Asiamoney’s 2013 Best Domestic Equity House

18 February 2014

Beacon

IDX: 4,555.4 (+1.0%) Turnover: IDR6.6tn (+48.4%) Foreign net buy: IDR1.1tn (+2,331.4%)

Indonesia Morning Brief RESULT FLASH Timah (TINS IJ): 4Q13 results: reduction

INDICES Stellar bottom line on cost

Analyst: Jennifer Frederika Yapply

   

Net profit soared q-q and y-y Sales up 79% q-q and 45% y-y Margin expansions across the board Outlook: Higher earnings on significantly lower COGS & higher prices Recommendation & valuation: Raise to BUY with IDR1,800 TP

 To see the full version of this report, please click here

TODAY’S NEWS ECONOMICS  Increasing 1H14 price expectation index INDUSTRY  The government unlikely to approve concentrate export permits until March  Oil production down drastically to 790.3k BPH  ESDM set minimum deposit requirement for building smelters  OJK to impose fees starting March CORPORATE  Indonesia Coal Resources: Doubling in production  Indosmelt: USD500mn from IPO in 2015  WSKT: IDR500b revenue from property business in 2014  BTPN FY13 net profit: IDR2.1tn, +7.7% y-y

ECONOMIC INDICATORS

MARKET DATA

13A 14F 15F Cur acc bal (%GDP) (3.6) (2.6) (1.9) Fiscal bal (%GDP) (2.2) (2.0) (2.0) GDP growth (%y-y) 5.7 5.3 5.7 Private spending (%) 5.4 4.9 4.9 Investment (%y-y) 8.7 8.2 8.4 Total exports (%y-y) 5.4 5.6 6.5 Total imports (%y-y) 6.0 5.0 5.7 Inflation (%y-y) 8.4 5.9 6.0 IDR/USD 12,170 11,300 11,200 BI rate (% p.a.) 7.5 8.0 8.0 Brent Oil (Usd/bbl) 110.5 110.0 105.0 FX reserve (USDb) 99.4 103.5 106.0

13F Op.prof.gwt.(%) 7.4 Op.prof.gwt. exc. coal 7.4 EPS growth (%) 0.3 EPS gwt exc. coal (%) 7.2 P/E (x) 20.6 P/E exc. coal (x) 20.7 PEG (x) 79.0 PEG exc. coal (x) 2.9 EV/EBITDA (x) 9.4 P/BV (x) 5.7 Div. Yield (%) 2.2 ROE (%) 28.6

Source: Bahana estimates

Source: Bahana estimates

14F 10.7 11.4 15.1 14.8 17.1 17.5 1.1 1.2 8.3 6.1 2.5 28.3

15F 13.0 13.4 12.1 14.2 15.0 15.2 1.2 1.1 7.5 5.0 3.0 29.6

Asia Last Chg% ytd % Hang Seng (HK) 22,535.9 1.1 (3.3) IDX (Indonesia) 4,555.4 1.0 6.6 KLCI (Malaysia) 1,827.5 0.4 (2.1) KOSPI (Korea) 1,946.4 0.3 (3.2) Nikkei (Japan) 14,393.1 0.6 (11.7) PCOMP (Phil.) 6,167.8 0.9 4.7 SENSEX (India) 20,464.1 0.5 (3.3) SET (Thailand) 1,332.4 1.6 2.6 SHCOMP (China) 2,135.4 0.9 0.9 Shenzhen (China) 1,160.4 1.9 9.7 STI (Singapore) 3,069.3 1.0 (3.1) TWSE (Taiwan) 8,519.6 0.1 (1.1) VNI (Vietnam) 570.2 (0.4) 13.0 Europe, USA and SA CAC 40 (France) 4,335.2 (0.1) 0.9 DAX (Germany) 9,656.8 (0.1) 1.1 Dow Jones (USA) 16,154.4 (2.5) FTSE 100 (UK) 6,736.0 1.1 (0.2) IBOV (Brazil) 47,576.3 (1.3) (7.6) NASDAQ (USA) 4,244.0 1.6 RTSI (Russia) 1,347.4 0.3 (6.6) S&P 500 (USA) 1,838.6 (0.5)

y-y % (3.9) (1.2) 12.3 (1.8) 28.8 (5.4) 5.1 (12.7) (12.2) 19.7 (6.5) 7.8 15.4 18.4 27.2 15.5 6.4 (17.8) 33.0 (14.6) 21.0

ETF, ADRS & COMMODITIES Last Chg% ytd % y-y % 25.3 10.7 (22.5) 2,239 6.0 (6.1) 45,883 0.9 1.0 (38.4) 77.6 0.3 (11.1) (18.2) 170 0.0 6.4 (37.6) 2,835 0.1 19.7 (0.8) 7,205 0.3 (2.3) (11.8) 1,930 0.0 3.4 7.7 895 1.1 (1.1) 1.1 1,328 0.4 10.1 (17.5) 124 1.0 (7.3) (19.8) 510 0.0 23.9 30.4 14,351 0.9 3.8 (21.6) 100.8 0.1 2.5 5.2 8,600 0.0 1.2 1.8 1,975 3.3 (12.8) (35.8) 863 (1.0) 0.9 (24.3) 564 (0.1) (1.7) (17.7) 429 (0.2) (3.9) (14.7) 23,170 0.7 3.7 (6.4) 219 0.5 (2.6) (23.6)

EIDO US (USD) TLK US (IDR) BUMI LN (IDR) Coal (USD/t) Corn (USD/mtn) Coffee (USD/t) Copper (USD/t) Cotton (USD/t) CPO (USD/t-Rottdm) Gold (USD/oz.) Iron ore (USD/mtn) Milk (USD/t) Nickel (USD/t) Oil (USD/barrel) Rice (IDR/kg) Rubber (USD/t) Soybean oil (USD/t) Steel (USD/t) Sugar (USD/t) Tins (USD/t) Wheat (USD/t) Source: Bloomberg, Pinsar

CURRENCIES & RATES AUD/USD USD/EUR IDR/USD JPY/USD SGD/USD JIBOR (%) BI rate (%) TD – 1 month (%) CDS (bps)

Last Prev. 0.903 0.905 1.370 1.370 11,785 11,825 102.150 101.590 1.259 1.259 5.88 5.88 7.50 7.50 6.69 6.70 202.47 207.63

Ytd % (1.3) 0.3 (3.2) (3.0) 0.3 (0.1) 0.0 0.0 (7.1)

y-y % 12.8 (2.3) 21.5 (9.2) (1.9) 1.7 1.8 1.4 52.4

Source: Bloomberg

Disclosure: Bahana Securities does and seeks to do business with companies covered in its research reports. Investors should consider this report as only a single factor in making their investment decision. THIS RESEARCH REPORT IS NOT TO BE DISTRIBUTED TO ANY INVESTORS OR OTHER PERSONS IN THE UNITED STATES. IF ANY INVESTOR OR OTHER PERSON IN THE UNITED STATES MISTAKENLY RECEIVES OR OTHERWISE COMES INTO POSSESSION OF THIS RESEARCH REPORT, NONE OF DAIWA SECURITIES CO. LTD., PT. BAHANA SECURIITES OR ANY OF THEIR AFFIILIATES SHALL HAVE ANY RESPONSIBILITY FOR THE CONTENTS HEREOF OR FOR ANY SUBSEQUENT TRANSACTIONS EXECUTED IN RELIANCE HEREON.

Asiamoney’s 2013 Best Domestic Equity House

ECONOMICS Increasing 1H14 price expectation index Based on BI’s retail survey, there is a possibility for a higher price expectation index of 168.4 in 1Q14 from 164.1 in 4Q13. BI stated that the higher price expectation index may continue into 2Q14 due to the possibility of higher raw materials prices and bad weather in January. (Kontan)

INDUSTRY The government unlikely to approve concentrate export permits until March The export ban requires mining companies in the country to export only processed ores in a bid to develop the downstream industry and provide value adds for exported mineral products. There are concerns that a prolonged halt in mineral ore and concentrate exports could cause the current account deficit to blow out again after narrowing to 1.98% of gross domestic product (GDP) in the fourth quarter. (Jakarta Post) Oil production down drastically to 790.3k BPH Due to a harsh weather, oil production in February 2014 was down to 790.3k barrel per day. This is only 90.8% from the target in the government’s state budget (APBN) of 870k barrels per day. On gas, production was also down to 8,196 million standard cubic feet per day (mmscfd), 98.7% of target. Deputy of Operation SKK Oil and Gas, Muliawan commented that production will remain under 800k barrels per day, as some oil fields have remained closed. (Investor daily) ESDM set minimum deposit requirement for building smelters Director General Mineral and Coal Minister ESDM, R. Sukhyar, stated that the minimum amount required to be deposited is 5% of the total expenditure as collateral. He added that this 5% deposit is one of the requirements for mining companies to obtain recommendations for exporting concentrated minerals. (Investor Daily) OJK to impose fees starting March The Indonesian Financial Services Authority (OJK) will start collecting annual fees amounting 0.03% (banking assets as per Nov-13 = IDR4,817tn) of total assets from corporates under OJK’s supervision, bringing potential value of IDR1.45tn per annum to be available for OJK. The amount of 0.03% will eventually increase to 0.045% by 2016. (Investor Daily)

CORPORATE Indonesia Coal Resources: Doubling in production According to the company’s board of directors, Indonesia Coal Resources, subsidiary of Aneka Tambang Tbk (ANTM IJ-HOLD-IDR1,035-TP:IDR1,000) targets coal production for 2014 to double to 1.1m tons from actual production of 562k tons in 2013. Bachtiar Magalantung, Managing Director of Indonesia Coal, was quoted in saying that ANTM’s coal demand was estimated to grow to 3-4m tons in 2015-2016 following the completion of smelter developments. Moreover, they target to supply 120k tons of coal to Halmahera smelter when the project reached commissioning phase. (Indonesia Finance Today) Indosmelt: USD500m from IPO in 2015 Natsir Mansyur, President Director of Indosmelt, stated that the company was preparing the IPO’s detailed plans. Proceeds will be prepared for the company’s copper smelter and gold refinery in Maros, South Sulawesi. Investment for the smelter’s construction is estimated to reach USD1.5bn with development to start in April-May of 2014. Operation is expected in 2017-2018 with annual production reaching 120k tons for copper cathodes, 300k tons for copper slag, 200k tons of anode slag and 20 tons of gold. (Jakarta Post, Indonesia Finance Today) WSKT: IDR500bn revenue from property business in 2014 Waskita Karya’s (WSKT IJ-BUY-IDR665-TP:IDR780) Head of Realty Division, Didit Oemar Prihadi, stated that the company targets revenue contribution from its property division of IDR500bn, or around 5-6% from the management’s consolidated 2014 revenue target of IDR11.8tn. (Indonesia Finance Today)

