Beacon Indonesia Morning Brief

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Asiamoney's Asiamoney’s 2013 2013 Best BestDomestic Domestic Equity EquityHouse House

2014 Finance Asia's Best Equity House

15 October 2014

Beacon

IDX: 4,923 (+0.2%) Turnover: IDR3.6tn (+8.4%) Foreign net SELL: IDR490.0bn (-17.7%)

Indonesia Morning Brief

CORPORATE FLASH

INDICES

Waskita Karya (WSKT IJ): Growth from diversity Analyst: Maxi Liesyaputra  Property as WSKT’s business diversification  4Q14 bond issuance plan  Entering toll road business to support long-term growth To see the full version of this report, please click here

TODAY’S NEWS POLITICS  Jokowi to raise fuel price next year  Bakrie: Golkar to remain in Prabowo’s coalition  Jokowi’s “silent operation” sparks speculation ECONOMICS  9M14 tax revenues realization reached 64.2%  Government sold IDR12tn bonds with lower yields  Syndicated dollar borrowing head for record as bond sales drop BOURSE  Jiwasraya proposed three options for business expansion, including IPO INDUSTRY  Banks’ reduced loan growth target to 14.4% y-y  Malaysia’s September CPO inventory: 2.09mn tons (+2% m-m); CPO tax at zero  Brent oil tumbled to four-year low  Pertamina to build 150 SPBGs per annum  5 countries start legal fight against Australia tobacco law  17 companies have not signed mining-contract amendments CORPORATE  BBRI issued MTN amounting to IDR2tn  ADHI to expand Halim Perdanakusuma airport  Lippo Group’s cinema line sets ambitious target  WSKT to spin off its property arm  PGAS’s FSRU to receive 2 LNG cargoes  KRAS subsidiary to invest IDR335.6bn in pipe factory  PSAB to issue USD300mn global bond  JPFA rated A+ for bond credit rating  CPIN to secure USD300-400mn syndicated loan  SMBR to focus on South Sumatra market  GGRM realized more than 3,000 employees for early pension  KIJA and PLIN joint project to be delayed to 2H15  WINS plans to liquidate its subsidiary, Abbeypure ECONOMIC INDICATORS

MARKET DATA

13A 14F 15F* Cur acc bal (%GDP) (3.2) (3.1) (2.7) Fiscal bal (%GDP) (2.4) (2.5) (2.5) GDP growth (%y-y) 5.8 5.2 4.8 Private spending (%) 5.3 5.2 5.1 Investment (%y-y) 4.7 5.4 6.6 Total exports (%y-y) 5.3 6.0 7.0 Total imports (%y-y) 1.2 5.0 5.4 Inflation (%y-y) 8.4 5.9 10.3 IDR/USD 12,170 11,900 11,700

13A 14F Op.prof.gwt.(%) 8.8 12.7 EPS growth (%) 3.9 13.7 P/E (x) 23.8 20.0 PEG (x) 6.1 1.5 EV/EBITDA (x) 10.3 9.4 P/BV (x) 6.7 8.2 P/BV exc. UNVR&LPPF 3.8 3.3 Div. Yield (%) 2.3 2.5 Net gearing (%) 17.8 20.2

BI rate (% p.a.) Brent Oil (Usd/bbl) FX reserve (USDb)

ROAE (%) ROAA (%) ROIC (%)

7.5 7.50 8.00 110.8 110.0 105.0 99.4 107.5 100.0

Source: Bahana estimates, *given 30% to subsidize fuel price hike in 1Q15

Source: Bahana estimates

15F 12.4 13.4 17.0 1.3 8.4 5.8 2.8 2.7 17.1

29.8 29.8 32.0 11.9 12.2 12.3 13.3 22.3 26.6

Asia Last Hang Seng (HK) 23,048.0 IDX (Indonesia) 4,922.6 KLCI (Mal.) 1,796.4 KOSPI (Korea) 1,929.3 Nikkei (Japan) 14,936.5 PCOMP (Phil.) 6,946.1 SENSEX (India) 26,408.4 SET (Thailand) 1,546.1 SHCOMP (China) 2,359.5 SHENZHEN (China) 1,345.6 STI (Singapore) 3,200.3 TWSE (Taiwan) 8,768.4 VNI (Vietnam) 605.8 Europe, USA and EMs CAC 40 (France) 4,088.3 DAX (Germany) 8,825.2 Dow Jones (USA) 16,315.2 FTSE 100 (UK) 6,392.7 IBOV (Brazil) 58,015.5 MEXBOL (Mexico) 43,179.9 NGSEINDX (Nigeria) 39,681.7 Nasdaq (USA) 4,227.2 RTSI (Russia) 1,075.5 S&P 500 (USA) 1,877.7 XU100 (Turkey) 74,686.6

Chg% (0.4) 0.2 (0.0) 0.1 (2.4) (0.3) 0.1 0.2 (0.3) (0.3) (0.1) 0.7 (1.4)

ytd % (1.1) 15.2 (3.8) (4.1) (8.3) 17.9 24.7 19.1 11.5 27.2 1.0 1.8 20.0

y-y % (0.7) 8.9 0.7 (4.5) 3.7 7.8 28.1 5.9 5.4 22.7 1.1 6.0 22.7

0.2 0.1 (0.0) 0.4 0.1 0.2 (0.9) 0.3 (0.1) 0.2 (0.6)

(4.8) (7.6) (1.6) (5.3) 12.6 1.1 (4.0) 1.2 (25.5) 1.6 10.2

(3.9) 0.2 7.6 (2.4) 5.5 7.4 7.1 11.4 (28.1) 10.6 (2.0)

ETF, ADRS & COMMODITIES EIDO US (USD) TLK US (IDR) Aluminum (USD/mtn) 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) Silver (USD/oz) Soybean oil (USD/t) Steel (USD/t) Sugar (USD/t) Tins (USD/t) Wheat (USD/t)

Last 26.0 2,790 1,950.0 64.0 126.8 4,030.0 6,780.5 1,414.5 760.0 1,229.6 83.2 534.3 16,180.0 82.3 8,600.0 1,489.0 17.3 724.7 493.6 463.8 20,155.0 187.1

