Equity SNAPSHOT Tuesday, December 15, 2020

FROM EQUITY REPORT KEY INDEX KEY INDEX Chg Ytd Vol Chg Ytd Vol Telco: Telcos skipping the 2300MHz spectrum opportunity? Close Close (OVERWEIGHT) (%) (%) (US$ m) (%) (%) (US$ m) The heralded 5G spectrum in 2300MHz is not an attractive Asean - 5 Asean - 5 investment for two operators. XL Axiata and Indosat Ooredoo 6.013 1,2 (4,6) 1.160 Indonesia 6,134 0.1 (1.0) 318 skipped the 2300MHz auction despite prior indications. We Thailand 1.476 (0,4) (6,6) 3.559 Thailand 1,568 (0.1) 0.2 1,454 understand that the two telcos deem investment for regional 10MHz Philippines 7.281 0,5 (6,8) 173 Philippines 7,855 (0.3) 5.2 87 spectrum in 2300MHz is not economically viable as the cost to build Malaysia 1.663 (1,3) 4,7 1.525 Malaysia 1,562 (0.5) (7.6) 338 infrastructure in the new frequency outweigh the benefits of owning Singapore 2.858 1,3 (11,3) 970 Singapore 3,173 (0.5) 3.4 908 more spectrum. Regional Regional To see the full version of this report, please click here China 3.369 0,7 10,5 69.735 China 2,885 0.3 15.7 28,889 Hong Kong 26.390 (0,4) (6,4) 18.490 Hong Kong 26,391 (0.2) 2.1 9,093 Sawit Sumbermas Sarana: The Integration Journey Japan 26.732 0,3 13,0 12.923 Japan 23,380 (0.6) 16.8 10,278 (SSMS.IJ.IDR. 895 BUY TP. IDR.1,450) Korea 2.745 (0,6) 24,9 16.766 Korea 2,068 (0.8) 1.3 3,790 We visited SSMS’s plantations and its downstream complex and Taiwan 14.211 (0,4) 18,5 8.225 Taiwan 11,532 0.2 18.5 3,534 note: 1) all the estates are well maintained and strategically India 46.253 0,3 12,1 568 India 40,675 (0.3) 12.8 495 positioned as we mentioned in our previous note, 2) the CBI group Nasdaq 12.440 0,5 38,6 232.031 Nasdaq 8,521 (0.6) 28.4 116,797 directive is full integration from farm to food such as Sinarmas, 3) Dow Jones 29.862 (0,6) 4,6 16.990 Dow Jones 27,503 (1.0) 17.9 11,490

CBI Group prominence in the Kalimantan Tengah Province leading CURRENCY AND INTEREST RATE CURRENCY AND INTEREST RATE to virtually zero conflict with the community. Integration plans are w-w m-m ytd w-w m-m ytd already laid out with further consolidation in sight. We also fine tune Rate Rate (%) (%) (%) (%) (%) (%) our assumptions to reflect the progressive levy, translating into Rupiah Rp/1US$ 14.095 0,1 0,1 (1,7) Rupiah Rp/1US$ 14,115 (0.2) (0.7) 1.9 better earnings, but 21F TP remaining at IDR1,450. BI7DRRR % 3,75 (0,3) (0,3) (1,3) BI7DRRR % 5.00 - (0.3) (1.0) To see the full version of this report, please click here 10y Gov Indo bond 6,13 (0,1) (0,2) (0,9) 10y Gov Indo bond 7.16 0.1 0.2 (0.9)

