Indonesia Company Update
23 March 2021 Communications | Media
Media Nusantara Citra (MNCN IJ) Buy (Maintained)
Double Catalysts Coming Up; Reiterate BUY Target Price (Return): IDR1,640 (+55%) Price: IDR1,055 Market Cap: USD1,102m Avg Daily Turnover (IDR/USD) 54,111m/3.84m
Reiterate BUY, IDR1,640 TP, 55% upside with c.7% FY21F yield. With Analysts the announcement of Media Nusantara Citra’s 4Q20 and 1Q21 results ahead, we believe there may be a potential double catalyst for its share Ghibran Al Imran price. Its 4Q20 numbers will reflect the repayment of debts, so the overhang +6221 5093 9842 for investors should be over. For 1Q21, its audience share broke its record, [email protected] with an average prime-time share of 51.4%. This implies a very strong advertising (ad) allocation, and outstanding results for the quarter. Christopher Andre Benas Long-awaited debt repayment should be seen in its books soon. The company’s IDR1.5trn deleveraging programme was completed in 4Q20. It +6221 5093 9847 [email protected] paid c.IDR900bn by 3Q20, and the remainder should be repaid and
reflected in its 4Q20 books. When executed, the company may book lower Share Performance (%) interest expenses by up to 25-30% next year. YTD 1m 3m 6m 12m Margin normalisation in 4Q20F. Margins contracted in 2Q20-3Q20 as ad Absolute (7.5) (0.5) (10.6) 43.5 19.9 spending fell, and MNCN incurred a one-off opex for new initiatives related Relative (12.9) (1.2) (15.2) 15.8 (30.3) to partnerships with Facebook, TikTok, and E-TV Mall. Management said margins will normalise in 4Q20F. GPM should rebound to 63%, from 61% 52-wk Price low/high (IDR) 705 – 1,270
in 3Q20, while the EBITDA margin is expected to climb back up to 44%. As revenue is recovering, FY21 margins should improve further. Media Nusantara Citra (MNCN IJ) Price Close Relative to Jakarta Composite Index (RHS) Strong TV revenue in 1Q21, driven by record-breaking audience share. 1,340 127
MNCN’s prime-time audience shares in January and February were at 1,240 117
record-breaking 51-52% levels. This was due to a strong performance by 1,140 107 RCTI – driven by the hit drama series, Ikatan Cinta – which enjoyed an 8- day streak of recording a >40% share. The high audience share should 1,040 97 translate to strong TV ad revenue in 1Q21. YTD, TV ad revenue has grown 940 87 11% YoY, even though it did not increase advertising rates. This should 840 77
pave the way for a recovery in ad revenue, driven by pent-up demand in ad 740 67
spending after fast-moving consumer goods companies went on a cost- 640 57
saving spree during the height of the COVID-19 pandemic. Average
Jul-20 Jul-20
Apr-20 Apr-20 Oct-20 Oct-20
Jun-20 Jan-21 Jan-21
Mar-20 Feb-21 Feb-21 Mar-21
Dec-20 Nov-20 Nov-20
Aug-20 Aug-20 Sep-20 Sep-20 May-20 occupancy rates (broadcast slots) of TV advertising are expected to rise 5- May-20 10ppt in FY21, to 80-85%. Source: Bloomberg
Content revenue may grow rapidly. When large-scale social distancing measures were in effect, MNCN still produced over 9,000 hours of content. This year, the company targets to produce 21,000-22,000 hours of content. It is also negotiating with various over-the-top platforms to sell its content, and targets 50% YoY growth in net content revenue this year. BUY this laggard, as catalysts loom ahead. MNCN’s share price has lagged behind other media stocks, as investors were waiting for an update on the repayment of its debts. As the repayment was made in 4Q20, the overhang on the stock should be over and its share price should increase ahead. It should also book strong 1Q21 results. MNCN is trading at just 6x P/E, which provides a good entry point, in view of the catalysts ahead.