PT Bahana Securities – Equity Research – Bahana Beacon - The Daily

Asiamoney’s 2013 Best Domestic Equity House

BTPN 2013 net profit: IDR2.1tn, +7.7% y-y BTPN’s (BTPN IJ-HOLD-IDR4,500-TP:IDR4,300) weak 4Q13 results may trigger negative sentiment towards mid-small banks as they are generally in similar situations of facing tight liquidity with limited flexibility to re-price their loans. Additionally, smaller banks could also experience worsening asset quality. BTPN reported 4Q13 net profit of IDR344bn (-36.0% y-y), bringing 2013 earnings to IDR2.13tn (+7.7% y-y), below our and consensus’ estimates. 4Q13 NIM dropped to 12.2% from 13.1% in 3Q13 and 13.4% a year earlier, as interest expense surged 16.2% q-q and 29.6% y-y while interest income rose only 3.4% q-q and 12.6% y-y. Additionally, provisioning inched up on worsening gross NPLs to 0.7% from 0.6% in 3Q13 and 4Q12. On the balance sheet front, 4Q13 loans only increased 1.8% q-q, bringing 2013 growth to 18.7% yy. On the flip side, third-party funding moved 6.4% q-q and 15.8% y-y, bringing LDR to 88.3% from 92.4% in 3Q13 and 86.2% in 4Q12. BTPN IJ 4Q13 Result summary End of 31 December (IDRbn) Interest Income Interest expense Net interest income Non-interest income Total operating income

4Q12 2,570 866 1,704 71 1,775

3Q13 2,800 966 1,834 110 1,944

4Q13 2,895 1,122 1,773 125 1,897

q-q (%) 3.4 16.2 (3.4) 13.6 (2.4)

y-y (%) 12.6 29.6 4.0 75.4 6.9

Operating expense Impairment of fin. assets

1,004 90

1,014 157

1,097 176

8.1 12.0

9.2 96.1

681 675

772 767

625 623

(19.1) (18.8)

(8.2) (7.8)

537 4Q12 38,844 45,073

610 3Q13 45,304 49,034

344 4Q13 46,105 52,196

(43.6)

(36.0)

13.4 56.6 74.2 86.2 77.3 21.5 0.6 170.5 29.6

13.1 52.2 73.5 92.4 81.2 23.0 0.6 155.5 28.5

12.2 57.8 79.3 88.3 78.7 23.1 0.7 157.5 24.2

Operating profit Pretax profit Net profit Balance sheet Gross loans (IDRbn) Third party funding (IDRbn) Key ratios Net interest margin (%) Cost efficiency (%) Cost to income (%) Loan/deposit (%) Loan/funding (%) Capital adequacy (%) Gross NPL (%) LLP/NPL (%) ROAE (%)

4Q13/ 4Q13F

2013 10,943 3,895 7,048 400 7,449

y-y (%) 17.8 20.9 16.1 41.6 17.2

2013/ 2013F 100.5 102.7 99.3 109.0 99.7

3,981 590

16.7 29.6

102.2 105.9

81.8

2,878 2,869

15.7 15.4

95.4 95.4

95.0 95.6

55.6 2012 38,844 45,073

2,131 2013 46,105 52,196

7.7 2013F 48,014 51,521

88.6 2014F 56,450 61,062

90.7 2015F 66,867 72,445

13.1 53.7 74.0 86.2 77.3 21.5 0.6 170.5 29.6

12.7 53.4 74.6 88.3 78.7 23.1 0.7 157.5 24.2

12.4 52.2 73.2 93.2 79.2 22.2 0.7 163.5 26.9

11.2 51.4 76.0 92.4 79.2 21.0 0.9 160.4 23.0

11.0 52.0 77.0 92.3 80.0 19.9 1.0 160.4 20.9

99.0

2013/ Cons.

98.2

Source: Company, Bloomberg, Bahana estimates

PT Bahana Securities – Equity Research – Bahana Beacon - The Daily

3

Asiamoney’s 2013 Best Domestic Equity House

BAHANA EQUITY COVERAGE, LEADERS & LAGGARDS (Daily) COMPANY

STOCK CODE

Total Bangun Persada TOTL IJ Bekasi Fajar Industrial Estates BEST IJ Lippo Cikarang LPCK IJ Adhi Karya ADHI IJ Mitra Adiperkasa MAPI IJ Surya Semesta Internusa SSIA IJ Bank Tabungan Negara BBTN IJ Erajaya Swasembada ERAA IJ Waskita Karya WSKT IJ Pakuwon Jati PWON IJ Summarecon Agung SMRA IJ Japfa Comfeed Indonesia JPFA IJ Ciputra Development CTRA IJ Timah TINS IJ Pembangunan Perumahan PTPP IJ Alam Sutera Realty ASRI IJ Bank Bukopin BBKP IJ Wijaya Karya WIKA IJ Adaro Energy ADRO IJ Nippon Indosari Corpindo ROTI IJ Holcim Indonesia SMCB IJ Krakatau Steel KRAS IJ Gajah Tunggal GJTL IJ Ciputra Property CTRP IJ Bank Rakyat Indonesia BBRI IJ Semen Indonesia SMGR IJ Ace Hardware Indonesia ACES IJ Media Nusantara Citra MNCN IJ Lippo Karawaci LPKR IJ Bank Negara Indonesia BBNI IJ Aneka Tambang ANTM IJ Astra International ASII IJ Kawasan Industri Jababeka KIJA IJ Matahari Department Store LPPF IJ Agung Podomoro Land APLN IJ Adi Sarana Armada ASSA IJ Charoen Pokphand Indonesia CPIN IJ Sarana Menara Nusantara TOWR IJ Wintermar Offshore Marine WINS IJ Bank Mandiri BMRI IJ Semen Baturaja SMBR IJ Citra Marga Nusaphala Persada CMNP IJ AKR Corporindo AKRA IJ London Sumatra Indonesia LSIP IJ Malindo Feedmill MAIN IJ Bumi Serpong Damai BSDE IJ Harum Energy HRUM IJ Vale Indonesia INCO IJ Telekomunikasi Indonesia TLKM IJ Indonesian Stock Exchange JCI Bank Jawa Barat dan Banten BJBR IJ Indocement Tunggal Prakarsa INTP IJ Bank Central Asia BBCA IJ United Tractors UNTR IJ Kalbe Farma KLBF IJ Salim Ivomas Pratama SIMP IJ Medco Energi Internasional MEDC IJ Perusahaan GasNnegara PGAS IJ Ramayana Lestari Sentosa RALS IJ Indofood Sukses Makmur INDF IJ Garuda Indonesia GIAA IJ Cardig Aero Services CASS IJ Indomobil Sukses Internasional IMAS IJ Unilever Indonesia UNVR IJ Gudang Garam GGRM IJ Bw Plantation BWPT IJ Austindo Nusantara Jaya ANJT IJ Sampoerna Agro SGRO IJ Tiphone Mobile Indonesia TELE IJ Express Transindo Utama TAXI IJ Surya Citra Media SCMA IJ Bukit Asam PTBA IJ Sri Rejeki Isman SRIL IJ Bank Jawa Timur BJTM IJ Bank Tabungan Pensiunan Nasional BTPN IJ Jasa Marga JSMR IJ Indo Tambangraya Megah ITMG IJ Indosat ISAT IJ Bumi Resources BUMI IJ Indofood CBP Sukses Makmur ICBP IJ Supra Boga Lestari RANC IJ Tempo Scan Pacific TSPC IJ Bank Danamon Indonesia BDMN IJ Astra Agro Lestari AALI IJ Xl Axiata EXCL IJ Hero Supermarket HERO IJ Source: Bloomberg *under Bahana Securities’ restricted list

RATING

TARGET PRICE

BUY BUY BUY BUY BUY BUY BUY HOLD BUY BUY BUY BUY BUY BUY BUY BUY HOLD BUY REDUCE REDUCE REDUCE REDUCE REDUCE BUY BUY HOLD BUY REDUCE BUY BUY HOLD HOLD BUY BUY BUY BUY BUY BUY BUY BUY HOLD BUY REDUCE BUY BUY HOLD REDUCE REDUCE BUY

750 600 6,000 2,475 5,750 960 1,160 1,000 780 315 975 1,800 870 1,800 1,350 640 600 2,000 1,010 840 1,800 400 1,500 720 9,600 14,300 760 2,000 1,020 5,300 1,000 6,800 235 14,700 300 330 4,500 2,950 750 10,000 360 3,600 4,150 2,000 4,200 1,350 2,700 2,050 2,900

Up/(Downside) Potential (%) (8.0) (2.4) (14.0) 12.0 (11.5) 14.3 4.5 (30.3) 17.3 (10.3) (4.9) 16.9 (16.3) (21.1) (6.9) 8.5 (2.4) (4.3) 3.6 (27.9) (21.1) (18.5) (34.9) (6.5) 7.3 (6.1) (8.4) (14.0) 6.8 18.6 (3.4) (0.4) 3.1 8.3 24.0 8.2 12.2 (11.9) 6.4 9.3 (1.6) 6.7 (9.0) 5.0 21.9 (14.3) 12.3 (20.5) 27.5

BUY HOLD BUY REDUCE BUY HOLD REDUCE BUY REDUCE BUY BUY BUY REDUCE BUY BUY HOLD HOLD REDUCE BUY BUY REDUCE REDUCE BUY HOLD HOLD BUY REDUCE BUY REDUCE BUY HOLD BUY REDUCE BUY BUY REDUCE