Chg% 1.2 0.0 0.3 (0.8) 10.1 (0.3) (0.3) (1.3) 0.0 (0.4) 2.2 0.6 (1.3) (3.2) 0.0 2.0 (0.9) (0.5) 0.6 (0.7) (0.1) 0.8

ytd % 13.9 28.7 8.3 (26.6) (20.6) 70.1 (8.3) (24.2) (16.5) 2.0 (37.6) 38.1 15.8 (16.4) 1.2 (34.4) (11.0) (15.3) (13.0) 3.0 (10.6) (20.5)

y-y % (3.6) 14.8 4.3 (22.1) (22.2) 64.9 (5.9) (23.3) (9.3) (4.1) (38.0) 41.9 16.3 (18.7) 1.8 (37.2) (18.9) (18.6) (15.2) 2.1 (13.8) (28.5)

Prev. 0.874 1.272 12,218 107.150 1.272 5.84 7.50 7.14 175.67

Ytd % 2.4 8.0 (0.3) (1.9) (1.1) (0.2) 0.0 0.4 (25.1)

y-y % 8.0 6.7 (7.4) (8.8) (2.5) 0.1 0.3 1.0 (21.3)

Source: Bloomberg

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

Last 0.871 1.264 12,208 107.260 1.277 5.84 7.50 7.08 174.51

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.

Asiamoney's 2013 Best Domestic Equity House

2014 Finance Asia's Best Equity House

POLITICS Jokowi to raise fuel price next year President elect, Joko Widodo (Jokowi) was quoted in saying that he plans to raise fuel prices next year as the government is planning to boost state revenue from taxes prior to reducing the budget deficit from fuel subsidy cut. (Tempo) Bahana comment: This timing is in line with our expectation as we believe the new Jokowi government will require more time post his presidential inauguration later this month in order to better plan for social safety net programs ahead of the fuel subsidy cut. Bakrie: Golkar to remain in Prabowo’s coalition Following one-hour private meeting between Jokowi and Aburizal Bakrie on Tuesday, Jokowi stated the meeting was to discuss “where Golkar’s position would be” when he is inaugurated next week. Efforts to peel away defectors from the Prabowo’s coalition have yet to see significant success. Bakrie affirmed that Golkar will remain in the Prabowo’s coalition by acting as counterweight to the new administration, not an opposing role. Jokowi is scheduled to meet SBY again sometime next week. (Jakarta Globe, The Jakarta Post) Jokowi’s “silent operation” sparks speculation The decision by president-elect Jokowi to remain secretive about the selection of his cabinet members has fuelled speculation over potential political interference from political elites. Jokowi recently admitted the selection had reached the final phase, but only few candidate names from political parties have leaked to the public and it remains unclear whether Jokowi will be able to announce the Cabinet line up soon after his inauguration on 20 October 2014. (The Jakarta Post)

ECONOMICS 9M14 tax revenues realization reached 64.2% Fuad Rahmany, MoF’s Director of Tax Office, stated 9M14 tax revenues realization reached 64.2% (9M13: 64.1%) of this year’s target of IDR1,072.3tn. Going forward, Fuad expects 2014 full-year tax revenues could reach 94% of target. (Investor Daily) Government sold IDR12tn bonds with lower yields At yesterday’s auction, the Finance Ministry sold IDR12tn government bonds, above its indicative target. The bid reached IDR32.8tn (2.7x from issued amount), while yields awarded by the government were slightly lower due to external factors (e.g. 15-year FR71 was down from 8.93% to 8.74% and 1-year SPN12151001 slightly declined from 8.05% to 8.02%). (Ministry of Finance) Syndicated dollar borrowings head for record as bond sales drop Indonesian syndicated dollar borrowings are heading for a record year as bankers proved less skittish than bond investors during an election year. The financing rose 24% to USD14.6bn this year, on track to beat 2012’s high of USD17.6bn. The growing popularity of syndicated loans may make it tougher to expand Indonesia’s corporate bond market, which is the smallest in Southeast Asia as a percentage of GDP. Total outstanding Indonesian companies’ debt is at 2.3% of GDP, Philippines 5.6% and Malaysia 42.7%. (The Jakarta Post)

BOURSE Jiwasraya proposed three options for business expansion, including IPO

Jiwasraya Insurance, a state-owned insurance company, will propose three options for its business expansion to the state owned company ministry such as: initial public offering, a strategic partner, or acquisition of other life insurance companies. In the IPO plan, the company may sell up to 20% ownership. In 1H14, Jiwasraya booked total assets of IDR18tn. (Indonesia Finance Today)

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Asiamoney's 2013 Best Domestic Equity House

2014 Finance Asia's Best Equity House

INDUSTRY Banks’ reduced loan growth target to 14.4% y-y

Banks’ revised loan growth target to 14.4% y-y from 16.8% y-y previously. This is due to the slowdown in the economy and high lending cost. (Kontan) Bahana comments: We have assumed a conservative loan growth target of 13.7% y-y. Malaysia’s September CPO inventory: 2.09mn tons (+2% m-m); CPO tax at zero Malaysia’s September CPO inventory reached 2.09mn tons, up 2% m-m despite weak September CPO production of 1.9mn tons, down 7% m-m. At the same time, September CPO exports increased 13% m-m to 1.6mn tons. Additionally, based on Intertek survey in the first 10 days of October, exports only reached 396k tons, down 19% m-m. Separately, the government is expected to keep its CPO export tax at zero for a second month in November, as Malaysia has extended theirs until December 2014. (Bloomberg Businessweek, Jakarta Post) Bahana comments: We believe that the recent weakness in CPO price is due to higher than expected September’s CPO production and inventories as well as worrying Intertek survey in the first 10 days of October. We expect CPO production continue to be weak in the following months, which would be supportive of prices. Our 2014 average CPO price assumption is at USD832/ton (-2% y-y), before rising to USD866/ton (+4% y-y). Brent oil tumbled to four-year low Brent oil tumbled to the lowest level in almost four years and West Texas Intermediate slipped the most since 2012 following the International Energy Agency’s statement that oil demand will expand this year at the slowest pace since 2009. The biggest producers in the Organization of Petroleum Exporting Countries are responding by cutting prices, sparking speculation that they will compete for market share rather than trim output. (Bloomberg) Bahana comment: This should be positive for Indonesia, which imports a great deal of oil. Pertamina to build 150 SPBGs per annum Pertamina (state-owned oil and gas company), will build 150 natural gas filling stations (SPBG) to support the government’s gasoline-to-gas conversion program. On separate news, Pertamina expects domestic LNG demand to 5mn metric tons a year by 2020 and is seeking new import deals. (Jakarta Post, Jakarta Globe) 5 countries start legal fight against Australia tobacco law Indonesia along with Cuba, the Dominican Republic, Honduras and Ukraine have officially submitted written complaints to the World Trade Organization (WTO) against Australia over disputes regarding the full-plain packaging of tobacco exported to Australia, alleging that the policy violates several WTO rules, including an agreement on trade-related aspects of intellectual property rights and technical barriers to trade. (Bisnis Indonesia, Jakarta Post) 17 companies have not signed mining-contract amendments The Ministry of Energy and Mineral Resources stated that up to October 14, 17 mining companies, which include PT Weda Bay Nickel, PT Nusa Halmahera Minerals, PT Agincourt Resources and PT BHP Kendilo Coal, have not signed MoUs on mining-contract amendments with the Indonesian Government. (Indonesia Finance Today)