Forecasts and Valuation Dec-18 Dec-19 Dec-20F Dec-21F Dec-22F Total turnover (IDRb) 7,444 8,353 8,064 9,252 9,940 Recurring net profit (IDRb) 1,531 2,233 1,973 2,578 2,720 Recurring net profit growth (%) 5.4 45.8 (11.7) 30.7 5.5 Recurring P/E (x) 9.84 6.74 7.64 5.84 5.54 P/B (x) 1.5 1.3 1.2 1.1 1.0 P/CF (x) 49.22 na 15.22 22.23 17.49 Dividend Yield (%) 1.4 1.4 7.4 6.5 8.6 EV/EBITDA (x) 4.10 3.25 3.11 2.42 2.08 Return on average equity (%) 16.2 20.8 16.2 19.1 18.1 InterestNet debt cover to equity (x) (%) 7.77 34.2 7.47 29.1 6.98 22.4 10.94 16.6 11.49 12.3
Source: Company data, RHB
See important disclosures at the end of this report 1 Market Dateline / PP 19489/05/2019 (035080)
Media Nusantara Citra Indonesia Company Update
23 March 2021 Communications | Media
Financial Exhibits
Asia Financial summary (IDR) Dec-18 Dec-19 Dec-20F Dec-21F Dec-22F Indonesia Recurring EPS 107.27 156.44 138.18 180.56 190.52 Communications DPS 14.66 15.00 78.22 69.09 90.28 Media Nusantara Citra BVPS 691.07 814.63 890.70 1,002.17 1,102.41 MNCN IJ Return on average equity (%) 16.2 20.8 16.2 19.1 18.1 Buy Valuation metrics Dec-18 Dec-19 Dec-20F Dec-21F Dec-22F Valuation basis Recurring P/E (x) 9.84 6.74 7.64 5.84 5.54 12x P/E P/B (x) 1.5 1.3 1.2 1.1 1.0 FCF Yield (%) (3.0) (9.2) 2.6 0.5 1.7 Key drivers Dividend Yield (%) 1.4 1.4 7.4 6.5 8.6 i. Higher volume of ad spending, due to pent-up EV/EBITDA (x) 4.10 3.25 3.11 2.42 2.08 demand; EV/EBIT (x) 4.76 3.70 3.63 2.80 2.42 ii. Bigger market share in ad allocation, due to its
strong audience share; iii. Lower interest expense post debt repayments. Income statement (IDRb) Dec-18 Dec-19 Dec-20F Dec-21F Dec-22F Total turnover 7,444 8,353 8,064 9,252 9,940 Key risks Gross profit 4,619 5,323 5,162 5,924 6,349 i. Decrease in the volume of its advertising EBITDA 3,177 3,713 3,540 4,140 4,368 spending; Depreciation and amortisation (437) (454) (507) (561) (610) ii. Legal risks; Operating profit 2,740 3,259 3,034 3,580 3,758 iii. Regulatory risk regarding a migration to digital Net interest (323) (412) (410) (301) (301) TV; iv. A change in regulations affecting licensing fees. Pre-tax profit 2,104 2,939 2,724 3,386 3,572 Taxation (498) (587) (627) (677) (714) Company Profile Reported net profit 1,531 2,233 1,973 2,578 2,720 Media Nusantara Citra is an integrated media company Recurring net profit 1,531 2,233 1,973 2,578 2,720 with businesses including FTA TV, content production, newspaper, radio stations, magazines, online portals, Cash flow (IDRb) Dec-18 Dec-19 Dec-20F Dec-21F Dec-22F and an over-the-top streaming platform. Change in w orking capital (773) (630) 239 (608) (496)
Cash flow from operations 306 (124) 990 678 861
Capex (763) (1,259) (600) (600) (600)
Cash flow from investing activities (763) (1,259) (600) (600) (600) Dividends paid (209) (214) (1,117) (986) (1,289) Cash flow from financing activities 709 37 (225) (29) (173) Cash at beginning of period 469 720 631 894 1,209 Net change in cash 251 (1,346) 165 49 88
