INVESTOR DIGEST Equity Research | 17 February 2020

Economic Data HIGHLIGHT Latest 2020F • Gudang Garam: The Seventh Price Increase (GGRM; Rp54,575; Buy; TP:Rp63,450) 7-DRRR (%), eop 5.00 4.75 • Market Recap 14th January; JCI 5866.95 points -5.01 Pts (-0.09%); Valued $351mn; Inflation (YoY %) 2.68 3.30 Mkt Cap $477bn; USD/IDR 13,701 US$ 1 = Rp, period avg 13,701 14,296

Stock Market Data CORPORATE (xx February 2020)

Gudang Garam: The Seventh Price Increase (GGRM; Rp54,575; Buy; JCI Index 5,866.9 -0.09% TP:Rp63,450) Trading T/O ( Rp bn ) 4,760.5 Market Cap ( Rp tn ) 6,781.8  GGRM announced its seventh ex-factory price increase that will be effective on Feb 24, averaging at 6.2% across seven SKUs within low-priced SKT and premium SKM products. Wholesalers have begun speculating for price adjustment across Market Data Summary* GGRM’s low-priced SKUs over the next one-to-two weeks.

 2020F 2021F Seventh price increase coming up on Feb 24. Notified over the weekend, GGRM will conduct its seventh ex-factory price increase on Feb 24, involving P/E (x) 15.7 14.2 low-priced hand-rolled cigarettes (SKT) and premium machine-rolled cigarettes P/BV (x) 2.3 2.1 (SKM). This is in-line with what we have highlighted two weeks ago (see reports: EV/EBITDA (x) 13.2 12.3 here) that GGRM will raise prices on a weekly basis in accordance to the Div. Yield (%) 2.9 3.1 depleting 2019 excise tariff ribbons. Feb 24’s price increases are as follow: GG Net Gearing (%) 23.5 20.4 Mild Shiver (+9.5%), Halim (+8.2%), Halim Coklat (+8.2%), Surya Exclusive (+8%), ROE (%) 14.8 15.4 Signature Coklat 12 (+4.4%), GG Deluxe (+2.9%), and Djaja (+2.4%). These EPS Growth (%) 3.9 10.3 products have high single digit volume mix contribution. EBITDA Growth (%) 5.2 6.2  More increases ahead. GGRM has been the most aggressive tier-one producer Earnings Yield (%) 6.4 7.0 in passing-on 2020 excise tariffs, understandably given its superior market share

outperformance in the last two years. By Feb 24, GGRM would have delivered * Aggregate of 75 companies in MS research universe, representing 63.4%of JCI’s market capitalization 10.2% average price increases across 21 SKUs, ranging from 7%-16% for the

premium SKM products and 10-20% for the low-priced SKM (refer to Figure 1). Wholesalers have begun speculating that GGRM will increase its low-priced products within dthe next one-to-two weeks, understandably as we are approaching the end-March deadline for price floor compliance.

 Competitor Djarum will deliver its fourth ex-factory price hike. This will be similarly timed on Feb 24 but with a much lower magnitude at 2.7% on average across its white cigarettes (SPM), low-priced low-tar-low-nicotine (LTLN) and mid-tar-mid-nicotine (MTMN) cigarettes. The increases are as follow: Insta 16 (+3.5%), Envio Kretek 12 (+3.4%), Super MLD 16 (+3.1%), all Forte variants (+2.9%), Super MLD Black Series 16 (+2.8%), Mustang 12 (+2.7%), Mr Brown 12 (+2.7%), Djarum Super 50 (+2.5%), Super MLD 12 (+2.4%), Super MLD Black Series 12 (+2.3%), LA Bold 12 (+2.3%) and Djarum Coklat Filter 12 (+2.2%).

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 Buy rating with Rp63,450 PT. We understand that volume should decline this year given the excessive price increases that should be conducted within the lower-price brands. To some extent, GGRM’s decision in aggressively increasing its premium brands’ in the past three rounds of ex-factory hikes should support profitability margins going forward. We will review our forecast assumptions after we have more color on 4Q19/1Q20 volume.

