BCA Vista Morning Digest 13 JULY 2016

Vol TODAY'S HEADLINES INDICES Last Chg (%) YTD (%) (US$ m) ASEAN Macro Indonesia (IDX) 5,099.53 0.60 11.03 537.32 CCI increased by 1.6pts in Jun-16 MoM. (Bloomberg) Malaysia (KLCI) 1,653.97 0.01 (2.31) 207.61 Philippines (PCOMP) 7,937.95 0.92 14.18 159.01 Industry/Corporate Singapore (STI) 2,901.82 0.89 0.57 491.77 The government approved the rights issue of four SOEs. (Investor Daily) Thailand (SET) 1,474.92 0.44 14.51 1,752.62 OJK expects loans to grow 13% in 2H16. (Kontan) REGIONAL & USA Bumi Sepong Damai (BSDE IJ) plan to launch new cluster in BSD city. China (SHCOMP) 3,049.38 1.82 (14.65) 43,151.76 (Company) Hongkong (Hang Seng) 21,224.74 1.65 (3.00) 3,481.71 (BMRI IJ) hopes to collect IDR100tn from repatriated funds. India (SENSEX) 27,808.14 0.66 7.12 80.97 ( Post) Japan (Nikkei) 16,095.65 2.46 (15.44) 14,847.57 Korea (KOSPI) 1,991.23 0.14 1.53 3,843.84 Taiwan (TWSE) 8,841.46 0.63 6.78 2,713.93 USA (Dow Jones) 18,347.67 0.66 4.23 6,191.57 Source: Bloomberg

CURRENCIES & RATES Last -1 Week -1 Month EoP 2015

IDR/USD 13,120 13,115 13,294 13,788 IDR/USD (1-month NDF) 13,131 13,173 13,383 13,918 BI Rate 6.50 6.50 6.75 7.50 JIBOR (ON / 1 yr) 4.70 / 7.73 4.90 / 7.76 4.95 / 7.81 8.26 / 9.07 FASBI ON / SBI 9 mth 4.50 / 6.40 4.50 / 6.40 4.75 / 6.60 5.50 / 7.10 Please see the overleaf for news details Term Deposit ( 1 mth / 6 mth) 4.70 / 4.85 4.70 / 4.85 4.70 / 4.85 4.70 / 4.85 Base Lending Avg (IDR / USD) 13.71 / 5.22 13.50 / 5.25 13.46 / 5.26 14.52 / 5.05 CDS - 5 year (bps) 169.11 182.34 191.40 229.56 Yield 10 Yr 7.10 7.38 7.65 8.76 Source: Bloomberg

COMMODITIES Last Chg (%) MoM (%) YTD (%)

Coal (USD/ton) 60.70 1.85 14.53 19.25 Cocoa (USD/mt) 3,114.00 0.42 0.48 (3.11) Corn (USD/mt) 352.25 1.15 (17.60) (6.25) Brent Crude oil (USD/b) 48.47 4.80 (4.98) 16.35 Gold (USD/toz) 1,333.10 (1.65) 4.62 25.59 Nickel (USD/mt) 10,490.00 4.43 17.54 20.57 Palm oil (MYR/mt) 2,188.00 (2.32) (15.19) (12.30) Pulp (USD/t) 811.93 0.26 0.99 1.07 Sugar (USD/lb) 19.72 (2.76) (0.05) 35.72 Tin (USD/mt) 17,990.00 0.64 5.20 22.80 Wheat (USD/bsh) 438.50 1.86 (13.43) (11.05) Source: Bloomberg

ETF & ADR Last Chg (%) MoM (%) YTD (%)

EIDO US (USD) 25.23 1.41 10.13 20.14 TLK US (USD) 63.04 0.77 11.42 41.69 Source: Bloomberg

IDX - TOP MOVERS AND LAGGARDS Last Chg (%) INDONESIAN GOVERNMENT BOND YIELD - GENERIC (IDR m) MOVERS Yield 2Y Yield 5Y Yield 10Y % BMRI BANK MANDIRI 10,175 4.90 522,682.0 10.0 BBCA BANK CENTRAL ASIA 13,750 1.85 524,535 9.5 BNII 344 24.64 31,129 9.0 BBRI 11,500 1.32 366,321 8.5 TLKM TELEKOMUNIKASI INDONESIA 4,100 0.74 592,296 LAGGARDS 8.0 HMSP HM SAMPOERNA 3,720 (1.33) 80,291 7.5 UNVR UNILEVER INDONESIA 44,325 (1.50) 115,912 7.0 GGRM GUDANG GARAM 70,225 (2.47) 215,740 6.5 INTP INDOCEMENT TUNGGAL PRAKARSA 16,500 (3.51) 69,081 1-Sep 14-Sep 27-Sep 10-Oct 23-Oct 5-Nov 18-Nov MIKA MITRA KELUARGA KARYASEHAT 2,640 (4.35) 15,733 Source: Bloomberg Source: Bloomberg

Page 1 of 4 BCA Vista Indonesia Morning Digest 13 JULY 2016

TODAY'S NEWS

MACRO

CCI increased by 1.6pts in Jun-16 MoM Consumer was more optimistic on the economic condition in Jun-16 as shown by Consumer Confidence Index (CCI) released by Central Bank that posted an improvement at 113.7 vs. 112.1 in May-16. (Bloomberg).

