INVESTOR DIGEST Equity Research | 27 June 2019

Economic Data HIGHLIGHT Latest 2019F  Bank BNI: 5M19 Results - Below Expectations (BBNI; Rp8,850; Neutral; Tp: Rp9,000) 7-DRRR (%), eop 6.00 5.75  Bank Jabar: 5M19 Results - Below Expectations (BJBR; Rp1,685; Neutral; TP: Rp1,770) Inflation (YoY %) 3.32 3.80  Market Recap June 26th 2019; JCI 6,310.49 Points -9.96 pts (-0.16%); VAalued US$ 1 = Rp, period avg 14,170 14,450 $505mn; Mkt Cap $497bn; USD/IDR 14,170

Stock Market Data CORPORATE (26 June 2019)

Bank BNI: 5M19 Results - Below Expectations (BBNI; Rp8,850; Neutral; Tp: JCI Index 6,310.5 -0.16% Rp9,000) Trading T/O ( Rp bn ) 7,160.7 Market Cap ( Rp tn ) 7,186.0  BBNI reported bank only net income of Rp5.4tn in 5M19, +1% yoy, accounting for 32% of FY19 consensus and 33% of Mansek’s expectations. Consolidated net income is estimated at Rp5.6tn, accounting for 33% of FY19 Market Data Summary* consensus and 34% of Mansek’s expectations – below expectations. The operating income which grew +5% yoy was offset by provision expenses growth 2019F 2020F of +7% yoy and operating expenses growth of +4% yoy, leading to a +1% yoy growth in the bottom line while PPOP increased +6% yoy. May19 net income is P/E (x) 17.4 16.1 Rp1.19tr. +29% yoy/+249% mom on normalized provisioning charges. P/BV (x) 2.5 2.4 EV/EBITDA (x) 13.8 13.2  Loan growth remained strong at +19% yoy/+2% mom and deposit growth Div. Yield (%) 2.5 2.7 +10% yoy/+3% mom. Deposit growth was supported by time deposits at +19% Net Gearing (%) 18.1 16.6 yoy, followed by savings deposits at +10% yoy, and demand deposit at +1% yoy, ROE (%) 15.2 15.1 resulted in CASA ratio of 61% in May-19 vs. 64% in May-18. LDR was at 94% in EPS Growth (%) 8.2 7.7 May-19 from 87% in May-18. EBITDA Growth (%) 4.7 4.7  NIM declined to 4.9% in 5M19 from 5.5% in 5M18, due to rising cost of funds Earnings Yield (%) 5.7 6.2 and declining asset yield. On a monthly basis, however, NIM improved to 5.2% in

May-19 from 4.6% in Apr-19 mostly over increase in asset yield. * Aggregate of 74 companies in MS research universe, representing 63.9%of JCI’s market capitalization  Cost to income ratio was stable at 45% in 5M19 and 5M18.

 Provision expenses increased +7% yoy to Rp3.5tn in 5M19. Mansek estimates the bank to have written off ca. Rp2.0tn of bad debts in 5M19 vs. Rp3.6tn in 5M18. Cost of credit declined to 1.7% in 5M19 from 1.9% in 5M18 while provisioning to total loans declined to 3.1% in May-19 from 3.2% in May-18. We understand BBNI will book more provisioning for KRAS, amounting to around Rp500bn in Jun19 to reach the 20% provisioning level for the Rp5tr exposure.

 Maintain Neutral with TP of Rp9,000. BBNI is trading at 1.4x 2019F P/BV.

Please see important disclosure at the back of this report Page 1 of 9 Equity Research | 27 June 2019

%of Income Statement %of FY19 May-18 Apr-19 May-19 %MoM %YoY 5M18 5M19 %YoY FY19F FY19F (Rp bn) FY19F Cons Cons Net interest income 2,920 2,521 2,811 11 (4) 13,258 13,439 1 39,520 34 Non-interest income 892 984 1,226 25 37 4,535 5,247 16 14,967 35 Operating income 3,812 3,505 4,037 15 6 17,793 18,685 5 54,486 34 54,036 35 Provision expenses (1,154) (1,453) (554) (62) (52) (3,301) (3,544) 7 (9,550) 37 Operating expenses (1,571) (1,597) (1,973) 24 26 (8,011) (8,342) 4 (24,139) 35 Operating profit 1,087 456 1,511 232 39 6,481 6,799 5 20,797 33 21,934 31 PPOP 2,241 1,909 2,065 8 (8) 9,782 10,343 6 30,348 34 Pre-tax profit 1,138 420 1,501 258 32 6,717 6,779 1 20,985 32 21,718 31 Net profit 919 340 1,186 249 29 5,374 5,416 1 16,642 33 17,042 32

