Equity SNAPSHOT Monday, August 31, 2020

FROM EQUITY RESEARCH KEY INDEX KEY INDEX Chg Ytd Vol Chg Ytd Vol Danareksa Research Institute: Inflation Outlook Aug 2020 Close Close : Slow Pace of Growth (%) (%) (US$ m) (%) (%) (US$ m) Improvements in economic activity remain weak after the relaxation Asean - 5 Asean - 5 of large-scale social distancing restrictions and the realization of 5.347 (0,5) (15,1) 489 Indonesia 6,134 0.1 (1.0) 318 government stimulus to encourage household consumption. As such, Thailand 1.323 (0,3) (16,2) 1.765 Thailand 1,568 (0.1) 0.2 1,454 the increase in household expenditure has not been significant. Philippines 5.884 (0,6) (24,7) 170 Philippines 7,855 (0.3) 5.2 87 Weak household expenditure was behind the decline in basic food Malaysia 1.525 (1,9) (4,0) 1.335 Malaysia 1,562 (0.5) (7.6) 338 prices. Given this backdrop, we extimate that inflation will reach Singapore 2.540 0,8 (21,2) 877 Singapore 3,173 (0.5) 3.4 908 0.02% mom or 1.49% yoy in August 2020. Regional Regional To see the full version of this report, please click here China 3.404 1,6 11,6 76.051 China 2,885 0.3 15.7 28,889 Hong Kong 25.422 0,6 (9,8) 21.345 Hong Kong 26,391 (0.2) 2.1 9,093 Adaro Energy: Fine tuning our estimates Japan 22.883 (1,4) (3,3) 15.015 Japan 23,380 (0.6) 16.8 10,278 (ADRO.IJ IDR. 1,145 BUY TP. IDR. 1,300) Korea 2.354 0,4 7,1 12.821 Korea 2,068 (0.8) 1.3 3,790 Post the release of the 1H20 results, we fine tune our earnings Taiwan 12.729 (0,5) 6,1 6.957 Taiwan 11,532 0.2 18.5 3,534 estimates for Adaro Energy (ADRO) as we lower our coal production India 39.467 0,9 (4,3) 585 India 40,675 (0.3) 12.8 495 and price assumptions. Nonetheless, we maintain our TP at Nasdaq 11.696 0,6 30,3 212.060 Nasdaq 8,521 (0.6) 28.4 116,797 IDR1,300 (DCF valuation with WACC of 10.9% and LT growth of Dow Jones 28.654 0,6 0,4 18.560 Dow Jones 27,503 (1.0) 17.9 11,490 3%) as we roll over our valuation to 2021. In 1H20, ADRO reported CURRENCY AND INTEREST RATE CURRENCY AND INTEREST RATE soft results with net profits of USD155mn (-47.8% yoy) driven by w-w m-m ytd w-w m-m ytd weak coal prices and lower production due to the Covid-19 Rate Rate (%) (%) (%) (%) (%) (%) pandemic. Maintain BUY. Rupiah Rp/1US$ 14.632 1,0 (0,7) (5,5) Rupiah Rp/1US$ 14,115 (0.2) (0.7) 1.9 To see the full version of this report, please click here BI7DRRR % 4,00 - - (1,0) BI7DRRR % 5.00 - (0.3) (1.0) 10y Gov Indo bond 6,90 0,2 0,1 (0,2) 10y Gov Indo bond 7.16 0.1 0.2 (0.9)

Japfa Comfeed Indonesia: All Indonesian`s chicken united (JPFA.IJ IDR. 1,125 HOLD TP. IDR. 1,150) HARD COMMODITY HARD COMMODITY JPFA Tbk is going to acquire its CBP business from its parent d-d m-m ytd d-d m-m ytd Unit Price Unit Price company JPFA Ltd. For c. IDR1.2tn (c. US$83mn) on Nov, 30 2020. (%) (%) (%) (%) (%) (%) Our insights on the transaction are: 1) the buying price is relatively Coal US$/ton 51 0,3 (2,3) (25,3) Coal US$/ton 67 (0.3) 0.2 (34.0) cheap compared to the reverse transaction of US$100mn back in Gold US$/toz 1.965 1,8 0,3 29,5 Gold US$/toz 1,478 (0.0) (2.1) 15.2 2011, 2) the acquisition value is in the range of JPFA`s TTM Nickel US$/mt.ton 15.337 1,2 12,7 9,9 Nickel US$/mt.ton 13,315 (2.5) (20.7) 25.6 EV/EBITDA and P/E valuation of IDR1.0-1.3tn, and 3) earnings Tin US$/mt.ton 17.867 0,2 (1,0) 4,0 Tin US$/mt.ton 16,771 1.5 1.7 (14.1) accretive in view of higher consumption of processed poultry SOFT COMMODITY SOFT COMMODITY products caused by COVID-19 pandemic. d-d m-m ytd d-d m-m ytd To see the full version of this report, please click here Unit Price Unit Price (%) (%) (%) (%) (%) (%)

