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Latest 2020F

7-DRRR (%), eop 4.00 3.75

Inflation (YoY %) 1.44 2.00

US$ 1 = Rp, period avg 14,096 14,745

JCI Index 5,557.5 0.50%

Trading T/O ( Rp bn ) 11,147.5

Market Cap ( Rp tn ) 6,457.8

2020F 2021F

P/E (x) 22.3 16.0

P/BV (x) 2.3 2.1

EV/EBITDA (x) 14.6 12.4

Div. Yield (%) 3.0 2.3

Net Gearing (%) 25.1 22.8

ROE (%) 10.1 13.5

EPS Growth (%) -26.9 39.1

EBITDA Growth (%) -11.7 17.1

Earnings Yield (%) 4.5 6.2

* Aggregate of 77 companies in MS research universe,

representing 60.6%of JCI’s market capitalization

Economic Data

Stock Market Data (18 November 2020)

Market Data Summary*

HM. Sampoerna 3Q20: Strong SKT Cushioned Weak SKM/SPM (HMSP; Rp1,485; Buy;

TP: Rp2,400)  Market Recap November 18th 2020; JCI 5,553.52 Points +27.58 pts (+0.50%); Valued

$792mn; Mkt Cap $437bn; USD/IDR 14,096  Daily Covid-19 Update: Data as of 18 Nov’20  HM. Sampoerna 3Q20: Strong SKT Cushioned Weak SKM/SPM (HMSP; Rp1,485; Buy; TP: Rp2,400)

Sequential 3Q20 earnings growth of 29.4% came despite weak 9.7% revenue recovery and the absence of price hikes, as the SKT volume beat marginally lifted 3Q20 gross margin by 1.1 ppt along with the material decline in management services fee. Overall 3Q20 is a beat to our estimate yet a miss to street’s, which we think is widely expected as volume and pricing trends had been known earlier.

3Q20 PATMI beat ours, missed consensus. 3Q20 PATMI came at Rp2,024bn, an increase of 29.4% QoQ yet a decrease of 41.0% YoY. We expect YoY print to remain tough this quarter, as the 2020 excise pass-through began in 2H19, while COVID-19 hit in Mar-20. The sequential improvement in PATMI was driven by 1) a +9.5% QoQ revenue growth on +9.7% QoQ in volume; 2) 1.1ppt QoQ increase in gross margin on better product mix offsetting an price increase hiatus, and; 3) 4.1% QoQ lower SG&A, as a material decline in G&A (-30.0% QoQ) related to management services fee (stipulated at PMI’s 3Q20 earnings call as part of the global SG&A efficiencies) offset the higher A&P. Overall, 9M20 PATMI formed 83%/65% of MANSEK/Consensus FY20; we think consensus miss is widely expected as EPS estimates have barely been lowered despite weak volume delivery and slow excise pass-through.

Better product mix marginally helped. While HMSP’s overall 3Q20 revenue growth was at +9.5% QoQ, SKT (hand-rolled) delivered the strongest growth at +23.2% QoQ, followed by SKM (machine-rolled) at +5.9% QoQ and SPM (machine-rolled white cigarettes) at +4.1% QoQ. Aside from the higher revenue mix of the high-margin SKT products, HMSP earlier also reported 0.2 ppt QoQ higher volume contribution from the high-margin Sampoerna A. In addition to PMI’s 20-Oct disclosures: https://www.mandirisekuritas.co.id/r/6823?c=rsch, HMSP provided additional segmental performance:

SKM: missed. 3Q20 volume grew by just 4.9% QoQ, relatively in-line with +5.9% in revenue; as such, YoY volume decline narrowed just slightly to -29.1% YoY from -33.3% YoY in 2Q20. 9M20 SKM volume achieved just 68% of our FY20, with revenues realization at 66%. Revenue/stick marginally increased by 0.9% QoQ as volume mix slightly improved, with Sampoerna A increasing by 10.3% QoQ against the -14.7%/-8.6% QoQ declines in U Mild and Marlboro Filter Black.