GGRM’S HISTORICAL PRICE INCREASES SINCE MAY 2019

Product 1-May-19 2-Sep-19 30-Sep-19 11-Nov-19 13-Jan-20 10-Feb-20 17-Feb-20 24-Feb-20 Total GG Merah 12 1.3% 1.3%

Surya Coklat 16 1.5% 1.9% 1.4% 2.3% 7.1%

Surya Merah 12 1.7% 2.0% 1.7% 6.5% 11.9%

GG Merah 10 2.7% 2.1% 4.8%

International 12 1.6% 2.2% 2.8% 6.6%

International 50 2.5% 2.4% 3.1% 8.0%

Surya Merah 50 2.6% 10.0% 12.6%

Pro 16 3.6% 2.1% 2.7% 8.7% 17.2%

Pro Mild 16 3.6% 2.1% 2.7% 8.7% 17.2%

Surya Coklat 12 1.8% 2.8% 2.4% 9.4% 16.4%

GG Mild 16 3.4% 3.3% 7.6% 14.3%

GG Mild Shiver 16 3.3% 7.0% 9.5% 19.8%

Surya Exclusive 16 3.4% 2.5% 8.0% 13.8%

Djaja 12 1.5% 2.4% 3.9%

Sriwidari 1.5% 2.4% 3.9%

Signature Mild 9.7% 9.7%

GG Move 10.2% 10.2%

GG Signature 12 2.1% 4.4% 6.5%

Halim 4.5% 8.2% 12.7%

Halim Coklat 4.5% 8.2% 12.7%

GG Deluxe 2.9% 2.9%

Simple average 2.6% 2.2% 3.2% 4.5% 4.5% 7.3% 4.0% 6.2% 10.2%

Source: Mandiri Sekuritas survey

Adrian Joezer (+6221 5296 9415) [email protected] Riyanto Hartanto (+6221 5296 9488) [email protected] Lakshmi Rowter (+6221 5296 9549) [email protected]

MARKET

Market Recap 14th January; JCI 5866.95 points -5.01 Pts (-0.09%); Valued $351mn; Mkt Cap $477bn; USD/IDR 13,701

 TOP TURNOVER: BBCA BBRI TLKM ASII BBNI BMRI UNTR PGAS EXCL UNVR GGRM ICBP BRPT SSMS TOWR PTBA ADRO (55%)

 ADVANCING SECTOR: cement+3.4%; consumer+0.3%; plantation+0.2%; property & telco+0.1%

 DECLINING SECTOR: construction-1.6%; financial-0.6%; mining-0.3%; auto-0.2%

 Indo shares eased and the IDR poised for a third weekly loss as investors were spooked by a sharp rise in the number of coronavirus cases in China this week while oil prices extended gains on hopes of more production cuts. US stock futures shed 0.07% in Asia, after the S&P 500 lost 0.16%. With Japan confirmed its first coronavirus death on Thursday, a third case outside mainland China after two previous fatalities in Hong Kong and the Philippines, investors will surely avoid Asia for the time being and will shift funds to the US, geographically the most separated from the region, meaning more demand for the USD in the currency exchange market. The DXY hit a four-month high, having risen 1.8% so far this month. The JCI lost 0.1% at 5866 level, with BBCA contributing the most to the decline, declining 1.6%. Market turnover (excluding $8.3MN MKPI crossing) was better at $351MN. Foreign participants rose to 35% and came up better seller for

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26%. Losers beat gainers by 12 to 10. The IDR weakened against the USD from 13696 to 13701 level, while the benchmark 10-year bond fell and the yield rose 0.5 bps to 6.580%. Global funds bought a net $8.8MN in Indonesian bonds on Feb 12th; and bought a net $3.6MN in country’s equities on Feb 13th. So far this week, the JCI fell 2.2%. It declined 8.6% in the past 52 weeks. The MSCI AC Asia Pacific Index gained 8.6% in the same period. It is now 11.6% below its 52-week high on April 18, 2019 and 1.7% above its low on May 20, 2019. It is trading at a PER of 18.2x on a trailing basis and 14.0x estimated earnings of its members for the coming year. Its dividend yield is 2.6% on a trailing 12-month basis. Its members have a total market capitalization of IDR6.82 quadrillion. The 30-day price volatility fell to 11.13% compared with 11.40% in the previous session and the average of 10.14% over the past month.