Cocoa US$/mt.ton 131 0,6 7,1 (8,7) Cocoa US$/mt.ton 2,476 (1.0) 1.3 4.7 MARKET NEWS Corn US$/mt.ton 43 (0,2) 4,7 (29,6) Corn US$/mt.ton 141 1.7 (2.5) 5.6 SECTOR Oil (WTI) US$/barrel 46 0,5 6,0 (30,6) Oil (WTI) US$/barrel 56 0.6 (0.2) 24.3 ▪ 1H20 booked IDR62.6tn net profit: OJK predict banking Oil (Brent) US$/barrel 2.784 2,0 (1,8) (8,0) Oil (Brent) US$/barrel 61 (0.2) (1.4) 13.0 sector’s net profit down by 20-50% for FY20F Palm oil MYR/mt.ton 134 (0,2) 12,7 (7,9) Palm oil MYR/mt.ton 2,632 (1.3) 11.4 34.8 ▪ Govt. processing the school subsidy at the parity of Rp35,000 Rubber USd/kg 1.205 N/A 2,8 20,5 Rubber USd/kg 142 0.9 6.9 13.6 for 35GB Pulp US$/tonne 360 (0,6) (0,9) 0,1 Pulp US$/tonne 1,205 N/A 2.8 20.5 CORPORATE Coffee US$/60kgbag 149 (0,4) 3,5 (5,0) Coffee US$/60kgbag 72 0.3 7.9 3.5 ▪ TPIA issued IDR 1tn of bonds Sugar US$/MT 33 0,2 13,5 (3,2) Sugar US$/MT 345 0.7 1.3 3.6 ▪ Sarana Menara Nusantara issues local bonds Wheat US$/ton 951 1,4 6,0 0,8 Wheat US$/ton 143 (1.9) 0.7 (5.1) Soy Oil US$/lb 131 0,6 7,1 (8,7) Soy Oil US$/lb 30 0.1 (3.4) 8.9 PREVIOUS REPORT SoyBean US$/by 43 (0,2) 4,7 (29,6) Soy Bean US$/by 871 0.1 (5.8) (1.3) ▪ Alam Sutra Realty: Better earnings albeit still in negative territory ▪ Media Nusantara Citra: Active Deleveraging on The Card ▪ Pembangunan Perumahan: Looking forward ▪ XL Axiata: Admirable performance ▪ Coal Mining: Scaling down coal production targets ▪ United Tractors: Slight recovery in Komatsu volume Source: Bloomberg Source: Bloomberg

Danareksa Sekuritas – Equity SNAPSHOT

CPI Outlook

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Equity Research

Company Update

Monday,31 August 2020 BUY Adaro Energy(ADRO IJ) Maintain Fine tuning our estimates

Last price (IDR) 1,145 Post the release of the 1H20 results, we fine tune our earnings estimates for Target Price (IDR) 1,300 Adaro Energy (ADRO) as we lower our coal production and price assumptions. Nonetheless, we maintain our TP at IDR1,300 (DCF valuation with WACC of Upside/Downside +13.5% 10.9% and LT growth of 3%) as we roll over our valuation to 2021. In 1H20, Previous Target Price (IDR) 1,300 ADRO reported soft results with net profits of USD155mn (-47.8% yoy) driven by weak coal prices and lower production due to the Covid-19 pandemic. Stock Statistics Maintain BUY. Sector Coal Mining 1H20 soft earnings on lower production and weak prices. After solid earnings Bloomberg Ticker ADRO IJ in 1Q20, ADRO reported net profits of USD57mn (-42.0% mom, -68.0% yoy) in No of Shrs (mn) 31,986 2Q20 due to: a) lower coal production (-10.6% qoq) from unfavorable weather Mkt. Cap (IDRbn/USDmn) 36,624/2,503 conditions and b) soft coal prices in 2Q20 owing to the Covid-19 pandemic. As such, net profits declined 47.8% yoy to USD155mn in 1H20 with lower ASP (- Avg. daily T/O (IDRbn/USDmn) 68.7/4.7 18.1% yoy) and lower production (-4.2% yoy). A lower SR and fuel prices (-22%

Major shareholders (%) yoy) helped to lower cash costs by 13.8% yoy. The result is below our previous estimate (41% of our FY20F). With ADRO targeting a SR of 4.3x, we expect a Adaro Strat. Inv. 43.9 higher SR in 2H20. Nonetheless, we believe that anemic crude oil prices will Estimated Free Float 42.9 help to maintain cash costs at a low level.

2020 guidance: Revised production target on weak coal prices. Given the weak

EPS Consensus (USDcents) coal prices amid the Covid-19 pandemic, the company decided to scale down its coal production target to 52 – 54mn tons for 2020 from initially 54 – 58mn 2020F 2021F 2022F tons. While maintaining a SR target of 4.3x, the revised coal production target Danareksa 0.8 0.9 1.1 in addition to lower coal price estimates lead to lower operational EBITDA in Consensus 1.0 1.0 1.1 the range of USD600 – 800mn (vs. a previous guidance of USD0.9 – 1.2bn) for 2020. This year, the company will spend lower capex at USD200 – 250mn (2019: Danareksa/Cons (23.2) (10.0) (4.0) USD489mn).

ADRO relative to JCI Index The near-term coal price outlook remains muted. We foresee a muted coal price outlook in the near term from the Covid-19 pandemic. However, with coal miners having scaled down their production, we think any recovery in global coal demand will push up coal prices from their current level. We also expect the winter season in the Northern Hemisphere in 4Q20 and global economic recovery in 2021 post Covid-19 to lift up coal prices from their currently low level of USD50/ton. Our coal price assumption is USD58/ton for 2020 and USD63/ton for 2021.