HARD COMMODITY HARD COMMODITY

MARKET NEWS d-d m-m ytd d-d m-m ytd Unit Price Unit Price MACROECONOMY (%) (%) (%) (%) (%) (%) ▪ Govt: 4Q20 economic growth estimated to be in the range of - Coal US$/ton 79 1,4 26,5 16,3 Coal US$/ton 67 (0.3) 0.2 (34.0) 2% to +0.6% Gold US$/toz 1.827 (0,0) (3,3) 20,4 Gold US$/toz 1,478 (0.0) (2.1) 15.2 CORPORATE Nickel US$/mt.ton 17.540 1,8 10,7 25,7 Nickel US$/mt.ton 13,315 (2.5) (20.7) 25.6 ▪ Rights Issue: Bank Syariah Indonesia to become a BUKU IV Tin US$/mt.ton 19.780 1,7 7,4 15,1 Tin US$/mt.ton 16,771 1.5 1.7 (14.1) Bank COVID-19 SOFT COMMODITY SOFT COMMODITY d-d m-m ytd d-d m-m ytd ▪ Central govt to impose stricter healthcare protocols in Java-Bali Unit Price Unit Price (%) (%) (%) (%) (%) (%) Cocoa US$/mt.ton 161 - 6,2 12,0 Cocoa US$/mt.ton 2,476 (1.0) 1.3 4.7 PREVIOUS REPORTS Corn US$/mt.ton 47 (0,1) 17,0 (23,1) Corn US$/mt.ton 141 1.7 (2.5) 5.6 ▪ Danareksa Research Institute: November Outlook :Continues Oil (WTI) US$/barrel 50 0,6 17,6 (23,8) Oil (WTI) US$/barrel 56 0.6 (0.2) 24.3 Improvement In Domestic Manufacture Oil (Brent) US$/barrel 3.668 0,6 6,7 21,2 Oil (Brent) US$/barrel 61 (0.2) (1.4) 13.0 ▪ Cigarette: Facing Challenges Palm oil MYR/mt.ton 157 1,5 0,4 8,0 Palm oil MYR/mt.ton 2,632 (1.3) 11.4 34.8 ▪ Dharma Satya Nusantara: Enjoying The Fruits of Labor Rubber USd/kg 1.205 N/A 2,8 20,5 Rubber USd/kg 142 0.9 6.9 13.6 ▪ Waskita Beton Precast: The year of reformation Pulp US$/tonne 390 (1,4) (5,5) 8,7 Pulp US$/tonne 1,205 N/A 2.8 20.5 ▪ Banking: Brighter outlook in 2021 Coffee US$/60kgbag 162 (2,9) (0,9) 1,8 Coffee US$/60kgbag 72 0.3 7.9 3.5 ▪ : Cautiously optimistic Sugar US$/MT 39 1,3 4,3 12,3 Sugar US$/MT 345 0.7 1.3 3.6 ▪ Indofood Sukses Makmur: Stable performance Wheat US$/ton 1.170 0,8 2,5 24,0 Wheat US$/ton 143 (1.9) 0.7 (5.1) ▪ United Tractors: Conservative coal outlook Soy Oil US$/lb 161 - 6,2 12,0 Soy Oil US$/lb 30 0.1 (3.4) 8.9 ▪ Perusahaan Perkebunan London Sumatra: Stellar margins SoyBean US$/by 47 (0,1) 17,0 (23,1) Soy Bean US$/by 871 0.1 (5.8) (1.3) lifted net income

▪ Media Nusantara Citra: Positives All Round

▪ Malindo Feedmill Indonesia: Still struggling in pandemic year

▪ Poultry: Last culling of the year

▪ Indofood CBP Sukses Makmur: Below estimates

▪ Perusahaan Gas Negara: Solid effort, building a sustainable

path

▪ Jasa Marga: Going back to normal Source: Bloomberg Source: Bloomberg

Danareksa Sekuritas – Equity SNAPSHOT

Equity Research

Telco

Tuesday,15 December 2020 Telco OVERWEIGHT Maintain Telcos skipping the 2300MHz spectrum opportunity?

TLKM relative to JCI Index The heralded 5G spectrum in 2300MHz is not an attractive investment for two xxxx operators. XL Axiata and Indosat Ooredoo skipped the 2300MHz auction despite prior indications. We understand that the two telcos deem investment for regional 10MHz spectrum in 2300MHz is not economically viable as the cost to build infrastructure in the new frequency outweigh the benefits of owning more

spectrum. The current auction setup is not attractive enough for some. Secondly, the auction setup of 3x10MHz new spectrum regional allocations in 2300MHz puts any new

buyer in a potentially uneven situation as they would be in spectrum deficit relative to Telkomsel and Smartfren (which have been allocated 30MHz on a nationwide basis). By default, any investments XL and Indosat make would be relatively smaller.

Partnerships/JVs as per Omnibus, just not at any cost. The carrot in this auction is the potential formation of a partnership or JV with preexisting spectrum holders to share and monetize collectively the 2300MHz in the spirit of the new Omnibus Law.

That too, however, is deemed not worthwhile by XL & Indosat. As per our EXCL relative to JCI Index xxxx information, the 2300MHz spectrum can only be shared and traded if the newly licensed operator decides to use it for 5G. Interpreting the current development shows that both operators are not willing yet to commit to a 5G license, and the ability to use standalone, additional 10MHz initially for 4G for a foreseeable period

is not enough of an incentive. The current situation should lead XL and Indosat to explore forthcoming spectrum options, approx. at the end of 2022, when Indonesian media companies release use of the 700MHz spectrum. Meantime, there are still savings from spectrum optimization to be made within the existing

allocations between 2G-3G-4G technologies, we believe. Thank you next! type of situation. The priorities remain intact for XL and Indosat, while avoiding engagement in uncertain new investment cycles related to

spectrum, which helps to preserve their high cash positions earned from tower Source : Bloomberg sales. Instead, they seek to prioritize their core capex plans for 4G, whose

expansion cycle is signaled to end in 2021, with enough coverage ex-Java.

Operators will potentially conclude in early 2021, and possibly only the Indosat

rollout will remain strong throughout 2021 (with regards to Online media, telcos

have not fulfilled provisions of existing licenses in terms of rural area coverage, and

we understand that both private and public sectors are currently negotiating their

positions). Moreover, Indosat (ISAT IJ, BUY, TP: Rp3,500) states that it is

comfortable with the current spectrum position and will stay committed to its 3yr

network rollout plans to keep improving customer experience. For XL Axiata (EXCL

IJ, BUY, TP: Rp3,500), we expect the company to be empowered with renewed

ambition transcended by its Malaysian parent. The Axiata group expects to reduce

the cost/GB fivefold within 5 years, and get the group EBIT margin up by 560bps,

and achieve ROIC>WACC.