Sales Team +6221 527 5375

FROM THE PRESS

Government targets the groundbreaking for Airport in April 2020 Budi Karya Sumadi, Minister of Transportation, said the Government and Gudang Garam (GGRM) agreed to finish the first phase of airport construction in 2 years with total investment cost of Rp9.2trn. Budi added that the election of airport management will be handed fully to GGRM. Airport management can be collaborated with PT I and PT Angkasa Pura II, or a consortium formed by GGRM. Further, Ministry of Transportation will give GGRM the concession rights as long as 30 to 50 years. (Investor Daily)

Cigarettes Excise Revenue Jumped by 1,093% YoY as of February 11 The Finance Ministry recorded the excise and duty revenue reached Rp 9.79 tn as of February 11 in which the forestalling activity and the increase of excise tariff boosted the cigarettes excise revenue to Rp 5.05 tn (1,093% YoY). Meanwhile, the import and export duty registered Rp 3.88 tn (-3.5% YoY) and Rp 0.28 tn (-35.0%) revenue, respectively. (Kontan)

Djarum Group has increased shares in SMN Djarum Group, through PT Sapta Adhikari Investama, has increased shares in Sarana Menara Nusantara (TOWR IJ). According to SMN’s announcement, Djarum recently added 23mn shares during January, 27th – Feb, 5th 2020 at Rp830-855/share. Overall, Djarum has added 229.65mn of SMN’s shares this year at Rp781-855/share. Currently, PT Sapta Adhikari Investama has 50.5% of SMN’s total shares outstanding. (Bisnis )

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Indices and Fund Flows Currencies and Bonds Major Commodities

YTD Chg YTD YTD Indices Last Chg (%) Currency Last Chg (%) Last Chg (%) (%) Chg (%) Chg (%)

JCI 5,866.9 -0.1 -6.9 Rp/US$ 13,707 +0.02 +1.0 Oil spot (US$/bl) 52.05 +1.2 -14.8 Dow Jones 29,398.1 -0.1 +3.0 US$/EUR 1.083 -0.09 +3.5 Nickel spot (US$/mt) 12,932 -2.1 -7.3 Nikkei 23,687.6 -0.6 +0.1 YEN/US$ 109.78 -0.04 -1.1 Gold spot (US$/oz) 1,584 +0.5 +4.4 Hang Seng 27,815.6 +0.3 -1.3 SGD/US$ 1.392 +0.21 -3.3 Tin 3-month (US$/mt) 16,525 -0.4 -3.8 STI 3,220.0 +0.0 -0.1 CPO futures (Ringgit/ton) 2,660 +1.3 -12.2 Ishares indo 24.1 -0.1 -6.1 Coal (US$/ton) 69.5 +0.5 +2.6 Rubber forward (US¢/kg) 157.5 +0.0 -5.3 Foreign YTD YTD Gov. Bond Chg Soybean oil Fund Flows Last Chg Last Chg 30.57 -0.5 -11.4 Chg Yield (bps) (US$/100gallons) (US$mn) (bps) Equity Flow -26.2 +65 5Yr 5.83 -0 -61 Baltic Dry Index 425.0 +1.0 -61.0 Bonds Flow -10.2 +164 10Yr 6.58 +1 -48