HIGHLIGHT

Equity Research | 19 November 2020 INVESTOR DIGEST

CORPORATE

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SKT: beat. 3Q20 volume rebounded by 25.0% QoQ against revenue growth of 23.2% QoQ, with YoY volume growth increasing to +15.2% in 3Q20 from +0.2% in 2Q20. 9M20 revenue/volume formed 89%/94% of our FY20.

SPM: missed. 3Q20 volume increased by just 4.2% QoQ, similar with the +4.1% revenue growth, with YoY volume decline of -30.5% vs. -35.4% in 2Q20. 9M20 revenues/volume missed our FY20 with 64%/63% realizations.

Views on share price. HMSP has not raised any prices this quarter, while GGRM and Djarum have increased their prices by 5-8% and 3-5% last month across their low-priced products. The 2021 excise tariff announcement, along with the HJE (retail price floor), is crucial in laying out the margin trend in 4Q20 and 2021, given the tremendous difficulties in estimating the right mix between market shares and profitability amid the weak purchasing power. While we have a Buy rating on HMSP, our preference remains on GGRM, given its higher mix of high-tar SKM (lesser competition, downtrading beneficiaries) and higher representation in lower-tier cities (lower COVID-19 cases).

HMSP 3Q20 RESULT SUMMARY

P&L (Rp bn) 9M20 9M19 YoY 3Q20 3Q19 YoY 2Q20 QoQ % of

Mansek % of

Cons. Revenue 67.779 77.507 -12,6% 23.046 26.787 -14,0% 21.044 9,5% 70% 69% COGS (53.545) (58.616) -8,7% (18.551) (20.223) -8,3% (17.172) 8,0%

Gross profit 14.234 18.891 -24,7% 4.494 6.565 -31,5% 3.872 16,1% 78% 68% Selling costs (4.380) (4.652) -5,8% (1.547) (1.709) -9,5% (1.463) 5,7%

G&A costs (1.487) (1.770) -16,0% (388) (589) -34,2% (554) -30,0%

Total SG&A (5.867) (6.422) -8,6% (1.934) (2.298) -15,8% (2.017) -4,1%

EBIT 8.367 12.470 -32,9% 2.560 4.267 -40,0% 1.855 38,0% 89% 64% Interest income 616 904 -31,9% 93 255 -63,4% 205 -54,5%

Interest costs (36) (40) -11,3% (13) (14) -2,9% (11) 23,3%

Others 32 86 -62,5% (7) 41 -117,9% (12) -40,8%

Pretax profit 8.979 13.419 -33,1% 2.633 4.549 -42,1% 2.036 29,3% 84% 65% Tax (2.068) (3.219) -35,8% (608) (1.119) -45,6% (472) 29,0%

Net profit 6.911 10.200 -32,2% 2.024 3.430 -41,0% 1.565 29,4% 83% 65%

Margins Gross 21,0% 24,4% -3,4% 19,5% 24,5% -5,0% 18,4% 1,1%

EBIT 12,3% 16,1% -3,7% 11,1% 15,9% -4,8% 8,8% 2,3%

Rev. breakdown Exports 174 315 -44,8% 31 124 -74,7% 45 -30,1%

Local 67.605 77.192 -12,4% 23.014 26.664 -13,7% 21.000 9,6%

SKM 45.284 54.660 -17,2% 14.784 18.731 -21,1% 13.965 5,9%

SKT 15.367 14.001 9,8% 5.857 5.093 15,0% 4.753 23,2%

SPM 6.537 8.163 -19,9% 2.228 2.722 -18,2% 2.140 4,1%

Others 417 369 12,9% 146 118 23,9% 142 2,8%

Operational breakdown Total volume 58,3 72,1 -19,1% 19,8 25,0 -20,8% 18,0 9,7% 72%

SKM 39,3 51,9 -24,2% 12,7 17,9 -29,1% 12,1 4,9% 68%

SKT 14,3 13,2 8,3% 5,5 4,8 15,2% 4,4 25,0% 94%

SPM 4,8 7,0 -30,8% 1,6 2,3 -30,5% 1,6 4,2% 63%

ASP (Rp/stick) 1.163 1.075 8,2% 1.164 1.071 8,7% 1.166 -0,2% SKM 1.151 1.054 9,3% 1.165 1.045 11,4% 1.154 0,9%

