7,583 272 340 49.9% 25.1% 27.9 22.3 9.8 8.4 2.4 2.2 0.7% 1.1% RALS Neutral 1,230 1,180 (4.1) 8,728 416 443 6.5% 6.5% 21.0 19.7 15.7 14.7 2.4 2.3 2.9% 3.1% TELE U/R 835 U/R U/R 5,950 545 610 18.6% 14.2% 11.3 9.9 9.2 8.5 1.6 1.4 1.9% 2.2% Automotive 327,491 18,303 19,250 10.1% 6.0% 18.0 17.0 16.1 14.8 2.5 2.3 2.3% 2.5% Page 7 of 9

Price Price % of Mkt Cap Net Profit EPS Growth PER (x) EV/EBITDA (x) P/BV (x) Div.Yield Code Rating Target PT (Rp Bn) 2017 2018 2017 2018 2017 2018 2017 2018 2017 2018 2017 2018 ASII Neutral 8,000 8,200 2.5 323,868 18,054 18,863 9.5% 4.5% 17.9 17.2 16.1 15.0 2.6 2.4 2.3% 2.5% IMAS U/R 1,310 U/R U/R 3,623 249 387 1819.1% 267.7% 34.4 9.4 16.4 10.2 0.6 0.6 0.0% 0.2% Heavy Equipment 84,396 5,799 5,813 25.3% -0.3% 14.4 14.5 6.2 5.8 1.8 1.7 3.7% 2.1% HEXA* U/R 3,110 U/R U/R 2,612 13 16 100.0% 0.0% 11.9 11.9 9.1 7.4 1.5 1.3 54.8% 4.2% UNTR Neutral 21,925 21,000 (4.2) 81,783 5,623 5,603 23.5% -0.4% 14.5 14.6 6.2 5.8 1.9 1.7 2.1% 2.1% Plantation 47,349 3,099 3,468 38.7% 14.0% 15.4 13.5 8.1 7.2 1.6 1.5 1.7% 2.3% AALI Buy 16,800 16,500 (1.8) 32,335 2,008 2,290 19.8% 14.0% 16.1 14.1 8.8 7.6 1.8 1.6 1.6% 2.2% LSIP Buy 1,675 1,950 16.4 11,423 789 848 62.5% 7.5% 14.5 13.5 7.5 6.8 1.4 1.3 1.7% 2.8% SGRO U/R 1,900 U/R U/R 3,591 302 330 30.5% 31.4% 12.7 9.7 6.5 5.8 1.0 0.9 1.9% 2.1% Property 137,573 11,477 12,685 12.2% 9.8% 12.1 11.0 8.7 8.2 1.5 1.4 0.8% 0.8% APLN U/R 230 U/R U/R 4,715 927 909 5.5% -12.6% 5.5 6.3 3.8 4.6 0.5 0.5 3.7% 2.8% ASRI Neutral 374 450 20.3 7,349 791 426-33.4% -46.1% 9.3 17.2 9.2 12.2 0.9 0.9 3.0% 1.5% BSDE Buy 1,730 2,570 48.6 33,297 2,648 2,480 53.8% -6.4% 12.6 13.4 10.9 12.0 1.5 1.3 1.1% 1.0% CTRA Buy 1,270 1,600 26.0 19,261 1,429 1,592-3.1% 11.4% 13.5 12.1 8.3 7.8 1.8 1.6-1.5% -1.5% CTRS Buy 2,710 4,000 47.6 5,363 517 501 1.8% -3.1% 10.4 10.7 7.9 8.3 1.4 1.2 2.2% 2.2% JRPT Buy 875 1,300 48.6 12,031 1,074 1,175 11.6% 9.4% 11.2 10.2 8.9 8.1 2.1 1.8 0.9% 0.9% LPCK Buy 5,150 10,000 94.2 3,584 696 646-15.9% -7.1% 5.2 5.5 2.4 2.3 0.7 0.6 0.0% 0.0% MDLN Buy 324 470 45.1 4,061 443 573-2.2% 29.5% 9.2 7.1 7.8 6.3 0.6 0.5 0.0% 0.0% PWON Buy 595 720 21.0 28,655 2,435 3,096 25.9% 27.1% 11.8 9.3 8.8 7.0 2.6 2.1 1.6% 2.0% SMRA Neutral 1,335 1,575 18.0 19,257 518 1,286 78.2% 148.5% 37.2 15.0 14.2 9.5 2.8 2.4 0.0% 0.0% Industrial Estate 16,090 1,554 1,741 11.5% 12.0% 10.4 9.2 7.4 6.5 1.1 1.0 2.1% 2.3% DMAS Buy 230 350 52.2 11,086 989 1,017 8.4% 2.8% 11.2 10.9 8.7 8.1 1.3 1.2 2.5% 2.7% BEST Buy 270 410 51.9 2,605 309 372 18.8% 20.4% 8.4 7.0 9.2 7.8 0.7 0.7 0.5% 0.6% SSIA Neutral 510 700 37.3 2,400 257 352 15.5% 37.1% 9.3 6.8 4.9 4.3 0.7 0.7 1.9% 2.1% Poultry 72,176 5,544 6,818 12.6% 18.8% 12.3 10.4 8.7 7.7 2.5 2.1 2.1% 2.4% CPIN U/R 3,130 U/R U/R 51,326 3,525 4,198 16.0% 17.6% 14.4 12.2 10.6 9.2 3.0 2.6 1.8% 2.4% JPFA U/R 1,585 U/R U/R 18,086 1,688 2,224 6.5% 22.2% 9.3 7.6 6.4 5.9 1.8 1.5 2.7% 2.4% MAIN U/R 1,235 U/R U/R 2,765 332 397 14.0% 12.8% 7.9 7.0 5.6 