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Equity Valuation Price Price % of Mkt Cap Net Profit PER (x) P/BV (x) EV/EBITDA (x) EPS Growth Div.Yield Code Rating (Rp) Target PT (Rp Bn) 2020 2021 2020 2021 2020 2021 2020 2021 2020 2021 2020 2021 MANSEK universe 5,867 6,875 17.2 4,301,892 273,776 302,064 15.7 14.2 2.3 2.1 13.2 12.3 3.9% 10.3% 2.9% 3.1% Banking 1,720,799 115,815 130,029 14.8 13.2 2.3 2.0 N.A. N.A. 15.2% 12.3% 2.3% 2.7% BBCA Neutral 33,400 31,000 (7.2) 823,477 31,769 34,327 25.9 24.0 4.3 3.9 N.A. N.A. 10.5% 8.1% 1.2% 1.4% BBNI Neutral 7,525 9,000 19.6 140,331 18,879 20,915 7.4 6.7 1.1 1.0 N.A. N.A. 13.4% 10.8% 5.3% 6.1% BBRI Buy 4,550 5,050 11.0 561,008 41,393 47,217 13.6 11.9 2.5 2.2 N.A. N.A. 17.3% 14.1% 3.1% 3.7% BBTN Buy 1,765 2,500 41.6 18,691 3,389 4,031 5.5 4.6 0.8 0.7 N.A. N.A. 1296.3% 18.9% 3.0% 3.9% BDMN Neutral 3,400 4,900 44.1 33,230 4,698 5,825 6.9 5.6 0.7 0.6 N.A. N.A. -19.7% 24.0% 6.2% 4.9% BJBR Neutral 1,000 1,770 77.0 10,056 1,838 2,183 5.5 4.6 0.8 0.7 N.A. N.A. 27.4% 18.8% 7.9% 7.9% BJTM Neutral 635 670 5.5 9,511 1,305 1,470 7.3 6.5 1.0 0.9 N.A. N.A. 4.2% 12.7% 7.2% 7.3% BNGA Buy 815 1,300 59.5 20,482 4,298 4,832 4.8 4.2 0.5 0.4 N.A. N.A. 18.3% 12.4% 3.5% 4.2% BNLI Neutral 1,205 1,490 23.7 33,792 1,528 1,630 22.1 20.7 1.4 1.3 N.A. N.A. 5.6% 6.7% 0.0% 0.0% PNBN Buy 1,185 1,630 37.6 28,544 3,466 3,829 8.2 7.5 0.7 0.6 N.A. N.A. 9.1% 10.5% 0.0% 0.0% BTPS Buy 4,390 4,200 (4.3) 33,819 1,720 2,096 19.7 16.1 5.0 4.0 N.A. N.A. 28.5% 21.9% 0.8% 1.0% BFIN Buy 525 900 71.4 7,856 1,532 1,674 5.1 4.7 0.9 0.8 N.A. N.A. 6.4% 9.2% 5.5% 5.9% Construction & materials 216,482 13,831 16,463 15.7 13.1 1.5 1.4 10.4 9.4 9.5% 19.0% 1.8% 1.7% INTP Buy 16,400 21,600 31.7 60,372 2,313 2,759 26.1 21.9 2.4 2.3 13.7 11.6 32.7% 19.3% 1.0% 1.3% SMGR Buy 11,375 15,920 40.0 67,471 3,988 4,865 16.9 13.9 1.9 1.8 8.7 7.7 88.2% 22.0% 1.8% 