Ending balance cash 720 (626) 795 942 1,297
Balance sheet (IDRb) Dec-18 Dec-19 Dec-20F Dec-21F Dec-22F Total cash and equivalents 987 885 1,394 1,709 2,082 Total investments 6,443 7,552 8,152 8,752 9,352 Total assets 16,340 17,836 18,971 20,535 22,030 Short-term debt 1,387 1,656 1,656 1,656 1,656 Total long-term debt 3,241 2,877 2,813 2,613 2,513 Total liabilities 5,697 5,311 5,234 5,076 5,001 Total equity 10,642 12,526 13,737 15,459 17,028 Total liabilities & equity 16,340 17,836 18,971 20,535 22,030
Key metrics Dec-18 Dec-19 Dec-20F Dec-21F Dec-22F Revenue grow th (%) 5.5 12.2 (3.5) 14.7 7.4 Recurrent EPS grow th (%) 5.4 45.8 (11.7) 30.7 5.5 Gross margin (%) 62.0 63.7 64.0 64.0 63.9 Operating EBITDA margin (%) 42.7 44.5 43.9 44.8 43.9 Net profit margin (%) 20.6 26.7 24.5 27.9 27.4 Dividend payout ratio (%) 13.7 9.6 56.6 38.3 47.4 Capex/sales (%) 10.3 15.1 7.4 6.5 6.0 Interest cover (x) 7.77 7.47 6.98 10.94 11.49
Source: Company data, RHB
See important disclosures at the end of this report 2 Market Dateline / PP 19489/05/2019 (035080)
Media Nusantara Citra Indonesia Company Update
23 March 2021 Communications | Media
Figure 1: Prime-time group audience share according to Figure 2: All-time group audience share according to broadcaster (6pm-10.59pm) broadcaster (2am-10.59pm) (%) Prime-time Audience Share (%) All-time Audience Share
55 50 52.1 50 45 44.0 45 40 40 35 35 30 30 28.4 26.9 25 25 20 20 15 15 12.9 12.2 10 10 10 5 8.7
SCMA MNCN Trans VIVA
SCMA MNCN Trans VIVA
Source: Nielsen, Company data, RHB Source: Nielsen, Company data, RHB
Figure 3: Breakdown of YTD audience share according to broadcaster All-Time SCMA MNCN Trans VIVA Prime-Time SCMA MNCN Trans VIVA Jan-19 31.8 33.9 14.6 16.4 Jan-19 32.0 37.7 13.4 13.8 Feb-19 31.5 35.3 14.6 15.4 Feb-19 33.2 37.3 13.8 12.6 Mar-19 31.5 34.5 14.7 15.8 Mar-19 33.7 36.5 13.2 13.0 Apr-19 30.0 35.5 14.4 16.1 Apr-19 31.3 37.3 13.4 14.1 May-19 31.4 34.4 13.7 16.3 May-19 32.7 35.4 12.6 14.9 Jun-19 31.1 32.3 15.2 17.1 Jun-19 30.4 32.9 15.1 17.3 Jul-19 30.2 33.8 16.2 16.2 Jul-19 29.4 36.2 14.5 16.4 Aug-19 31.7 33.2 16.3 14.9 Aug-19 31.7 36.2 14.9 13.4 Sep-19 30.3 33.1 18.5 14.0 Sep-19 30.0 35.8 17.8 11.7 Oct-19 30.8 32.8 18.4 13.8 Oct-19 29.8 35.6 17.3 12.8 Nov-19 31.6 33.9 18.0 13.0 Nov-19 30.1 35.8 17.7 12.8 Dec-19 32.4 33.9 16.5 13.4 Dec-19 32.5 35.8 16.4 11.6 Avg-2019 31.2 33.9 15.9 15.2 Avg-2019 31.4 36.0 15.0 13.7
Jan-20 35.5 32.3 15.5 13.0 Jan-20 36.8 32.0 14.5 13.2 Feb-20 34.5 33.2 15.7 13.4 Feb-20 36.4 33.1 13.9 13.4 Mar-20 32.7 32.7 15.7 14.8 Mar-20 33.4 31.9 15.1 15.3 Apr-20 30.0 34.6 15.9 14.7 Apr-20 29.7 34.7 17.0 14.2 May-20 30.0 36.9 16.8 12.6 May-20 29.8 37.8 17.5 11.2 Jul-20 31.2 35.0 16.8 13.8 Jul-20 32.9 35.3 14.1 14.8 Aug-20 33.1 33.6 16.5 13.8 Aug-20 33.2 33.6 13.9 16.4 Sep-20 33.3 32.3 16.9 14.5 Sep-20 33.5 33 14.4 16.2 Oct-20 31.5 33.0 17.5 15.0 Oct-20 32.6 34 15.4 14.9 Nov-20 30.6 36.8 16.3 13.5 Nov-20 28.8 42.8 13.6 12.2 Dec-20 28.5 40.4 14.9 13.2 Dec-20 24.7 48.9 11 12.4 Avg-2020 31.9 34.6 16.2 13.8 Avg-2020 32.0 36.1 14.6 14.0