Maintain BUY. We fine tune our earnings estimates for 2020 – 2021 by 5.7 – 34.8% as we cut our coal production and price assumptions. But, we maintain our TP at IDR1,300 (based on DCF valuation with WACC of 10.9% and LT growth of 3%) as we roll over our valuation to 2021. We expect business diversification in the power business and greater production of coking coal to help the company sustain long-term earnings. Our new TP implies 10.0x 2020F PE. Source : Bloomberg

Key Financials Year to 31 Dec 2018A 2019A 2020F 2021F 2022F Revenue (USDmn) 3,620 3,457 2,549 2,736 3,010 EBITDA (USDmn) 1,370 1,120 708 829 968 EBITDA Growth (%) 5.9 (18.2) (36.8) 17.1 16.8

Net profit (USDmn) 418 404 246 288 338

EPS (USDcents) 1.3 1.3 0.8 0.9 1.1

EPS growth (%) (13.6) (3.2) (39.2) 17.2 17.4 x Stefanus Darmagiri BVPS (USDcents) 11.4 11.7 11.8 12.4 13.0 (62-21) 5091 4100 ext. 3530 DPS (USDcents) 0.8 0.6 0.6 0.4 0.4 [email protected] PER (x) 6.0 6.2 10.2 8.7 7.4 PBV (x) 0.7 0.7 0.7 0.6 0.6 Dividend yield (%) 10.0 8.0 7.7 4.7 5.5 EV/EBITDA (x) 2.2 2.6 3.8 2.8 2.1 www.danareksa.com Source : ADRO, Danareksa EstimatesSee important disclosure at the back of this report 1

Equity Research

Company Update

Monday,31 August 2020 HOLD Japfa Comfeed Indonesia(JPFA IJ) Maintain All Indonesian`s chicken united

Last price (IDR) 1,125 JPFA Tbk is going to acquire its CBP business from its parent company JPFA Target Price (IDR) 1,150 Ltd. For c. IDR1.2tn (c. US$83mn) on Nov, 30 2020. Our insights on the Upside/Downside +2.2% transaction are: 1) the buying price is relatively cheap compared to the Previous Target Price (IDR) 1,150 reverse transaction of US$100mn back in 2011, 2) the acquisition value is in the range of JPFA`s TTM EV/EBITDA and P/E valuation of IDR1.0-1.3tn, and 3) Stock Statistics earnings accretive in view of higher consumption of processed poultry Sector Poultry products caused by COVID-19 pandemic. Bloomberg Ticker JPFA IJ JPFA to acquire So Good Food (SGF). The transaction which will be held on Nov, No of Shrs (mn) 11,411 30 2020, will transfer the ownership of the Indonesia poultry CBP arms of Japfa Mkt. Cap (IDRbn/USDmn) 12,837/877 Ltd, its parent company listed in Singapore, to its Indonesia`s listed subsidiary JPFA Tbk. The value of the transaction is around c. IDR1.214tn of which Avg. daily T/O (IDRbn/USDmn) 37.5/2.6 IDR364bn (30%) will be paid by cash on the transaction date. The remaining Major shareholders (%) IDR850bn (70%) will be settled by promissory note issued by JPFA Tbk. which Japfa Ltd. 51.0 payment will be made upon request of the parent company (on demand). The KKR Jade Investments Pte Ltd. 5.0 note will be subject to interest of JISBOR (1m) + 2.25% p.a. starting April, 16 Estimated free float 46.7 2021. A reverse transaction from 9 year ago. The reverse transaction, i.e. transfer EPS Consensus (IDR) ownership of SGF from JPFA Tbk. to Japfa Ltd. was done back in May 2011 with 2020F 2021F 2022F a value of US$100mn. Taking into account both growth and inflation, we believe Danareksa 34.4 85.6 89.6 the current transaction of c. IDR1.2tn or equal to c. US$83mn (based on Aug, Consensus 101.5 147.2 186.4 28 exchange rate of IDR14,702/US$) is very beneficial to JPFA Tbk. Danareksa/Cons (66.1) (41.9) (51.9) The acquisition value is fair based on JPFA current valuation. Based on SGF TTM`s EBITDA and core profits and JPFA`s EV/EBITDA and P/E multiple, we JPFA relative to JCI Index calculate the fair value of SGF in the range of IDR1.0-1.3tn. We believe using the last 12 month period is fair as we believe going forward the profitability generated will be lower than 1H20 which saw sudden spike in demand but will be higher than 2H19 which has not been impacted by COVID-19 pandemic. Future profits is expected to beat interest expenses. The promissory notes will made JPFA tbk. pay additional interest expenses of c. IDR40bn p.a. (based on the latest JIBOR of 4%) or equal to IDR10bn per quarter. Based on the last 4 quarters, JPFA Ltd. CBP segment booked (including Vietnam operation which we believe is small in portion) an average net profits of IDR21bn per quarters. As we believe trend of frozen poultry products will rise after COVID-19 outbreak, we believe the future profits will cover the additional interest.