1.3% ADHI Neutral 925 1,120 21.1 3,294 619 593 5.3 5.6 0.5 0.5 4.7 4.9 -6.8% -4.2% 4.0% 3.8% PTPP Buy 1,360 2,050 50.7 8,432 981 1,320 8.6 6.4 0.8 0.7 5.8 5.4 2.4% 34.6% 3.4% 3.5% WIKA Buy 1,945 2,500 28.5 17,428 1,671 1,871 10.4 9.3 1.1 1.0 6.7 5.0 -17.2% 12.0% 1.9% 2.1% WSKT Buy 1,095 1,660 51.6 14,652 1,245 1,440 11.8 10.2 0.8 0.7 15.4 13.4 -21.7% 15.6% 1.7% 2.0% WTON Buy 380 700 84.2 3,312 635 738 5.2 4.5 0.9 0.7 3.9 3.4 18.6% 16.3% 4.8% 5.7% WSBP Buy 226 360 59.3 5,958 910 1,026 6.5 5.8 0.7 0.6 5.0 4.3 14.2% 12.9% 6.7% 7.6% JSMR Buy 4,900 7,400 51.0 35,564 1,471 1,851 24.2 19.2 1.8 1.7 13.4 13.5 -33.6% 25.8% 1.2% 0.8% Consumer staples 968,111 45,308 50,498 21.4 19.2 4.9 4.6 13.7 12.3 -7.6% 11.5% 3.7% 3.7% ICBP Buy 10,775 12,350 14.6 125,657 5,414 5,889 23.2 21.3 4.7 4.2 14.2 13.0 7.4% 8.8% 2.1% 2.3% INDF Buy 7,150 9,750 36.4 62,777 4,929 5,272 12.7 11.9 1.7 1.6 7.7 7.4 6.9% 6.9% 4.7% 5.0% MYOR Neutral 1,990 2,850 43.2 44,494 2,152 2,476 20.7 18.0 4.0 3.5 11.1 9.8 15.5% 15.0% 1.6% 1.8% UNVR Neutral 7,475 9,650 29.1 285,171 8,027 8,978 35.5 31.8 44.3 38.6 24.5 22.0 8.3% 11.8% 2.6% 2.8% GGRM Buy 54,575 63,450 16.3 105,007 7,512 8,963 14.0 11.7 1.9 1.7 8.6 7.6 -22.1% 19.3% 2.7% 4.8% HMSP Buy 1,970 2,450 24.4 229,147 12,297 13,379 18.6 17.1 6.6 6.4 14.2 12.9 -22.6% 8.8% 6.8% 5.3% KLBF Buy 1,390 1,950 40.3 65,156 2,742 3,027 23.8 21.5 3.7 3.4 14.9 13.5 7.2% 10.4% 2.1% 2.3% SIDO Buy 1,245 1,450 16.5 18,675 914 1,023 20.4 18.3 5.0 4.5 14.6 13.0 12.8% 11.9% 4.3% 4.8% MLBI Buy 15,200 19,450 28.0 32,026 1,320 1,493 24.3 21.5 21.3 17.7 15.7 13.9 10.4% 13.1% 3.4% 3.7% Healthcare 58,926 1,143 1,325 51.6 44.5 4.4 4.1 18.2 15.9 18.3% 16.0% 0.6% 0.7% MIKA Buy 2,590 3,100 19.7 37,686 794 870 47.5 43.3 7.8 7.1 30.7 27.7 15.1% 9.6% 0.8% 0.9% SILO Buy 6,850 7,150 4.4 11,131 44 100 250.9 111.2 1.7 1.7 9.5 7.8 107.0% 125.6% 0.0% 0.0% HEAL Buy 3,400 5,200 52.9 