1,000 20,500 11,500 15,000 1,650 800 2,200 4,700 850 7,950 620 1,010 4,000 31,500 45,000 1,300 1,600 1,300 800 1,800 1,770 10,000 310 440 4,300 6,450 22,250 4,550 250 12,000 650 3,800 3,250 28,000 5,500 2,200

3.1 (8.6) 9.8 (18.8) 17.4 5.3 (12.0) (5.1) (38.6) 13.2 28.1 18.8 (23.1) 11.0 3.1 (1.1) (1.8) (29.7) 7.4 1.1 (28.6) 8.1 18.3 (3.3) (4.4) 20.0 (17.7) 14.5 (17.8) 11.1 (2.3) 25.0 (28.6) 22.3 22.8 (17.0)

02/17/2014

02/14/2014

CHANGE (%)

815 615 6,975 2,210 6,500 840 1,110 1,435 665 351 1,025 1,540 1,040 1,420 1,450 590 615 2,090 975 1,165 2,280 491 2,305 770 8,950 15,225 830 2,325 955 4,470 1,035 6,825 228 13,575 242 305 4,010 3,350 705 9,150 366 3,375 4,560 1,905 3,445 1,575 2,405 2,580 2,275 4,555 970 22,425 10,475 18,475 1,405 760 2,500 4,955 1,385 7,025 484 850 5,200 28,375 43,650 1,315 1,630 1,850 745 1,780 2,480 9,250 262 455 4,500 5,375 27,050 3,975 304 10,800 665 3,040 4,550 22,900 4,480 2,650

725 555 6,325 2,010 6,000 785 1,040 1,345 625 333 975 1,475 1,000 1,370 1,400 570 595 2,025 945 1,130 2,215 478 2,245 750 8,725 14,850 810 2,275 935 4,380 1,015 6,700 224 13,350 238 300 3,950 3,300 695 9,025 361 3,330 4,500 1,880 3,400 1,555 2,375 2,550 2,250 4,508 960 22,200 10,375 18,300 1,395 755 2,485 4,930 1,380 7,000 483 850 5,200 28,375 43,650 1,315 1,630 1,850 745 1,780 2,485 9,275 263 457 4,520 5,400 27,200 4,000 306 10,875 670 3,065 4,595 23,200 4,540 2,735

12.4 10.8 10.3 10.0 8.3 7.0 6.7 6.7 6.4 5.4 5.1 4.4 4.0 3.6 3.6 3.5 3.4 3.2 3.2 3.1 2.9 2.7 2.7 2.7 2.6 2.5 2.5 2.2 2.1 2.1 2.0 1.9 1.8 1.7 1.7 1.7 1.5 1.5 1.4 1.4 1.4 1.4 1.3 1.3 1.3 1.3 1.3 1.2 1.1 1.0 1.0 1.0 1.0 1.0 0.7 0.7 0.6 0.5 0.4 0.4 0.2 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 (0.2) (0.3) (0.4) (0.4) (0.4) (0.5) (0.6) (0.6) (0.7) (0.7) (0.7) (0.8) (1.0) (1.3) (1.3) (3.1)

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4

Asiamoney’s 2013 Best Domestic Equity House

Stock

JCI code

Ticker

AVIATION AVIATION Garuda Indonesia GIAA IJ EquityGIAA IJ* C ardig Aero Service C ASS IJ Equity C ASS IJ

Rating N BUY BUY

Price (IDR) 484 850

TP (IDR) 620 1,010

Shares (m) 22,641 2,087

Free float (%) 28.0 18.7

Mkt cap (IDRb) 12,732 10,958 1,774

3M avg to (IDRb) 4 3 0

Revenue (IDRb) 2013 2014 45,888 50,115 44,593 48,638 1,295 1,476

Opt. profit (IDRb) 2013 2014 416 2,560 76 2,158 340 402

AUTOMOTIVE AUTOMOTIVE Astra International ASII IJ Equity ASII IJ Indomobil Sukses International IMAS IJ EquityIMAS IJ Gajah Tunggal GJTL IJ EquityGJTL IJ

N HOLD REDUC E REDUC E

6,825 5,200 2,305

6,800 4,000 1,500

40,484 2,765 3,485

49.8 10.5 40.2

298,712 276,300 14,379 8,032

186 176 2 9

230,331 196,015 21,176 13,140

260,225 218,667 26,797 14,762

19,437 17,748 508 1,181

22,097 20,288 637 1,172

BANKS BANKS Bank C entral Asia BBC A IJ Equity BBC A IJ Bank Rakyat Indonesia BBRI IJ EquityBBRI IJ Bank Mandiri BMRI IJ EquityBMRI IJ Bank Negara Indonesia BBNI IJ EquityBBNI IJ Bank Danamon BDMN IJ Equity B DMN IJ Bank Tabungan Pensiunan BTPN IJNasional EQUITY BTPN IJ Bank Tabungan Negara BBTN IJ EquityBBTN IJ Bank Jabar Banten BJBR IJ EquityBJBR IJ Bank Jatim BJTM IJ EQUITY BJTM IJ Bank Bukopin BBKP IJ EquityBBKP IJ**

N BUY BUY BUY BUY REDUC E HOLD BUY BUY HOLD HOLD

10,475 8,950 9,150 4,470 4,550 4,500 1,110 970 455 615

11,500 9,600 10,000 5,300 3,250 4,300 1,160 1,000 440 600

24,655 24,669 23,333 18,649 9,585 5,840 10,565 9,696 14,918 9,087

50.8 43.2 40.0 39.8 32.4 58.2 34.1 25.0 18.0 46.9

879,309 258,261 220,789 213,500 83,360 43,610 26,281 11,727 9,405 6,788 5,588

706 126 249 211 78 15 1 14 6 2 6

215,716 37,123 49,120 51,195 29,000 23,248 7,468 6,437 5,945 2,803 3,377

239,954 42,817 55,262 56,506 32,485 24,476 8,331 6,868 6,445 2,988 3,777

90,928 16,876 24,309 23,552 11,255 5,557 3,017 2,136 1,803 1,225 1,198

CEMENT Semen Gresik Indocement Holcim Indonesia Semen Baturaja

CEMENT SMGR IJ Equity S MGR IJ INTP IJ EquityINTP IJ SMC B IJ Equity S MC B IJ SMBR IJ Equity SMBR IJ

UW HOLD HOLD REDUC E HOLD

15,225 22,425 2,280 366

14,300 20,500 1,800 360

5,932 3,681 7,663 9,838

49.0 36.0 19.4 23.8

193,931 90,307 82,552 17,471 3,601

161 102.4 51.3 5.8 2.0

53,482 24,503 18,546 9,250 1,184

59,637 27,003 21,106 10,108 1,420

COAL United Tractors Adaro Energy Indo Tambangraya Tambang Batubara Harum Energy Bumi resources*

COAL & MINING CONTRACTING UNTR IJ EquityUNTR IJ ADRO IJ Equity A DRO IJ* ITMG Megah* IJ EquityITMG IJ* PTBA Bukit IJ Asam EquityPTBA IJ HRUM IJ Equity HRUM IJ* BUMI IJ EquityBUMI IJ*

UW REDUC E REDUC E REDUC E REDUC E REDUC E REDUC E

18,475 975 27,050 9,250 2,405 304

15,000 1,010 22,250 10,000 2,700 250

3,730 31,986 1,130 2,304 2,704 20,773

40.4 40.9 35.0 30.0 29.5 70.8

164,796 68,914 31,186 30,564 21,313 6,502 6,315

253 57 71 32 37 23 33

181,783 52,275 40,500 25,986 11,592 11,345 40,084

5,375 2,090 3,375 1,450 665 2,210 815

6,450 2,000 3,600 1,350 780 2,475 750

6,800 6,140 2,200 4,842 9,632 1,801 3,410

30.0 34.6 65.6 42.8 32.0 49.0 33.8

76,995 36,550 12,833 7,425 7,022 6,405 3,981 2,779

170 40 36 2 22 27 38 4

CONS. & TOLL ROADS CONS. & TOLL ROADS Jasa Marga JSMR IJ EquityJSMR IJ Wijaya Karya WIKA IJ Equity WIKA IJ C itra Marga Nusapala C MNP IJ Equity C MNP IJ Pembangunan Perumahan PTPP IJ EquityPTPP IJ Waskita Karya WSKT IJ Equity WSKT IJ Adhi Karya ADHI IJ EquityADHI IJ Total Bangun Persada TOTL IJ EquityTOTL IJ

N BUY BUY BUY BUY BUY BUY BUY

Net profit (IDRb) 2013 2014 243 1,056 132 913 111 142

EPS growth (%) 2013 2014 (72.6) 256.2 (87.2) 589.5 26.3 28.8

PER (x) 2013 2014 73.4 12.1 82.7 12.0 16.0 12.5

EV/EBITDA (x) 2013 2014 8.3 4.5 8.9 4.7 4.2 3.4

P/BV (x) 2013 2014 1.6 1.4 0.9 0.9 5.7 4.4

Yield (%) 2013 2014 0.3 0.4 0.0 0.0 2.2 2.8

Net gearing (%) 2013 2014 40.8 51.1 47.4 59.4 nc nc

19,245 18,553 731 (40)

22,829 21,306 706 817

(6.5) (4.5) (8.7) na

15.8 14.8 (3.4) na

9.3 14.9 19.7 (203.1)

13.2 13.0 20.4 9.8

13.9 13.3 29.1 6.8

12.3 11.8 25.7 6.9

3.3 3.4 2.4 1.6

2.9 2.9 2.2 1.4

2.9 3.0 1.3 (0.0)

3.3 3.5 1.2 0.7

61.0 55.8 153.8 76.0

55.1 48.0 180.8 74.9

100,146 19,101 26,985 25,638 12,440 5,746 3,306 2,326 1,992 1,318 1,293

73,025 14,123 20,566 18,204 8,816 4,001 2,406 1,562 1,450 919 978

80,951 15,930 22,820 20,295 9,749 4,133 2,636 1,723 1,602 1,004 1,058

16.4 20.5 10.1 17.4 25.1 (0.3) 20.6 14.5 21.5 14.2 14.5

11.0 12.8 11.0 11.5 10.6 3.3 9.6 10.3 10.5 9.2 (16.7)