SKT 1.073 1.059 1,3% 1.066 1.069 -0,2% 1.082 -1,4%

SPM 1.350 1.167 15,7% 1.374 1.168 17,7% 1.375 -0,1%

Source: Company, Bloomberg, Mandiri Sekuritas estimates

Adrian Joezer (+6221 5296 9415) adrian.joezer@mandirisek.co.id Riyanto Hartanto (+6221 5296 9488) riyanto@mandirisek.co.id

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Market Recap November 18th 2020; JCI 5,553.52 Points +27.58 pts (+0.50%); Valued $792mn; Mkt Cap $437bn; USD/IDR 14,096

TOP TURNOVER: ANTM TLKM BBRI BBCA PGAS BMRI HMSP BRIS GIAA TINS MDKA BBNI TOWR INKP UNVR ASII WSKT ICBP (54%)

ADVANCING SECTOR: cement+1.6%; mining+1.4%; financial+0.9%; construction+0.5%; consumer+0.3%

DECLINING SECTOR: plantation-1%; telco-0.9%; auto-0.2%; property-0.1%

While global shares stepped back, Indo equities firmed on news report that Minister Luhut said Indonesia is close to sign an agreement with Korea’s largest EV battery maker, LG Chem. An upbeat sentiment also supported by consistently lower daily infection rate (now at 10% vs. 13% the day before). The JCI rose 0.6% to 5494 level. All EV-related plays including ANTM+4.2% TINS+7.04% INCO+1.97% DKFT+4.7% rose on the occasion. PGAS also jumped 7.48%, thanks to its undemanding valuation, better-than-expected distribution volume and favorable crude prices. Smaller gas play RAJA also followed suit, increasing 11.18%. Market turnover (excluding $11.4MN SMMA; $7.3MN BOGA; $5.7MN NATO crossing) declined 12% d/d to $792MN. Foreign participants returned to 20% and came up better buyer for 27%. Gainers beat losers by 11 to 10. Indonesia’s benchmark 10-year bond yield slid to the lowest in almost three years as solid demand at a debt auction signaled growing appetite for the nation’s assets. The 10-year govt bond yield fell 2bps to 6.13%, lowest since Jan 2018. The Finance Ministry sold IDR24.6TN of bonds in Tuesday’s auction, exceeding its IDR20TN target. Offering of April 2040 debt drew a bid-to-cover-ratio of 9.74x while that on May 2048 bonds was 9.08x. Both ratios were the highest since bonds were first issued at least a year ago. Nomura strategist set 6% as the target for the 10-year yield in the near term. The IDR continued to consolidate modestly above key support at the 14000 level. Bank Indonesia is likely to keep the key rate at 4.00% at tomorrow’s review, according to 14 of 26 analysts; while the remaining 12 expect at least a 25bps reduction. Global funds bought a net $33.8MN of Indonesian bonds on Nov 13th, a seventh day of inflows; and bought a net $57.6MN of the nation’s equities on Nov 17th.

Sales Team +6221 527 5375

Government still takes into account 5 considerations regarding 2021 cigarette excise tax increase Sri Mulyani, Ministry of Finance, said the Government is still formulating the ideal cigarette excise hike for next year. The 5 considerations that need to take into account are as follows: 1) health prevalence; 2) labor on hand-rolled cigarette (SKT) industry; 3) tobacco farmers; 4) circulation of illegal cigarettes; and 5) state revenue. (Investor Daily) Bank BNI (BBNI) targets international business segment to grow by +6-7%yoy next year To support the growth, BBNI will target companies’ value chain, particularly blue chips companies, and to expand cross border products. (Bisnis Indonesia) Up to 18 Oct-20, BRI (BBRI) has restructured Rp193tn loans The loans belong to 2.9mn borrowers. (Investor Daily) Mayora Indah (MYOR) to add capital and conduct sales transaction with Kopiko Philippines Corporation (KPC) PT Torabika Eka Semesta (TES), subsidiary of MYOR, will add equity capital to KPC, an affiliated company, as much as 11mn PHP (Rp3.39bn) or 0.02% of MYOR's total assets. TES will also conduct sales transaction with KPC of 1.56bn PHP (Rp427.9bn) or equivalent to 1.71% annual MYOR sales. The impact of these transactions is expected to accelerate and simplify the supply chain process in the Philippines. (IDX)

MARKET

FROM THE PRESS

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Daily Covid-19 Update: Data as of 18 Nov’20

Testing: Daily specimens tested increased to 42k yday. Similarly, daily case tested increased to 38k yday.