CORPORATE BBRI issued MTN amounting to IDR2tn Bank Rakyat Indonesia (BBRI IJ-BUY-IDR10,100-TP:IDR13,100) issued a 3-year medium term note (MTN) amounting to IDR2tn. (OJK) First phase, MTN structure Series Notional amount (IDRbn) A 300 B 60 C 360

Interest rate (%) 8.75 9.25 9.50

Tenor 370 days 24 months 36 months

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

Maturity Date 15 October 2015 10 October 2016 10 October 2017

3

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2014 Finance Asia's Best Equity House

ADHI to expand Halim Perdanakusuma airport Adhi Karya (ADHI IJ-BUY-IDR2,405-TP:IDR4,000) in cooperation with Lion Group will expand Halim Perdanakusuma airport with IDR5tn expected investment. The 9-month expansion is expected to begin in November 2014. (Investor Daily) Lippo Group’s cinema line sets ambitious target The Lippo Group’s cinema line, Cinemaxx Global Pacific (Cinemaxx), has set an ambitious target of 300 cineplexes in the next 10 years, with planned capex of IDR6tn. Cinemaxx currently operates 3 cineplexes: 1 in FX Sudirman (Jakarta), Plaza Semanggi (Jakarta) and Icon Mall (Palembang). (Jakarta Globe). Bahana comment: We note that Cinemaxx is not consolidated into Lippo Karawaci (LPKR IJ-BUY-IDR965TP:IDR1,200). WSKT to spin off its property arm Due to many planned cooperation projects in 2015, Waskita Karya (WSKT IJ-BUY-IDR855-TP:IDR1,020) to accelerate realty division spin off to 4Q14 from 2015. (Indonesia Finance Today) PGAS’s FSRU to receive 2 LNG cargoes Following its normal operation since 9 October 2014, Lampung FSRU owned by Perusahaan Gas Negara (PGAS IJ-BUY-IDR5,800) will receive 2 LNG cargoes on 26 October and 22 November 2014. (Bisnis Indonesia) KRAS subsidiary to invest IDR335.6bn in pipe factory Krakatau Steel’s subsidiary, (KRAS IJ-REDUCE-IDR460-TP:IDR400) KHI Pipe Industries will soon operate its IDR335.6bn electric resistant welding 2 (ERW 2) pipe manufacturing facility at Cilegon, Banten. KRAS Managing Director, Irvan K Hakim, stated that the operation is designed to push KHI Pipe Industries production capacity to 233,000 tons per annum. Concurrently, KRAS nearly completes its IDR5.92tn blast furnace steel factory which is expected to operate in 3Q15. (Indonesia Finance Today) PSAB to issue USD300mn global bond In December 2014, J Resources (PSAB IJ-NR-IDR660) will issue USD300mn global bond to refinance its USD275mn syndication loan and for working capital purpose. The global bond will have 5 years maturity and indication coupon rate of 10%. (Investor Daily) JPFA rated A+ for bond credit rating The Indonesian Securities Rating Agency (Pefindo) recently rated Japfa Comfeed Indonesia (JPFA IJ-BUYIDR1,150-TP:IDR1,500) A+ for the period of 8 October 2014 – 1 October 2015 totaling to IDR1.5tn bond stage 1 and 2. (Investor Daily) CPIN to secure USD300-400mn syndicated loan Charoen Pokphand Indonesia (CPIN IJ-BUY-IDR3,780-IDR4,800) plans to secure USD300-400mn syndicated loan from seven banks in the next two weeks. (Investor Daily) SMBR to focus on South Sumatra market Semen Baturaja (SMBR IJ-REDUCE-IDR365-TP:IDR300) reiterated its view in only targeting the South Sumatra’s market as the company still sees high demand for SMBR’s product in that area. The company also stated that its sales will be supported by the government’s infrastructure projects in South Sumatra. (Bisnis Indonesia) GGRM realized more than 3,000 employees for early pension Gudang Garam’s (GGRM IJ-BUY-IDR56,800-TP:IDR70,000) vice-director of human resources department, Slamet Budiono, stated that around 6,000 employees have joined the early pension program, of which 3,333 have been realized with all of them being hand-rolled cigarrete workers. (Bisnis Indonesia, Kompas) KIJA and PLIN joint project to be delayed to 2H15 The construction of Kawasan Industri Jababeka (KIJA IJ-BUY-IDR257-TP:IDR450) and Plaza Indonesia Realty (PLIN IJ-NOT RATED-IDR2,700) joint project of mixed-use area in Cikarang, West Java will be delayed to 2H15 due to schedule change. At this stage, KIJA and PLIN are still doing feasibility study and are still in a process of selecting consultants. (Bisnis Indonesia)

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4

Asiamoney's 2013 Best Domestic Equity House

2014 Finance Asia's Best Equity House

WINS plans to liquidate its subsidiary, Abbeypure Wintermar Offshore Marine (WINS-BUY-IDR1,200-TP:IDR1,600) is currently planning to liquidate its subsidiary located in Singapore, an investment company, Abbeypure Pte. Ltd., due to the management’s business strategy change. The corporate secretary, Nely Layanto stated that the liquidation will not affect WINS financially and operationally. (www.beritasingkat.com)