Overweight the sector. The expected auction outcome will have 3 winners

Telkomsel, Smartfren (FREN IJ, non-rated) & Hutch3 expecting to incur regional

license costs no more than 1/3 + inflation of what Telkomsel bid at end 2017 for

30MHz. It is a clear win for Telkomsel (TLKM IJ, BUY TP:Rp3,800) whose subs

jumped in 3Q20, and is given the ability to improve spectrum allocation/sub and

x Niko Margaronis spectrum holdings. Moreover, Telkomsel has also signaled that the 4G coverage expansion cycle is nearing an end. Furthermore, any associated impact from school (62-21) 5091 4100 ext. 3512 subsidies can vary among operators albeit temporarily as schools are set to reopen [email protected] in January with safety protocols, despite news of a possible new lockdown.

Target Market Exhibit 2. Spectrum allocationsPrice prior to Cap.2300MHz auction P/E (x) P/BV (x) ROE (%) Company Ticker Rec (Rp) (RpBn) 2020F 2021F 2020F 2021F 2021F Telkomwww.danareksa.com TLKM IJ BUY 4,600 328,886.6 14.3 14.0 3.2 3.1 22.6 XL Axiata EXCL IJ BUY 3,500 28,002.5 See important27.2 disclosure19.3 at the back1.4 of this report1.3 7.0

Indosat Ooredoo ISAT IJ BUY 3,500 18,095.0 n/m n/m 1.5 1.5 (0.3)

Equity Research

Company Update

Monday,14 December 2020 BUY Sawit Sumbermas Sarana(SSMS IJ) Maintain The Integration Journey

Last price (IDR) 895 We visited SSMS’s plantations and its downstream complex and note: 1) all Target Price (IDR) 1,450 the estates are well maintained and strategically positioned as we mentioned Upside/Downside +62.0% in our previous note, 2) the CBI group directive is full integration from farm to Previous Target Price (IDR) 1,450 food such as Sinarmas, 3) CBI Group prominence in the Kalimantan Tengah Province leading to virtually zero conflict with the community. Integration Stock Statistics plans are already laid out with further consolidation in sight. We also fine tune Sector Plantations our assumptions to reflect the progressive levy, translating into better Bloomberg Ticker SSMS IJ earnings, but 21F TP remaining at IDR1,450. No of Shrs (mn) 9,525 Integration of farms to food laid out. As from our visit to the region’s Mkt. Cap (IDRbn/USDmn) 8,525/604 plantations and mills, we note that the estates are well managed and supported Avg. daily T/O (IDRbn/USDmn) 3.4/0.2 with a R&D lab. We also visited the Citra Borneo Utama CPO, refinery unit producing RBD Palm Oil, RBDP Olein, RBDP Stearin, and PFAD, currently running Major shareholders (%) at c.50% of its 855k ton p.a. capacity. The working capital requirement to enable profitability is a further USD40-50mn procured CPO as CCC is stated to be at 75 PT.Citra Borneo Indah 53.8 days. The unit is spearheaded by ex Sinarmas personnel to bring the required PT. Putra Borneo Agro Lestari 11.3 experience necessary to produce better sales for the unit. CBU will be gradually Estimated free float 32.8 consolidated with SSMS as the tax burden will be sizeable. A new PK mill to be operational in 2021 will aid the CBU to edge near profitability. EPS Consensus (IDR) 2020F 2021F 2022F For SSMS to fully fulfill the CPO needs via, a further USD550mn is estimated to acquire 55k ha of plantation assuming USD10k EV/ha and FFB yield of 20ton/ha. Danareksa 54.2 72.4 76.5 Given SSMS nucleus yield and the infrastructure to improve yields, the company Consensus 40.9 58.5 63.8 might be able to buy lower yielding assets for less money than the USD10k/ha we assumed and turn it around in just 2 years should they decide to acquire. Danareksa/Cons 32.6 23.8 20.0 MSCI exclusion: good riddance. As the exclusion cleared the market overhang, SSMS relative to JCI Index despite some estimated IDR80bn of outflows leading to the share price clipping an all-time low of IDR690. Post MSCI exclusion the share price has performed quite well with gains in excess of 20% within just 2 weeks post the event. The market liquidity remains solid post the exclusion, thus carving out a buying opportunity as SSMS is clearly the laggard of the plantation sector.

Fine tuning to reflect the levy structure. Along with higher average price assumptions of MYR2,700 in 2020E and MYR2,900/ton in 2021F paired with more moderate FX assumptions, 2021F vs 2020E price remaining flat due to the progressive levy. All else being equal, the revision yields 7.1% better core profits for 2020E and 19.4% in 2021F.