5.4 1.3 1.2 2.2% 2.6% Coal 106,193 8,370 8,639 31.0% 3.4% 12.5 12.1 6.1 5.7 1.5 1.4 3.9% 4.0% ADRO* Sell 1,700 1,200 (29.4) 54,376 299 308 19.6% 2.9% 13.9 13.5 5.9 5.5 1.3 1.2 2.5% 2.6% HRUM* Sell 2,050 1,600 (21.9) 5,535 36 38 153.7% 7.3% 11.8 11.0 3.8 3.2 1.3 1.3 4.7% 5.0% ITMG* Sell 15,925 12,250 (23.1) 17,994 132 120 23.3% -9.3% 10.4 11.5 4.6 4.9 1.5 1.5 7.7% 7.0% PTBA Sell 12,275 9,500 (22.6) 28,288 2,256 2,536 46.4% 12.4% 11.8 10.5 9.0 7.8 2.5 2.2 4.0% 4.5% Oil & Gas 66,907 5,529 5,554 6.3% 5.9% 12.4 11.7 7.7 7.5 1.5 1.3 3.8% 4.3% PGAS* U/R 2,760 U/R U/R 66,907 422 424 6.3% 5.9% 12.4 11.7 7.7 7.5 1.5 1.3 3.8% 4.3% Shipping 2,287 637 0 0.0% N/A 4.9 0.0 6.9 0.0 0.0 0.0 0.0% 0.0% SOCI* U/R 324 U/R U/R 2,287 49 n/a 0.0% -100.0% 4.9 n/a 6.9 n/a n/a n/a 0.0% 0.0% Metal 33,414-221 278-72.4% N/M ### 104.6 13.1 11.0 0.8 0.8 0.0% 1.1% ANTM Neutral 920 500 (45.7) 8,772-752 -852 10.3% -13.3% -11.7-10.3 37.8 47.4 0.6 0.6-3.0% -3.4% INCO* U/R 2,480 U/R U/R 24,642 41 86 0.0% 125.0% 47.3 21.0 9.1 7.2 1.0 1.0 1.1% 2.6% Telco 451,056 23,840 27,982 15.9% 17.6% 18.9 16.1 5.6 5.0 3.6 3.3 3.3% 3.8% EXCL Neutral 2,770 2,400 (13.4) 29,562 529 729 81.6% 37.7% 55.8 40.5 4.4 3.9 1.4 1.4 0.4% 0.5% ISAT U/R 6,175 U/R U/R 33,555 1,871 2,622 84.3% 43.5% 17.9 12.4 3.2 3.1 2.2 2.0 2.3% 3.4% TLKM Buy 3,950 4,700 19.0 387,939 21,439 24,631 11.2% 14.9% 18.1 15.8 6.2 5.6 4.3 4.0 3.6% 4.1% Tower 56,752 4,471 5,191 26.3% 16.1% 12.7 10.9 9.2 7.8 3.3 2.3 0.0% 0.0% TBIG Neutral 5,025 6,000 19.4 24,103 1,558 1,957 39.1% 25.6% 15.5 12.3 11.3 10.1 5.7 3.9 0.0% 0.0% TOWR Buy 3,200 5,000 56.3 32,649 2,913 3,234 20.4% 11.0% 11.2 10.1 7.4 6.0 2.5 1.8 0.0% 0.0% Media 65,992 3,681 4,226 16.0% 14.8% 17.9 15.6 12.2 10.6 4.2 3.7 2.7% 3.1% SCMA Buy 2,790 3,500 25.4 40,794 1,870 2,124 16.9% 13.6% 21.8 19.2 15.4 13.5 9.2 7.8 2.7% 3.2% MNCN Buy 1,765 2,600 47.3 25,197 1,812 2,102 15.0% 16.0% 13.9 12.0 9.4 8.2 2.2 2.0 2.5% 2.9% Textile 4,276 878 0 33.3% N/A 4.4 0.0 5.5 0.0 0.8 0.0 5.7% 0.0% SRIL* U/R 230 U/R U/R 4,276 67 n/a 33.3% -100.0% 4.4 n/a 5.5 n/a 0.8 n/a 5.7% 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 8 of 9

Mandiri Sekuritas A subsidiary of PT Bank Mandiri (Persero) Tbk Plaza Mandiri 28 th Floor, Jl. Jend. Gatot Subroto Kav. 36-38, Jakarta 12190, Indonesia General: +62 21 526 3445, Fax : +62 21 527 5374 (Equity Sales) RESEARCH Tjandra Lienandjaja Deputy Head of Equity Research, Banking tjandra.lienandjaja@mandirisek.co.id +6221 5296 9617 Liliana S Bambang Property, Building Material liliana.bambang@mandirisek.co.id +6221 5296 9465 Adrian Joezer Consumer, Strategy adrian.joezer@mandirisek.co.id +6221 5296 9415 Ariyanto Kurniawan Telecom, Coal, Metal, Automotive ariyanto.kurniawan@mandirisek.co.id +6221 5296 9682 Bob Setiadi Construction, Toll Road bob.setiadi@mandirisek.co.id +6221 5296 9543 Francis Lim Quant, Health Care, Hospital francis.lim@mandirisek.co.id +6221 5296 9522 Yudha Gautama Mining, Plantation