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5

Asiamoney's 2013 Best Domestic Equity House

2014 Finance Asia's Best Equity House

BAHANA EQUITY COVERAGE, LEADERS & LAGGARDS (Daily) COMPANY

STOCK CODE

RATING

TARGET PRICE

Up/(Downside) Potential (%) (37.9) 30.0 (6.8) 25.2 12.5 (14.8) 17.0 (0.5) 66.3 15.6 14.4 27.0 22.5 20.0 20.7 33.9 33.8 48.1 30.6 21.3 43.6 (9.3) 32.4 19.1 24.4 4.3 46.4 27.5 17.4 18.4 (13.0) 5.4 27.0 22.8 (27.3) 29.7 29.0 33.3 75.1 23.2 (17.8) 19.5 2.0 0.6

10/14/2014

10/13/2014

CHANGE (%)

Bw Plantation BWPT IJ REDUCE 360 580 520 11.5 Matahari Putra Prima MPPA IJ BUY 3,900 3,000 2,725 10.1 Total Bangun Persada TOTL IJ REDUCE 825 885 850 4.1 Wijaya Karya WIKA IJ BUY 3,350 2,675 2,590 3.3 Citra Marga Nusaphala Persada CMNP IJ BUY 3,600 3,200 3,105 3.1 Mayora Indah MYOR IJ REDUCE 25,900 30,400 29,600 2.7 Waskita Karya WSKT IJ BUY 1,000 855 835 2.4 Wijaya Karya Beton WTON IJ HOLD 1,070 1,075 1,050 2.4 Adhi Karya ADHI IJ BUY 4,000 2,405 2,350 2.3 Surya Semesta Internusa SSIA IJ HOLD 780 675 660 2.3 Indofood Sukses Makmur INDF IJ BUY 7,950 6,950 6,800 2.2 Charoen Pokphand Indonesia CPIN IJ BUY 4,800 3,780 3,700 2.2 Pembangunan Perumahan PTPP IJ BUY 2,800 2,285 2,240 2.0 Bank Tabungan Negara BBTN IJ BUY 1,320 1,100 1,080 1.9 Perusahaan Gas Negara PGAS IJ BUY 7,000 5,800 5,700 1.8 Summarecon Agung SMRA IJ BUY 1,580 1,180 1,160 1.7 Erajaya Swasembada ERAA IJ HOLD 1,325 990 975 1.5 Pakuwon Jati PWON IJ BUY 600 405 399 1.5 Bumi Serpong Damai BSDE IJ BUY 1,900 1,455 1,435 1.4 Unilever Indonesia UNVR IJ BUY 37,500 30,925 30,500 1.4 Sampoerna Agro SGRO IJ BUY 2,650 1,845 1,820 1.4 Indomobil Sukses Internasional IMAS IJ REDUCE 3,900 4,300 4,250 1.2 Alam Sutera Realty ASRI IJ BUY 585 442 437 1.1 Malindo Feedmill MAIN IJ BUY 3,800 3,190 3,155 1.1 Indosat ISAT IJ BUY 4,800 3,860 3,820 1.0 Astra International ASII IJ HOLD 6,675 6,400 6,350 0.8 Garuda Indonesia GIAA IJ BUY 615 420 417 0.7 Vale Indonesia INCO IJ BUY 4,700 3,685 3,660 0.7 Indocement Tunggal Prakarsa INTP IJ HOLD 26,000 22,150 22,000 0.7 Salim Ivomas Pratama SIMP IJ HOLD 900 760 755 0.7 Krakatau Steel KRAS IJ REDUCE 400 460 457 0.7 Sarana Menara Nusantara TOWR IJ BUY 4,400 4,175 4,150 0.6 Bank Mandiri BMRI IJ BUY 12,000 9,450 9,400 0.5 Tiphone Mobile Indonesia TELE IJ BUY 1,160 945 940 0.5 Aneka Tambang ANTM IJ REDUCE 720 990 985 0.5 Bank Rakyat Indonesia BBRI IJ BUY 13,100 10,100 10,050 0.5 Nippon Indosari Corpindo ROTI IJ BUY 1,400 1,085 1,080 0.5 Wintermar Offshore Marine WINS IJ BUY 1,600 1,200 1,195 0.4 Kawasan Industri Jababeka KIJA IJ BUY 450 257 256 0.4 Gudang Garam GGRM IJ BUY 70,000 56,800 56,600 0.4 Semen Baturaja SMBR IJ REDUCE 300 365 364 0.3 Bank Jawa Timur BJTM IJ BUY 520 435 434 0.2 Holcim Indonesia SMCB IJ HOLD 2,500 2,450 2,445 0.2 Bank Central Asia BBCA IJ BUY 12,700 12,625 12,600 0.2 Indonesian Stock Exchange JCI 4,923 4,913 0.2 Medco Energi Internasional MEDC IJ REDUCE 2,400 (35.8) 3,740 3,735 0.1 Bank Negara Indonesia BBNI IJ BUY 6,650 26.1 5,275 5,275 0.0 Bank Danamon Indonesia BDMN IJ REDUCE 3,400 (12.8) 3,900 3,900 0.0 Bank Tabungan Pensiunan Nasional BTPN IJ HOLD 4,300 (2.3) 4,400 4,400 0.0 Bank Jawa Barat dan Banten BJBR IJ HOLD 900 20.8 745 745 0.0 Semen Indonesia SMGR IJ BUY 18,400 21.9 15,100 15,100 0.0 Adaro Energy ADRO IJ REDUCE 1,000 (1.0) 1,010 1,010 0.0 Harum Energy HRUM IJ REDUCE 1,900 12.4 1,690 1,690 0.0 Mitra Adiperkasa MAPI IJ HOLD 5,750 13.3 5,075 5,075 0.0 Supra Boga Lestari RANC IJ REDUCE 500 25.0 400 400 0.0 Multipolar MLPL IJ BUY 900 1.7 885 885 0.0 Indofood CBP Sukses Makmur ICBP IJ REDUCE 8,300 (24.7) 11,025 11,025 0.0 Tempo Scan Pacific TSPC IJ BUY 3,800 50.8 2,520 2,520 0.0 Sido Muncul SIDO IJ BUY 1,050 72.1 610 610 0.0 Bekasi Fajar Industrial Estates BEST IJ BUY 690 29.0 535 535 0.0 Japfa Comfeed Indonesia JPFA IJ BUY 1,500 30.4 1,150 1,150 0.0 Ciputra Development CTRA IJ BUY 1,350 37.1 985 985 0.0 Telekomunikasi Indonesia TLKM IJ BUY 3,350 20.7 2,775 2,775 0.0 Adi Sarana Armada ASSA IJ REDUCE 190 0.0 190 190 0.0 Media Nusantara Citra MNCN IJ REDUCE 2,400 (17.4) 2,905 2,910 (0.2) Agung Podomoro Land APLN IJ BUY 330 (5.4) 349 350 (0.3) Lippo Cikarang LPCK IJ BUY 9,600 33.8 7,175 7,200 (0.3) Timah TINS IJ BUY 1,700 42.3 1,195 1,200 (0.4) Express Transindo Utama TAXI IJ BUY 1,540 28.9 1,195 1,200 (0.4) Xl Axiata EXCL IJ BUY 7,400 27.6 5,800 5,825 (0.4) Austindo Nusantara Jaya ANJT IJ HOLD 1,300 14.5 1,135 1,140 (0.4) Astra Agro Lestari AALI IJ BUY 32,000 46.8 21,800 21,900 (0.5) Lippo Karawaci LPKR IJ BUY 1,200 24.4 965 970 (0.5) Kalbe Farma KLBF IJ BUY 1,975 23.1 1,605 1,615 (0.6) Ciputra Property CTRP IJ HOLD 750 7.1 700 705 (0.7) Sri Rejeki Isman SRIL IJ BUY 200 58.7 126 127 (0.8) London Sumatra Indonesia LSIP IJ HOLD 2,100 13.2 1,855 1,870 (0.8) Matahari Department Store LPPF IJ BUY 19,000 26.7 15,000 15,125 (0.8) United Tractors UNTR IJ REDUCE 18,000 0.0 18,000 18,200 (1.1) Ace Hardware Indonesia ACES IJ REDUCE 900 11.8 805 815 (1.2) Bank Bukopin BBKP IJ HOLD 600 (13.7) 695 705 (1.4) Surya Citra Media SCMA IJ REDUCE 2,550 (24.3) 3,370 3,420 (1.5) Hero Supermarket HERO IJ REDUCE 1,590 (36.7) 2,510 2,550 (1.6) Bukit Asam PTBA IJ HOLD 11,700 (2.3) 11,975 12,175 (1.6) Gajah Tunggal GJTL IJ HOLD 1,550 0.6 1,540 1,570 (1.9) AKR Corporindo AKRA IJ REDUCE 4,150 (11.8) 4,705 4,800 (2.0) Jasa Marga JSMR IJ BUY 7,050 18.5 5,950 6,075 (2.1) Indo Tambangraya Megah ITMG IJ REDUCE 20,000 (10.3) 22,300 22,950 (2.8) Bumi Resources BUMI IJ REDUCE 180 38.5 130 134 (3.0) Ramayana Lestari Sentosa RALS IJ REDUCE 800 2.6 780 825 (5.5) Cardig Aero Services CASS IJ BUY 1,170 11.4 1,050 1,190 (11.8) Source: Bloomberg, Bahana estimates When a report covers six or more subject companies please access important disclosures for Daiwa Capital Markets Hong Kong Limited at http://www.daiwacm.com/hk/research_disclaimer.html or contact your investment representative or Daiwa Capital Markets Hong Kong Limited at Level 26, One Pacific Place, 88 Queensway, Hong Kong. , 88 Queensway, Hong Kong.