Maintain BUY, TP of IDR1,450. Given the company’s well-maintained and strategically located assets paired with a clearer path for its downstream operations (soon to be gradually consolidated) to profitability. Improved Source : Bloomberg financial metrics in CBU potentially lead to additional related party loan draw- down financed by SSMS cash, in turn augmenting cash flow at SSMS level

Key Financials Year to 31 Dec 2018A 2019A 2020F 2021F 2022F Revenue (IDRbn) 3,711 3,278 3,841 4,302 4,527 x Andreas Kenny EBITDA (IDRbn) 1,157 702 1,405 1,488 1,444 EBITDA Growth (%) (15.0) (39.4) 100.2 6.0 (3.0) (62-21) 5091 4100 ext.3509 Net profit (IDRbn) 86 12 517 690 729 [email protected] EPS (IDR) 9.1 1.2 54.2 72.4 76.5 EPS growth (%) (89.3) (86.5) 4,323.7 33.5 5.7 BVPS (IDR) 425.3 425.2 449.1 513.3 571.8 DPS (IDR) 24.8 2.7 0.0 8.1 18.1 PER (x) 98.9 729.9 16.5 12.4 11.7 PBV (x) 2.1 2.1 2.0 1.7 1.6 Dividend yield (%) 2.8 0.3 0.0 0.9 2.0 EV/EBITDA (x) 10.5 18.1 9.3 8.6 8.7 www.danareksa.com Source : SSMS, Danareksa EstimatesSee important disclosure at the back of this report 1

Equity SNAPSHOT Tuesday, December 15, 2020

MARKET NEWS

MACROECONOMY Govt: 4Q20 economic growth estimated to be in the range of -2% to +0.6% The Coordinating Ministry for the Economy expects 4Q20 economic growth to be in the range of -2% to +0.6%yoy. This projection is based on the PMI in November that has reached 50.6, indicating that the economy would be in the expansion stage. Nonetheless, the Ministry of Finance foresees that the year-end long holidays and recent regional elections may pose a downturn risk to the economy if the pandemic cannot be kept under control. (Kontan)

CORPORATE Rights Issue: Bank Syariah Indonesia to become a BUKU IV Bank PT Bank Syariah Indonesia Tbk (BSI) will conduct a rights issue to raise capital post its legal merger. By doing so, BSI can become a BUKU IV bank in early 2022. The Head of the Project Management Office for the Merger of Bank Syariah, Herry Gunardi, highlighted that post the merger of three SOE sharia banks, the core capital of BSI would reach more than IDR20tn. Once the merger is done, BSI plans to conduct the rights issue mainly to increase its core capital to a minimum of IDR30tn as one of the requirements to become a BUKU IV bank. In addition, BSI also plans to acquire BBTN’s Sharia unit with total assets of IDR30tn. (Investor Daily)

COVID-19 Central govt to impose stricter healthcare protocols in Java-Bali The Coordinating Minister of Maritime and Investment has decided to implement stricter healthcare protocols in Java and Bali as daily cases of Covid-19 have soared in recent weeks. The policy will be effective from 18 Dec 2020 to 8 January 2021. For Jakarta, the protocols call for: • 75% work from home (WFH) for offices and the restriction of operational hours until 7 pm. • Limiting the number of people gathering at restos, malls and entertainment venues. • Shopping centre owners to provide rental and service charge subsidies to tenants, in order to reduce the rent expenses burden. • The prohibition or restriction of any events that may potentially result in the gathering of large numbers of people, such as celebrations and religious events. Outside Jakarta, such as in West Java, Central Java, and East Java the restrictions will be divided into urban and rural areas. In urban areas, local govts are asked to intensify the implementation of Work From Home (WFH) practices and limit the operating hours of restaurants, entertainment venues, and malls until 8pm. Meanwhile, for rural areas, local governments are asked to strengthen the implementation of social restrictions on a micro & community scale.

The govt is also imposing stricter healthcare protocols for visitors to Bali. Visitors will be obliged to have a swab PCR test 2 days before the flight, and a rapid antigen test will be required for those traveling by land 2 days before the trip. Previously, the obligation was just to have a rapid test only. (CNBC Indonesia, Kontan)