12.9 18.3 10.7 11.7 9.5 10.9 10.9 7.5 6.5 7.4 5.2

11.6 16.2 9.7 10.5 8.6 10.6 10.0 6.8 5.9 6.8 6.2

na na na na na na na na na na na

na na na na na na na na na na na

2.9 4.1 2.8 2.4 1.7 1.4 2.6 1.0 1.4 1.2 0.9

2.4 3.4 2.3 2.1 1.5 1.3 2.1 0.9 1.2 1.1 0.8

2.0 1.3 1.9 2.6 2.1 2.3 0.0 4.0 7.6 8.9 3.7

2.1 1.4 2.1 2.4 2.3 2.3 2.0 3.7 8.0 9.6 3.6

na na na na na na na na na na na

15,264 7,071 6,085 1,767 341

16,049 7,417 6,485 1,755 391

11,586 5,427 5,016 843 300

12,651 5,817 5,371 1,107 356

4.2 12.0 5.4 (37.6) (14.9)

9.3 7.2 7.1 31.3 5.6

16.8 16.6 16.5 20.7 10.8

15.4 15.5 15.4 15.8 10.2

11.0 11.0 10.3 14.9 4.5

10.5 10.7 9.7 14.3 6.8

3.8 4.5 3.6 2.0 1.4

3.3 3.8 3.1 1.9 1.3

2.2 2.4 2.1 1.7 1.7

2.3 2.4 2.3 2.2 1.9

187,958 57,420 40,327 24,145 12,489 10,311 43,265

24,214 6,697 7,293 3,874 1,681 1,094 3,576

23,839 6,736 7,455 3,059 1,892 943 3,754

10,684 4,903 2,976 5,560 1,738 701 (5,194)

12,810 5,360 2,994 5,561 1,886 617 (3,608)

(28.1) (15.2) (17.6) (37.4) (40.1) (55.6) (28.0)

5.9 9.3 0.6 0.5 8.5 (6.5) (26.2)

12.1 14.1 10.5 12.1 12.3 11.9 (1.4)

11.4 12.9 10.4 12.0 11.3 12.7 (1.9)

6.0 6.1 4.9 5.3 8.9 3.1 6.8

5.8 5.8 4.4 6.0 7.6 3.1 6.0

1.6 2.2 1.0 2.8 2.5 1.7 (10.1)

1.6 1.9 0.8 2.7 2.2 1.6 (4.8)

4.0 2.8 3.6 7.0 5.3 4.7 0.0

51,200 6,265 11,764 991 10,554 9,687 9,792 2,147

58,781 7,473 13,623 1,121 12,325 10,981 10,783 2,476

7,070 2,443 1,146 481 1,198 672 920 209

8,350 3,101 1,269 554 1,432 761 1,001 233

3,592 1,391 556 362 416 368 327 173

4,245 1,680 642 449 472 417 376 210

(6.2) (13.2) 20.6 (15.8) 34.4 0.5 53.8 (1.7)

19.7 20.8 15.4 24.0 13.4 13.3 15.1 21.5

22.5 26.3 22.8 20.5 16.9 17.4 12.2 16.1

18.9 21.8 19.8 16.5 14.9 15.4 10.6 13.3

11.8 15.1 10.5 10.7 5.3 10.1 4.5 9.0

10.3 12.9 9.4 9.4 4.7 8.9 4.1 7.8

3.6 3.9 4.2 2.5 3.5 2.7 2.8 3.8

3.2 3.5 3.7 2.2 3.0 2.4 2.3 3.3

ROAE (%) 2013 2014 6.4 11.6 1.0 7.0 40.1 40.0 23.1 24.4 13.0 (0.7)

23.4 24.3 11.2 14.8

na na na na na na na na na na na

23.8 24.6 28.6 22.5 19.1 13.4 26.9 14.3 22.8 16.2 15.7

22.2 23.0 25.9 21.4 18.5 12.6 23.0 14.1 22.2 16.5 13.5

25.7 14.2 nc 211.3 nc

25.9 18.1 nc 193.5 nc

24.8 28.9 23.8 9.9 17.0

23.0 26.5 21.9 12.3 13.1

4.1 3.1 3.8 6.7 5.3 4.6 0.0

10.5 nc 55.6 nc nc nc na

9.3 nc 49.3 nc nc nc na

15.9 15.9 8.0 24.4 20.2 16.3 na

15.8 15.9 8.1 23.4 20.7 14.7 nm

1.6 1.5 1.3 1.1 1.8 2.0 2.5 3.1

1.9 1.8 1.5 1.3 2.0 2.0 2.8 3.8

56.1 109.1 nc nc 38.3 nc 15.4 nc

65.9 129.3 nc nc 41.8 nc 12.6 nc

17.6 15.5 20.0 13.4 22.9 16.8 25.0 24.9

18.3 16.9 19.9 14.3 21.9 16.4 23.9 26.9

CONSUMER - DISCRE. CONSUMER - DISCRETIONARY Surya C itra Media SC MA IJ Equity S C MA IJ Media Nusantara C itra MNC N IJ Equity MNC N IJ Matahari Department LPPF Store IJ Equity LPPF IJ AC E Hardware AC ES IJ Equity AC ES IJ HERO SupermarketHERO IJ Equity HERO IJ Mitra Adiperkasa MAPI IJ EquityMAPI IJ Ramayana Lestari Sentosa RALS IJ EquityRALS IJ Sri Rejeki isman SRIL IJ EquitySRIL IJ Supra Boga Lestari RANC IJ Equity RANC IJ

N REDUC E REDUC E BUY BUY REDUC E BUY REDUC E BUY HOLD

2,480 2,325 13,575 830 2,650 6,500 1,385 262 665

1,770 2,000 14,700 760 2,200 5,750 850 310 650

14,622 14,099 2,918 17,150 4,184 1,660 7,096 18,593 1,564

25.5 31.1 47.3 40.0 16.5 44.0 40.5 30.1 20.0

160,504 36,262 32,781 39,611 14,235 11,087 10,790 9,828 4,871 1,040

126 34 35 24 10 1 9 4 8 0

55,887 3,778 6,815 6,812 3,924 12,244 9,281 7,782 3,934 1,317

64,707 4,102 7,290 8,241 4,745 14,259 11,026 8,424 4,816 1,804

8,835 1,757 2,501 1,788 503 456 764 401 629 36

9,660 1,869 2,465 2,123 610 502 858 390 792 50

6,136 1,319 1,798 1,180 423 307 348 381 346 35

6,958 1,408 1,806 1,529 519 354 425 410 467 41

25.0 12.8 8.5 53.1 (3.3) (11.8) (19.6) (10.1) 20.5 (11.1)

20.6 6.7 0.5 29.6 22.7 8.3 22.3 7.6 18.1 14.8

27.7 27.5 18.0 33.6 33.7 33.9 31.0 25.8 12.3 29.4

24.1 25.8 18.0 25.9 27.4 31.3 25.4 24.0 10.4 25.6

16.7 19.1 12.2 20.2 23.7 12.8 10.6 14.2 8.1 15.3

14.7 17.6 11.9 16.3 19.4 11.1 9.3 13.7 7.1 11.8

(8.8) 9.2 3.8 (52.7) 7.1 2.1 4.4 3.1 1.4 2.9

16.2 7.9 3.4 51.0 6.0 2.1 3.8 2.9 1.4 2.7

1.2 1.8 2.5 0.0 1.2 0.0 0.8 2.1 0.0 0.7

1.7 1.9 2.5 1.5 1.5 0.0 0.7 2.3 0.0 0.8

5.3 nc nc nc nc nc 59.0 nc 42.6 nc

5.0 nc nc nc nc nc 47.9 nc 59.6 1.2

20.2 46.4 22.7 na 23.6 9.3 15.0 12.2 16.1 9.5

18.4 41.4 19.9 na 24.1 6.9 16.1 12.4 14.5 10.1

CONSUMER - STAPLES CONSUMER - STAPLES Unilever Indonesia UNVR IJ Equity UNVR IJ Gudang Garam GGRM IJ Equity G GRM IJ Kalbe Farma KLBF IJ EquityKLBF IJ Indofood Sukses Makmur INDF IJ EquityINDF IJ Indofood C BP Sukses IC BP Makmur IJ EquityIC BP IJ Tempo Scan PacificTSPC IJ EquityTSPC IJ Nippon Indosari C orpindo ROTI IJ EquityROTI IJ

OW BUY BUY BUY BUY BUY BUY REDUC E

28,375 43,650 1,405 7,025 10,800 3,040 1,165

31,500 45,000 1,650 7,950 12,000 3,800 840

7,630 1,924 46,875 8,780 5,831 4,500 5,062

15.0 23.5 43.4 49.9 19.5 22.7 29.3

510,581 216,501 83,986 65,860 61,682 62,974 13,680 5,897

281 59 57 76 54 29 3 3

191,314 31,000 53,425 15,765 58,361 24,403 6,851 1,509

221,859 35,228 59,967 17,796 72,501 27,086 7,392 1,889

25,928 7,221 6,558 2,515 5,624 3,120 687 204

30,481 8,073 7,518 2,856 7,398 3,637 733 265

16,910 5,416 4,181 1,947 2,184 2,395 638 149

21,151 6,034 4,856 2,246 4,327 2,819 679 190

5.1 11.9 4.2 12.3 (33.0) 9.9 (1.5) 0.1

17.6 11.4 16.1 15.4 98.1 17.7 6.4 27.3

32.7 40.0 20.1 36.7 28.2 26.3 21.4 39.5

27.5 35.9 17.3 31.8 14.3 22.3 20.1 31.0

21.0 29.3 11.8 22.7 10.2 14.5 14.3 22.9

18.3 26.0 10.2 20.2 7.8 12.2 12.8 18.0

22.6 47.0 2.9 8.7 2.8 4.9 3.8 7.5

20.0 41.5 2.6 7.7 2.4 4.4 3.5 6.3

2.2 2.4 1.8 1.6 3.6 1.7 2.5 0.5

2.6 2.6 2.1 1.9 4.4 2.0 2.6 0.6

30.4 42.5 26.0 nc 64.3 nc nc 28.1

29.5 42.9 23.4 nc 59.1 nc nc 31.0

63.7 126.3 15.0 25.5 10.0 19.8 18.4 20.6

63.5 122.8 15.8 25.7 18.1 20.8 17.9 22.0

INDUSTRIAL ESTATES INDUSTRIAL ESTATES Kawasan Industri Jababeka KIJA IJ Equity KIJA IJ Bekasi Fajar Industrial BEST Estate IJ EquityBEST IJ Surya Semesta Internusa SSIA IJ EquitySSIA IJ Lippo C ikarang LPC K IJ EquityLPC K IJ