New cases: Indo recorded 4,265 new cases yday.

Infection rate: Daily national infection rate was stable at 11% yday (vs. 3DMA 13% and 7DMA 13%). Jakarta daily infection rate has been trending up in the past 10days, yesterday was 13% (3DMA 16%; 7DMA 11%). Meanwhile ex-Jakarta infection rate has been trended lower.

Epicenters: Jakarta (+1,147); Central Java (+495); East Java (480). East Java recorded doubling cases yday vs. recent trend of ~230.

Increasing trend was apparent in all Java regions, except East Java.

From the news: Pfizer/BioNTech have completed the Phase 3 clinial final analysis on 170 cases and recorded 95% efficacy, higher than the interim 90% efficacy. No safety issue has been reported. Companies will seek EUA in 3rd week of Nov.

COVID-19 INDONESIA

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Inggrid Gondoprastowo (+6221 5296 9450) inggridgondoprastowo@mandirisek.co.id Adrian Joezer (+6221 5296 9415) adrian.joezer@mandirisek.co.id

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Indices and Fund Flows Currencies and Bonds Major Commodities

Indices Last Chg (%) YTD Chg (%)

Currency Last Chg (%) YTD Chg (%)

Last Chg (%) YTD Chg (%)

JCI 5,557.5 +0.5 -11.8 Rp/US$ 14,070 +0.11 -1.6 Crude Oil, WTI (US$/bl) 41.82 +0.9 -31.5

Dow Jones 29,438.4 -1.2 +3.2 US$/EUR 1.185 -0.08 -5.4 Copper (US$/mt) 7,047 -0.7 +14.6

Nikkei 25,728.1 -1.1 +8.8 YEN/US$ 103.82 -0.36 +4.6 Nickel (US$/mt) 15,887 +0.3 +13.9

Hang Seng 26,544.3 +0.5 -5.8 SGD/US$ 1.342 -0.04 +0.3 Gold (US$/oz) 1,872 -0.4 +23.4

STI 2,788.6 +0.4 -13.5 Tin 3-month (US$/mt) 19,025 +1.4 +10.8

Ishares indo 21.7 -0.7 -15.5 CPO futures (Ringgit/ton) 3,364 +2.6 +11.0

Coal (US$/ton) 62.5 +0.1 -7.8

Foreign Fund Flows (US$mn)

Last Chg YTD Chg

Gov. Bond Yield

Last Chg

(bps)

YTD Chg

(bps)Rubber forward (US¢/kg) 246.8 +1.7 +48.4

Equity Flow +51.2 -2,731 5Yr 5.19 +1 -125Soybean oil (US$/100gallons)

38.46 +2.6 +11.5

Bonds Flow +33.8 -5,306 10Yr 6.16 +1 -90 Baltic Dry Index 1,112.0 +0.0 +2.0

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Equity Valuation Price Price % of Mkt Cap Net Profit PER (x) P/BV (x) EV/EBITDA (x) EPS Growth Div.Yield

Code Rating (Rp) Target PT (Rp Bn) 2020 2021 2020 2021 2020 2021 2020 2021 2020 2021 2020 2021

MANSEK universe 5,558 5,540 -0.3 4,119,723 184,652 256,813 22.3 16.0 2.3 2.1 14.6 12.4 -26.9% 39.1% 3.0% 2.3%

Banking 1,624,871 62,300 100,052 26.1 16.2 2.4 2.1 N.A. N.A. -35.2% 60.6% 2.5% 1.3%