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 4.023.067 159.247 211.790 129 171 -29,9% 33,0% 25,3 19,0 12,0 11,1 2,4 2,3 9,8 12,3 Auto 229.744 16.177 17.551 325 353 -25,5% 8,5% 14,2 13,1 7,2 6,9 1,5 1,3 10,6 10,7 Astra International BUY 5.675 6.700 229.744 16.177 17.551 400 434 525 546 -25,5% 8,5% 14,2 13,1 7,2 6,9 1,5 1,3 10,6 10,7 Banks 1.364.445 46.383 75.656 353 576 -39,8% 63,1% 29,4 18,0 2,5 2,3 8,3 13,1 BCA BUY 34.100 33.000 840.736 21.520 28.722 873 1.165 873 1.165 -24,7% 33,5% 39,1 29,3 N/A N/A 4,6 4,3 12,1 15,2 BNI BUY 6.575 7.000 122.615 2.077 11.925 111 639 777 870 -86,5% 474,1% 59,0 10,3 N/A N/A 1,0 0,9 1,7 9,6 Bank Tabungan Negara BUY 1.840 1.800 19.486 1.133 1.909 107 180 107 180 442,1% 68,5% 17,2 10,2 N/A N/A 1,0 0,9 5,3 9,7 Bank Mandiri BUY 6.725 7.500 313.833 17.576 27.459 377 588 379 580 -36,0% 56,2% 17,9 11,4 N/A N/A 1,7 1,6 9,0 14,2 BTPN HOLD 3.320 2.500 27.055 1.953 2.995 240 368 352 368 -24,1% 53,4% 13,9 9,0 N/A N/A 0,8 0,8 6,3 9,0 BTPS HOLD 3.980 3.600 30.661 963 1.381 125 179 125 179 -31,2% 43,4% 31,8 22,2 N/A N/A 5,0 4,4 16,8 21,1 BPD Jatim BUY 670 760 10.060 1.161 1.265 77 84 77 84 -15,7% 9,0% 8,7 8,0 N/A N/A 1,0 1,0 12,3 12,6 Cigarettes 271.656 17.553 18.956 148 160 -28,7% 8,0% 15,5 14,3 6,9 6,2 2,9 2,7 19,7 19,7 Gudang Garam BUY 42.950 51.600 82.640 8.197 9.101 4.260 4.730 5.739 6.765 -24,7% 11,0% 10,1 9,1 5,3 4,3 1,5 1,3 15,6 15,5 HM Sampoerna SELL 1.625 1.270 189.017 9.356 9.855 80 85 132 136 -31,8% 5,3% 20,2 19,2 8,4 8,0 5,1 5,0 25,5 26,2 Construction 89.959 681 4.587 9 61 -91,8% 573,6% 132,1 19,6 9,05 8,32 0,9 0,8 0,7 4,4 Wijaya Karya BUY 1.820 1.700 16.325 146 788 16 88 314 352 -93,6% 439,7% 111,8 20,7 4,8 4,4 0,9 0,8 0,8 3,9 Pembangunan Perumahan BUY 1.610 1.300 9.982 74 439 12 71 280 300 -92,0% 493,2% 134,9 22,7 4,4 4,0 0,6 0,6 0,5 2,7 Adhi Karya BUY 1.295 800 4.611 45 407 13 114 289 315 -93,2% 804,4% 102,5 11,3 4,4 3,9 0,5 0,5 0,6 4,4 Waskita Karya HOLD 1.200 690 16.289 -759 383 -56 28 172 172 -180,9% -150,5% (21,5) 42,5 14,7 13,2 0,8 0,7 (3,8) 1,8 Waskita Beton BUY 238 250 6.274 250 391 9 15 34 38 -69,0% 56,4% 25,1 16,0 8,3 7,3 0,7 0,7 3,0 4,4 Wika Beton BUY 388 380 3.382 87 322 10 37 66 74 -83,0% 270,1% 38,9 10,5 4,1 3,7 0,9 0,8 2,4 7,9 Jasa Marga BUY 4.560 5.200 33.096 838 1.857 115 256 301 371 -62,0% 121,6% 39,5 17,8 14,3 13,8 1,4 1,3 3,8 7,5 Consumer 526.407 21.024 22.042 255 268 5,9% 4,8% 25,0 23,9 14,8 13,8 6,0 5,5 25,0 24,0 Indofood CBP BUY 9.825 12.700 114.578 6.147 6.550 527 562 465 510 22,0% 6,6% 18,6 17,5 16,2 15,3 4,2 3,8 24,0 23,0 Indofood BUY 7.025 7.600 61.682 5.230 5.578 596 635 600 663 6,6% 6,7% 11,8 11,1 5,6 5,2 1,6 1,5 13,9 13,7 Unilever HOLD 7.500 8.275 286.125 7.250 7.548 190 198 210 223 -1,9% 4,1% 39,5 37,9 24,9 23,5 37,5 37,4 95,2 98,7 Kino Indonesia SELL 2.870 2.700 4.100 254 264 178 185 206 230 -51,2% 3,9% 16,1 15,5 9,0 8,1 1,4 1,3 9,3 8,9 Mayora Indah BUY 2.680 2.800 59.921 2.143 2.102 96 94 88 96 7,8% -1,9% 28,0 28,5 16,4 14,8 5,5 4,8 20,8 17,9 Pharmaceutical 119.390 3.765 4.066 45 49 8,2% 8,0% 31,7 29,4 19,6 17,6 4,4 4,0 14,6 14,3 Sido Muncul HOLD 780 765 23.400 883 949 29 32 30 33 9,3% 7,4% 26,5 24,7 22,1 19,5 7,2 6,8 28,0 28,3 Kalbe Farma BUY 1.485 1.900 69.610 2.701 2.921 58 62 61 66 7,7% 8,1% 25,8 23,8 15,5 14,0 3,9 3,5 15,7 15,3 Phapros BUY 1.850 965 1.554 110 121 130 144 130 144 13,7% 10,5% 14,2 12,8 7,1 7,2 0,8 0,8 7,7 6,1 Kimia Farma HOLD 4.470 1.300 24.826 71 75 13 14 13 14 6,5% 5,0% 347,5 331,0 43,8 37,8 6,2 6,1 1,8 1,9 Heavy Equipment 102.206 7.606 10.215 2.039 2.739 -32,8% 34,3% 13,4 10,0 4,3 4,0 1,5 1,4 12,0 14,6 United Tractors BUY 27.400 29.000 102.206 7.606 10.215 2.039 2.739 2.817 2.769 -32,8% 34,3% 13,4 10,0 4,3 4,0 1,5 1,4 12,0 14,6 Industrial Estate 16.726 913 1.510 15 24 -49,5% 65,4% 18,3 11,1 5,7 5,4 1,0 1,0 5,7 9,0 Puradelta Lestari HOLD 254 160 12.242 790 904 16 19 28 21 -40,8% 14,4% 15,5 13,5 7,7 9,8 1,7 1,7 10,9 12,3 Bekasi Fajar BUY 199 220 1.920 190 418 20 43 41 48 -50,0% 120,0% 10,1 4,6 4,6 3,7 0,4 0,4 4,1 8,3 Surya Semesta BUY 545 600 2.564 -67 188 -14 40 46 82 -172,8% -380,6% (38,3) 13,6 3,2 1,9 0,6 0,6 (1,6) 4,3 Media 43.655 3.141 4.049 105 136 -5,5% 28,9% 13,9 10,8 8,1 7,1 2,3 2,1 17,6 20,3 Media Nusantara Citra BUY 1.060 1.700 