Balance Sheet (Rp bn) May-18 Apr-19 May-19 %MoM %YoY Gross loans 421,390 493,878 503,027 219 Demand deposits 150,778 151,582 151,580 (0) 1 Saving deposits 161,509 167,352 177,218 610 Time deposits 174,761 205,194 208,599 219 Total deposits 487,049 524,129 537,397 310

CASA to deposits (%) 64.1 60.9 61.2

Ratio (%) May-18 Apr-19 May-19 5M18 5M19 LDR 86.5 94.2 93.6 86.5 93.6 NIM 5.9 4.6 5.2 5.5 4.9 ROE 11.9 3.8 13.2 13.7 12.4 Cost to income 41.2 45.5 48.9 45.0 44.6 Cost of credit - net 3.3 3.5 1.3 1.9 1.7 Provisioning level 3.2 3.0 3.1 3.2 3.1

Tjandra Lienandjaja (+6221 5296 9617) [email protected] Priscilla Thany (+62 21 5296 9546) [email protected] Silvony Gathrie (+6221 5296 9544) [email protected]

Bank Jabar: 5M19 Results - Below Expectations (BJBR; Rp1,685; Neutral; TP: Rp1,770)

 BJBR reported bank only net income of Rp589bn in 5M19, -19%yoy, translating into 30% of FY19 consensus and 41% of Mansek’s expectations. If we add up Rp7.2bn of BJB Sharia net income in 5M19, consolidated net income totaled to Rp596bn, translating into 31% of consensus’ and 41% of our expectations – below expectations. Weak operating income was the main reason behind the decline in net income growth. PPOP declined -17%yoy.

 Loan growth +7%yoy/+1% mom, deposit growth +2%yoy/-6% mom. We believe Bank Jabar’s loan growth continues to be supported by consumer loans growth. Deposits growth is driven by savings deposit at +23%yoy and time deposit at +4%yoy, while demand deposit declined -20yoy. CASA ratio now accounts for 43% of total deposits in May-19 vs. 44% in May-18, while LDR tightened to 90.4% in 5M19 vs. 86% in 5M18.

 NIM declined to 5.8% in 5M19 from 6.2% in 5M18 over rising cost of funds. May-19’s NIM also declined to 5.7% from 6.1% in Apr-19 over the same reason.

 Cost to income ratio increased to 69% in 5M19 vs. 64% in 5M18.

 Provision expenses declined by -11%yoy in 5M19 to Rp116bn. Cost of credit remained stable at 0.4% in 5M19 and 5M18 while provision to total loans increased to 1.7% in May-19 from 0.8% in May-18 as the bank increased its coverage ratio to 100% through retained earnings adjustment in May-19.

Please see important disclosure at the back of this report Page 2 of 9 Equity Research | 27 June 2019

 Maintain Neutral with TP Rp1,770. The stock is trading at 1.4x 2019F P/BV.

%of Income Statement %of FY19 May-18 Apr-19 May-19 %MoM %YoY 5M18 5M19 %YoY FY19F FY19F (Rp bn) FY19F Cons Cons Net interest income 533 523 476 (9) (11) 2,537 2,391 (6) 6,759 35 Non interest income 79 96 80 (17) 0 412 416 1 1,103 38 Operating income 613 619 555 (10) (9) 2,949 2,807 (5) 7,862 36 9,846 29 Provision expenses (10) (35) (24) (33) 125 (131) (116) (11) (706) 16 Operating expenses (377) (509) (394) (23) 4 (1,888) (1,924) 2 (5,260) 37 Operating profit 225 74 138 86 (39) 930 767 (18) 1,896 40 2,076 37 PPOP 236 110 162 47 (31) 1,061 884 (17) 2,602 34 Pre-tax profit 223 91 133 46 (40) 930 751 (19) 1,926 39 2,077 36 Net profit 174 72 105 46 (40) 726 589 (19) 1,444 41 1,934 30

Balance Sheet (Rp bn) May-18 Apr-19 May-19 %MoM %YoY Gross loans 71,702 75,746 76,755 17 Demand deposits 20,775 22,948 16,587 (28) (20) Saving deposits 16,184 16,740 19,901 19 23 Time deposits 46,428 51,126 48,450 (5) 4 Total deposits 83,387 90,813 84,937 (6) 2