Jan-21 28.1 42.4 13.0 12.2 Jan-21 25.5 50.7 9.3 10.5 Feb-21 28.4 44.0 12.9 12.2 Feb-21 26.9 52.1 8.7 10 Avg-2021 28.3 43.2 13.0 12.2 Avg-2021 26.2 51.4 9.0 10.3
Avg-2M20 35.0 32.8 15.6 13.2 Avg-2M20 36.6 32.6 14.2 13.3 Avg-2M21 28.3 43.2 13.0 12.2 Avg-2M21 26.2 51.4 9.0 10.3 YoY (ppt) (6.8) 10.5 (2.7) (1.0) YoY (ppt) (10.4) 18.9 (5.2) (3.1)
Source: Nielsen, Company data, RHB
See important disclosures at the end of this report 3 Market Dateline / PP 19489/05/2019 (035080)
Media Nusantara Citra Indonesia Company Update
23 March 2021 Communications | Media
Figure 4: MNCN’s P/E band
Source: Bloomberg, RHB
Recommendation Chart
Date Recommendation Target Price Price Price Close 2020-09-07 Buy 1,640 860 2,520 Recommendations & Target Price Source: RHB, Bloomberg 2,320 na 1,640 1,640 2,120 1,920 1,720 1,520 1,320 1,120 920 720 520 Buy Neutral Sell Trading Buy Take Profit Not Rated Mar-16 Jun-17 Oct-18 Jan-20
Source: RHB, Bloomberg
See important disclosures at the end of this report 4 Market Dateline / PP 19489/05/2019 (035080)
RHB Guide to Investment Ratings This report may contain forward-looking statements which are often but not always identified by the use of words such as “believe”, “estimate”, “intend” and “expect” and
statements that an event or result “may”, “will” or “might” occur or be achieved and Buy: Share price may exceed 10% over the next 12 months other similar expressions. Such forward-looking statements are based on assumptions Trading Buy: Share price may exceed 15% over the next 3 months, however longer- made and information currently available to RHB and are subject to known and term outlook remains uncertain unknown risks, uncertainties and other factors which may cause the actual results, Neutral: Share price may fall within the range of +/- 10% over the next performance or achievement to be materially different from any future results, 12 months performance or achievement, expressed or implied by such forward-looking Take Profit: Target price has been attained. Look to accumulate at lower levels statements. Caution should be taken with respect to such statements and recipients Sell: Share price may fall by more than 10% over the next 12 months of this report should not place undue reliance on any such forward-looking statements. Not Rated: Stock is not within regular research coverage RHB expressly disclaims any obligation to update or revise any forward-looking statements, whether as a result of new information, future events or circumstances Investment Research Disclaimers after the date of this publication or to reflect the occurrence of unanticipated events.