15.953 1.951 2.710 130 180 153 171 -13,4% 38,9% 8,2 5,9 5,1 4,2 1,2 1,1 15,9 19,8 BUY 1.875 1.700 27.703 1.190 1.339 81 91 95 111 11,2% 12,5% 23,3 20,7 13,5 11,9 4,7 4,1 21,4 21,3 Mining 209.560 9.288 11.536 105 130 -24,8% 24,2% 22,6 18,2 6,2 6,0 1,4 1,3 6,3 7,5 Adaro Energy BUY 1.570 1.300 50.218 3.493 4.090 109 128 190 182 -39,5% 17,1% 14,4 12,3 3,4 3,2 0,9 0,8 6,1 6,8 Timah BUY 1.315 1.200 9.794 -168 285 -23 38 12 26 -72,6% -269,6% (58,3) 34,4 11,0 10,2 1,6 1,6 (2,8) 4,6 Vale Indonesia BUY 5.275 5.200 52.414 1.306 1.633 131 164 127 153 60,3% 25,0% 40,1 32,1 13,0 11,6 1,8 1,8 4,7 5,6 Aneka Tambang BUY 1.525 1.300 36.647 998 1.062 42 44 30 33 414,4% 6,4% 36,7 34,5 15,5 15,3 1,8 1,7 4,9 5,1 Bukit Asam BUY 3.050 2.900 35.138 2.451 3.046 213 264 364 381 -39,6% 24,3% 14,3 11,5 5,5 5,5 1,7 1,5 12,7 14,1 Indo Tambangraya Megah BUY 15.400 11.000 17.401 809 1.122 716 993 1.531 1.483 -56,2% 38,6% 21,5 15,5 4,0 3,9 1,4 1,4 6,3 8,8 Harum Energy SELL 2.940 1.800 7.949 398 298 147 110 116 126 46,3% -25,0% 20,0 26,7 5,5 4,8 1,8 1,7 9,0 6,5 Petrochemical 290.146 710 3.522 6 32 -25,9% 396,0% 408,7 82,4 22,2 21,2 6,6 6,5 1,6 8,0 Barito Pacific HOLD 1.245 900 116.269 426 1.108 5 12 14 12 -32,3% 160,0% 272,9 105,0 14,7 13,7 6,8 6,7 2,5 6,4 Chandra Asri Petrochemical HOLD 9.750 7.300 173.877 284 2.414 16 135 94 105 -13,7% 750,0% 612,2 72,0 38,2 36,5 6,5 6,3 1,1 8,9 Plantation 31.254 1.164 1.508 133 172 147,7% 29,6% 26,9 20,7 7,7 8,0 1,1 1,1 4,2 5,3 Astra Agro Lestari BUY 11.825 13.000 22.759 901 1.058 468 550 488 438 327,0% 17,4% 25,3 21,5 7,8 8,1 1,2 1,1 4,7 5,4 PP London Sumatra BUY 1.245 1.300 8.494 263 450 39 66 67 54 1,5% 71,1% 32,3 18,9 7,1 7,7 1,0 1,0 3,1 5,2 Poultry 128.102 3.519 4.838 116 159 -36,4% 37,5% 36,4 26,5 12,7 10,9 3,3 2,9 9,7 11,7 Charoen Pokphand HOLD 6.600 5.800 108.227 3.067 3.665 187 224 262 322 -15,6% 19,5% 35,3 29,5 17,0 14,2 4,5 4,0 13,5 14,3 Japfa Comfeed HOLD 1.545 1.150 18.118 444 1.092 38 93 170 199 -74,8% 145,9% 40,8 16,6 6,8 6,1 1,5 1,3 3,9 8,5 Malindo Feedmill HOLD 785 600 1.757 8 81 4 36 149 180 -94,1% 912,5% 219,7 21,7 5,2 4,8 0,7 0,6 0,3 3,1 Property 82.140 4.041 4.555 33 37 -50,7% 12,7% 20,3 18,0 9,8 7,5 1,0 0,9 5,1 5,3 Alam Sutera SELL 252 140 4.952 -8 326 -0 17 59 56 -100,8% -4175,0% (619,0) 15,2 6,1 6,1 0,5 0,4 (0,1) 2,8 Bumi Serpong Damai BUY 1.085 950 22.971 2.086 1.700 99 80 103 126 -25,3% -18,5% 11,0 13,5 8,8 6,4 0,7 0,7 6,9 5,2 Ciputra Development HOLD 915 850 16.983 761 781 41 42 38 55 -34,3% 2,6% 22,3 21,7 12,2 9,3 1,1 1,0 5,0 4,9 Pakuw on Jati HOLD 535 450 25.765 1.047 1.569 22 33 46 50 -61,5% 49,9% 24,6 16,4 7,3 7,3 1,6 1,4 6,7 9,0 Summarecon HOLD 795 800 11.469 155 179 11 12 39 46 -69,9% 15,5% 74,0 64,1 36,3 9,1 1,5 1,4 2,1 2,2 Retail 55.114 - 825 2.504 -19 58 -120,7% -403,5% (66,8) 22,0 6,5 6,2 2,8 2,5 - 4,5 11,9 Mitra Adi Perkasa BUY 895 1.050 14.857 -698 619 -42 37 66 74 -174,8% -188,7% (21,3) 24,0 4,6 4,8 2,1 1,9 (10,5) 8,3 Ramayana BUY 775 775 5.499 -191 354 -27 50 94 101 -129,5% -285,3% (28,8) 15,5 3,9 3,8 1,2 1,2 (4,5) 7,7 Matahari Department Store BUY 1.415 1.500 3.716 -735 507 -280 193 568 572 -153,8% -169,0% (5,1) 7,3 1,1 0,8 1,3 1,0 (29,0) 15,4 Ace Hardw are BUY 1.810 1.925 31.042 799 1.024 47 60 66 72 -22,4% 28,2% 38,9 30,3 21,1 19,1 5,8 5,2 15,9 18,2 Telco 460.003 23.860 24.447 126 129 -1,0% 2,5% 19,3 18,8 5,2 4,7 2,8 2,5 15,1 14,1 Telekomunikasi Indonesia BUY 3.320 3.800 328.887 19.750 18.558 199 187 242 261 5,8% -6,0% 16,7 17,7 4,8 4,4 2,7 2,5 17,4 14,7 Indosat BUY 3.330 3.500 18.095 -872 -37 -160 -7 -147 -52 155,6% 95,8% (20,8) (489,1) 3,2 2,9 1,9 1,9 (8,6) (0,4) XL Axiata BUY 2.620 3.500 28.050 1.029 1.453 96 136 96 136 44,3% 41,2% 27,3 19,3 3,4 3,0 1,4 1,3 5,2 7,0 Tow er Bersama HOLD 1.510 1.500 34.212 1.072 1.422 47 63 45 54 30,9% 32,6% 31,9 24,1 13,1 12,2 6,7 6,0 21,9 26,3 Sarana Menara Nusantara BUY 995 1.400 50.760 2.881 3.051 56 60 54 59 23,0% 5,9% 17,6 16,6 10,5 9,6 4,9 4,3 29,1 27,5 Transportation 2.559 247 249 35 35 4,5% 1,0% 10,4 10,3 4,3 4,2 1,1 1,0 10,5 10,2 Indonesia Kendaraan Terminal BUY 480 550 873 164 172 90 95 90 95 5,6% 5,1% 5,3 5,1 2,3 2,3 0,7 0,7 13,7 13,6 Jasa Armada Indonesia HOLD 318 135 1.681 70 63 13 12 13 12 1,4% -10,0% 24,0 26,7 15,2 18,2 1,5 1,5 6,4 5,6