BBCA Neutral 32,850 26,500 (19.3) 809,917 22,167 29,781 36.5 27.2 4.6 4.1 N.A. N.A. -22.4% 34.3% 1.7% 1.1%

BBNI Buy 5,725 5,900 3.1 106,764 7,073 15,323 15.1 7.0 1.0 0.9 N.A. N.A. -54.0% 116.6% 3.6% 1.7%

BBRI Neutral 4,040 4,000 (1.0) 498,126 19,246 33,603 25.9 14.8 2.6 2.3 N.A. N.A. -44.0% 74.6% 3.5% 1.2%

BBTN Buy 1,700 1,900 11.8 18,003 1,510 2,120 11.9 8.5 1.0 0.9 N.A. N.A. 621.6% 40.4% 3.1% 1.6%

BDMN Buy 2,720 4,000 47.1 26,070 2,703 4,752 9.6 5.5 0.6 0.5 N.A. N.A. -33.6% 75.8% 5.5% 3.6%

BJBR Buy 1,300 860 (33.8) 12,790 1,260 1,438 10.1 8.9 1.2 1.1 N.A. N.A. -19.2% 14.1% 7.2% 7.2%

BJTM Buy 615 590 (4.1) 9,226 1,146 1,434 8.1 6.4 1.0 0.9 N.A. N.A. -16.8% 25.2% 7.8% 7.9%

BNGA Buy 830 840 1.2 20,859 2,340 4,211 8.9 5.0 0.5 0.5 N.A. N.A. -35.8% 80.0% 7.0% 4.5%

BNLI Sell 2,260 430 (81.0) 63,377 909 1,494 69.7 42.4 2.6 2.5 N.A. N.A. -39.4% 64.4% 0.0% 0.0%

PNBN Buy 875 1,100 25.7 21,077 1,976 3,508 10.7 6.0 0.5 0.5 N.A. N.A. -40.4% 77.5% 0.0% 0.0%

BTPS Buy 4,230 3,200 (24.3) 32,587 1,189 1,547 27.4 21.1 5.2 4.3 N.A. N.A. -15.1% 30.1% 0.9% 0.7%

BFIN Buy 406 475 17.0 6,076 781 841 7.8 7.2 0.9 0.8 N.A. N.A. 9.7% 7.7% 2.9% 3.9%

Construction & materials 195,183 3,363 7,827 58.0 24.9 1.5 1.4 16.2 11.8 -73.2% 132.8% 1.5% 0.9%

INTP Buy 14,150 14,500 2.5 52,089 1,673 2,003 31.1 26.0 2.2 2.0 14.4 12.6 -8.9% 19.8% 1.2% 1.1%

SMGR Buy 11,150 11,020 (1.2) 66,136 2,520 2,825 26.2 23.4 2.0 1.9 10.4 9.7 5.4% 12.1% 1.9% 1.4%

ADHI Buy 920 810 (12.0) 3,276 105 361 31.2 9.1 0.6 0.5 9.4 7.2 -84.2% 243.0% 4.1% 0.6%

PTPP Buy 1,150 1,370 19.1 7,130 219 754 32.6 9.5 0.6 0.6 10.5 6.9 -76.5% 244.3% 3.9% 0.9%

WIKA Buy 1,460 1,680 15.1 13,082 561 1,159 23.3 11.3 0.9 0.8 8.9 6.9 -75.4% 106.5% 0.9% 1.8%

WSKT Buy 1,025 1,230 20.0 13,716 -2,141 -1,501 -6.4 -9.1 1.3 1.5 37.2 23.0 N/M 29.9% -3.1% -2.2%

WTON Buy 296 500 68.9 2,580 285 438 9.1 5.9 0.7 0.7 4.1 2.9 -44.4% 53.7% 6.0% 3.3%

WSBP Buy 196 195 (0.5) 5,167 -115 83 -44.8 62.3 0.7 0.7 20.3 14.4 N/M N/M 7.8% 0.0%

JSMR Buy 4,410 5,690 29.0 32,007 256 1,707 124.9 18.8 1.7 1.6 25.4 12.7 -88.4% 566.0% 1.4% 0.2%