RHB has issued this report for information purposes only. This report is intended for The use of any website to access this report electronically is done at the recipient’s own circulation amongst RHB and its affiliates’ clients generally or such persons as may be risk, and it is the recipient’s sole responsibility to take precautions to ensure that it is free deemed eligible by RHB to receive this report and does not have regard to the specific from viruses or other items of a destructive nature. This report may also provide the investment objectives, financial situation and the particular needs of any specific person addresses of, or contain hyperlinks to, websites. RHB takes no responsibility for the who may receive this report. This report is not intended, and should not under any content contained therein. Such addresses or hyperlinks (including addresses or circumstances be construed as, an offer or a solicitation of an offer to buy or sell the hyperlinks to RHB own website material) are provided solely for the recipient’s securities referred to herein or any related financial instruments. convenience. The information and the content of the linked site do not in any way form part of this report. Accessing such website or following such link through the report or This report may further consist of, whether in whole or in part, summaries, research, RHB website shall be at the recipient’s own risk. compilations, extracts or analysis that has been prepared by RHB’s strategic, joint venture and/or business partners. No representation or warranty (express or implied) This report may contain information obtained from third parties. Third party content is given as to the accuracy or completeness of such information and accordingly providers do not guarantee the accuracy, completeness, timeliness or availability of any investors should make their own informed decisions before relying on the same. information and are not responsible for any errors or omissions (negligent or otherwise), regardless of the cause, or for the results obtained from the use of such content. Third This report is not directed to, or intended for distribution to or use by, any person or party content providers give no express or implied warranties, including, but not limited entity who is a citizen or resident of or located in any locality, state, country or other to, any warranties of merchantability or fitness for a particular purpose or use. Third party jurisdiction where such distribution, publication, availability or use would be contrary to content providers shall not be liable for any direct, indirect, incidental, exemplary, the applicable laws or regulations. By accepting this report, the recipient hereof (i) compensatory, punitive, special or consequential damages, costs, expenses, legal fees, represents and warrants that it is lawfully able to receive this document under the laws or losses (including lost income or profits and opportunity costs) in connection with any and regulations of the jurisdiction in which it is located or other applicable laws and (ii) use of their content. acknowledges and agrees to be bound by the limitations contained herein. Any failure to comply with these limitations may constitute a violation of applicable laws. The research analysts responsible for the production of this report hereby certifies that the views expressed herein accurately and exclusively reflect his or her personal views All the information contained herein is based upon publicly available information and and opinions about any and all of the issuers or securities analysed in this report and has been obtained from sources that RHB believes to be reliable and correct at the were prepared independently and autonomously. The research analysts that authored time of issue of this report. However, such sources have not been independently this report are precluded by RHB in all circumstances from trading in the securities or verified by RHB and/or its affiliates and this report does not purport to contain all other financial instruments referenced in the report, or from having an interest in the information that a prospective investor may require. The opinions expressed herein company(ies) that they cover. are RHB’s present opinions only and are subject to change without prior notice. RHB is not under any obligation to update or keep current the information and opinions The contents of this report is strictly confidential and may not be copied, reproduced, expressed herein or to provide the recipient with access to any additional information. published, distributed, transmitted or passed, in whole or in part, to any other person Consequently, RHB does not guarantee, represent or warrant, expressly or impliedly, without the prior express written consent of RHB and/or its affiliates. This report has as to the adequacy, accuracy, reliability, fairness or completeness of the information been delivered to RHB and its affiliates’ clients for information purposes only and upon and opinion contained in this report. Neither RHB (including its officers, directors, the express understanding that such parties will use it only for the purposes set forth associates, connected parties, and/or employees) nor does any of its agents accept above. By electing to view or accepting a copy of this report, the recipients have agreed any liability for any direct, indirect or consequential losses, loss of profits and/or that they will not print, copy, videotape, record, hyperlink, download, or otherwise damages that may arise from the use or reliance of this research report and/or further attempt to reproduce or re-transmit (in any form including hard copy or electronic communications given in relation to this report. Any such responsibility or liability is distribution format) the contents of this report. RHB and/or its affiliates accepts no hereby expressly disclaimed. liability whatsoever for the actions of third parties in this respect.
Whilst every effort is made to ensure that statement of facts made in this report are The contents of this report are subject to copyright. Please refer to Restrictions on accurate, all estimates, projections, forecasts, expressions of opinion and other Distribution below for information regarding the distributors of this report. Recipients subjective judgments contained in this report are based on assumptions considered to must not reproduce or disseminate any content or findings of this report without the be reasonable and must not be construed as a representation that the matters referred express permission of RHB and the distributors. to therein will occur. Different assumptions by RHB or any other source may yield substantially different results and recommendations contained on one type of research The securities mentioned in this publication may not be eligible for sale in some states product may differ from recommendations contained in other types of research. The or countries or certain categories of investors. The recipient of this report should have performance of currencies may affect the value of, or income from, the securities or regard to the laws of the recipient’s place of domicile when contemplating transactions any other financial instruments referenced in this report. Holders of depositary receipts in the securities or other financial instruments referred to herein. The securities backed by the securities discussed in this report assume currency risk. Past discussed in this report may not have been registered in such jurisdiction. Without performance is not a guide to future performance. Income from investments may prejudice to the foregoing, the recipient is to note that additional disclaimers, warnings fluctuate. The price or value of the investments to which this report relates, either or qualifications may apply based on geographical location of the person or entity directly or indirectly, may fall or rise against the interest of investors. receiving this report.