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2014 Finance Asia's Best Equity House

Asiamoney's 2013 Best Domestic Equity House

Stock

JCI code

Ticker

N BUY BUY

420 1,050

615 1,170

25,869 2,087

39.5 36.6

Mkt cap (IDRb) 13,056 10,865 2,191

UW HOLD REDUC E HOLD

6,400 4,300 1,540

6,675 3,900 1,550

40,484 2,765 3,485

49.9 10.5 40.4

276,352 259,095 11,891 5,367

205 199 1 5

226,328 193,880 20,095 12,353

248,501 213,166 22,076 13,259

20,337 18,603 369 1,365

23,231 21,711 506 1,014

20,070 19,417 532 120

23,023 21,923 551 549

(1.9) (0.0) (33.5) (89.2)

BANKS BANKS Bank C entral Asia BBC A IJ EquityBBC A IJ Bank Rakyat Indonesia BBRI IJ Equity BBRI IJ Bank Mandiri BMRI IJ Equity BMRI IJ Bank Negara Indonesia BBNI IJ Equity BBNI IJ Bank Danamon BDMN IJ EquityBDMN IJ Bank Tabungan Pensiunan BTPN IJ Nasional EQUITY BTPN IJ Bank Tabungan Negara BBTN IJ Equity BBTN IJ Bank Jabar Banten BJBR IJ Equity BJBR IJ Bank Jatim BJTM IJ Equity BJTM IJ Bank Bukopin BBKP IJ Equity BBKP IJ**