CASA to deposits (%) 44.3 43.7 43.0

Ratio (%) May-18 Apr-19 May-19 5M18 5M19 LDR 86.0 83.4 90.4 86.0 90.4 NIM 6.6 6.1 5.7 6.2 5.8 ROE 18.2 6.7 9.9 16.0 11.0 Cost to income 61.5 82.3 70.9 64.0 68.5 Cost of credit - net 0.2 0.6 0.4 0.4 0.4 Provisioning level 0.8 0.9 1.7 0.8 1.7

Silvony Gathrie (+6221 5296 9544) [email protected] Tjandra Lienandjaja (+6221 5296 9617) [email protected] Priscilla Thany (+62 21 5296 9546) [email protected]

MARKET

Market Recap June 26th 2019; JCI 6,310.49 Points -9.96 pts (-0.16%); VAalued $505mn; Mkt Cap $497bn; USD/IDR 14,170

 TOP TURNOVER: BBRI PGAS BBCA BMRI PTBA TLKM ADRO ERAA INDY ASII BBNI MNCN BTPS GGRM (40%)

 ADVANCING SECTOR: telco+5.6%; construction+0.4%

 DECLINING SECTOR: plantation-1.2%; cement-1%; auto-0.7%; mining-0.5%; consumer & property-0.2%; financial flat

 Indo stocks traded in narrow range, with the Fed officials tempered expectations in the markets for aggressive monetary easing, pushing back against US President Donald Trump’s demand for a significant rate cut. According to CME Group’s FedWatch program, federal funds futures implied that traders saw a 27% chance of the Fed lowering rates by half a percentage point in July, compared to 42% on Monday. Investors’ focus also remained on the G20 summit. Market expectations for a meaningful breakthrough being achieved in US-China trade talks are quite low, so any signs of an improvement could bode well for risk sentiment. The share price of PGAS jumped by 6% to close at 2140 level in 2.2x avg five-week vol after several upgrades by multiple brokerage firms to outperform amid potential recovery on distribution volume in 2H19 after a weak 1Q19 (to 960-970 mmscfd). The share price of PNLF rose by 2.5% to close at 330 level (vs. day high of +8.1% at 348) in 2.6x avg five-week vol on news report that one of agenda on AGM held today is tender offer, with PNIN (+3.3% at 1400 level in 1.7x avg five-week vol) as standby buyer and Evergreen Capital as buyer broker for the process. PNBN also rose by 4.6% at 1255 level in 1.6x avg five-week vol. While, the share price of ASII declined by 1.4% to close at 7250 level in 0.6x avg five-week vol on expected drop in 2Q19 car sales amid weak volume in May owing to

Please see important disclosure at the back of this report Page 3 of 9 Equity Research | 27 June 2019

Lebaran season. Toward the end, profit taking hit coal miners: ADRO+2.3% INDY-0.9% ITMG-1.7% PTBA-2.3% DOID-3.7% HRUM-4.7%. The JCI ended 0.2% lower at 6310 level. Market turnover (excluding $4.7MN ESSA; $3.9MN TARA crossing) was steady at $505MN. Foreign participants at 29% came up better buyer for 11%. Losers beat gainers by 12 to 10.

 The DXY stood at 96.177, holding to modest gains made the previous day. The index had bounced back from 95.843 on Tue, its lowest level since March 21st, following comments from the top Fed officials. While, the IDR retreated at 14170 level. US crude oil futures edged up to a four-week high of $58.87 per barrel after data showed a decline in US crude stocks. Spot gold slipped from a six-year high of $1438.63 an ounce after the comments from Fed officials trimmed expectations for a rate hike in July. Gold last traded at $1418.18 an ounce.

Sales Team +6221 527 5375

FROM THE PRESS

Government to cull Parent Stock (PS) broiler chicken to stabilize prices Government via Ministry of Agriculture issued regulation for all breeder to cull their PS broiler with age >68 weeks for 2 weeks from 26 June – 9 July 2019. There is approximately 3mn PS broiler that will be culled early in the 2 weeks policy. This regulation will replaced the previously proposed regulation to cut 30% of DOC FS production. (Bisnis)