N BUY BUY BUY BUY

228 615 840 6,975

235 600 960 6,000

20,121 9,667 4,705 696

80.0 38.5 72.2 57.8

19,317 4,588 5,922 3,952 4,855

35 5 8 14 8

9,899 2,893 1,371 4,437 1,199

10,961 3,077 1,347 5,172 1,365

3,352 866 875 1,005 606

3,605 896 834 1,206 669

2,117 93 737 706 581

2,899 609 728 910 653

4.1 (75.5) 36.9 (0.2) 42.7

137.8 543.7 (1.1) 28.8 12.4

17.2 48.5 8.1 5.6 8.4

7.0 7.5 8.1 4.3 7.4

6.1 7.1 6.8 3.1 6.8

5.7 6.5 6.9 2.7 5.8

2.0 1.1 2.2 1.8 2.7

1.6 1.0 1.8 1.3 2.0

1.3 0.6 2.5 2.1 0.0

2.3 4.0 2.5 2.8 0.0

13.8 56.3 1.3 nc nc

10.4 44.0 nc nc nc

28.6 2.3 35.2 37.5 38.2

26.4 13.7 26.9 35.3 30.6

N REDUC E HOLD BUY

2,580 1,035 1,420

2,050 1,000 1,800

9,936 9,538 5,033

20.5 35.0 35.0

42,655 25,636 9,872 7,147

60 26 26 8

29,654 11,144 12,657 5,853

29,435 10,431 12,873 6,132

2,257 1,351 658 248

2,144 1,319 527 299

1,277 624 463 190

1,315 564 588 162

(55.6) (2.1) (84.5) (56.0)

(1.1) (7.1) 27.0 (14.5)

35.4 40.3 21.3 37.6

37.2 43.4 16.8 44.0

9.7 9.2 9.9 11.3

9.9 9.2 11.7 10.1

1.3 1.4 0.8 1.6

1.2 1.3 0.7 1.6

1.5 1.9 0.7 1.3

1.4 1.7 0.9 1.1

2.6 2.0 6.2 nc

4.4 2.2 9.5 5.2

3.6 3.4 3.6 4.2

3.4 2.9 4.5 3.6

OIL & GAS OIL & GAS Perusahaan Gas Negara PGAS IJ Equity PGAS IJ* AKR C orporindo AKRA IJ Equity AKRA IJ Medco Energy MEDC IJ Equity MEDC IJ* Wintermar OffshoreWINS Marine IJ Equity WINS IJ*

N BUY REDUC E REDUC E BUY

4,955 4,560 2,500 705

4,700 4,150 2,200 750

24,242 3,881 3,332 3,671

43.0 40.7 49.1 29.5

148,732 120,117 17,696 8,331 2,588

152 113 36 3 0

73,304 38,204 21,801 11,257.6 2,042

79,082 38,200 28,191 10,654.7 2,036

17,074 12,880 850 2,837 507

16,288 12,256 1,060 2,393 579

12,028 10,855 700 178 295

11,791 10,384 855 155 397

25.2 26.4 7.8 20.1 21.7

(2.7) (4.3) 22.2 (0.4) 40.8

15.0 11.1 25.3 51.9 11.2

14.9 11.6 20.7 52.1 8.0

8.1 7.0 17.1 4.7 4.9

7.5 6.5 15.8 5.5 3.7

1.8 1.7 3.5 0.9 1.5

1.4 1.1 3.2 0.8 1.3

4.6 5.4 1.4 0.5 1.4

4.5 5.2 1.7 0.5 2.0

10.7 nc 35.7 98.3 53.1

14.2 nc 62.2 112.5 28.0

32.6 37.7 15.5 1.7 14.8

28.7 32.6 16.2 1.6 18.0

PLANTATIONS PLANTATIONS Astra Agro Lestari AALI IJ EquityAALI IJ Salim Ivomas Pratama SIMP IJ EquitySIMP IJ London Sumatra Indonesia LSIP IJ Equity LSIP IJ BW Plantation BWPT IJ Equity BWPT IJ Austindo Nusantara ANJT Jaya IJ EquityANJT IJ* Sampoerna Agro SGRO IJ Equity S GRO IJ

N BUY HOLD BUY HOLD HOLD REDUC E

22,900 760 1,905 1,315 1,630 1,850

28,000 800 2,000 1,300 1,600 1,300

1,575 15,816 6,823 4,471 3,333 1,890

20.3 21.6 40.5 37.1 10.0 33.0

75,889 36,062 12,020 12,998 5,880 5,433 3,497

143 37 12 62 28 1 2

34,070 11,915 13,018 3,944 1,176 1,843 2,174

45,544 18,846 15,872 4,509 1,695 1,974 2,648

4,750 2,231 1,136 623 286 283 192

8,244 3,879 1,932 1,040 574 468 352

2,692 1,309 185 676 151 272 98

5,578 2,925 839 895 320 420 179

(46.3) (45.7) (84.0) (39.4) (44.0) (49.9) (70.1)

119.5 123.4 353.9 32.3 112.0 57.3 82.2

32.7 27.5 65.0 19.2 37.7 19.9 35.5

13.8 12.3 14.3 14.5 17.8 12.6 19.5

12.9 13.2 8.4 14.6 20.1 10.4 11.0

8.2 7.9 5.8 9.2 12.4 7.8 8.2

2.7 3.8 0.9 2.0 2.7 1.4 1.3

2.2 3.1 0.8 1.8 2.4 1.3 1.2

1.4 1.6 0.6 1.6 0.4 2.5 0.8

3.0 3.7 2.8 2.1 0.8 4.0 1.5

27.4 17.0 35.8 nc 156.2 nc 34.2

22.4 3.5 34.2 nc 164.7 nc 56.2

10.0 14.2 1.4 10.6 8.0 6.3 3.7

18.4 27.8 6.1 13.1 14.1 9.2 6.5

OW BUY BUY BUY

4,010 1,540 3,445

4,500 1,800 4,200

16,398 10,661 1,695

44.5 42.5 40.9

88,012 65,756 16,417 5,839

45 28 4 14

49,462 24,482 20,827 4,153

56,715 28,660 23,243 4,812

6,287 3,813 1,917 557

7,496 4,663 2,165 668

3,834 2,610 947 277

5,194 3,469 1,270 455

(3.4) (2.8) (4.5) (8.5)

35.4 32.9 34.2 64.3

23.5 25.2 17.3 21.1

17.4 19.0 12.9 12.8

14.3 15.9 9.4 10.3

11.8 13.0 8.5 8.6

5.8 6.6 3.2 4.7

4.6 5.2 2.7 3.4

1.2 1.2 1.2 0.9

1.2 1.2 1.2 1.6

39.7 21.7 92.4 93.6

33.0 20.8 73.7 55.3

27.6 28.8 20.0 35.2

30.0 30.7 22.5 42.6

N HOLD BUY BUY BUY BUY BUY BUY BUY

1,575 955 351 1,025 1,040 590 242 770

1,350 1,020 315 975 870 640 300 720

17,497 23,078 48,160 14,427 15,166 19,649 20,501 6,150

49.6 82.1 43.5 67.8 61.2 49.7 38.0 43.7

101,447 27,558 22,039

236 27 89 14 21 27 47 5 6

34,180 5,519 6,519 3,111 3,812 5,486 3,337 4,916 1,480

40,074 5,012 7,895 3,503 4,254 7,554 4,018 6,078 1,760

12,097 2,593 1,504 1,585 1,266 1,590 1,748 1,264 547

14,404 2,407 1,826 1,750 1,305 2,102 2,179 2,186 648

9,335 2,411 1,220 1,169 1,080 942 1,325 739 449

10,687 1,813 1,324 1,451 1,079 1,185 1,923 1,419 493

43.8 87.5 15.1 56.2 30.2 59.9 10.2 (8.9) 49.6

9.2 (24.8) 8.5 24.2 (0.2) 25.8 45.1 92.0 9.8

13.4 11.4 18.1 14.5 13.7 16.7 8.7 6.7 10.5

13.1 15.2 16.6 11.7 13.7 13.3 6.0 3.5 9.6

10.0 9.6 14.6 (0.1) 9.8 8.4 7.2 5.3 9.1

2.3 2.7 1.7 4.3 3.4 2.5 2.1 0.9 1.2

2.0 2.4 1.6 3.3 2.9 2.2 1.6 0.7 1.1

2.0 1.7 1.4 1.4 2.6 1.8 2.9 3.0 2.8

2.3 1.3 1.5 1.7 2.6 2.3 4.2 5.7 3.1

12.4 nc 26.4 nc nc nc 27.3 55.2 18.1

14.4 nc 33.8 nc nc nc 20.8 68.2 29.7

20.0 26.7 10.3 34.3 26.8 15.8 26.1 13.9 11.5

17.8 16.8 9.8 32.1 22.7 17.4 30.0 22.7 11.6

491

400

15,775

20.0

7,746 7,746

1 1

25,256 25,256

25,356 25,356

265 265

(132) (132)