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

12,625 10,100 9,450 5,275 3,900 4,400 1,100 745 435 695

12,700 13,100 12,000 6,650 3,400 4,300 1,320 900 520 600

24,655 24,669 23,333 18,649 9,585 5,840 10,568 9,696 14,918 9,087

50.8 43.2 40.0 39.8 32.4 72.3 35.0 25.0 18.0 40.3

974,030 311,270 249,159 220,500 98,372 37,380 25,697 11,624 7,224 6,489 6,315

1,003 154 355 253 137 17 1 63 15 3 6

219,474 37,422 52,661 51,197 28,839 23,155 7,449 6,437 5,980 2,839 3,494

240,815 42,343 59,319 56,532 32,513 22,471 7,734 6,815 6,142 3,136 3,810

92,501 17,079 26,121 23,552 11,219 5,605 2,878 2,136 1,622 1,116 1,174

101,419 19,349 28,525 25,662 12,715 5,695 2,879 2,262 1,671 1,360 1,300

73,722 14,254 21,344 18,204 9,054 4,042 2,131 1,562 1,376 824 930

82,263 16,090 24,123 20,283 10,224 4,241 2,267 1,653 1,304 1,025 1,053

18.0 21.6 14.3 17.4 28.5 0.7 6.9 14.5 15.4 2.4 10.6

CEMENT Semen Indonesia Indocement Holcim Indonesia Semen Baturaja

UW BUY HOLD HOLD REDUC E

15,100 22,150 2,450 365

18,400 26,000 2,500 300

5,932 3,681.2 7,663 9,838

49.0 302.6 19.4 23.8

193,470 89,566 81,539.3 18,774 3,591

118 108.8 0.0 5.0 4.4

54,047 24,501 18,691.3 9,686 1,169

62,695 28,385 22,318.5 10,751 1,240

15,287 6,952 5,975.0 2,033 327

16,543 7,673 6,558.4 2,045 267

11,633 5,350 5,018.5 952 312

12,872 5,854 5,488.8 1,224 305

COAL COAL & MINING CONTRACTING United Tractors UNTR IJ Equity UNTR IJ Adaro Energy ADRO IJ EquityADRO IJ* Indo Tambangraya Megah* ITMG IJ Equity ITMG IJ* Tambang Batubara Bukit PTBAAsam IJ Equity PTBA IJ Harum Energy HRUM IJ EquityHRUM IJ* Bumi resources* BUMI IJ Equity BUMI IJ*

UW REDUC E REDUC E REDUC E HOLD REDUC E REDUC E

18,000 1,010 22,300 11,975 1,690 130

18,000 1,000 20,000 11,700 1,900 180

3,730 31,986 1,130 2,304 2,704 36,627

40.4 41.0 35.0 29.3 29.3 83.5

161,568 67,142 32,306 25,197 27,592 4,569 4,762

233 74 63 25 37 14 21

179,556 51,012 39,980 26,516 11,209 10,187 40,651

187,440 55,826 40,632 26,117 12,449 6,854 45,562

24,058 6,741 6,889 4,107 1,857 837 3,627

28,078 8,314 9,032 4,334 1,981 464 3,953

10,266 4,825 2,814 5,560 1,826 509 (5,268)

CONS. & TOLL ROADS CONS. & TOLL ROADS Jasa Marga JSMR IJ Equity JSMR IJ Wijaya Karya WIKA IJ Equity WIKA IJ C itra Marga NusapalaC MNP IJ EquityC MNP IJ Pembangunan Perumahan PTPP IJ Equity PTPP IJ Waskita Karya WSKT IJ EquityWSKT IJ Wijaya Karya Beton WTON IJ EquityWTON IJ Adhi Karya ADHI IJ Equity ADHI IJ Total Bangun Persada TOTL IJ Equity TOTL IJ

N BUY BUY BUY BUY BUY HOLD BUY REDUC E

5,950 2,675 3,200 2,285 855 1,075 2,405 885

7,050 3,350 3,600 2,800 1,000 1,070 4,000 825

6,800 6,149 2,200 4,842 9,666 8,715 1,801 3,410

30.0 34.7 62.5 42.8 26.4 100.0 49.0 33.8

99,998 40,460 16,449 7,040 11,065 8,265 9,369 4,332 3,018

277 35 59 1 34 57 30 50 10

55,275 6,380 11,885 936 11,656 9,687 2,644 9,800 2,287

63,075 7,589 14,393 1,099 12,914 10,981 3,403 10,760 1,935

7,485 2,487 1,216 502 1,168 672 321 864 256

8,454 2,997 1,369 583 1,227 761 410 941 167

CONSUMER - DISCRE. CONSUMER - DISCRETIONARY Surya C itra Media SC MA IJ EquitySC MA IJ Matahari DepartmentLPPF Store IJ Equity LPPF IJ Media Nusantara C itra MNC N IJ EquityMNC N IJ Matahari Putra PrimaMPPA IJ Equity MPPA IJ AC E Hardware AC ES IJ Equity AC ES IJ HERO Supermarket HERO IJ Equity HERO IJ Ramayana Lestari Sentosa RALS IJ Equity RALS IJ Mitra Adiperkasa MAPI IJ Equity MAPI IJ Multipolar MLPL IJ Equity MLPL IJ Sri Rejeki isman SRIL IJ Equity SRIL IJ Supra Boga Lestari RANC IJ EquityRANC IJ

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

3,370 15,000 2,905 3,000 805 2,510 780 5,075 885 126 400

2,550 19,000 2,400 3,900 900 1,590 800 5,750 900 200 500

14,622 2,918 14,180 5,378 17,150 4,184 7,096 1,660 10,065 18,593 1,564

25.5 65.3 33.8 18.0 40.0 16.5 40.5 44.0 68.0 43.9 26.8

200,513 49,275 43,769 41,194 16,134 13,806 10,501 5,535 8,425 8,907 2,343 626

315 31 71 18 137 11 0 10 11 19 7 0

82,374 3,778 6,754 6,522 11,913 3,895 11,900 7,968 9,734 14,672 3,934 1,303

96,443 4,102 8,079 7,071 14,612 4,648 14,259 8,566 11,299 17,219 4,816 1,771

9,368 1,757 1,781 2,560 389 565 424 399 751 85 629 28

CONSUMER - STAPLES CONSUMER - STAPLES Unilever Indonesia UNVR IJ Equity UNVR IJ Gudang Garam GGRM IJ EquityGGRM IJ Kalbe Farma KLBF IJ Equity KLBF IJ Indofood Sukses Makmur INDF IJ Equity INDF IJ Indofood C BP Sukses ICMakmur BP IJ Equity IC BP IJ Mayora Indah MYOR IJ EquityMYOR IJ Tempo Scan Pacific TSPC IJ Equity TSPC IJ Sido Muncul SIDO IJ Equity SIDO IJ Nippon Indosari C orpindo ROTI IJ Equity ROTI IJ