Liquidity has started to improve The OJK believes that liquidity has started to show improvement on the past two months, supported by time deposit growth. Deputy commissioner of public relation and strategic management of OJK, Anto Prabowo states that deposit grew +6.27%yoy in May vs. +6.63% in Apr-19, while time deposit grew +8.84% vs. +7.21% in Apr-19. He projects loan growth to remain strong post election. Meanwhile, loans grew stable at +11.05%yoy in May-19, supported by investment loans +15.70%yoy, the highest recorded in the past three years, working capital loans grew at +10.22%yoy and consumer loans at +8.35%yoy. Based on sector, construction and mining posted the highest growth at +28.14%yoy and +29.33%yoy (Bisnis Indonesia, Investor Daily)

Ministry of Communication and Information might include MVNO in OTT regulation Ministry of Communication and Information might include Mobile Virtual Network Operator (MVNO) in Over-The-Top (OTT) regulation. MVNO is a service provider (cellular or fixed wireless access) that will rent operator’s frequency through business agreement. MVNO will act as reseller of telco operators. However, some believes that the margin that is offered by the business will be low and the existence of MVNO should increase competition among telco market. (Bisnis)

Developers pauses subsidized housing development Developers has to pause subsidized housing development as the Government has run out of FLPP budget. They urged the Government to increase the quota before switching into a different financing scheme. (Bisnis Indonesia)

Electricity tariff expected to change in 2020 This is because the government has planned to lower down the compensation for the State Electricity Company (PLN). The compensation was to cover the price for electricity that is lower than its economical price. Government evaluates energy policy every three months based on: oil price, exchange rate and inflation. However, since 2017, energy policy evaluation has paused and there were no rise in electricity tariffs. Any change in electricity tariff is subject to parliamentary approval, which will be determined along with the making of RAPBN 2020. (Kontan)

Please see important disclosure at the back of this report Page 4 of 9 Equity Research | 27 June 2019

Gudang Garam (GGRM) to distribute Rp2,600/share dividend GGRM will distribute total cash dividend of Rp5trn which translates into 64% dividend payout ratio and 3.4% yield based on yesterday’s closing price. Meanwhile, for Kediri airport development, GGRM is still waiting for development rights and land clearing process. Masykuri, Vice Regent of Kediri, added that before Ramadan there is still 25-30ha of land that are still on the land clearing process. (Bisnis.com, detik.com)

Holcim Indonesia (SMCB) plans to divest its non-productive asset SMCB plans to divest its non-productive asset to improve its debt position. This year, the company plans to sell its land in West and Central Java, and expect to receive around Rp100bn from the divestment. SMCB intends to maintain its market share the same as last year. (Bisnis Indonesia)

Kapan Lagi Dot Com injected Rp5bn to Kreator Kreatif Indonesia PT Kapan Lagi Dot Com (Kapanlagi.com) injected Rp5bn to one of Surya Citra Media (SCMA)’s subsidiary, called Kreator Kreatif Indonesia (KKI). The fund will be used to meet working capital of the company. (Warta Ekonomi)

Indofood Sukses Makmur (INDF) failed to buy Indofood Agri Resources (IFAR) Until the closing offer date (25/6), INDF only received shares acceptances of 13.58% of its offer for IFAR. So in total, shares owned, controlled or agreed to be acquired by INDF only reached 88.08% which is below the 90% tender offer terms. The tendered shares will be returned to shareholders. (IDX, Kontan)

Pembangunan Perumahan (PTPP) got Rp580bn new contracts in May’19 In May 2019, the company booked approx. Rp300bn new contracts from Telkom University in Bandung. This would translate to Rp11.4tn new contracts achievement up to 5M19 (-18% YoY) or accounting to 22.5% of company’s target 2019F. (Bisnis Indonesia, company)

Please see important disclosure at the back of this report Page 5 of 9 Equity Research | 27 June 2019

Indices and Fund Flows Currencies and Bonds Major Commodities

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

JCI 6,310.5 -0.2 +1.9 Rp/US$ 14,158 -0.01 +1.8 Oil spot (US$/bl) 59.38 +2.7 +30.8 Dow Jones 26,536.8 -0.0 +13.8 US$/EUR 1.137 +0.02 +0.9 Nickel spot (US$/mt) 12,424 +1.6 +17.2 Nikkei 21,086.6 -0.5 +5.4 YEN/US$ 107.79 +0.55 +1.8 Gold spot (US$/oz) 1,409 -1.0 +9.9 Hang Seng 28,222.0 +0.1 +9.2 SGD/US$ 1.355 +0.02 +0.6 Tin 3-month (US$/mt) 18,780 -1.4 -3.6 STI 3,301.3 -0.1 +7.6 CPO futures (Ringgit/ton) 1,966 -0.8 -7.3 Ishares indo 25.6 +0.0 +3.2 Coal (US$/ton) 70.9 -0.1 -30.5 Rubber forward (US¢/kg) 199.7 -0.8 +34.5 Foreign YTD YTD Gov. Bond Chg Soybean oil Fund Flows Last Chg Last Chg 27.81 -0.7 +0.9 Chg Yield (bps) (US$/100gallons) (US$mn) (bps) Equity Flow +28.2 +4,203 5Yr 6.91 +2 -100 Baltic Dry Index 1,280.0 +2.0 +0.7 Bonds Flow +395.1 +6,165 10Yr 7.43 +1 -59