Source : Bloomberg Key Financials

Year to 31 Dec 2018A 2019A 2020F 2021F 2022F

Revenue (IDRbn) 34,013 36,743 33,267 37,067 40,618 EBITDA (IDRbn) 4,489 4,064 2,835 3,603 3,828 EBITDA Growth (%) 57.3 (9.5) (30.2) 27.1 6.3 Net profit (IDRbn) 2,168 1,765 404 1,004 1,051

EPS (IDR) 184.9 150.5 34.4 85.6 89.6 EPS growth (%) 122.3 (18.6) (77.1) 148.6 4.7

BVPS (IDR) 819.3 918.6 912.4 988.6 1,055.1 DPS (IDR) 98.6 50.0 40.7 9.3 23.1

x Victor Stefano PER (x) 6.1 7.5 32.7 13.1 12.6 PBV (x) 1.4 1.2 1.2 1.1 1.1 (62-21) 5091 4100 ext. Dividend yield (%) 8.8 4.4 3.6 0.8 2.1 [email protected] EV/EBITDA (x) 4.2 5.1 7.5 6.2 6.0

Source : JPFA, Danareksa Estimates

www.danareksa.com See important disclosure at the back of this report 1

Equity SNAPSHOT Monday, August 31, 2020

MARKET NEWS

SECTOR 1H20 booked IDR62.6tn net profit: OJK predict banking sector’s net profit down by 20-50% for FY20F Financial Services Authority (OJK) posted banking sector’s net profit in 1H20 reached IDR62.6tn, contracted by 20.3% from 1H19’s figure of IDR78.5tn. Meanwhile, for FY20F OJK project net profit for banking sector will decline by 20-50% yoy. Based on Indonesia’s Banking Statistic in June 2020, BUKU I category experienced the deepest drop in net profit by 46% yoy, followed by BUKU II category with 29.5% yoy contraction to IDR3.7tn. (Investor Daily)

Govt. processing the school subsidy at the parity of Rp35,000 for 35GB The govt. is processing quickly the disbursement of pulsa to schools and students. It appears from this Kemendihub explanation on YouTube video, that government will pay operators for the subsidy equivalent to Rp35,000 for 35GBs. Kemendihub will work with almost all operators. Telkomsel offers now Rp10 for 10GB 30days, and XL offers 30GB for Rp10 to access conference apps Microsoft Teams, Zoom, Google Meet, Google Hangout, and Google Classroom as well as Udemy, Ruang Guru, Zenius, dan Sekolahmu, material found in Rumah Belajar Kemendikbud. We understand that these are seperate offerings, initiatives from telcos themselves.

Comment: Companies try the best to find new markets. The argument is so long as this is new traffic vol., wouldn't affect materially telcos' financials. 2ndly by utilizing more and more 4G, it appears capacity is available to handle new traffic. We think is a safe bet, provided that later after the pandemic crisis, spending power starts to get better and telcos can start monetizing on the new subscribers. As far it Government concern on PJJ, It appears this has tendency to increase the revenue of the telco sector. It is also incentivizing people students to buy devices. Previously students had the pulsa cost to consider in their decision making to buy a gadget. Now it opens way to buy new phone.

CORPORATE TPIA issued IDR 1tn of bonds Through the issuance of bonds, TPIA managed to obtain IDR 1tn for working capital and the construction of MTBE and its Butene-1 facility plant that is expected to be operational in Sep20. The bonds are rated AA- by Pefindo. The bonds are divided into three series: Series A (IDR 432.4bn, Coupon rate: 8.2%, 3 year tenor); Series B (IDR 356.3bn, Coupon rate: 8.7%, 5 year tenor); and Series C (IDR 111.3bn, Coupon rate: 9.2%, 7 year tenor). (Bisnis Indonesia)

Sarana Menara Nusantara issues local bonds As per previous comment by the Sarana Menara Nusantara management (TOWR IJ), Company will issue local will issue shelf registration bonds with total capacity to withdraw Rp3.5tn. The first tranches will be series A Rp84bn 3yr with 7% annual interest, and series B Rp67bn 5yr bond with 7.7% interest. The bonds received AAA(idn) rating from Fitch. The offering will last until 1st Sept, and the bonds will be effective on the 4th Sept.

Comment: TOWR has total debt Rp17.5tn, cash 1.4tn, and leverage of net debt / annual. EBITDA of 2.5x. Based on recent TOWR Pubex, Company is rolling out fiber for tower fiberization, backbone and metro-ethernet and may thus increase its leverage first up to 3x before returning back to normalized levels of 2x.