Consumer staples 906,114 41,277 51,577 22.0 17.6 4.7 4.3 14.1 11.6 -14.8% 25.0% 3.8% 3.3%

ICBP Buy 10,275 12,050 17.3 119,826 5,977 6,319 20.0 19.0 4.2 3.7 11.8 11.5 18.6% 5.7% 2.1% 2.5%

INDF Buy 7,350 9,950 35.4 64,533 5,919 6,307 10.9 10.2 1.6 1.4 6.7 6.3 20.6% 6.5% 3.8% 4.6%

MYOR Buy 2,490 2,600 4.4 55,674 2,413 2,190 23.1 25.4 4.9 4.4 15.7 14.5 21.4% -9.2% 1.3% 1.6%

UNVR Buy 7,800 9,700 24.4 297,570 7,420 8,138 40.1 36.6 59.5 55.2 28.2 25.8 0.3% 9.7% 2.5% 2.5%

GGRM Buy 42,875 63,450 48.0 82,495 7,422 10,321 11.1 8.0 1.5 1.4 7.3 5.8 -31.8% 39.1% 6.1% 6.1%

HMSP Buy 1,485 2,400 61.6 172,732 8,342 13,384 20.7 12.9 5.7 4.8 15.8 9.4 -39.2% 60.4% 7.8% 4.8%

KLBF Buy 1,505 1,900 26.2 70,547 2,731 2,842 25.8 24.8 4.1 3.7 17.5 16.6 9.0% 4.1% 1.9% 2.0%

SIDO Buy 810 980 21.0 24,300 912 1,011 26.6 24.0 7.5 7.2 20.0 17.9 12.9% 10.9% 3.1% 3.6%

MLBI Buy 8,750 13,250 51.4 18,436 141 1,063 131.2 17.3 48.3 14.1 32.1 11.1 -88.3% 656.9% 4.9% 0.8%

Healthcare 54,147 842 1,080 64.3 50.1 4.2 3.9 22.6 18.3 30.2% 28.3% 0.1% 0.1%

MIKA Buy 2,460 2,750 11.8 35,795 547 659 65.5 54.4 7.9 7.2 43.1 34.7 -25.1% 20.5% 0.0% 0.0%

SILO Buy 4,890 5,950 21.7 7,946 -44 22 -180.7 357.7 1.3 1.3 10.8 8.5 87.0% N/M 0.0% 0.0%

HEAL Buy 3,500 4,000 14.3 10,406 339 400 30.7 26.0 4.3 3.7 13.2 10.9 32.9% 17.8% 0.3% 0.5%

Consumer discretionary 334,823 21,267 26,110 15.7 12.8 1.7 1.5 11.0 8.7 -29.5% 22.8% 3.8% 3.0%

ACES Neutral 1,745 1,500 (14.0) 29,927 711 1,055 42.1 28.4 6.1 5.3 32.6 23.1 -31.0% 48.5% 1.7% 1.2%

LPPF Buy 1,045 1,800 72.2 3,049 50 497 60.4 6.1 1.7 1.3 4.5 1.7 -96.3% 884.6% 0.0% 0.5%

MAPA Buy 2,330 3,850 65.2 6,641 54 606 122.0 11.0 2.2 1.8 16.7 5.7 -92.1% 1013.2% 0.0% 0.2%

MAPI Buy 775 1,000 29.0 12,865 -1,704 543 -7.5 23.7 3.0 2.7 -123.1 7.8 N/M N/M 1.6% 0.0%

RALS Buy 750 700 (6.7) 5,322 -132 143 -40.4 37.2 1.5 1.4 -72.3 15.8 N/M N/M 7.2% -1.6%

ERAA Buy 1,805 2,000 10.8 5,758 268 436 21.5 13.2 1.1 1.1 10.6 9.0 -9.3% 63.0% 0.9% 1.5%

ASII Buy 5,775 6,300 9.1 233,793 17,763 18,098 13.2 12.9 1.5 1.4 10.9 9.3 -18.2% 1.9% 4.2% 3.4%