This report may contain comments, estimates, projections, forecasts and expressions The term “RHB” shall denote, where appropriate, the relevant entity distributing or of opinion relating to macroeconomic research published by RHB economists of which disseminating the report in the particular jurisdiction referenced below, or, in every should not be considered as investment ratings/advice and/or a recommendation by other case, RHB Investment Bank Berhad and its affiliates, subsidiaries and related such economists on any securities discussed in this report. companies.
This report does not purport to be comprehensive or to contain all the information that a RESTRICTIONS ON DISTRIBUTION prospective investor may need in order to make an investment decision. The recipient of this report is making its own independent assessment and decisions regarding any Malaysia securities or financial instruments referenced herein. Any investment discussed or This report is issued and distributed in Malaysia by RHB Investment Bank Berhad recommended in this report may be unsuitable for an investor depending on the investor’s (“RHBIB”). The views and opinions in this report are our own as of the date hereof and specific investment objectives and financial position. The material in this report is general is subject to change. If the Financial Services and Markets Act of the United Kingdom information intended for recipients who understand the risks of investing in financial or the rules of the Financial Conduct Authority apply to a recipient, our obligations instruments. This report does not take into account whether an investment or course of owed to such recipient therein are unaffected. RHBIB has no obligation to update its action and any associated risks are suitable for the recipient. Any recommendations opinion or the information in this report. contained in this report must therefore not be relied upon as investment advice based on the recipient's personal circumstances. Investors should make their own independent Thailand evaluation of the information contained herein, consider their own investment objective, This report is issued and distributed in the Kingdom of Thailand by RHB Securities financial situation and particular needs and seek their own financial, business, legal, tax (Thailand) PCL, a licensed securities company that is authorised by the Ministry of and other advice regarding the appropriateness of investing in any securities or the Finance, regulated by the Securities and Exchange Commission of Thailand and is a investment strategies discussed or recommended in this report. member of the Stock Exchange of Thailand. The Thai Institute of Directors Association has disclosed the Corporate Governance Report of Thai Listed Companies made
5
pursuant to the policy of the Securities and Exchange Commission of Thailand. RHB 3. None of RHBIB’s staff or associated person serve as a director or board member* Securities (Thailand) PCL does not endorse, confirm nor certify the result of the Corporate of the subject company(ies) covered in this report Governance Report of Thai Listed Companies. *For the avoidance of doubt, the confirmation is only limited to the staff of research department Indonesia 4. RHBIB did not receive compensation for investment banking or corporate finance This report is issued and distributed in Indonesia by PT RHB Sekuritas Indonesia. This services from the subject company in the past 12 months. research does not constitute an offering document and it should not be construed as 5. RHBIB did not receive compensation or benefit (including gift and special cost an offer of securities in Indonesia. Any securities offered or sold, directly or indirectly, arrangement e.g. company/issuer-sponsored and paid trip) in relation to the in Indonesia or to any Indonesian citizen or corporation (wherever located) or to any production of this report. Indonesian resident in a manner which constitutes a public offering under Indonesian laws and regulations must comply with the prevailing Indonesian laws and regulations. Thailand Save as disclosed in the following link RHB Research conflict disclosures – Mar 2021 Singapore and to the best of our knowledge, RHB Securities (Thailand) PCL hereby declares that: This report is issued and distributed in Singapore by RHB Bank Berhad (Singapore 1. RHB Securities (Thailand) PCL does not have a financial interest in the securities branch) which is a holder of a full bank licence and an exempt capital markets services or other capital market products of the subject company(ies) covered in this report. licence and financial adviser regulated by the Monetary Authority of Singapore. RHB 2. RHB Securities (Thailand) PCL is not a market maker in the securities or capital Bank Berhad (Singapore branch) may distribute reports produced by its respective market products of the subject company(ies) covered in this report. foreign entities, affiliates or other foreign research houses pursuant to an arrangement 3. None of RHB Securities (Thailand) PCL’s