208 208

331,588 229,320 38,235 34,180 21,600 4,092 4,162

268 220 15 0 25 6 1

155,357 82,547 21,339 3,021 24,029 10,718 13,702

170,636 88,390 23,592 3,533 26,131 14,744 14,247

34,795 27,403 2,959 1,798 1,751 407 476

38,878 30,148 3,449 2,136 2,073 563 509

13,893 14,015 1,238 196 (2,205) 291 358

19,991 15,312 2,290 1,298 331 395 366

17,169 3,819 13,350 3,130,115

59 19 40 2,885

1,676 682 994 1,438,462

2,058 846 1,213 1,603,097

454 237 218 272,925

558 298 260 305,063

METALS Vale Indonesia Aneka Tambang Timah

METALS INC O IJ EquityINC O IJ* ANTM IJ Equity ANTM IJ TINS IJ EquityTINS IJ

POULTRY POULTRY C haroen Pokphand C Indonesia PIN IJ EquityC PIN IJ Japfa C omfeed Indonesia JPFA IJ Equity JPFA IJ Malindo Feedmill MAIN IJ EquityMAIN IJ PROPERTY PROPERTY Bumi Serpong Damai BSDE IJ Equity BSDE IJ Lippo Karawaci LPKR IJ EquityLPKR IJ Pakuwon Jati PWON IJ Equity P WON IJ Summarecon Agung SMRA IJ Equity SMRA IJ C iputra Development C TRA IJ Equity C TRA IJ Alam Sutera ASRI IJ EquityASRI IJ Agung Podomoro Land APLN IJ EquityAPLN IJ C iputra Property C TRP IJ EquityC TRP IJ STEEL Krakatau Steel

STEEL KRAS IJ Equity KRAS IJ*

TELCOS TELCOS Telekomunikasi Indonesia TLKM IJ EquityTLKM IJ XL Axiata EXC L IJ EquityEXC L IJ Sarana Menara Nusantara TOWR IJ Equity TOWR IJ Indosat ISAT IJ EquityISAT IJ Tiphone Mobile Indonesia TELE IJ EquityTELE IJ Erajaya Swasembada ERAA IJ EquityERAA IJ TRANSPORTATION TRANSPORTATION Ekspress Transindo TAXI Utama IJ EquityTAXI IJ Adi Sarana ArmadaSIDO IJ EquityASSA IJ Market Market Note: *USD reporting **Post rights issue

UW REDUC E OW BUY BUY BUY BUY BUY HOLD N BUY BUY N

2,275 4,480 3,350 3,975 745 1,435

2,900 5,500 2,950 4,550 800 1,000

100,800 8,534 10,203 5,434 5,493 2,900

48.8 33.5 61.7 20.7 27.2 39.7

1,780 890

1,800 330

2,146 15,000

49.0 10.0

14,787 15,772 11,593 4,961 4,736

(234) (234)

210 126 85 186,675

259 160 99 220,571

32.1 32.1

9.2 10.2 12.7 (0.1) 9.6 6.3 5.8 3.9 8.4

na na

na na

35.7 35.7

46.1 46.1

22.1 22.1

0.6 0.6

0.6 0.6

0.0 0.0

0.0 0.0

82.4 82.4

111.9 111.9

(1.0) (1.0)

1.7 1.7

(33.4) 9.1 (55.2) (43.4) na 15.1 (17.3)

71.7 9.3 85.0 562.9 na 35.5 2.2

32.6 16.4 30.9 174.5 (9.8) 17.1 11.6

19.5 15.0 16.7 26.3 65.3 12.6 11.4

6.8 5.5 6.3 17.2 3.9 10.4 9.6

6.1 5.2 5.6 14.4 3.4 7.9 8.3

4.1 3.8 2.5 9.6 1.3 4.1 1.5

3.5 3.4 2.2 7.1 1.2 3.3 1.4

2.0 3.1 1.5 0.0 (5.1) 1.8 3.4

2.8 3.4 3.0 0.0 0.8 2.5 3.5

48.8 3.0 98.9 247.2 138.9 32.0 29.2

36.4 2.0 86.3 163.9 115.1 37.5 14.5

18.5 25.1 8.0 5.6 (12.5) 25.0 13.4

22.0 23.9 14.0 31.1 1.9 28.8 12.7

71.8 58.5 82.1 0.3

20.8 27.0 16.6 15.1

34.5 30.4 35.7 20.6

29.1 23.9 30.6 17.1

26.6 10.7 31.2 9.4

21.9 8.7 25.7 8.3

3.9 4.8 3.7 5.7

3.5 4.2 3.3 6.1

0.2 0.9 0.0 2.2

0.3 1.1 0.0 2.5

136.0 103.0 145.5 23.5

150.5 99.4 165.1 21.7

12.3 17.0 10.9 28.6

13.0 18.7 11.4 28.3

OW: Overweight, N: Neutral, UW: Underweight, UR: Under Review

PT Bahana Securities – Equity Research – Bahana Beacon - The Daily

5

Asiamoney’s 2013 Best Domestic Equity House

February 2014 Sunday

Monday

Tuesday

Wednesday

Thursday

Friday

Saturday 1 SK: Jan trade bal (P:USD3.7bn)

2

3

4

5

6

7

8

ID: Jan CPI

SK: Jan CPI

PH: Jan CPI

TA: Jan CPI

US: Jan

CH: Dec CPI

(P:8.38% y-y)

(P:1.10% y-y)

(P:4.10% y-y)

(P:0.33% y-y)

unemployment

(P:3.0% y-

ID: Dec trade sur

RU: Jan CPI

ID: 4Q13 GDP

PH: BSP borrowing

rate (P:6.70%)

y)

(P:USD0.8b)

(P:6.50% y-y)

(P:5.62% y-y)

rate (P:3.50%)

BZ: Jan IPCA

TH: Jan CPI

EC: ECB

inflation (P:5.91%

UK: BOE

(P:1.67% y-y)

benchmark rate

y-y)

bank rate

(P:0.25%)

CA: Jan

(P&F:0.5%)

AU: Dec trade bal

unemployment

(P:-USD118mn)

rate (P:7.20%)

US: Dec trade bal (P:-USD573mn) 9

10

11

12

13

14

15

JN: Dec trade bal

SI: 4Q13 GDP

SK: Jan

SK: BOK 7-day

CH: Jan CPI

UK: Dec CPI

(P:-JPY1.3t)

(P:4.40%)

unemployment

repo rate

(P:2.50% y-y)

(P:2.1% y-

rate (P:3.00%)

(P:2.5%)

EC: 4Q13 GDP

y)

MA: 4Q13 GDP

ID: BI rate

(P:-0.40%)

CH: 4Q13

(P:5.00%)

(P:7.50%,

EC: Dec trade bal

GDP

CH: Jan trade bal

B:7.50%)

(P:USD16.0bn)

(P:7.8% y-

(P:USD25.6bn)

AU: Jan

ID: BoP 4Q13

y)

unemployment

current account

rate (P:5.80%)

bal (P:-USD8.4bn)

16

17

18

19

20

21

22

CA: Dec

TH: 4Q13 GDP

HK: Jan

SP: Dec

RU: Jan

CA: Dec CPI y-y

AR: Jan

Trade

(P: 2.7% y-y)

unemployment

Trade balance

unemployment

HK: CPI composite

trade

balance

TU: Nov

rate (P:3.2%)

(P:USD1,8tn)

rate

(P:4.3% y-y)

balance

(P:USD28

Unemployment

UK: Jan CPI

US: Jan CPI

US: Dec CPI

5mn)

rate (P: 9.7%

(P:2.0%)

(P:1.5% y-y)

(P:1.2% y-

y-y)

VZ: 4Q13 GDP

JN: Jan trade

y)

(P: 1.1% y-y)

balance

23

24

25

26

27

28

HK: Dec trade

SA: 4Q13 GDP

TA: Jan

BZ: 4Q13 GDP

IN: 4Q13 GDP

balance

(P: 1.8% y-y)

unemployment

(P: 2.2% y-y)

(P:4.8%)

MA: 4Q13

PH: Dec

rate(P:4.12%)

SZ: 4Q13 GDP

ID: Jan CPI

Trade balance

HK: 4Q13 GDP

(P: 1.9% y-y)

(P:0.30% y-y)

(P: 2.9% y-y)

Source: Bloomberg, P=Prior, F=Consensus forecast, B=Bahana forecast

PT Bahana Securities – Equity Research – Bahana Beacon - The Daily

6

Asiamoney’s 2013 Best Domestic Equity House

COMPANY/SITE VISITS/EVENTS Date

Time

Description

Analyst

Monday, 17 February 2014 Monday, 19 February 2014

14:00 09:00

ITMG company visit BBNI analyst meeting

Jennifer Frederika Yapply Teguh Putra Hartanto

Source: Bahana

AGM & EGM SCHEDULE Corporate Actions AGM EGM EGM EGM AGM

Ticker BBTN IJ TKGA IJ ASJT IJ CNKO IJ BJTM IJ

Corporate Bank Tabungan Negara Persero Permata Prima Sakti Asuransi Jasa Tania Exploitasi Energi Indonesia Bank Pembangunan Daerah Jatim

Date 02/25/2014 02/25/2014 02/26/2014 02/28/2014 03/26/2014

Time 09:30 10:00 09.00

Source: Bloomberg

DIVIDEND SCHEDULE Corporate

Source: Bloomberg

Price (IDR)

Cash (IDR)

Yield (%)

Ex date

Record date

Payment date

Ticker

*Interim Dividend

PT Bahana Securities – Equity Research – Bahana Beacon - The Daily

7

Asiamoney’s 2013 Best Domestic Equity House

Actual and upcoming IPOs, 2012-2014 No 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 2012 total 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 2013 total 53 54 55 56 57 58 59 60 61 64 65 66 67 68 69 70 71 72 73 2014 total

Code

Date

Company name

Industry

PADI TELE ESSA BEST RANC TRIS KOBX TOBA MSKY ALTO GLOB GAMA BJTM IBST NIRO PALM NELY TAXI BSSR ASSA WIIM WSKT

01/09/12 01/12/12 02/01/12 04/10/12 06/07/12 06/28/12 07/05/12 07/06/12 07/09/12 07/10/12 07/10/12 07/11/12 07/12/12 08/31/12 09/13/12 10/08/12 10/11/12 11/02/12 11/08/12 11/12/12 12/18/12 12/19/12

Minna Padi Investama Tiphone Mobile Indonesia Surya Esa Perkasa Bekasi Fajar Industrial Estates Supra Boga Lestari Trisula International Kobexindo Tractors Toba Bara Sejahtera MNC Sky Vision Tri Banyan Global Teleshop Gading Development Bank Jatim Inti Bangun Sejahtera Nirvana Development Provident Agro Pelayaran Nelly Dwi Putri Express Transindo Utama Baramulti Sukses Sarana Adi Sarana Armada Wismilak Waskita Karya