10,108 304 355 33.2 28.5 4.4 3.9 12.3 10.8 19.4% 16.7% 0.7% 0.8% Consumer discretionary 367,743 31,747 33,629 11.6 10.9 1.7 1.6 8.5 7.9 5.8% 5.9% 3.7% 3.7% ACES Neutral 1,645 1,800 9.4 28,212 1,183 1,306 23.9 21.6 5.1 4.6 19.1 17.0 6.5% 10.4% 2.0% 2.1% LPPF Neutral 3,280 3,300 0.6 9,571 1,563 1,664 6.1 5.8 2.7 2.2 3.2 2.6 10.4% 6.5% 7.4% 8.2% MAPA Buy 4,000 7,350 83.8 11,402 934 1,159 12.2 9.8 3.0 2.4 7.4 5.9 28.4% 24.1% 1.9% 2.5% MAPI Buy 905 1,200 32.6 15,023 1,088 1,311 13.8 11.5 2.1 1.8 5.2 4.3 21.7% 20.5% 0.9% 1.1% RALS Buy 990 1,600 61.6 7,025 667 705 10.5 10.0 1.6 1.5 5.0 4.4 10.1% 5.7% 5.6% 6.2% ERAA Buy 1,760 2,400 36.4 5,614 632 902 8.9 6.2 1.0 0.9 5.6 4.1 140.8% 42.6% 2.3% 3.2% ASII Buy 6,100 8,200 34.4 246,950 21,183 21,717 11.7 11.4 1.5 1.4 9.4 9.0 -1.3% 2.5% 3.9% 3.9% SCMA Buy 1,370 1,800 31.4 20,177 1,566 1,693 12.9 11.9 3.4 3.1 9.0 8.6 35.7% 8.1% 5.4% 5.9% MNCN Buy 1,505 2,200 46.2 18,668 2,427 2,593 7.7 7.2 1.4 1.2 5.3 4.7 24.1% 6.8% 2.0% 2.1% MSIN Buy 394 650 65.0 2,050 267 316 7.7 6.5 1.4 1.2 4.6 4.2 16.3% 18.1% 6.5% 7.7% PZZA Buy 1,010 1,400 38.6 3,052 237 264 12.9 11.6 1.9 1.7 6.5 5.8 18.3% 11.3% 1.3% 1.6% Commodities 234,604 23,800 25,069 9.8 9.4 1.0 0.9 4.2 3.8 -7.7% 5.3% 4.1% 4.2% UNTR Buy 18,325 22,500 22.8 68,355 8,897 9,130 7.7 7.5 1.0 0.9 3.6 3.2 -15.2% 2.6% 3.9% 4.0% ADRO* Neutral 1,320 1,350 2.3 42,221 367 353 8.0 8.4 0.7 0.7 3.4 3.2 -22.7% -3.7% 4.6% 4.4% HRUM* Neutral 1,145 1,300 13.5 2,939 17 14 12.1 15.3 0.7 0.7 -0.6 -1.0 -23.9% -20.3% 4.5% 3.6% INDY* Neutral 805 910 13.1 4,194 2 7 163.4 44.4 0.3 0.3 2.0 1.7 -70.9% 271.2% 0.2% 0.6% ITMG* Neutral 10,050 10,450 4.0 11,020 101 101 7.6 7.7 0.9 0.9 2.2 2.1 -22.1% 0.1% 11.2% 11.1% PTBA Neutral 2,330 2,350 0.9 26,847 3,464 3,466 7.7 7.7 1.5 1.4 4.6 4.6 -15.2% 0.1% 9.7% 9.7% ANTM Buy 675 1,100 62.9 16,221 959 1,319 16.9 12.3 0.8 0.7 8.6 7.8 5.5% 37.6% 2.1% 2.8%