staff or associated person serve as a under Regulation 32C of the Financial Advisers Regulations. Where the report is director or board member* of the subject company(ies) covered in this report distributed in Singapore to a person who is not an Accredited Investor, Expert Investor 1. *For the avoidance of doubt, the confirmation is only limited to the staff of research or an Institutional Investor, RHB Bank Berhad (Singapore branch) accepts legal department responsibility for the contents of the report to such persons only to the extent required 4. RHB Securities (Thailand) PCL did not receive compensation for investment by law. Singapore recipients should contact RHB Bank Berhad (Singapore branch) in banking or corporate finance services from the subject company in the past 12 respect of any matter arising from or in connection with the report. months. 5. RHB Securities (Thailand) PCL did not receive compensation or benefit (including United States gift and special cost arrangement e.g. company/issuer-sponsored and paid trip) in This report was prepared by RHB is meant for distribution solely and directly to “major” relation to the production of this report. U.S. institutional investors as defined under, and pursuant to, the requirements of Rule 15a-6 under the U.S. Securities and Exchange Act of 1934, as amended (the Indonesia “Exchange Act”) via a registered U.S. broker-dealer as appointed by RHB from time to Save as disclosed in the following link RHB Research conflict disclosures – Mar 2021 time. Accordingly, any access to this report via Bursa Marketplace or any other and to the best of our knowledge, PT RHB Sekuritas Indonesia hereby declares that: Electronic Services Provider is not intended for any party other than “major” US 1. PT RHB Sekuritas Indonesia and its investment analysts, does not have any institutional investors (via a registered U.S broker-dealer), nor shall be deemed as interest in the securities of the subject company(ies) covered in this report. solicitation by RHB in any manner. RHB is not registered as a broker-dealer in the For the avoidance of doubt, interest in securities include the following: United States and currently has not appointed a U.S. broker-dealer. Additionally, RHB a) Holding directly or indirectly, individually or jointly own/hold securities or does not offer brokerage services to U.S. persons. Any order for the purchase or sale entitled for dividends, interest or proceeds from the sale or exercise of the of all securities discussed herein must be placed with and through a registered U.S. subject company’s securities covered in this report*; broker-dealer as appointed by RHB from time to time as required by the Exchange Act b) Being bound by an agreement to purchase securities or has the right to Rule 15a-6. For avoidance of doubt, RHB reiterates that it has not appointed any U.S. transfer the securities or has the right to pre subscribe the securities*. broker-dealer during the issuance of this report. This report is confidential and not c) Being bound or required to buy the remaining securities that are not intended for distribution to, or use by, persons other than the recipient and its subscribed/placed out pursuant to an Initial Public Offering*. employees, agents and advisors, as applicable. Additionally, where research is d) Managing or jointly with other parties managing such parties as referred to in distributed via Electronic Service Provider, the analysts whose names appear in this (a), (b) or (c) above. report are not registered or qualified as research analysts in the United States and are 2. PT RHB Sekuritas Indonesia is not a market maker in the securities or capital not associated persons of any registered U.S. broker-dealer as appointed by RHB market products of the subject company(ies) covered in this report. from time to time and therefore may not be subject to any applicable restrictions under 3. None of PT RHB Sekuritas Indonesia’s staff** or associated person serve as a Financial Industry Regulatory Authority (“FINRA”) rules on communications with a director or board member* of the subject company(ies) covered in this report. subject company, public appearances and personal trading. Investing in any non-U.S. 4. PT RHB Sekuritas Indonesia did not receive compensation for investment banking securities or related financial instruments discussed in this research report may or corporate finance services from the subject company in the past 12 months. present certain risks. The securities of non-U.S. issuers may not be registered with, or 5. PT RHB Sekuritas Indonesia** did not receive compensation or benefit (including be subject to the regulations of, the U.S. Securities and Exchange Commission. gift and special cost arrangement e.g. company/issuer-sponsored and paid trip) in Information on non-U.S. securities or related financial instruments may be limited. relation to the production of this report: Foreign companies may not be subject to audit and reporting standards and regulatory Notes: requirements comparable