Please see important disclosure at the back of this report Page 6 of 9 Equity Research | 27 June 2019

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) 2019 2020 2019 2020 2019 2020 2019 2020 2019 2020 2019 2020 MANSEK universe 6,310 6,800 7.8 4,594,362 264,158 284,779 17.4 16.1 2.5 2.4 13.8 13.2 8.2% 7.7% 2.5% 2.7% Financials 1,639,852 105,103 116,561 15.6 14.1 2.3 2.2 0.0 0.0 13.9% 10.9% 2.2% 2.5% BBCA Neutral 29,325 26,500 (9.6) 723,008 29,483 32,062 24.5 22.6 4.2 3.7 N.A. N.A. 14.0% 8.7% 1.2% 1.2% BBNI Neutral 8,850 9,000 1.7 165,041 16,642 18,879 9.9 8.7 1.4 1.3 N.A. N.A. 10.8% 13.4% 3.6% 4.5% BBRI Buy 4,360 5,000 14.7 537,582 36,551 41,656 14.7 12.9 2.6 2.5 N.A. N.A. 13.0% 14.0% 3.0% 3.4% BBTN Buy 2,600 3,000 15.4 27,534 3,225 4,038 8.5 6.8 1.0 1.0 N.A. N.A. 14.9% 25.2% 2.0% 2.0% BDMN Neutral 4,760 4,900 2.9 46,522 5,849 4,698 7.8 9.7 1.0 1.0 N.A. N.A. 49.1% -19.7% 3.0% 4.4% BJBR Neutral 1,685 1,770 5.0 16,945 1,444 1,838 11.7 9.2 1.4 1.3 N.A. N.A. -8.8% 27.4% 5.3% 4.7% BJTM Neutral 625 630 0.8 9,324 1,145 1,221 8.1 7.6 1.0 1.0 N.A. N.A. -9.2% 6.7% 7.4% 6.8% BNGA Neutral 1,105 1,350 22.2 27,770 3,946 4,261 7.0 6.5 0.6 0.6 N.A. N.A. 13.3% 8.0% 2.5% 2.8% BNLI Neutral 805 465 (42.2) 22,574 1,081 1,409 20.9 16.0 1.0 0.9 N.A. N.A. 69.0% 30.3% 0.0% 0.0% PNBN Buy 1,255 1,550 23.5 30,230 2,990 3,318 10.1 9.1 0.8 0.7 N.A. N.A. -3.0% 11.0% 0.0% 0.0% BTPS Buy 3,160 3,150 (0.3) 24,344 1,307 1,648 18.6 14.8 4.6 3.6 N.A. N.A. 35.4% 26.1% 0.0% 1.1% BFIN Buy 600 900 50.0 8,979 1,441 1,532 6.2 5.9 1.2 1.1 N.A. N.A. -1.9% 6.4% 4.9% 4.8% Construction & materials 264,765 14,748 17,645 18.0 15.0 1.8 1.7 10.8 10.2 -5.0% 19.6% 1.4% 1.8% INTP Buy 19,975 23,500 17.6 73,533 1,868 2,478 39.4 29.7 3.0 2.8 20.7 16.4 65.5% 32.7% 0.5% 0.9% SMGR Buy 11,450 16,100 40.6 67,916 2,253 3,708 30.1 18.3 2.1 1.9 11.5 9.5 -26.8% 64.6% 1.2% 1.8% ADHI Buy 1,655 2,035 23.0 5,893 721 672 8.2 8.8 0.9 0.8 6.0 6.2 11.9% -6.8% 2.2% 2.4% PTPP Buy 2,180 3,085 41.5 13,516 1,731 2,088 7.8 6.5 0.9 0.9 5.2 4.7 15.3% 20.6% 3.3% 3.8% WIKA Buy 2,340 2,840 21.4 20,967 2,101 2,002 10.0 10.5 1.3 1.2 6.4 5.9 21.4% -4.7% 2.0% 1.9% WSKT Buy 1,945 2,280 17.2 26,026 2,699 2,997 9.6 8.7 1.3 1.2 12.0 12.2 -31.9% 11.1% 2.1% 2.3% WTON Buy 565 700 23.9 4,924 525 608 9.4 8.1 1.4 1.3 5.2 4.5 8.0% 15.7% 3.0% 3.2% WSBP Buy 396 480 21.2 10,439 1,268 1,409 8.2 7.4 1.2 1.1 5.0 4.4 15.1% 11.1% 5.3% 6.1% JSMR Buy 5,725 5,600 (2.2) 41,551 1,583 1,683 26.2 24.7 2.4 2.2 14.0 15.4 -15.9% 6.3% 0.9% 0.8% Consumer staples 1,178,388 46,283 49,692 25.5 23.7 6.4 5.9 16.4 15.3 5.2% 7.4% 2.8% 2.8% ICBP Buy 10,050 11,600 15.4 117,202 4,931 5,296 23.8 22.1 4.9 4.4 14.0 13.6 7.8% 7.4% 2.1% 