Please see important disclosure at the back of this report Page 5 of 7 Equity Research | 17 February 2020

Price Price % of Mkt Cap Net Profit PER (x) P/BV (x) EV/EBITDA (x) EPS Growth Div.Yield Code Rating (Rp) Target PT (Rp Bn) 2020 2021 2020 2021 2020 2021 2020 2021 2020 2021 2020 2021 INCO* Buy 3,130 4,000 27.8 31,101 111 170 19.6 12.9 1.1 1.0 6.1 4.9 106.7% 52.5% 1.5% 2.3% TINS Neutral 670 870 29.8 4,990 394 429 12.7 11.6 0.8 0.7 6.2 5.9 N/M 8.8% 2.8% 3.0% MDKA* Buy 1,220 1,600 31.1 26,715 107 112 17.4 16.8 3.1 2.6 9.0 8.3 29.8% 4.5% 0.0% 0.0% Property & Industrial Estate 117,625 10,555 9,376 11.1 12.5 0.9 1.0 9.3 8.9 -4.7% -11.2% 1.8% 1.8% ASRI Neutral 170 310 82.4 3,340 468 948 7.1 3.5 0.3 0.3 10.3 7.1 -29.4% 102.6% 1.2% 1.2% BSDE Buy 1,065 1,650 54.9 20,498 2,086 2,119 9.8 9.7 0.7 0.6 8.0 8.0 -14.5% 1.6% 0.0% 0.5% CTRA Buy 880 1,550 76.1 16,333 1,128 1,366 14.5 12.0 1.0 0.9 10.2 9.7 17.0% 21.0% 0.9% 1.1% JRPT Buy 498 1,050 110.8 6,848 949 1,035 7.2 6.6 0.9 0.8 6.3 5.3 -6.0% 9.0% 3.4% 4.2% PWON Buy 555 800 44.1 26,729 2,532 2,532 10.6 10.6 1.6 1.4 7.9 7.7 0.3% 0.0% 1.1% 1.1% SMRA Neutral 850 1,330 56.5 12,263 550 722 22.3 17.0 1.6 1.5 10.6 9.5 54.4% 31.1% 0.6% 0.6% LPKR Buy 234 360 53.8 16,519 861 812 19.2 20.4 0.5 0.5 13.5 13.1 -54.0% -5.7% 0.4% 0.4% DMAS Buy 282 390 38.3 13,592 1,441 1,086 9.4 12.5 1.9 1.9 8.9 12.1 81.9% -24.7% 8.5% 7.2% BEST Buy 156 400 156.4 1,505 540 700 2.8 2.1 0.3 0.3 4.1 3.3 19.4% 29.8% 7.1% 9.3% Telco 481,482 23,972 27,310 20.1 17.6 3.0 2.8 6.1 5.7 -11.4% 13.9% 3.7% 3.9% EXCL Buy 2,620 4,000 52.7 28,002 954 1,637 29.3 17.1 1.4 1.3 5.1 4.7 33.9% 71.5% 0.8% 1.0% TLKM Buy 3,640 4,400 20.9 360,586 20,159 21,712 17.9 16.6 3.3 3.2 6.0 5.7 3.2% 7.7% 4.2% 4.5% ISAT Buy 2,100 3,500 66.7 11,411 -1,420 -685 -8.0 -16.7 0.9 1.0 4.2 3.9 N/M 51.8% 0.0% 0.0% LINK Buy 3,600 5,500 52.8 10,482 980 1,017 10.9 10.5 2.0 1.8 4.8 4.5 -3.3% 3.8% 4.7% 4.9% TBIG Buy 1,225 1,420 15.9 26,588 1,010 1,208 26.3 22.0 6.5 5.7 11.9 11.1 10.7% 19.7% 2.3% 2.3% TOWR Buy 885 1,030 16.4 44,411 2,289 2,420 19.4 18.4 4.4 3.9 10.2 9.8 8.2% 5.7% 2.7% 2.7% Chemical 1,763 136 163 13.0 10.8 0.5 0.5 6.0 5.4 29.5% 20.3% 0.0% 0.0% AGII Buy 575 700 21.7 1,763 136 163 13.0 10.8 0.5 0.5 6.0 5.4 29.5% 20.3% 0.0% 0.0% Airlines 2,795 540 837 5.2 3.3 0.5 0.4 4.4 2.7 30.0% 55.0% 0.0% 0.0% GMFI* Neutral 99 275 177.5 2,795 38 59 5.2 3.3 0.5 0.4 4.4 2.7 26.1% 56.3% 0.0% 0.0% Transportation 6,030 369 421 16.3 14.3 1.1 1.0 6.1 5.8 21.4% 13.9% 1.7% 1.9% BIRD Buy 2,410 3,100 28.6 6,030 369 421 16.3 14.3 1.1 1.0 6.1 5.8 21.4% 13.9% 1.7% 1.9% Poultry 125,533 6,561 6,944 19.1 18.1 3.2 2.9 11.5 10.5 16.7% 5.8% 1.5% 1.7% CPIN Neutral 6,475 4,950 (23.6) 106,177 4,219 4,490 25.2 23.6 4.4 3.9 15.7 14.6 16.4% 6.4% 1.3% 1.5% JPFA Buy 1,495 1,950 30.4 17,531 2,042 2,127 8.6 8.2 1.4 1.3 6.0 5.2 19.0% 4.1% 2.7% 3.2% MAIN Buy 815 1,150 41.1 1,825 300 327 6.1 5.6 0.7 0.7 4.2 3.8 7.1% 9.3% 2.1% 2.2% Note: - *) net profit in USD mn - U/R means Under Review - n/a means Not Available - N/M means Not Meaningful - N.A means Not Applicable