OW BUY BUY BUY BUY REDUC E REDUC E BUY BUY BUY

30,925 56,800 1,605 6,950 11,025 30,400 2,520 610 1,085

37,500 70,000 1,975 7,950 8,300 25,900 3,800 1,050 1,400

7,630 1,924 46,875 8,780 5,831 894 4,500 15,000 5,062

15.0 23.5 43.3 49.9 19.5 66.9 22.7 19.0 29.3

598,961 235,958 109,288 75,235 61,024 64,286 27,188 11,340 9,150 5,492

278 37 40 95 58 33 5 2 4 5

209,892 30,757 55,437 16,002 57,732 25,095 14,137 6,855 2,372 1,506

239,997 35,313 60,305 18,035 68,463 30,116 15,798 7,431 2,535 2,002

N BUY BUY HOLD BUY

257 535 675 7,175

450 690 780 9,600

20,235 9,645 4,705 696

80.1 38.6 68.5 57.8

18,531 5,200 5,160 3,176 4,994

45 15 12 11 8

9,974 2,740 1,324 4,583 1,328

N BUY REDUC E BUY

3,685 990 1,195

4,700 720 1,700

9,936 9,538 7,448

20.5 35.0 35.0

54,959 36,615 9,443 8,900

87 51 19 17

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

N BUY REDUC E REDUC E BUY

5,800 4,705 3,740 1,200

7,000 4,150 2,400 1,600

24,242 3,914 3,332 4,031

43.0 41.2 49.1 35.4

176,315 140,601 18,414 12,463 4,838

PLANTATIONS PLANTATIONS Astra Agro Lestari AALI IJ Equity AALI IJ Salim Ivomas Pratama SIMP IJ Equity SIMP IJ London Sumatra Indonesia LSIP IJ Equity LSIP IJ BW Plantation BWPT IJ EquityBWPT IJ Austindo Nusantara Jaya ANJT IJ Equity ANJT IJ* Sampoerna Agro SGRO IJ EquitySGRO IJ

N BUY HOLD HOLD REDUC E HOLD BUY

21,800 760 1,855 580 1,135 1,845

32,000 900 2,100 360 1,300 2,650

1,575 15,816 6,823 4,504 3,333 1,890

20.3 21.6 40.5 32.3 10.0 33.0

OW BUY BUY BUY

3,780 1,150 3,190

4,800 1,500 3,800

16,398 10,661 1,791

N BUY BUY BUY BUY BUY BUY BUY HOLD

1,455 965 405 1,180 985 442 349 700

1,900 1,200 600 1,580 1,350 585 330 750

460

400

AVIATION AVIATION Garuda Indonesia GIAA IJ Equity GIAA IJ* C ardig Aero Service C ASS IJ EquityC ASS IJ AUTOMOTIVE Astra International ASII IJ Equity Indomobil Sukses International IMAS IJ Equity Gajah Tunggal GJTL IJ Equity

CEMENT SMGR IJ EquitySMGR IJ INTP IJ Equity INTP IJ SMC B IJ EquitySMC B IJ SMBR IJ EquitySMBR IJ

INDUSTRIAL ESTATES Kawasan Industri Jababeka KIJA IJ Equity Bekasi Fajar Industrial BEST Estate IJ Equity Surya Semesta Internusa SSIA IJ Equity Lippo C ikarang LPC K IJ Equity METALS Vale Indonesia Aneka Tambang Timah

AUTOMOTIVE ASII IJ IMAS IJ GJTL IJ

INDUSTRIAL ESTATES KIJA IJ BEST IJ SSIA IJ LPC K IJ

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

POULTRY POULTRY C haroen Pokphand Indonesia C PIN IJ Equity C PIN IJ Japfa C omfeed Indonesia JPFA IJ Equity JPFA IJ Malindo Feedmill MAIN IJ Equity MAIN IJ PROPERTY PROPERTY Bumi Serpong DamaiB SDE IJ Equity BSDE IJ Lippo Karawaci LPKR IJ Equity LPKR IJ Pakuwon Jati PWON IJ EquityPWON IJ Summarecon Agung SMRA IJ EquitySMRA IJ C iputra DevelopmentC TRA IJ Equity C TRA IJ Alam Sutera ASRI IJ Equity ASRI IJ Agung Podomoro Land APLN IJ Equity APLN IJ C iputra Property C TRP IJ Equity C TRP IJ STEEL Krakatau Steel

STEEL KRAS IJ Equity KRAS IJ*

TELCOS TELCOS Telekomunikasi Indonesia TLKM IJ Equity TLKM IJ XL Axiata EXC L IJ Equity EXC L IJ Sarana Menara Nusantara TOWR IJ EquityTOWR IJ Indosat ISAT IJ Equity ISAT IJ Tiphone Mobile Indonesia TELE IJ Equity TELE IJ Erajaya SwasembadaERAA IJ Equity ERAA IJ

Rating

UW REDUC E OW BUY BUY BUY BUY BUY HOLD

TRANSPORTATION TRANSPORTATION N Ekspress Transindo Utama TAXI IJ Equity TAXI IJ BUY Adi Sarana Armada ASSA IJ Equity ASSA IJ REDUC E Market Market N Note: *USD reporting **Post rights issue

Price (IDR)

TP (IDR)

Shares (m)

Free float (%)

2014 202.8 526.6 25.3

PER (x) 2013 63.5 72.2 20.0

2014 12.3 11.5 15.9

13.2 12.9 3.5 351.4

14.3 13.3 22.3 44.0

12.3 11.8 23.0 9.7

11.9 12.9 13.0 11.4 12.9 4.9 6.4 5.8 (5.2) 24.3 0.5

14.7 21.8 11.7 12.1 10.9 9.2 12.1 7.4 5.2 7.9 6.0

3.9 10.4 5.2 (29.5) (11.5)

10.9 9.4 9.4 28.5 (12.0)

15,320 6,241 5,003 5,561 1,934 381 (3,800)

(28.2) (16.5) (23.2) (37.4) (37.0) (68.2) (28.0)