2.2% INDF Buy 6,950 9,250 33.1 61,021 4,592 4,929 13.3 12.4 1.7 1.6 7.8 7.4 10.2% 7.3% 4.4% 4.8% MYOR Neutral 2,470 2,850 15.4 55,227 1,864 2,152 29.6 25.7 5.8 5.0 15.5 13.7 8.6% 15.5% 1.2% 1.3% UNVR Neutral 44,825 48,200 7.5 342,015 7,361 7,969 46.5 42.9 58.7 53.1 32.1 29.5 -19.2% 8.3% 2.7% 2.2% GGRM Buy 76,900 99,000 28.7 147,962 9,462 10,433 15.6 14.2 2.9 2.5 10.3 9.3 21.4% 10.3% 2.0% 2.0% HMSP Neutral 3,190 3,500 9.7 371,055 14,702 15,230 25.2 24.4 10.1 9.9 19.2 18.6 8.6% 3.6% 3.6% 3.9% KLBF Buy 1,470 1,700 15.6 68,906 2,631 2,856 26.2 24.1 4.3 3.9 16.5 15.1 7.5% 8.6% 1.7% 1.9% SIDO Buy 1,000 1,050 5.0 15,000 739 827 20.3 18.1 4.6 4.0 14.7 13.0 11.4% 11.9% 3.9% 4.3% Healthcare 44,432 818 970 54.3 45.8 3.7 3.3 17.3 14.6 5.1% 18.6% 0.2% 0.2% MIKA Buy 1,895 2,300 21.4 27,574 643 713 42.9 38.7 6.9 5.4 26.4 23.9 4.8% 10.9% 0.0% 0.0% SILO Buy 4,520 5,950 31.6 7,345 6 29 1,250.7 255.4 1.2 1.2 8.5 6.9 -63.5% 389.6% 0.0% 0.0% HEAL Buy 3,200 4,500 40.6 9,514 169 228 56.3 41.7 5.1 4.7 14.8 11.9 13.6% 35.1% 0.8% 0.9% Consumer discretionary 403,109 31,826 32,463 12.7 12.4 2.1 2.0 9.2 9.3 12.8% 2.0% 3.4% 3.8% ACES Buy 1,840 1,700 (7.6) 31,556 1,113 1,232 28.3 25.6 6.4 5.6 21.9 19.7 14.8% 10.6% 1.2% 1.4% LPPF Buy 3,450 7,500 117.4 10,067 2,092 2,278 4.8 4.4 2.9 2.3 2.2 1.8 48.9% 8.9% 9.8% 14.5% MAPI Buy 900 1,100 22.2 14,940 815 815 18.3 18.3 2.9 2.6 7.6 7.4 13.4% 0.0% 0.7% 0.8% MPPA Sell 220 250 13.6 1,183 -335 -462 -3.5 -2.6 0.7 0.9 17.2 43.1 -20.3% -37.9% -7.1% -8.5% RALS Buy 1,360 1,700 25.0 9,651 558 626 17.3 15.4 2.4 2.2 11.2 10.0 9.2% 12.2% 3.2% 3.5% ASII Buy 7,250 8,650 19.3 293,506 23,941 24,095 12.3 12.2 1.9 1.8 9.6 10.0 10.5% 0.6% 3.3% 3.7% SCMA Buy 1,605 2,200 37.1 23,467 1,628 1,773 14.4 13.2 5.2 4.8 10.1 9.4 8.5% 8.9% 5.5% 6.0% MNCN Buy 1,050 1,250 19.0 13,463 1,586 1,610 8.5 8.4 1.3 1.2 5.3 5.0 15.3% 1.5% 4.7% 4.8% MSIN Buy 384 570 48.4 1,998 229 257 8.7 7.8 1.5 1.3 4.8 4.1 27.2% 12.1% 5.7% 6.4% PZZA Buy 1,085 1,400 29.0 3,279 199 239 16.5 13.7 2.5 2.2 7.8 6.9 24.2% 20.0% 0.0% 0.0% Commodities 314,692 30,464 29,376 10.3 10.7 1.2 1.1 4.6 4.4 -7.3% -4.2% 3.8% 3.6% AALI Buy 10,400 14,200 36.5 20,017 1,817 1,968 11.0 10.2 1.0 0.9 4.3 3.5 16.6% 8.3% 3.1% 3.6% LSIP Buy 1,120 1,450 29.5 7,642 650 665 11.8 11.5 0.9 0.8 4.1 3.8 11.4% 2.3% 3.1% 3.4% SSMS Neutral 1,005 1,300 29.4 9,573 1,158 1,263 8.3 7.6 1.7 1.5 5.2 4.5 27.0% 9.1% 2.9% 3.6% BWPT Neutral 158 195 23.4 4,981 -67 -189 -73.8 -26.3 0.9 0.9 7.8 6.9 70.0% -180.3% 0.0% 0.0% UNTR Buy 27,800 35,000 25.9 103,698 11,287 10,698 9.2 9.7 1.7 1.5 4.6 4.6 1.4% -5.2% 3.3% 3.1% ADRO* Neutral 1,360 1,300 (4.4) 43,501 380 313 7.9 9.5 0.8 0.7 3.5 3.5 -9.1% -17.6% 5.1% 3.9%