to those in the United States. The financial instruments *The overall disclosure is limited to information pertaining to PT RHB Sekuritas discussed in this report may not be suitable for all investors. Transactions in foreign Indonesia only. markets may be subject to regulations that differ from or offer less protection than **The disclosure is limited to Research staff of PT RHB Sekuritas Indonesia only. those in the United States. Singapore DISCLOSURE OF CONFLICTS OF INTEREST Save as disclosed in the following link RHB Research conflict disclosures – Mar 2021 and to the best of our knowledge, the Singapore Research department of RHB Bank RHB Investment Bank Berhad, its subsidiaries (including its regional offices) and Berhad (Singapore branch) hereby declares that: associated companies, (“RHBIB Group”) form a diversified financial group, 1. RHB Bank Berhad, its subsidiaries and/or associated companies do not make a undertaking various investment banking activities which include, amongst others, market in any issuer covered by the Singapore research analysts in this report. underwriting, securities trading, market making and corporate finance advisory. 2. RHB Bank Berhad, its subsidiaries and/or its associated companies and its analysts do not have a financial interest (including a shareholding of 1% or more) As a result of the same, in the ordinary course of its business, any member of the in the issuer covered by the Singapore research analysts in this report. RHBIB Group, may, from time to time, have business relationships with, hold any 3. RHB Bank Berhad’s Singapore research staff or connected persons do not serve positions in the securities and/or capital market products (including but not limited to on the board or trustee positions of the issuer covered by the Singapore research shares, warrants, and/or derivatives), trade or otherwise effect transactions for its own analysts in this report. account or the account of its customers or perform and/or solicit investment, advisory 4. RHB Bank Berhad, its subsidiaries and/or its associated companies do not have or other services from any of the subject company(ies) covered in this research report. and have not within the last 12 months had any corporate finance advisory relationship with the issuer covered by the Singapore research analysts in this While the RHBIB Group will ensure that there are sufficient information barriers and report or any other relationship that may create a potential conflict of interest. internal controls in place where necessary, to prevent/manage any conflicts of interest 5. RHB Bank Berhad’s Singapore research analysts, or person associated or to ensure the independence of this report, investors should also be aware that such connected to it do not have any interest in the acquisition or disposal of, the conflict of interest may exist in view of the investment banking activities undertaken by securities, specified securities based derivatives contracts or units in a collective the RHBIB Group as mentioned above and should exercise their own judgement investment scheme covered by the Singapore research analysts in this report. before making any investment decisions. 6. RHB Bank Berhad’s Singapore research analysts do not receive any compensation or benefit in connection with the production of this research report In Singapore, investment research activities are conducted under RHB Bank Berhad or recommendation on the issuer covered by the Singapore research analysts. (Singapore branch), and the disclaimers above similarly apply. Analyst Certification Malaysia The analyst(s) who prepared this report, and their associates hereby, certify that: Save as disclosed in the following link RHB Research conflict disclosures – Mar 2021 (1) they do not have any financial interest in the securities or other capital market and to the best of our knowledge, RHBIB hereby declares that: products of the subject companies mentioned in this report, except for: 1. RHBIB does not have a financial interest in the securities or other capital market products of the subject company(ies) covered in this report. Analyst Company 2. RHBIB is not a market maker in the securities or capital market products of the - - subject company(ies) covered in this report.
6
(2) no part of his or her compensation was, is or will be directly or indirectly related to the specific recommendations or views expressed in this report.
KUALA LUMPUR JAKARTA RHB Investment Bank Bhd PT RHB Sekuritas Indonesia Level 3A, Tower One, RHB Centre Revenue Tower, 11th Floor, District 8 - SCBD Jalan Tun Razak Jl. Jendral Sudirman Kav 52-53 Kuala Lumpur 50400 Jakarta 12190 Malaysia Indonesia Tel : +603 9280 8888 Tel : +6221 509 39 888 Fax : +603 9200 2216 Fax : +6221 509 39 777
BANGKOK SINGAPORE RHB Securities (Thailand) PCL RHB Bank Berhad (Singapore branch) 10th Floor, Sathorn Square Office Tower 90 Cecil Street 98, North Sathorn Road, Silom #04-00 RHB Bank Building Bangrak, Bangkok 10500 Singapore 069531 Thailand Tel: +66 2088 9999 Fax :+66 2088 9799
7