yudha.gautama@mandirisek.co.id +6221 5296 9623 Laura Taslim Retail laura.taslim@mandirisek.co.id +6221 5296 9450 Priscilla Thany Banking priscilla.thany@mandirisek.co.id +6221 5296 9569 Ferdy Wan Building Material, Industrial Est., Media ferdy.wan@mandirisek.co.id +6221 5296 9572 Lakshmi Rowter Research Assistant lakshmi.rowter@mandirisek.co.id +6221 5296 9549 Gerry Harlan Research Assistant gerry.harlan@mandirisek.co.id +6221 5296 9488 Leo Putera Rinaldy Chief Economist leo.rinaldy@mandirisek.co.id +6221 5296 9406 Wisnu Trihatmojo Economist wisnu.trihatmojo@mandirisek.co.id +6221 5296 9544 Aziza Nabila Amani Research Assistant aziza.amani@mandirisek.co.id +6221 5296 9688 INSTITUTIONAL SALES Lokman Lie Co-Head Institutional Equities lokman.lie@mandirisek.co.id +6221 527 5375 Silva Halim Co-Head Institutional Equities silva.halim@mandirisek.co.id +6221 527 5375 Aditya Sastrawinata Institutional Sales aditya.sastrawinata@mandirisek.co.id +6221 527 5375 Andrew Handaya Institutional Sales andrew.handaya@mandirisek.co.id +6221 527 5375 Cindy Amelia P. Kalangie Institutional Sales cindy.amelia@mandirisek.co.id +6221 527 5375 Feliciana Ramonda Institutional Sales feliciana.ramonda@mandirisek.co.id +6221 527 5375 Kevin Halim Institutional Sales kevin.halim@mandirisek.co.id +6221 527 5375 Mirna Santikara Salim Institutional Sales santikara.salim@mandirisek.co.id +6221 527 5375 Oos Rosadi Institutional Sales oos.rosadi@mandirisek.co.id +6221 527 5375 Zahra Aldila Niode Institutional Sales zahra.niode@mandirisek.co.id +6221 527 5375 Kusnadi Widjaja Equity Dealing kusnadi.widjaja@mandirisek.co.id +6221 527 5375 Edwin Pradana Setiadi Equity Dealing edwin.setiadi@mandirisek.co.id +6221 527 5375 Jane Theodoven Sukardi Equity Dealing jane.sukardi@mandirisek.co.id +6221 527 5375 Michael Taarea Equity Dealing michael.taarea@mandirisek.co.id +6221 527 5375 RETAIL SALES Andreas M. Gunawidjaja Head Retail Equities andreas@mandirisek.co.id +6221 526 9693 Boy Triyono Plaza Mandiri boy.triyono@mandirisek.co.id +6221 526 5678 A. A. Damargumilang Pondok Indah Office Tower damar.gumilang@mandirisek.co.id +6221 2912 4005 Herianto Pondok Indah Prioritas herianto@mandirisek.co.id +6221 7591 8400 Hendra Riady Mangga Dua hendra.riady@mandirisek.co.id +6221 6230 2333 Indra Mas'ari Bandung indra.mas ari@mandirisek.co.id +6222 426 5088 Yogiswara P. Yogyakarta yogiswara.perdana@mandirisek.co.id +62274 560 596 Widodo Solo widodo@mandirisek.co.id +62271 788 9290 Linawati Surabaya Linawati@mandirisek.co.id +6231 535 7218 Bambang Suwanto Malang bambang.suwanto@mandirisek.co.id +62341 336 440 Ruwie Medan ruwie@mandirisek.co.id +6261 8050 1825 Aidil Idham Palembang aidil.idham@mandirisek.co.id +62711 319 900 Yuri Ariadi Pontianak yuri.ariadi@mandirisek.co.id +62561 582 293 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 62-21-5263445 or fax 62-21-5275374. 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.