SCMA Buy 1,510 1,800 19.2 22,239 1,566 1,693 14.2 13.1 3.8 3.4 9.9 9.5 35.7% 8.1% 4.9% 5.3%

MNCN Buy 925 2,200 137.8 11,474 2,427 2,593 4.7 4.4 0.9 0.7 3.5 3.0 24.1% 6.8% 3.2% 3.4%

MSIN Buy 298 650 118.1 1,550 267 316 5.8 4.9 1.0 0.9 3.4 3.2 16.3% 18.1% 8.6% 10.2%

PZZA Buy 730 750 2.7 2,206 -2 130 -1,069.2 17.0 1.8 1.6 12.1 6.5 N/M N/M 4.5% 0.0%

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Commodities 288,602 21,057 25,415 13.7 11.3 1.2 1.2 5.1 4.4 -13.3% 20.7% 2.9% 3.3%

UNTR Buy 21,000 31,700 51.0 78,333 7,172 10,603 10.9 7.4 1.2 1.1 4.3 3.2 -36.6% 47.8% 2.7% 4.1%

ADRO* Neutral 1,190 1,350 13.4 38,063 372 353 7.2 7.6 0.7 0.6 3.0 2.8 -7.9% -5.2% 4.9% 4.6%

HRUM* Neutral 2,320 1,300 (44.0) 5,955 17 14 23.9 30.8 1.3 1.3 6.3 7.0 -5.9% -21.7% 2.3% 1.8%

INDY* Neutral 1,045 910 (12.9) 5,445 2 6 230.9 60.2 0.4 0.4 1.8 1.4 N/M 286.9% 0.1% 0.4%

ITMG* Neutral 9,200 10,450 13.6 10,088 100 101 7.0 7.0 0.8 0.8 2.3 2.2 -20.8% 0.9% 12.1% 12.1%

PTBA Neutral 2,110 2,350 11.4 24,312 3,482 3,496 6.9 6.9 1.3 1.2 4.3 4.2 -18.3% 0.4% 10.7% 10.8%

ANTM Buy 1,240 1,300 4.8 29,798 1,107 1,320 26.9 22.6 1.3 1.3 11.0 10.4 470.9% 19.3% 1.3% 1.6%

INCO* Neutral 4,670 4,000 (14.3) 46,403 103 106 31.7 30.8 1.6 1.5 10.0 9.6 78.6% 3.7% 0.0% 0.0%

TINS Neutral 1,140 800 (29.9) 8,490 -111 357 -76.4 23.8 1.6 1.5 19.9 11.0 81.8% N/M -0.5% 1.5%

MDKA* Buy 1,905 2,100 10.2 41,715 64 99 45.5 29.6 5.2 4.5 14.4 11.1 -11.8% 55.2% 0.0% 0.0%

Property & Industrial Estate 108,064 5,762 8,760 18.8 12.3 0.8 0.8 11.3 10.0 -28.9% 52.0% 2.3% 1.6%

ASRI Buy 194 210 8.2 3,812 42 683 91.3 5.6 0.4 0.3 10.5 7.6 -95.9% 1534.2% 1.0% 1.0%

BSDE Buy 1,075 1,160 7.9 22,759 1,399 2,050 16.3 11.1 0.7 0.7 12.1 11.2 -54.4% 46.5% 0.0% 0.4%

CTRA Buy 915 1,120 22.4 16,983 832 1,094 20.4 15.5 1.1 1.0 12.2 10.5 -28.2% 31.5% 0.8% 0.8%

JRPT Buy 470 670 42.6 6,463 997 1,065 6.5 6.1 0.8 0.7 5.7 5.1 -1.9% 6.7% 4.1% 0.1%

PWON Buy 494 700 41.7 23,791 1,007 1,764 23.6 13.5 1.5 1.4 13.9 9.8 -63.0% 75.2% 1.2% 1.2%

SMRA Buy 780 960 23.1 11,253 420 604 26.8 18.6 1.5 1.4 11.5 10.3 -18.5% 43.8% 0.6% 0.6%

LPKR Neutral 134 200 49.3 9,459 74 391 128.1 24.2 0.3 0.3 10.5 10.6 N/M 429.7% 0.7% 0.7%