Financial market Cellular distribution Petroleum gas Industrial estates Retail Fashion distribution Heavy equipment Coal Media Consumer Telcos Property Banks Communication Property Plantation Shipping Transportation Coal Automotive Cigarettes Construction

BBRM HOTL SAME MAGP TPMA ISSP DYAN ANJT NOBU MPMX DSNG SRIL ACST SRTG NRCA SMBR ECII BBMD MLPT VICO CPGT NAGA BMAS SILO APII KRAH IMJS LEAD SSMS SIDO

01/08/13 01/10/13 01/11/13 01/16/13 02/20/13 02/22/13 03/25/13 05/08/13 05/20/13 05/29/13 06/14/13 06/17/13 06/24/13 06/26/13 06/27/13 06/28/13 07/03/13 07/08/13 07/08/13 07/08/13 07/09/13 07/09/13 07/11/13 09/12/13 10/29/13 11/08/13 12/10/13 12/11/13 12/12/13 12/18/13

Pelayaran Nasional Bina Buana Saraswati Griya Lestari Sarana Meditama Metropolitan Multi Agro Gemilang Trans Power Marine Steel Pipe Industry of Indonesia Dyandra Media International Austindo Nusantara Jaya Bank Nationalnobu Mitra Pinasthika Mustika Dharma Satya Nusantara Sri Rejeki Isman (Sritex) Acset Indonesia Saratoga Investa Sedaya Nusa Raya Cipta Semen Baturaja Electronic City Indonesia Bank Mestika Dharma Multipolar Technology Victoria Investama Cipaganti group Bank Mitraniaga Bank Maspion Siloam Hospital Arita Prima Indonesia Grand Kartech Indomobil Multi Jasa Logindo Samudramakmur Sawit Sumbermas Sarana Sido Muncul

Shipping Hotel Hospital Management Plantations Transportation Pipes manufacturer Entertainment Plantation Banking Automotive Plantations Textile Construction Finance Construction Cement Retail Banking IT Finance Transportation Banking Banking Hospital Pipe Manufacture Manufacturing Auto finance Marine services Plantations Pharmaceutical

PNBS ASMI CANI BINA

01/15/14 01/16/14 01/16/14 01/16/14

Bank Panin Syariah Mitra Maparya Capitol Nusantara Bank INA Air Asia Indonesia Bank Sumut Wika Beton PLN Batam Persib Bandung Bermartabat Prima Jaya Kreasi Aditech Cakrawiyasa Tugu Pratama Citra Borneo Indah Pasifik Agro Sentosa Delta Mas Sriboga Ratu Raya Blue Bird Eka Sari Lorena Transport Siba Surya

Banking Insurance Transporation Banking Aviation Banking Construction material Energy Entertainment Entertainment Household goods Insurance Plantations Plantations Property Restaurant Transportation Transportation Transportation

Amount (IDRbn) 119 419 153 300 156 90 109 400 2,147 63 128 420 1,283 154 630 297 59 589 510 530 409 1,171 10,136 138 102 72 440 91 856 449 400 808 1,455 509 1,344 375 1,492 260 1,309 1,350 593 180 150 69 80 246 1,405 61 45 225 357 1,005 870 16,735 475 109 42 125 1,800 800 1,500 200 300 250 750 1,000 1,000 2,760 500-700 2,438 150 500 14,199

Public (%) 23.1 25.2 31.3 20.1 20.0 30.0 12.0 10.47 20.0 17.7 10.0 40.0 20.0 15 33.3 20.0 20.0 49.0 10.0 40 30.0 35.0 13.2 15.5 13.6 66.7 9.0 29.6 22.4 10.0 52.5 21.7 13.0 30.1 31.0 10.0 12.3 23.8 25.0 20.0 18.0 16.3 10.0 27.3 20.0 13.5 25.6 16.9 10.4 19.8 15.8 10.0 49.3 29.0 25.0 24.8 20.0 20.0-40.0 30.0 35.0 20.0-30.0 20.0 20.0 15.0-25.0 20.0 20.0

Source: various media

PT Bahana Securities – Equity Research – Bahana Beacon - The Daily

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Asiamoney’s 2013 Best Domestic Equity House

Actual and upcoming rights issues, 2011-2012 No

Code

1 BMRI 2 AMRT 3 BBKP 4 PBRX 5 EPMT 6 ABDA 7 INDS 8 UNTR 9 DOID 10 BVIC 11 IMAS 12 KREN 13 APIC 14 LPPS 15 BDMN 16 AISA 17 AMAG 18 KIJA 19 BEKS 20 CFIN 21 PNLF 22 DKFT 23 PWON 24 PSAB 25 MDLN 26 MASA 2011 total 27 FREN 28 BSIM 29 AMRT 30 KIAS 31 RAJA 32 SUGI 33 NISP 34 TRIO 35 SMMT 36 ITTG 37 MCOR 38 SUPR 39 BEKS 40 MDRN 41 BBNT 42 COWL 43 BNLI 44 INPC 45 MYOH 46 BIPP 47 HOME 48 CNKO 49 SRAJ 50 INCF 2012 total 51 CENT 52 TKGA 53 TRIM 54 AUTO 55 BBNP 56 DNET 57 BKSW 58 KPIG 59 HERO 60 INDS 61 JKON 62 AGRO 63 BNII 64 WEHA 65 INDX 66 BACA 2013 total Grand total Source: Various media

Ex-rights date

Company name

02/16/12 06/25/12 03/12/12 02/24/12 05/08/12 05/11/12 05/30/12 06/26/12 06/26/12 07/05/12 07/06/12 08/16/12 09/07/12 10/29/12 11/19/12 11/20/12 11/30/12 11/30/12 12/18/12 12/10/12 12/11/12 12/14/12 12/19/12

Smartfren Telecom Bank Sinarmas Sumber Alfaria Trijaya Keramika Indonesia Asosiasi Rukun Raharja Sugih Energy Bank OCBC NISP Trikomsel Oke Golden Eagle Energy Leo Investments Bank Windu Kentjana International Solusi Tunas Pratama Bank Pundi Indonesia Modern International Bank Tabungan Negara Cowell Development Bank Permata Bank Arta Graha International MYOH Technology Bhuwanatala Indah Permai Hotel Mandarine Regency Exploitasi Energi Indonesia Sejahteraraya Anugrahjaya Amstelco Indonesia

Telecommunication Banks Retail Ceramics, Glass, Porcelain Energy Energy Banks Retail Energy Financial Banks Towers Banks Retail Banks Construction Banks Banks Telecommunication Property Property Coal Shipping Financial

1-Feb-13 8-Mar-13 8-Apr-13 25-Apr-13 13-May-13 3-Jun-13 4-Jun-13 11-Jun-13 14-Jun-13 1-Jul-13 2-Jul-13 4-Jul-13 5-Jul-13 8-Jul-13 8-Jul-13 7-Sep-13

Centrin Online Toko Gunung Agung Trimegah Securities Astra Otoparts Bank Nusantara Parahyangan Dyviacom Intrabumi Bank QNB Kesawan MNC Land Hero Supermarket Indospring Jaya Konstruksi Manggala Pratama Bank Rakyat Indonesia Agroniaga Bank International Indonesia Panorama Transportasi Tanah Laut Bank Capital Indonesia

Retail Retail Finance Misc. Industry Banking Trade Banking Construction Retail Trade Construction Banking Banking Infrastructure Infrastructure Banking

01/26/11 01/24/11 01/20/11 01/24/11 02/01/11 04/28/11 05/16/11 06/03/11 06/27/11 06/27/11 07/01/11 07/08/11 07/05/11 07/06/11 09/28/11 10/02/11 10/04/11 10/14/11 10/21/11 10/24/11 11/03/11 12/02/11 12/09/11 12/23/11 12/23/11 12/28/11

Bank Mandiri Sumber Alfaria Trijaya Bank Bukopin Pan Brothers Enseval Putra Megatrading Asuransi Bina Dana Arta Indospring United Tractors Delta Dunia Makmur Bank Victoria Indomobil Sukses Internasional Kresna Graha Securindo Pasific Strategic Financial Lippo Securities Bank Danamon Tiga Pilar Sejahtera Food Asuransi Multi Artha Guna Kawasan Industri Jababeka Bank Pundi Indonesia Clipan Finance Panin Financial Central Omega Resources Pakuwon Jati J Resources Asia Pasifik Moderland Realty Multistrada Arah Sarana

PT Bahana Securities – Equity Research – Bahana Beacon - The Daily

Industry

Banks Retail Banks Textile Pharmacy distribution Insurance Automotive components Heavy equipment Mining contracting Banks Automotive Financial Financial Finance Banks Consumer Insurance Construction Banks Financing Financial Mining Property Trading Property Automotive components

Amount (IDRbn)

11,684 1,039 1,066 433 300 144 188 6,100 1,200 199 2,770 106 286 206 4,998 702 215 1,509 500 469 499 984 1,304 1,444 802 1,500 40,647 1,336 305 1,030 863 230 2,427 1,507 267 410 102 105 648 300 528 1,868 906 1,996 501 610 171 103 2,355 1,439 5,091 25,098 685 480 276 2,988 296 7,000 649 2,443 2,980 357 457 450 1,501 75 69 204 20,910 86,655

9

Asiamoney’s 2013 Best Domestic Equity House

2013 Results Round – ups No 1 2 3 4 5 6 7 8 9 10 11

Company Adhi Karya Bank Danamon Bank Jatim Bank Mandiri Bank Rakyat Indonesia Bank Tabungan Negara Garuda Indonesia* Matahari Department Store Pembangunan Perumahan Waskita Karya XL Axiata

Ticker ADHI IJ BDMN BJTM IJ BMRI IJ BBRI IJ BBTN IJ GIAA IJ LPPF IJ PTPP IJ WSKT IJ EXCL IJ

Source: Bloomberg, Company, Bahana estimates

Operating profit (IDRbn) Actual Bahana (%) Comment 755 909 83.1 Below 5,605 5,628 99.6 In line In line 23,552 22,246 105.9 Above 26,121 24,299 107.5 Above 2,136 1,888 113.1 Above 6 54 11.7 Below 1,781 1,788 99.6 In line 1,168 1,198 97.4 In line 672 584 115.0 Above 2,901 2,959 98.1 In line