Danareksa Sekuritas – Equity SNAPSHOT

Equity 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) ROE Valuation Target Rp Bn 2020 2021 2020 2021 2020 2021 2020 2021 2020 2021 2020 2021 2020 2021 2020 2021 Danareksa Universe 3.660.792 175.139 219.084 143 179 -23,1% 25,1% 20,9 16,7 11,0 10,2 2,2 2,1 10,8 12,7 Auto 215.575 16.177 17.551 325 353 -25,5% 8,5% 13,3 12,3 6,9 6,5 1,4 1,3 10,6 10,7 BUY 5.325 6.700 215.575 16.177 17.551 400 434 525 546 -25,5% 8,5% 13,3 12,3 6,9 6,5 1,4 1,3 10,6 10,7 Banks 1.264.457 46.383 75.656 353 576 -39,8% 63,1% 27,3 16,7 2,3 2,1 8,3 13,1 BCA HOLD 32.475 33.000 800.671 21.520 28.722 873 1.165 873 1.165 -24,7% 33,5% 37,2 27,9 N/A N/A 4,4 4,1 12,1 15,2 BNI BUY 5.250 7.000 97.905 2.077 11.925 111 639 777 870 -86,5% 474,1% 47,1 8,2 N/A N/A 0,8 0,7 1,7 9,6 Bank Tabungan Negara BUY 1.590 1.800 16.838 1.133 1.909 107 180 107 180 442,1% 68,5% 14,9 8,8 N/A N/A 0,9 0,8 5,3 9,7 Bank Mandiri BUY 6.225 7.500 290.500 17.576 27.459 377 588 377 588 -36,0% 56,2% 16,5 10,6 N/A N/A 1,5 1,5 9,0 14,2 BTPN HOLD 2.430 2.500 19.802 1.953 2.995 240 368 352 368 -24,1% 53,4% 10,1 6,6 N/A N/A 0,6 0,6 6,3 9,0 BTPS HOLD 3.830 3.600 29.505 963 1.381 125 179 125 179 -31,2% 43,4% 30,6 21,4 N/A N/A 4,9 4,2 16,8 21,1 BPD Jatim BUY 615 760 9.235 1.161 1.265 77 84 77 84 -15,7% 9,0% 8,0 7,3 N/A N/A 0,9 0,9 12,3 12,6 Cigarettes 287.849 23.747 24.334 201 206 -3,5% 2,5% 12,1 11,8 7,3 6,6 3,1 2,9 26,6 25,3 Gudang Garam BUY 49.250 57.000 94.761 10.837 11.296 5.632 5.871 5.739 6.765 -0,4% 4,2% 8,7 8,4 6,0 4,9 1,7 1,5 20,6 19,3 HM Sampoerna SELL 1.660 1.640 193.088 12.910 13.038 111 112 132 136 -5,9% 1,0% 15,0 14,8 8,6 8,2 5,2 5,1 35,2 34,6 Construction 64.832 5.379 7.280 72 98 -35,5% 35,3% 12,1 8,9 8,04 7,38 0,7 0,6 5,7 6,9 Wijaya Karya BUY 1.295 1.750 11.616 1.618 2.197 180 245 314 352 -29,2% 35,8% 7,2 5,3 3,9 3,6 0,6 0,5 9,1 10,9 Pembangunan Perumahan BUY 1.000 1.300 6.200 622 835 100 135 280 300 -33,1% 34,2% 10,0 7,4 3,5 3,2 0,4 0,4 4,2 5,1 Adhi Karya BUY 610 900 2.172 570 605 160 170 289 315 -14,1% 6,1% 3,8 3,6 3,2 2,8 0,3 0,2 7,2 6,6 Waskita Karya HOLD 665 730 9.027 517 693 38 51 172 172 -44,9% 34,0% 17,5 13,0 13,4 12,0 0,4 0,4 2,6 3,2 Waskita Beton BUY 171 250 4.508 250 391 9 15 34 38 -69,0% 56,4% 18,0 11,5 7,0 6,2 0,5 0,5 3,0 4,4 Wika Beton BUY 278 400 2.423 553 642 63 74 66 74 8,0% 16,1% 4,4 3,8 3,2 3,0 0,6 0,6 15,2 15,7 Jasa Marga BUY 3.980 5.500 28.886 1.249 1.917 172 264 301 371 -43,4% 53,5% 23,1 15,1 13,5 13,0 1,2 1,1 5,7 7,8 Consumer 560.287 21.048 22.350 256 271 6,0% 6,2% 26,6 25,1 15,7 14,7 6,4 5,9 25,1 24,4 Indofood CBP BUY 10.325 11.600 120.409 5.399 5.855 463 502 465 510 7,1% 8,4% 22,3 20,6 17,1 16,1 4,5 4,0 21,1 20,6 Indofood BUY 7.625 7.600 66.951 5.230 5.578 596 635 600 663 6,6% 6,7% 12,8 12,0 6,0 5,6 1,7 1,6 13,9 13,7 Unilever BUY 8.250 9.100 314.738 7.788 8.314 204 218 210 223 5,3% 6,8% 40,4 37,9 27,4 25,8 41,3 41,1 102,3 108,8 Kino Indonesia SELL 3.170 2.700 4.529 254 264 178 185 206 230 -51,2% 3,9% 17,8 17,2 9,9 8,8 1,6 1,5 9,3 8,9 Mayora Indah BUY 2.400 2.600 53.661 2.377 2.339 106 105 88 96 19,6% -1,6% 22,6 22,9 14,7 13,3 4,9 4,3 23,1 19,9 Pharmaceutical 116.196 3.765 4.066 55 60 8,2% 8,0% 30,9 28,6 19,1 17,2 4,3 3,9 14,6 14,3 Sido Muncul BUY 1.420 1.530 21.300 883 949 59 63 60 67 9,3% 7,4% 24,1 22,5 20,0 17,6 6,6 6,2 28,0 28,3 Kalbe Farma BUY 1.610 1.700 75.469 2.701 2.921 58 62 61 66 7,7% 8,1% 27,9 25,8 16,9 15,3 4,2 3,8 15,7 15,3 Phapros BUY 1.705 965 1.432 110 121 130 144 130 144 13,7% 10,5% 13,1 11,8 6,5 6,7 0,7 0,7 7,7 6,1 Kimia Farma HOLD 3.240 1.300 17.995 71 75 13 14 13 14 6,5% 5,0% 251,9 239,9 34,4 29,7 4,5 4,4 1,8 1,9 Heavy Equipment 87.378 8.152 9.324 2.185 2.500 -27,9% 14,4% 10,7 9,4 3,6 3,4 1,3 1,2 12,9 13,3 United Tractors BUY 23.425 26.000 87.378 8.152 9.324 2.185 2.500 2.817 2.769 -27,9% 14,4% 10,7 9,4 3,6 3,4 1,3 1,2 12,9 13,3 Industrial Estate 14.696 1.023 1.634 16 26 -43,4% 59,7% 14,4 9,0 5,0 4,6 0,9 0,9 6,4 9,8 Puradelta Lestari HOLD 238 220 11.471 790 904 16 19 28 21 -40,8% 14,4% 14,5 12,7 7,1 9,1 1,6 1,6 10,9 12,3 Bekasi Fajar BUY 147 230 1.418 234 457 24 47 41 48 -38,4% 95,3% 6,1 3,1 3,7 3,0 0,3 0,3 5,0 9,1 Surya Semesta BUY 384 600 1.807 -1 273 -0 58 46 82 -101,1% -27400,0% (1.806,8) 6,6 2,3 1,2 0,4 0,4 (0,0) 6,2 