Danareksa Sekuritas – Equity SNAPSHOT

Equity SNAPSHOT Tuesday, December 15, 2020

COVERAGE PERFORMANCE

LEADERS

Price as on Code 14-Dec-20 11-Dec-20 Chg, % w-w, % m-m, % YTD, % Rating Indosat ISAT 3.330 2.670 24,7 29,1 51,4 14,4 BUY BTPN BTPN 3.320 2.950 12,5 26,2 38,9 2,2 HOLD Indonesia Kendaraan IPCC 480 432 11,1 13,7 20,0 (29,4) BUY Terminal Malindo Feedmill MAIN 785 710 10,6 6,8 29,8 (21,9) HOLD Japfa Comfeed JPFA 1.545 1.420 8,8 8,0 26,6 0,7 HOLD Bukit Asam PTBA 3.050 2.810 8,5 23,0 49,5 14,7 BUY Bank Tabungan Negara BBTN 1.840 1.705 7,9 7,0 13,9 (13,2) BUY Kimia Farma KAEF 4.470 4.170 7,2 25,9 37,5 257,6 HOLD XL Axiata EXCL 2.620 2.460 6,5 6,9 14,4 (16,8) BUY Ace Hardware ACES 1.810 1.705 6,2 11,4 3,1 21,1 BUY Sources: Bloomberg