CORPORATE/INDUSTRY

The government approved the rights issue of four SOEs The government has recently approved the rights issue of four SOEs, which are JSMR, WIKA, KRAS and PTPP. Total value of the rights issue is IDR14.3tn, including government capital injection (PMN). Total value of PMN is IDR9tn, with details as follow: WIKA will obtain IDR4tn, PTPP will obtain IDR2.3tn, while JSMR and KRAS will obtain IDR2.3tn and IDR1.5tn respectively. Total fundraising from public is predicted to reach IDR5.3tn, in which WIKA, PTPP, JSMR and KRAS will obtain IDR 2.1tn, IDR2.2tn, IDR575bn and IDR375tn, respectively. (Investor Daily).

OJK expects bank loans to grow 13% in 2H16 Financial Service Authority (OJK) predicts bank loans to grow 10-13% YoY in 2H16, due to better economic condition. Additionally, the potential fund from the tax amnesty program will elevate bank liquidity. (Kontan).

Bumi Sepong Damai (BSDE IJ) plan to launch new cluster in BSD city BSDE plan to launch new cluster, named Buenos Park on Jul-23. The cluster is an extension cluster of De Latinos. Buenos Park is landed residential development, and located at 1st phase of BSD city, nearby Rawa Buntu train station. The company plans to launch 149 units with several types, starting from 60 sqm to 135 sqm of land area, and 65 sqm to 85 sqm of building size. Selling prices of Buenos Park are starting from IDR927mn to IDR2.3bn. (Company).

Bank Mandiri (BMRI IJ) hopes to collect IDR100tn from repatriated funds Bank Mandiri expects to collect more than IDR100tn from repatriated funds resulting from the tax amnesty program. The bank will maximize the use of its branches in the designated cities for submission points (Singapore, Hong Kong, and London) as payment gateways. Bank Mandiri and Bank BNI are the only out of the 9 perceived banks that have branches in those cities (Jakarta Post).

Page 2 of 4 BCA Vista Indonesia Morning Digest 13 JULY 2016

STOCK'S VALUATION

P/E EV/EBITDA EPS Growth TP (IDR) P/E EV/EBITDA EPS Growth TP (IDR) 2016 2017 2016 2017 2016 2017 Cons 2016 2017 2016 2017 2016 2017 Cons

RETAIL CONSUMER ACES 26.2 23.4 18.6 16.6 5.2 12.0 965 AISA 14.9 12.6 9.5 8.0 19.5 18.2 1,580 AMRT 38.0 29.1 10.4 9.0 38.4 30.4 661 ASII 17.7 15.5 14.2 12.8 14.6 14.5 6,930 LPPF 27.8 24.0 20.2 17.7 22.3 16.0 20,714 GGRM 19.3 17.1 11.7 10.5 8.9 13.5 76,850 MAPI 33.0 18.7 8.3 6.8 436.2 76.7 4,580 HMSP 36.4 32.8 26.2 23.6 10.0 11.0 11,414 MPPA 69.8 32.2 14.3 11.1 (32.6) 169.2 1,537 ICBP 28.2 25.6 18.3 16.6 19.6 10.2 16,765 RALS 20.0 17.9 11.6 9.8 6.4 11.7 907 INDF 16.2 14.3 9.0 8.1 31.5 12.9 8,511 Simple Avg 35.8 24.2 13.9 11.8 79.3 52.7 KLBF 33.6 29.6 22.1 19.5 10.4 13.4 1,488 ROTI 27.7 23.5 15.1 12.8 10.1 18.0 1,614 CEMENT UNVR 52.9 47.4 37.4 33.5 9.2 11.8 41,586 INTP 13.8 13.2 8.3 7.9 #N/A N/A 4.6 17,793 Simple Avg 26.3 23.2 17.4 15.4 13.9 13.9 SMCB 33.1 22.5 9.8 8.9 45.9 46.9 957 SMGR 13.0 12.0 7.7 7.2 (0.8) 8.3 10,546 MINING Simple Avg 20.0 15.9 8.6 8.0 22.5 19.9 MINING ------ADRO 18.5 18.5 6.5 6.3 (16.1) - 892