Media 32.301 2.525 3.977 85 134 -23,6% 57,5% 12,8 8,1 6,1 5,2 1,7 1,5 14,2 19,9 Media Nusantara Citra BUY 905 1.550 13.463 1.625 2.773 109 186 155 173 -27,2% 70,6% 8,3 4,9 4,4 3,5 1,0 0,9 13,3 20,3 BUY 1.275 1.450 18.838 900 1.204 61 81 95 111 -15,9% 33,8% 20,9 15,6 9,1 8,1 3,2 2,8 16,2 19,2 Mining 138.564 12.254 12.785 138 144 -0,8% 4,3% 11,3 10,8 4,1 4,0 0,9 0,9 8,3 8,3 Adaro Energy BUY 1.145 1.300 36.624 5.353 5.197 167 162 190 182 -7,3% -2,9% 6,8 7,0 2,5 2,3 0,6 0,6 9,3 8,7 Timah BUY 820 950 6.107 -343 109 -46 15 12 26 -44,1% -131,8% (17,8) 56,0 8,1 7,6 1,0 1,0 (5,6) 1,8 Vale Indonesia BUY 3.780 4.000 37.559 1.278 1.392 129 140 127 153 56,8% 8,9% 29,4 27,0 9,0 7,9 1,3 1,3 4,6 4,8 BUY 820 900 19.705 293 330 12 14 30 33 51,0% 12,6% 67,3 59,7 9,5 9,7 1,0 0,9 1,4 1,6 Bukit Asam BUY 2.130 3.200 24.539 3.954 4.067 343 353 364 381 -2,5% 2,9% 6,2 6,0 3,7 3,8 1,2 1,1 20,5 18,9 Indo Tambangraya Megah BUY 8.600 11.000 9.717 1.519 1.434 1.345 1.269 1.531 1.483 -17,8% -5,6% 6,4 6,8 1,6 1,5 0,8 0,8 11,8 11,2 Harum Energy HOLD 1.595 1.350 4.312 199 256 74 95 116 126 -26,8% 28,6% 21,7 16,9 - 0,1 - 0,5 1,0 0,9 4,5 5,6 Petrochemical 209.733 2.430 2.783 22 25 64,2% 14,5% 86,3 75,4 16,5 16,1 4,8 4,7 5,6 6,3 Barito Pacific BUY 890 900 83.115 821 994 9 11 14 12 115,2% 21,1% 101,2 83,6 11,3 10,6 4,9 4,8 4,8 5,8 Chandra Asri Petrochemical BUY 7.100 7.500 126.618 1.609 1.789 90 100 94 105 46,4% 11,2% 78,7 70,8 27,7 27,4 4,8 4,6 6,1 6,6 Plantation 26.174 932 1.404 107 161 98,3% 50,6% 28,1 18,6 6,5 6,8 0,9 0,9 3,4 4,9 Astra Agro Lestari BUY 10.125 12.500 19.487 669 954 348 496 488 438 217,1% 42,6% 29,1 20,4 6,8 7,1 1,0 1,0 3,5 4,8 PP London Sumatra BUY 980 1.300 6.686 263 450 39 66 67 54 1,5% 71,1% 25,4 14,9 5,1 5,5 0,8 0,8 3,1 5,2 Poultry 116.636 2.750 4.107 91 135 -50,3% 49,3% 42,4 28,4 11,7 10,0 3,0 2,7 7,6 10,0 Charoen Pokphand SELL 6.225 4.100 102.078 2.070 2.934 126 179 262 322 -43,1% 41,7% 49,3 34,8 16,0 13,4 4,2 3,8 9,1 11,4 Japfa Comfeed HOLD 1.125 1.150 13.192 672 1.092 57 93 170 199 -61,9% 62,5% 19,6 12,1 5,5 5,0 1,1 1,0 6,0 8,5 Malindo Feedmill HOLD 610 600 1.366 8 81 4 36 149 180 -94,1% 912,5% 170,7 16,9 4,7 4,3 0,6 0,5 0,3 3,1 Property 63.665 4.869 5.502 40 45 -40,6% 13,0% 13,1 11,6 8,1 6,1 0,8 0,7 6,2 6,5 Alam Sutera HOLD 128 140 2.515 433 736 22 37 59 56 -57,2% 70,0% 5,8 3,4 4,9 4,9 0,2 0,2 4,1 6,4 Bumi Serpong Damai BUY 795 950 16.831 2.086 1.700 99 80 103 126 -25,3% -18,5% 8,1 9,9 7,0 4,8 0,5 0,5 6,9 5,2 Ciputra Development BUY 785 850 14.570 760 746 41 40 38 55 -34,4% -1,8% 19,2 19,5 11,0 8,3 0,9 0,9 5,0 4,7 Pakuw on Jati BUY 420 450 20.227 1.435 2.141 30 44 46 50 -47,2% 49,2% 14,1 9,4 5,6 5,5 1,2 1,1 9,2 12,3 Summarecon BUY 660 800 9.522 155 179 11 12 39 46 -69,9% 15,5% 61,4 53,2 32,7 8,2 1,2 1,1 2,1 2,2 Retail 46.813 973 2.960 22 68 -75,5% 204,2% 48,1 15,8 5,4 5,2 2,4 2,1 5,3 14,1 Mitra Adi Perkasa BUY 685 850 11.371 -138 683 -8 41 66 74 -114,8% -594,9% (82,4) 16,6 3,5 3,7 1,6 1,4 (2,1) 9,1 Ramayana BUY 640 750 4.541 390 528 55 74 94 101 -39,8% 35,4% 11,6 8,6 3,0 2,9 1,0 1,0 9,1 11,5 Matahari Department Store HOLD 1.285 1.600 3.375 -167 613 -64 233 568 572 -112,2% -467,1% (20,2) 5,5 0,9 0,6 1,2 0,9 (6,6) 18,6 Ace Hardw are BUY 1.605 2.050 27.526 888 1.136 52 66 66 72 -13,8% 27,9% 31,0 24,2 18,6 16,8 5,2 4,6 17,7 20,2 Telco 413.700 22.486 23.123 119 122 -6,7% 2,8% 18,4 17,9 4,7 4,3 2,5 2,3 14,2 13,4 Telekomunikasi Indonesia BUY 2.960 3.800 293.224 19.458 18.642 196 188 242 261 4,3% -4,2% 15,1 15,7 4,3 4,0 2,4 2,2 17,1 14,8 Indosat BUY 2.380 3.500 12.933 -1.469 -954 -270 -176 -147 -52 193,6% 35,1% (8,8) (13,6) 2,8 2,5 1,3 1,4 (14,5) (10,0) XL Axiata BUY 2.550 2.600 27.300 423 797 40 74 40 74 -40,7% 88,4% 64,5 34,3 3,3 2,9 1,4 1,3 2,2 3,8 Tow er Bersama BUY 1.245 1.500 28.208 1.072 1.422 47 63 45 54 30,9% 32,6% 26,3 19,8 11,8 11,0 5,5 5,0 21,9 26,3 Sarana Menara Nusantara BUY 1.020 1.400 52.035 3.002 3.216 59 63 54 59 28,2% 7,1% 17,3 16,2 10,7 9,8 5,0 4,5 30,4 29,0 Transportation 1.936 247 249 35 35 4,5% 1,0% 7,9 7,8 2,8 2,7 0,8 0,8 10,5 10,2 Indonesia Kendaraan Terminal BUY 428 550 778 164 172 90 95 90 95 5,6% 5,1% 4,8 4,5 2,0 1,9 0,6 0,6 13,7 13,6 Jasa Armada Indonesia HOLD 218 135 1.152 70 63 13 12 13 12 1,4% -10,0% 16,5 18,3 7,9 9,1 1,0 1,0 6,4 5,6