LAGGARDS

Price as on Code 14-Dec-20 11-Dec-20 Chg, % w-w, % m-m, % YTD, % Rating Pakuwon Jati PWON 535 550 (2,7) 1,9 17,3 (6,1) BUY Bumi Serpong Damai BSDE 1.085 1.115 (2,7) 2,4 5,9 (13,5) BUY Chandra Asri Petrochemical TPIA 9.750 9.975 (2,3) - 16,1 (6,0) BUY Sarana Menara Nusantara TOWR 995 1.015 (2,0) (5,7) - 23,6 BUY Tower Bersama TBIG 1.510 1.540 (1,9) (4,4) 11,0 22,8 BUY Summarecon Agung SMRA 795 810 (1,9) (0,6) 6,0 (20,9) BUY Alam Sutera ASRI 252 254 (0,8) 6,8 50,9 5,9 HOLD BPD Jatim BJTM 670 675 (0,7) 1,5 8,1 (2,2) BUY Bank Mandiri BMRI 6.725 6.775 (0,7) 1,9 7,6 (12,4) BUY Sido Muncul SIDO 780 785 (0,6) (0,6) (4,9) 22,4 BUY Sources: Bloomberg

Danareksa Sekuritas – Equity SNAPSHOT

Equity SNAPSHOT Tuesday, December 15, 2020

PREVIOUS REPORTS

▪ Danareksa Research Institute: November Outlook :Continues Improvement In Domestic Manufacture ▪ Cigarette: Facing Challenges ▪ Dharma Satya Nusantara: Enjoying The Fruits of Labor ▪ Waskita Beton Precast: The year of reformation ▪ Banking: Brighter outlook in 2021 ▪ Astra International: Cautiously optimistic ▪ Indofood Sukses Makmur: Stable performance ▪ United Tractors: Conservative coal outlook ▪ Perusahaan Perkebunan London Sumatra: Stellar margins lifted net income ▪ Media Nusantara Citra: Positives All Round ▪ Malindo Feedmill Indonesia: Still struggling in pandemic year ▪ Poultry: Last culling of the year ▪ Indofood CBP Sukses Makmur: Below estimates ▪ Perusahaan Gas Negara: Solid effort, building a sustainable path ▪ Jasa Marga: Going back to normal ▪ Mitra Adiperkasa: 9M20 Below, on a Positive Note ▪ Media Nusantara Citra: 9M20 in-line With Near Normal Top-line ▪ Semen Indonesia: Challenges remain but the future looks bright ▪ United Tractors: Better operational numbers in October 2020 ▪ Gudang Garam: Uncertainty remains ▪ HM Sampoerna: Downward earnings revision on soft 9M20 results ▪ Ciputra Development: Vivid recovery in investment property ▪ Vale Indonesia: Rosy Outlook ▪ Strategy: Vote of Confidence ▪ Bank Tabungan Pensiunan Nasional: Modest growth expected ▪ HM Sampoerna: 3Q20 earnings: Below estimates ▪ Telco: Hutch3 takeaways; sector back into challenging mode ▪ Alam Sutra Realty: Huge losses caused by low revenues recognition ▪ Telco: Profiling the Indonesian Data user ▪ Ace Hardware Indonesia: Below 9M20 Result, SSSG ▪ Astra International: Car sales rose further in Oct 2020 ▪ Indocement Tunggal Prakarsa: The early rainy season hit Oct sales ▪ Indo Tambangraya: Solid earnings on the cards ▪ Mayora Indah: Optimistic of continued recovery ▪ Bank Rakyat Indonesia: Growing optimism ▪ Kino Indonesia: Downward revisions following a weak 9M20 ▪ Summarecon Agung: Net losses albeit recovery in investment property ▪ Surya Semesta Internusa: Awaiting recovery in year end ▪ Retail: Continuing the Pace of Recovery ▪ Pakuwon Jati: Sign of recoveries ▪ Timah: Further enhancement of the balance sheet ▪ Bukit Asam: Further efficiencies to sustain profits ▪ Harum Energy: Soft core earnings on lower volume and prices ▪ Strategy: Moving to Higher Ground ▪ Barito Pacific: Expecting ASP recovery in FY21 and continuing projects ▪ Surya Citra Media: Anticipating a Green Shoot in 4Q20 ▪ XL Axiata: Pandemic handled with superior efficiencies ▪ Barito Pacific: Booked positive earning at last ▪ : Forward looking state of mind ▪ Timah: Good 3Q20 results ▪ Plantation: The Goldilocks Period

Danareksa Sekuritas – Equity SNAPSHOT

Equity SNAPSHOT Tuesday, December 15, 2020

PT BRI 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

Muhammad Naufal Yunas

[email protected] (62-21) 50914100 ext.3507 Research Associate

Sales team

Vera Ongyono Ehrliech Suhartono Yunita L. Nababan

[email protected] [email protected] [email protected] (62-21) 50914100 ext. 3120 (62-21) 50914100 ext. 3132 (62-21) 50914100 ext. 3145

Tuty Sutopo Upik Yuzarni Wisnu Budhiargo [email protected] [email protected] [email protected] (62-21) 50914100 ext. 3121 (62-21) 50914100 ext. 3137 (62-21) 50914100 ext. 3117

Adeline Solaiman Thalia Kadharusman

[email protected] [email protected] (62-21) 50914100 ext. 3503 (62-21) 50914100 ext. 3124

Danareksa Sekuritas – Equity SNAPSHOT

Equity SNAPSHOT Tuesday, December 15, 2020

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Danareksa Sekuritas – Equity SNAPSHOT