Please see important disclosure at the back of this report Page 7 of 9 Equity Research | 27 June 2019

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) 2019 2020 2019 2020 2019 2020 2019 2020 2019 2020 2019 2020 HRUM* Neutral 1,515 1,500 (1.0) 3,888 22 17 12.0 16.0 0.9 0.9 1.3 1.3 -29.7% -25.1% 4.6% 3.4% INDY* Neutral 1,660 1,500 (9.7) 8,649 46 50 13.0 11.8 0.6 0.6 2.5 2.1 -42.8% 10.3% 1.9% 2.1% ITMG* Neutral 17,700 17,500 (1.1) 19,409 150 127 8.9 10.5 1.5 1.5 3.6 4.2 -42.2% -15.2% 9.5% 8.1% PTBA Neutral 2,990 3,000 0.3 34,452 3,957 3,476 8.2 9.9 2.0 1.8 6.1 6.1 -23.9% -16.4% 5.7% 5.0% ANTM Buy 825 1,100 33.3 19,825 924 1,006 21.5 19.7 1.0 0.9 10.3 9.6 5.7% 8.9% 1.6% 1.8% INCO* Buy 3,050 4,000 31.2 30,306 54 111 38.7 18.7 1.1 1.0 8.1 5.8 -11.0% 106.7% 0.8% 1.6% TINS Buy 1,175 2,200 87.2 8,751 1,262 1,492 6.9 5.9 1.1 1.0 4.1 3.6 137.4% 18.3% 5.0% 6.0% Property & Industrial Estate 130,782 8,720 9,656 15.0 13.5 1.4 1.3 11.2 10.7 3.8% 10.7% 1.0% 0.9% ASRI Sell 346 280 (19.1) 6,799 997 1,578 6.8 4.3 0.7 0.6 7.4 5.8 5.8% 58.3% 0.6% 0.6% BSDE Neutral 1,515 1,450 (4.3) 29,159 1,972 2,043 14.8 14.3 1.0 0.9 12.5 12.9 10.0% 3.6% 0.0% 0.0% CTRA Buy 1,065 1,450 36.2 19,767 981 1,039 20.1 19.0 1.3 1.2 12.6 12.3 -14.0% 5.9% 0.9% 0.8% JRPT Buy 530 980 84.9 7,288 1,005 919 7.2 7.9 1.0 0.9 6.3 6.8 5.7% -8.6% 3.8% 2.7% PWON Neutral 730 680 (6.8) 35,157 2,399 2,426 14.7 14.5 2.4 2.1 10.7 10.7 4.8% 1.2% 0.8% 0.8% SMRA Buy 1,170 1,200 2.6 16,879 313 486 53.9 34.7 2.4 2.3 15.2 13.1 -1.8% 55.3% 0.4% 0.4% DMAS Buy 266 250 (6.0) 12,821 631 650 20.3 19.7 1.7 1.6 19.3 18.8 12.0% 3.0% 2.5% 2.5% BEST Buy 302 320 6.0 2,913 422 516 6.9 5.7 0.6 0.6 7.0 6.2 3.9% 22.3% 2.9% 3.5% Telco 505,775 20,644 22,516 24.5 22.5 3.4 3.3 6.9 6.5 19.3% 9.1% 3.3% 3.5% EXCL Buy 2,920 3,100 6.2 31,209 25 335 1,249.6 93.2 1.7 1.7 5.8 5.3 N/M 1240.2% 0.0% 0.0% TLKM Neutral 3,980 3,800 (4.5) 394,268 18,948 19,871 20.8 19.8 3.9 3.7 7.0 6.7 3.5% 4.9% 3.6% 3.8% ISAT Neutral 2,710 2,800 3.3 14,726 -2,810 -2,598 -5.2 -5.7 1.7 2.4 5.4 5.0 -37.5% 7.6% 0.0% 0.0% LINK Buy 4,250 6,200 45.9 12,561 1,209 1,328 10.4 9.5 2.3 2.1 4.9 4.5 9.7% 