TELECOMMUNICATION ANTM #N/A N/A #N/A N/A 22.5 18.3 82.7 36.8 558

EXCL 42.4 21.6 6.1 5.5 2,972.5 96.0 4,418 INCO #N/A N/A 84.4 11.7 9.0 (100.0) #N/A N/A 1,859 ISAT 31.9 18.3 4.7 4.3 202.5 74.7 7,099 ITMG 12.1 13.8 3.7 4.0 6.7 (12.5) 7,886 TBIG 24.1 19.8 15.5 14.0 (8.3) 22.0 6,381 PTBA 11.1 10.5 7.7 7.0 (11.9) 5.7 7,859 TLKM 21.9 19.0 7.4 6.8 18.5 15.2 4,080 Simple Avg 13.9 31.8 10.4 8.9 (7.7) 7.5 TOWR 19.9 16.2 11.5 10.0 (27.6) 22.5 4,731 Simple Avg 24.5 18.3 9.8 8.8 46.3 33.6 CONSTRUCTION ADHI 16.5 12.5 7.6 5.8 (17.1) 32.5 3,293 MEDIA PTPP 20.4 16.2 9.5 7.5 24.9 26.3 4,585 MNCN 17.8 15.2 11.7 10.2 49.1 16.6 2,459 WIKA 22.8 17.6 10.4 7.8 23.0 30.1 3,094 SCMA 28.8 25.5 20.4 18.1 9.5 13.0 3,538 WSKT 23.3 18.8 15.2 11.4 21.3 23.8 2,745 Simple Avg 23.3 20.4 16.0 14.2 29.3 14.8 WTON 27.9 21.3 16.4 12.4 69.7 31.0 1,072 ACST 13.4 9.8 9.3 6.8 185.9 37.3 4,077 POULTRY TOTL 11.5 9.8 6.8 5.6 19.1 17.6 957 CPIN 22.8 18.9 14.7 12.9 48.5 20.5 3,636 Simple Avg 19.4 15.1 10.7 8.2 46.7 28.4 JPFA 16.0 13.1 8.0 7.0 70.0 22.3 1,134 MAIN 19.2 13.5 9.8 8.0 353.5 42.8 1,582 PROPERTY Simple Avg 19.3 15.2 10.8 9.3 157.3 28.5 ASRI 9.8 9.0 9.2 8.8 62.6 9.5 431 BSDE 16.7 14.5 13.7 12.0 12.4 14.7 2,261 PLANTATION CTRA 16.3 14.0 10.5 9.5 6.8 17.0 1,465 AALI 15.0 13.0 10.1 8.7 154.1 14.8 17,387 KIJA #N/A N/A #N/A N/A #N/A N/A #N/A N/A #N/A N/A #N/A N/A 350 BWPT 50.7 28.1 #N/A N/A #N/A N/A 175.4 80.5 273 SMRA 30.5 24.4 15.8 14.1 4.0 24.9 1,770 DSNG 13.2 10.1 9.0 7.4 40.6 31.0 578 SSIA 9.2 8.1 4.4 4.0 6.6 12.8 749 LSIP 14.0 11.9 7.1 6.2 9.9 17.4 1,736 Simple Avg 16.5 14.0 10.7 9.7 18.5 15.8 Simple Avg 23.2 15.8 8.7 7.4 95.0 35.9 HEALTHCARE P/E P/B EPS Growth TP (IDR) MIKA 57.4 50.7 42.5 35.7 18.0 13.1 2,913 2016 2017 2016 2017 2016 2017 Cons SILO 136.0 93.4 18.9 14.9 32.8 45.6 11,770 Simple Avg 96.7 72.0 30.7 25.3 25.4 29.4 BANKING BBCA 17.4 15.6 3.2 2.8 8.4 11.5 14,488 OTHER BBNI 9.3 7.8 1.2 1.1 19.9 19.4 5,768 AKRA 22.4 19.4 15.6 13.4 12.8 15.6 7,209 BBRI 11.0 9.8 2.1 1.8 1.3 12.8 11,808 ARNA 23.7 16.9 13.2 10.0 173.1 39.7 730 BBTN 8.5 7.2 1.2 1.0 22.1 17.9 1,920 BIRD 11.6 10.5 6.5 5.8 4.2 10.9 5,650 BDMN 11.1 9.7 1.0 0.9 32.3 15.0 3,452 JSMR 22.7 22.3 11.3 10.3 9.9 1.8 6,243 BJBR 7.1 6.3 1.3 1.1 12.4 13.6 1,137 PGAS 10.7 9.6 7.0 6.4 (10.0) 11.1 2,974 BJTM 7.6 6.8 1.2 1.1 14.7 13.2 512 TELE 9.9 8.1 6.9 6.0 26.7 21.6 900 BMRI 12.2 10.5 1.7 1.5 (4.1) 16.1 10,001 UNTR 12.0 11.6 4.2 4.1 24.7 4.0 15,011 Simple Avg 10.5 9.2 1.6 1.4 13.4 14.9 Simple Avg 16.1 14.1 9.2 8.0 34.5 14.9

Source: Bloomberg

Page 3 of 4 BCA Vista Indonesia Morning Digest 13 JULY 2016

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