Danareksa Sekuritas – Equity SNAPSHOT

Equity SNAPSHOT Monday, August 31, 2020

COVERAGE PERFORMANCE

LEADERS

Price as on Code 28-Aug-20 27-Aug-20 Chg, % w-w, % m-m, % YTD, % Rating Timah TINS 820 775 5,8 5,1 7,9 (0,6) BUY Surya Citra Media SCMA 1.275 1.220 4,5 5,4 (0,8) (9,6) BUY Aneka Tambang ANTM 820 795 3,1 3,1 12,3 (2,4) BUY Summarecon Agung SMRA 660 640 3,1 12,8 10,0 (34,3) BUY Wijaya Karya WIKA 1.295 1.270 2,0 0,8 8,8 (34,9) BUY Ciputra Development CTRA 785 770 1,9 10,6 19,8 (24,5) BUY Bumi Serpong Damai BSDE 795 780 1,9 7,4 15,2 (36,7) BUY Adaro Energy ADRO 1.145 1.125 1,8 2,7 5,5 (26,4) BUY PP London Sumatra LSIP 980 965 1,6 (0,5) (1,0) (34,0) BUY Indo Tambangraya Megah ITMG 8.600 8.500 1,2 4,9 8,9 (25,1) BUY Sources: Bloomberg

LAGGARDS

Price as on Code 28-Aug-20 27-Aug-20 Chg, % w-w, % m-m, % YTD, % Rating Jasa Armada Indonesia IPCM 218 232 (6,0) (6,8) 3,8 24,6 HOLD Ramayana RALS 640 675 (5,2) (1,5) 13,3 (39,9) BUY Gudang Garam GGRM 49.250 51.900 (5,1) (9,1) (1,5) (7,1) BUY Kimia Farma KAEF 3.240 3.310 (2,1) (2,1) 44,0 159,2 HOLD Indosat ISAT 2.380 2.430 (2,1) (4,4) 3,5 (18,2) BUY Sarana Menara Nusantara TOWR 1.020 1.040 (1,9) (3,3) (10,1) 26,7 BUY Indonesia Kendaraan Terminal IPCC 428 436 (1,8) 3,4 (0,9) (37,1) BUY Puradelta Lestari DMAS 238 242 (1,7) - 8,2 (19,6) HOLD Malindo Feedmill MAIN 610 620 (1,6) (1,6) - (39,3) HOLD Bank Central Asia BBCA 32.475 33.000 (1,6) 2,6 4,1 (2,8) HOLD Sources: Bloomberg