9.9% 4.8% 5.3% TBIG Buy 3,780 5,700 50.8 16,792 908 1,113 18.5 15.1 5.0 4.5 9.9 9.3 1.8% 22.5% 4.5% 4.5% TOWR Buy 710 950 33.8 36,220 2,364 2,467 15.3 14.7 3.8 3.4 8.4 7.9 0.7% 4.4% 3.3% 3.3% Chemical 47,599 1,988 1,955 23.9 24.3 2.4 2.2 7.2 7.0 25.1% -1.7% 0.0% 0.0% AGII Buy 545 700 28.4 1,671 105 136 16.0 12.3 0.5 0.5 6.4 5.9 5.0% 29.5% 0.0% 0.0% BRPT* Neutral 3,290 2,640 (19.7) 45,928 129 125 24.4 25.2 2.8 2.5 7.3 7.1 25.4% -3.4% 0.0% 0.0% Airlines 5,986 436 549 13.7 10.9 1.2 1.1 7.8 6.5 -1.1% 26.1% 0.0% 0.0% GMFI* Neutral 212 275 29.6 5,986 30 38 13.7 10.9 1.2 1.0 7.8 6.5 -2.0% 26.1% 0.0% 0.0% Oil and Gas 51,877 2,618 2,797 19.8 18.5 1.1 1.0 6.2 5.8 14.7% 6.8% 1.8% 2.0% PGAS* Buy 2,140 3,150 47.2 51,877 180 192 19.8 18.5 1.1 1.0 6.2 5.8 13.7% 6.8% 1.8% 2.0% Transportation 7,106 510 599 13.9 11.9 1.3 1.2 6.0 5.4 11.6% 17.3% 2.0% 2.4% BIRD Buy 2,840 4,400 54.9 7,106 510 599 13.9 11.9 1.3 1.2 6.0 5.4 11.6% 17.3% 2.0% 2.4% 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 8 of 9 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, Chemical [email protected] +6221 5296 9682 Kresna Hutabarat Telecom, Media [email protected] +6221 5296 9542 Priscilla Thany Banking, Building Material [email protected] +6221 5296 9569 Lakshmi Rowter Healthcare, Consumer [email protected] +6221 5296 9549 Robin Sutanto Property [email protected] +6221 5296 9572 Edbert Surya Construction, Transportation [email protected] +6221 5296 9623 Silvony Gathrie Research Assistant [email protected] +6221 5296 9544 Riyanto Hartanto Research Assistant [email protected] +6221 5296 9488 Henry Tedja Research Assistant [email protected] +6221 5296 9434 Leo Putera Rinaldy Chief Economist [email protected] +6221 5296 9406 Aziza Nabila Amani Economist [email protected] +6221 5296 9651

INSTITUTIONAL SALES

Silva Halim Head Institutional Equities [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 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 Yogyakarta [email protected] +62274 560 596 Widodo Solo [email protected] +62271 788 9290 Linawati Surabaya [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.