DMAS Buy 246 300 22.0 11,857 885 988 13.4 12.0 2.0 2.0 12.9 11.6 -33.7% 11.7% 13.0% 8.5%

BEST Neutral 175 130 (25.7) 1,688 107 122 15.8 13.9 0.4 0.4 7.3 10.4 -72.0% 14.2% 2.0% 0.5%

Telco 440,111 23,702 25,930 18.6 17.0 2.8 2.7 6.0 5.7 -5.2% 9.4% 4.1% 4.4%

EXCL Buy 2,300 3,600 56.5 24,582 1,065 818 23.1 30.1 1.2 1.2 4.6 4.3 49.5% -23.2% 0.9% 1.3%

TLKM Buy 3,180 3,900 22.6 315,018 19,403 21,026 16.2 15.0 3.0 2.9 5.7 5.5 4.0% 8.4% 4.9% 5.3%

ISAT Buy 2,200 3,200 45.5 11,955 -1,046 -648 -11.4 -18.5 1.0 1.1 4.3 3.8 N/M 38.1% 0.0% 0.0%

LINK Buy 2,300 3,300 43.5 6,526 736 744 8.9 8.8 1.3 1.3 3.8 3.8 -17.8% 1.1% 6.8% 5.7%

TBIG Buy 1,390 1,400 0.7 30,067 1,068 1,264 28.1 23.8 5.5 4.9 12.4 11.6 30.4% 18.3% 2.0% 2.0%

TOWR Buy 1,035 1,300 25.6 51,963 2,476 2,725 21.0 19.1 5.2 4.5 11.6 10.8 5.7% 10.1% 2.3% 2.3%

Chemical 2,806 136 163 20.7 17.2 0.8 0.8 7.6 6.8 29.5% 20.3% 0.0% 0.0%

AGII Buy 915 700 (23.5) 2,806 136 163 20.7 17.2 0.8 0.8 7.6 6.8 29.5% 20.3% 0.0% 0.0%

Airlines 2,852 540 837 5.3 3.4 0.5 0.4 4.4 2.8 30.0% 55.0% 0.0% 0.0%

GMFI* Neutral 101 275 172.0 2,852 38 59 5.3 3.4 0.5 0.4 4.4 2.8 26.1% 56.3% 0.0% 0.0%

Transportation 2,852 -175 251 -16.3 11.4 0.6 0.5 12.1 4.8 -155.7% N/M -1.5% 2.2%

BIRD Buy 1,140 1,700 49.1 2,852 -175 251 -16.3 11.4 0.6 0.5 12.1 4.8 N/M N/M -1.5% 2.2%

Poultry 123,454 2,988 5,574 41.3 22.1 3.5 3.1 18.4 12.4 -46.2% 86.5% 1.3% 1.0%

CPIN Buy 6,525 6,950 6.5 106,997 2,775 3,728 38.6 28.7 4.8 4.3 22.1 18.0 -23.6% 34.3% 1.2% 1.1%

JPFA Buy 1,285 1,700 32.3 15,069 344 1,696 43.8 8.9 1.4 1.2 10.9 5.7 -80.5% 392.5% 1.6% 0.7%

MAIN Buy 620 700 12.9 1,388 -131 150 -10.6 9.3 0.7 0.7 12.9 4.7 N/M N/M 0.0% 0.0%

Oil and Gas 33,090 1,511 3,133 21.9 10.6 0.9 0.8 7.2 5.8 61.2% 107.4% 1.8% 3.8%

PGAS* Buy 1,365 1,700 24.5 33,090 106 221 21.9 10.6 0.9 0.8 7.2 5.8 56.4% 109.1% 1.8% 3.8%

Asset Management 2,755 84 104 32.8 27.8 9.6 9.9 26.7 22.9 1.2% 24.2% 3.1% 3.4%

AMOR Buy 2,610 2,500 (4.2) 2,755 80 88 34.6 32.8 9.6 10.0 25.8 27.5 -12.9% 5.6% 3.2% 2.9%

sNote: - *) 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

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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.

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