Danareksa Sekuritas – Equity SNAPSHOT

Equity SNAPSHOT Monday, August 31, 2020

PREVIOUS REPORTS

▪ Alam Sutra Realty: Better earnings albeit still in negative territory ▪ Media Nusantara Citra: Active Deleveraging on The Card ▪ Pembangunan Perumahan: Looking forward ▪ XL Axiata: Admirable performance ▪ Coal Mining: Scaling down coal production targets ▪ United Tractors: Slight recovery in Komatsu volume ▪ HM Sampoerna: Playing the waiting game ▪ Jasa Marga: Almost back to the normal level ▪ Gudang Garam: Room for rerating ▪ Waskita Karya: Ratings cut by Fitch Indonesia ▪ Ramayana Lestari Sentosa: A Surprise Package ▪ Bank Rakyat Indonesia: Surviving the storm ▪ Indofood CBP Sukses Makmur: Upside revisions on solid performance ▪ Indofood Sukses Makmur: Higher TP and enticing valuation ▪ Merdeka Copper Gold: Focusing on long-term goals ▪ Bank Negara Indonesia: More provisions to come for this year prices ▪ Wijaya Karya Beton: Still attractive ▪ Wijaya Karya: Ready to seize the opportunity ▪ Strategy: 2021 Budget: Progression toward normal ▪ Automotive: Recovery continues apace ▪ Cigarette: Not out of the woods yet ▪ Construction: Higher infrastructure budget to support recovery ▪ Adaro Energy: Revised guidance on soft coal prices ▪ : 2Q20 earning call; some key takeaways ▪ Indocement Tunggal Prakarsa: An ever-changing landscape ▪ Indo Tambangraya: Looking to reduce costs further ▪ Astra International: Steadily improving ▪ AKR Corporindo: Continuing strong growth with cheap valuation ▪ Kalbe Farma: Well placed to make further gains ▪ Matahari Department Store: Revamping in Motion ▪ Bank Tabungan Pensiunan Nasional: Depends the growth from its sharia subsidiary ▪ Mitra Adiperkasa: Curbing Our Expectations ▪ Media: The Worst Has Passed ▪ Telkom Indonesia : 2Q20 possibly the turning point rating ▪ Consumer: Confirmation of resiliency ▪ Waskita Beton Precast: More external works may support the rating ▪ Strategy: The Worst is Now Behind Us ▪ Malindo Feedmill Indonesia: Broiler gains unable to offset losses from DOC ▪ Indofood CBP Sukses Makmur: Strong 1H20 result ▪ Indofood Sukses Makmur: Inline 2Q20 earnings ▪ Sarana Menara Nusantara: More income under the hood ▪ Media Nusantara Citra: Stellar Performance Despite Covid-19 ▪ Bank Tabungan Negara: Strengthen its core in mortgage business ▪ Aneka Tambang: Boosted by good nickel performance and forex gains ▪ Harum Energy: Above expectations from other income ▪ Unilever Indonesia: Sluggish performance in a challenging quarter ▪ Mayora Indah: Boosted by forex gains and tax cuts ▪ Indocement Tunggal Prakasa: Impacted by PSBB and Lebaran festive ▪ Adhi Karya: Soft 2Q performance ▪ Jasa Marga: Weak 2Q results due to PSBB ▪ Puradelta Lestari: Higher q-o-q profits amid COVID-19 ▪ Surya Citra Media: 1H20 looking good

Danareksa Sekuritas – Equity SNAPSHOT

Equity SNAPSHOT Monday, August 31, 2020

PT Danareksa Sekuritas

Gedung BRI II Lt.23, Jl. Jenderal Sudirman Kav.44-46 Bendungan Hilir, Tanah Abang – Jakarta Pusat 10210 Indonesia Indonesia Tel (62 21) 50914100 Fax (62 21) 2520990

Equity Research Team

Helmy Kristanto Stefanus Darmagiri Natalia Sutanto

[email protected] [email protected] [email protected]

(62-21) 50914100 ext. 3500 (62-21) 50914100 ext. 3530 (62-21) 50914100 ext.3508 S Head of Research, Strategy Auto, Coal, Heavy Equip, Metal Consumer, Tobacco

Maria Renata Eka Savitri Niko Margaronis

[email protected] [email protected] [email protected] (62-21) 50914100 ext.3513 (62-21) 50914100 ext.3506 (62-21) 50914100 ext.3512 Construction, Toll Road, Cement Banking Telco, Tower, Utilities

Victor Stefano Ignatius Teguh Prayoga Andreas Kenny [email protected] [email protected] [email protected] (62-21) 50914100 ext.3503 (62-21) 50914100 ext.3511 (62-21) 50914100 ext.3509 Poultry, Property, Industrial Estate Basic Industries, Port Retail, Media, Plantation

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Rendy Ben Philips Adeline Solaiman Thalia Kadharusman

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Danareksa Sekuritas – Equity SNAPSHOT

Equity SNAPSHOT Monday, August 31, 2020

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Danareksa Sekuritas – Equity SNAPSHOT