Actual 406 4,042 18,204 21,354 1,562 11 1,150 421 368 1,033

Net profit (IDRbn) Bahana (%) 320 126.9 4,001 101.0 17,336 20,572 1,425 13 1,180 416 268 1,238

105.0 103.8 109.6 88.2 97.5 101.1 137.2 83.4

Comment Above In line In line Above In line Above Below In line In line Above Below

*In USDm

PT Bahana Securities – Equity Research – Bahana Beacon - The Daily

10

Asiamoney’s 2013 Best Domestic Equity House

Research: +62 21 250 5081 Harry Su [email protected] Senior Associate Director Head of Equities & Research Strategy, Consumer ext 3600 direct: +62 21 250 5735

Teguh Hartanto [email protected] Associate Director Deputy Head of Research Banks, Cement ext 3610

Leonardo Henry Gavaza [email protected] Senior Research Manager Auto, Plantations, Heavy equipment, Property, Industrial estate ext 3608

Arga Samudro [email protected] Economist ext 3602

Aditya Eka Prakasa [email protected] Research Analyst Poultry, Telco, Aviation ext 3603

Salman Fajari Alamsyah [email protected] Research Analyst Property, Industrial estate, Steel, Cement, Toll roads ext 3605

Jennifer Frederika Yapply [email protected] Research Analyst Coal, Oil and gas, Metals ext 3606

Maxi Liesyaputra [email protected] Research Analyst Auto, Construction, Consumer, Media ext 3615

Chandra Widjanarka [email protected] Technical Analyst, Transportation ext 3609

Michael W Setjoadi [email protected] Research Analyst Consumer ext 3603

Giovanni Aristo [email protected] Senior Research Associate ext 3604

Zefanya Angeline Halim [email protected] Research Associate/Corporate Access & Client Relations ext 3612

Nico Laurens [email protected] Research Associate ext 3614

Laurensius Teiseran [email protected] Research Associate ext 3601

Made Ayu Wijayati [email protected] Research Executive ext 3607

Nuriah Sari [email protected] Research Executive ext 3001

Dealing Room: +62 21 527 0808 (Foreign Institutional)

+62 21 250 5508 (Domestic Institutional)

+62 31 535 2788 (Surabaya Branch)

AshishSilaen, Agrawal Ricardo CFA [email protected] [email protected] Vice President Equity Sales Institutional Equity Sales ext 2524 ext 2550 / 2553

Amelia Husada [email protected] Vice President Institutional Equity Sales ext 2552

Yohanes Adhi Handoko [email protected] Manager, Surabaya Branch ext 7250

Ricardo Silaen, CFA [email protected] Vice President Institutional Equity Sales ext 2524

John M. Dasaad [email protected] Equity Sales ext 2549

Suwardi Widjaja Nurul Farida [email protected] [email protected] Equity Sales ext 2543 2548

Reynard Poernawan [email protected] Institutional Equity Sales ext 2528

Siti Fathia Maisa Syafurah [email protected] Equity Sales ext 2547

Nurul Farida [email protected] Equity Sales ext 2543

Angky Amarylis [email protected] Sales Trader ext 2525

Head Office Graha Niaga, 19th Floor Jl. Jend. Sudirman Kav. 58 Jakarta 12190 Indonesia Tel. 62 21 250 5081 Fax. 62 21 522 6049

http://www.bahana.co.id

PT Bahana Securities – Equity Research – Bahana Beacon - The Daily

Surabaya Branch Wisma BII, Ground Floor Jl. Pemuda 60-70 Surabaya 60271 Indonesia Tel. 62 31 535 2788 Fax. 62 31 546 1157

11

Asiamoney’s 2013 Best Domestic Equity House

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Daiwa Securities Group Inc., its subsidiaries or affiliates, or its or their respective directors, officers and employees from time to time have trades as principals, or have positions in, or have other interests in the securities of the company under research including derivatives in respect of such securities or may have also performed investment banking and other services for the issuer of such securities. The following are additional disclosures. Japan Daiwa Securities Co. Ltd. and Daiwa Securities Group Inc. Daiwa Securities Co. Ltd. is a subsidiary of Daiwa Securities Group Inc. Investment Banking Relationship Within the preceding 12 months, The subsidiaries and/or affiliates of Daiwa Securities Group Inc. * has lead-managed public offerings and/or secondary offerings (excluding straight bonds) of the securities of the following companies: Jiangnan Group Limited (1366 HK); Blackgold International Holdings Ltd (BGG AU); Tosei Corporation (8923 JP); Modern Land (China) Co. 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Daiwa Capital Markets Europe Limited and/or its affiliates may, from time to time, to the extent permitted by law, participate or invest in other financing transactions with the issuers of the securities referred to herein (the “Securities”), perform services for or solicit business from such issuers, and/or have a position or effect transactions in the Securities or options thereof and/or may have acted as an underwriter during the past twelve months for the issuer of such securities. In addition, employees of Daiwa Capital Markets Europe Limited and/or its affiliates may have positions and effect transactions in such securities or options and may serve as Directors of such issuers. Daiwa Capital Mar kets Europe Limited may, to the extent permitted by applicable UK law and other applicable law or regulation, effect transactions in the Securities before this material is published to recipients. This publication is intended for investors who are not Retail Clients in the United Kingdom within the meaning of the Rules of the FCA and should not therefore be distributed to such Retail Clients in the United Kingdom. Should you enter into investment business with Daiwa Capital Markets Europe’s affiliates outside the United Kingdom, we are obliged to advise that the protection afforded by the United Kingdom regulatory system may not apply; in particular, the benefits of the Financial Services Compensation Scheme may not be available. Daiwa Capital Markets Europe Limited has in place organisational arrangements for the prevention and avoidance of conflicts of interest. Our conflict management policy is available at http://www.uk.daiwacm.com/about-us/corporate-governance-and-regulatory. Regulatory disclosures of investment banking relationships are available at https://daiwa3.bluematrix.com/sellside/Disclosures.action. 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Accordingly, no representation or warranty, express or implied, is made as to and no reliance should be placed on the fairness, accuracy, completeness or correctness of the information and opinions contained in this document, Content herein is based on information available at the time the research material was prepared and may be amended or otherwise changed in the future without notice . All information is intended for the private use of the person to whom it is provided without any liability whatsoever on the part of Daiwa Capital Markets Europe Limited, Bahrain Branch, any associated company or the employees thereof. If you are in doubt about the suitability of the product or the research material itself, please consult your own financial adviser. Daiwa Capital Markets Europe Limited, Bahrain Branch retains all rights related to the content of this material, which may not be redistributed or otherwise transmitted without prior consent. For stocks and sectors in Indonesia covered by Bahana Securities, the following rating system is in effect: Stock ratings are based on absolute upside or downside, which is the difference between the target price and the current market price. Unless otherwise specified, these ratings are set with a 12-month horizon. It is possible that future price volatility may cause a temporary mismatch between upside/downside for a stock based on the market price and the formal rating. "Buy": the price of the security is expected to increase by 10% or more. "Hold": the price of the security is expected to range from an increase of less than 10% to a decline of less than 5%. "Reduce": the price of the security is expected to decline by 5% or more. Sector ratings are based on fundamentals for the sector as a whole. Hence, a sector may be rated “Overweight” even though its constituent stocks are all rated “Reduce”; and a sector may be rated “Underweight” even though its constituent stocks are all rated “Buy”. “Overweight”: positive fundamentals for the sector. “Neutral”: neither positive nor negative fundamentals for the sector. “Underweight”: negative fundamentals for the sector. Ownership of Securities For “Ownership of Securities” information, please visit BlueMatrix disclosure Link at https://daiwa3.bluematrix.com/sellside/Disclosures.action . Investment Banking Relationships For “Investment Banking Relationship”, please visit BlueMatrix disclosure Link at https://daiwa3.bluematrix.com/sellside/Disclosures.action .

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Asiamoney’s 2013 Best Domestic Equity House

Relevant Relationships (Bahana Securities) Bahana Securities may from time to time have an individual employed by or associated with it serves as an officer of any of the companies under its research coverage. Bahana Securities market making Bahana Securities may from time to time make a market in securities covered by this research. Additional information may be available upon request. Japan - additional notification items pursuant to Article 37 of the Financial Instruments and Exchange Law (This Notification is only applicable where report is distributed by Daiwa Securities Co. Ltd.) If you decide to enter into a business arrangement with us based on the information described in materials presented along with this document, we ask you to pay close attention to the following items. In addition to the purchase price of a financial instrument, we will collect a trading commission* for each transaction as agreed beforehand with you. Since commissions may be included in the purchase price or may not be charged for certain transactions, we recommend that you confirm the commission for each transaction. In some cases, we may also charge a maximum of ¥ 2 million (including tax) per year as a standing proxy fee for our deposit of your securities, if you are a non-resident of Japan. For derivative and margin transactions etc., we may require collateral or margin requirements in accordance with an agreement made beforehand with you. Ordinarily in such cases, the amount of the transaction will be in excess of the required collateral or margin requirements. There is a risk that you will incur losses on your transactions due to changes in the market price of financial instruments based on fluctuations in interest rates, exchange rates, stock prices, real estate prices, commodity prices, and others. In addition, depending on the content of the transaction, the loss could exceed the amount of the collateral or margin requirements. There may be a difference between bid price etc. and ask price etc. of OTC derivatives handled by us. Before engaging in any trading, please thoroughly confirm accounting and tax treatments regarding your trading in financial instruments with such experts as certified public accountants. *The amount of the trading commission cannot be stated here in advance because it will be determined between our company and you based on current market conditions and the content of each transaction etc. When making an actual transaction, please be sure to carefully read the materials presented to you prior to the execution of agreement, and to take responsibility for your own decisions regarding the signing of the agreement with us. Corporate Name: Daiwa Securities Co. Ltd. Financial instruments firm: chief of Kanto Local Finance Bureau (Kin-sho) No.108 Memberships: Japan Securities Dealers Association, Financial Futures Association of Japan Japan Securities Investment Advisers Association Type II Financial Instruments Firms Association

PT Bahana Securities – Equity Research – Bahana Beacon - The Daily

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