Please see important disclosure at the back of this report Page 6 of 7 Mandiri Sekuritas A subsidiary of PT Bank Mandiri (Persero) Tbk Menara Mandiri Tower I, 25th floor, Jl. Jend. Sudirman Kav. 54 – 55, Jakarta 12190, Indonesia General: +62 21 526 3445, Fax : +62 21 527 5374 (Equity Sales)

RESEARCH

Adrian Joezer Head of Equity Research, Strategy, Consumer [email protected] +6221 5296 9415 Tjandra Lienandjaja Deputy Head of Equity Research, Banking [email protected] +6221 5296 9617 Ariyanto Kurniawan Automotive, Coal, Metal Mining, Chemical [email protected] +6221 5296 9682 Kresna Hutabarat Telecom, Media [email protected] +6221 5296 9542 Lakshmi Rowter Healthcare, Consumer, Retail [email protected] +6221 5296 9549 Robin Sutanto Property, Building Material [email protected] +6221 5296 9572 Edbert Surya Construction, Transportation [email protected] +6221 5296 9623 Silvony Gathrie Banking, Research Assistant [email protected] +6221 5296 9544 Riyanto Hartanto Poultry, Research Assistant [email protected] +6221 5296 9488 Henry Tedja Research Assistant [email protected] +6221 5296 9434 Wesley Louis Alianto Research Assistant [email protected] +6221 5296 9510 Leo Putera Rinaldy Chief Economist [email protected] +6221 5296 9406 Imanuel Reinaldo Economist [email protected] +6221 5296 9651

INSTITUTIONAL SALES

Silva Halim Managing Director [email protected] +6221 527 5375 Lokman Lie Head of Equity Capital Market [email protected] +6221 527 5375 Andrew Handaya Institutional Sales [email protected] +6221 527 5375 Feliciana Ramonda Institutional Sales [email protected] +6221 527 5375 Henry Pranoto Institutional Sales [email protected] +6221 527 5375 Kevin Giarto Institutional Sales [email protected] +6221 527 5375 Sharon Anastasia Tjahjadi Institutional Sales [email protected] +6221 527 5375 Talitha Medha Anindya Institutional Sales [email protected] +6221 527 5375 Angga Aditya Assaf Institutional Sales [email protected] +6221 527 5375 Ilona Carissa Institutional Sales [email protected] +6221 527 5375 Kusnadi Widjaja Equity Dealing [email protected] +6221 527 5375 Edwin Pradana Setiadi Equity Dealing [email protected] +6221 527 5375 Jane Theodoven Sukardi Equity Dealing [email protected] +6221 527 5375 Michael Taarea Equity Dealing [email protected] +6221 527 5375

RETAIL SALES

Andreas M. Gunawidjaja Head Retail Equities [email protected] +6221 526 9693 Boy Triyono Jakarta [email protected] +6221 526 5678 Dhanan Febrie Handita Bandung [email protected] +6222 426 5088 Yogiswara Perdana [email protected] +62274 560 596 Widodo Solo [email protected] +62271 788 9290 Linawati [email protected] +6231 535 7218 Ruwie Medan [email protected] +6261 8050 1825 Aidil Idham Palembang [email protected] +62711 319 900 Yuri Ariadi Pontianak [email protected] +62561 582 293

INVESTMENT RATINGS: Indicators of expected total return (price appreciation plus dividend yield) within the 12-month period from the date of the last published report, are: Buy (15% or higher), Neutral (-15% to15%) and Sell (-15% or lower).

DISCLAIMER: This report is issued by PT. Mandiri Sekuritas, a member of the Indonesia Stock Exchanges (IDX) and Mandiri Sekuritas is registered and supervised by the Financial Services Authority (OJK). Although the contents of this document may represent the opinion of PT. Mandiri Sekuritas, deriving its judgement from materials and sources believed to be reliable, PT. Mandiri Sekuritas or any other company in the Mandiri Group cannot guarantee its accuracy and completeness. PT. Mandiri Sekuritas or any other company in the Mandiri Group may be involved in transactions contrary to any opinion herein to make markets, or have positions in the securities recommended herein. PT. Mandiri Sekuritas or any other company in the Mandiri Group may seek or will seek investment banking or other business relationships with the companies in this report. For further information please contact our number 62-21-5263445 or fax 62-21-5275374.

ANALYSTS CERTIFICATION: Each contributor to this report hereby certifies that all the views expressed accurately reflect his or her views about the companies, securities and all pertinent variables. It is also certified that the views and recommendations contained in this report are not and will not be influenced by any part or all of his or her compensation.