3,939 1,336 570 402 421 368 241 406 194

4,446 1,614 629 470 499 417 310 364 143

9,979 1,869 2,140 2,474 428 646 175 418 849 148 792 40

8,344 1,320 1,150 1,691 445 509 671 434 328 1,415 346 35

27,866 7,122 6,650 2,549 6,089 2,734 1,348 648 516 210

31,224 7,408 7,596 2,841 7,531 3,120 1,293 726 466 243

10,005 2,926 751 4,730 1,598

3,244 855 883 872 634

28,367 11,216 11,298 5,852

28,787 13,364 9,503 5,920

1,770 734 421 615

137 96 32 5 3

71,957 36,528 22,338 10,818.5 2,272

80,367 39,859 27,758 10,559.2 2,190

15,760 11,363 837 2,991 569

68,889 34,329 12,020 12,656 2,612 3,783 3,487

133 42 6 57 26 0 2

35,479 12,675 13,280 4,134 1,144 1,685 2,561

46,864 20,247 15,602 4,549 1,664 1,741 3,060

44.5 42.5 44.1

79,957 61,984 12,260 5,713

45 30 8 7

51,268 25,663 21,412 4,193

18,372 23,078 48,160 14,427 15,166 19,649 20,501 6,150

39.9 82.1 43.5 67.8 61.3 48.2 29.9 43.7

120,612 26,731 22,270 19,505 17,024 14,938 8,685 7,155 4,305

283 31 93 38 35 22 34 25 5

34,494 5,741 6,519 3,030 4,094 5,077 3,684 4,901 1,448

15,775

20.0

2,775 5,800 4,175 3,860 945 990

3,350 7,400 4,400 4,800 1,160 1,325

100,800 8,534 10,203 5,434 7,036 2,900

48.8 33.5 61.0 20.7 39.1 39.7

1,195 190

1,540 190

2,146 3,398

49.0 39.4

7,257 7,257 352,812 279,720 55,260. 42,597 20,975 6,649 2,871 3,210 2,564 646 3,400,490

3M avg toRevenue (IDRb) (IDRb) 2013 1 46,544 1 45,225 0 1,319

Opt. profit (IDRb) 2014 2013 52,563 403 51,016 77 1,547 326

2014 4.2 4.2 4.6

P/BV (x) 2013 1.9 0.8 7.3

2014 1.6 0.8 5.6

Yield (%) 2013 0.3 0.0 1.8

13.1 12.4 33.0 5.0

11.0 10.4 26.3 6.4

3.0 3.1 2.0 0.9

2.6 2.7 1.9 0.9

3.2 3.4 1.1 0.2

3.6 3.8 1.2 0.7

13.1 19.3 10.3 10.9 9.6 8.8 11.3 7.0 5.5 6.3 6.0

na na na na na na na na na na na

na na na na na na na na na na na

3.3 4.9 3.1 2.5 2.1 1.2 2.6 1.0 1.1 1.1 1.0

2.8 4.0 2.6 2.2 1.8 1.1 2.1 0.9 1.0 1.1 0.9

2.1 1.0 2.5 2.5 2.8 2.7 0.0 4.0 10.5 9.3 3.7

2.2 1.1 2.4 2.5 2.9 3.4 1.8 3.6 10.8 10.3 3.8

16.7 16.7 16.2 19.7 10.4

15.1 15.3 14.9 15.3 11.8

10.4 11.2 10.2 8.3 4.3

9.7 10.2 9.6 8.3 6.2

3.7 4.3 3.6 2.1 1.5

3.3 3.8 3.2 1.9 1.3

3.2 2.7 4.1 1.8 2.2

3.0 2.8 3.4 2.3 2.1

(19.0) 0.9 (54.5) 37.1 nc

17.4 29.3 71.2 0.5 5.9 (22.7) (26.2)

12.6 13.9 11.6 9.9 15.1 11.7 (0.6)

6.7 6.1 5.2 4.4 12.4 2.4 6.6

5.7 4.7 3.8 3.9 11.5 5.3 5.8

1.9 2.0 1.3 2.3 3.0 1.4 (4.3)

1.8 1.9 0.9 2.2 2.9 1.3 (2.1)

3.8 2.9 2.6 8.5 3.8 4.8 0.0

4.6 3.7 4.8 8.1 4.0 4.0 0.0

(4.7) (16.6) 22.2 (6.3) 35.9 0.5 34.1 91.3 10.6

15.7 20.6 9.9 16.8 18.5 13.3 8.1 (10.5) (26.2)

26.7 30.3 28.8 17.5 26.3 22.4 29.8 10.7 15.5

10.1 10.8 6.8 9.9 14.3 15.1 (0.8) 1.5 23.3 25.1 26.2 15.0 22.2 19.8 27.6 11.9 21.0

13.7 15.7 12.7 9.5 7.0 12.7 24.1 4.7 9.4

12.2 13.9 12.0 8.4 7.0 11.2 18.0 4.8 14.2

4.4 4.3 5.6 2.2 5.6 3.5 4.9 2.8 4.0

3.9 3.9 4.8 2.0 4.7 3.1 4.7 2.3 3.9

1.3 1.3 1.0 1.3 1.1 1.5 1.0 1.9 4.0

8,706 1,810 1,574 1,810 408 567 276 450 429 884 467 30

27.6 12.8 49.2 2.1 101.7 16.4 93.1 2.4 (24.3) 4,841.7 20.5 (11.8)

20.9 6.6 36.9 7.1 (8.3) 11.4 (61.5) 3.7 30.9 (37.5) 18.1 (14.4)

29.9 37.3 38.1 24.0 37.6 27.1 14.6 12.8 25.7 6.3 5.9 17.8

28.0 35.0 27.8 22.4 41.0 24.3 38.0 12.3 19.6 10.1 5.0 20.8

19.9 26.1 22.4 15.1 25.5 21.0 14.4 7.5 9.4 11.1 4.8 10.8

17.8 24.3 18.2 15.2 20.9 18.1 17.0 6.4 7.6 7.7 4.5 8.4

(6.0) 15.2 (56.0) 4.8 8.1 7.2 1.8 1.7 3.5 1.3 0.7 1.7

34.0 12.9 131.4 4.2 7.0 5.8 1.9 1.6 3.0 1.2 0.7 1.6

18,586 5,353 4,329 1,920 2,504 2,225 1,058 635 406 158

21,123 5,517 5,022 2,122 3,953 2,420 776 683 435 194

8.8 10.7 7.8 10.7 (23.2) 2.1 41.1 1.1 4.6 5.9

8.9 3.0 16.0 9.9 57.9 8.8 (35.3) 7.7 (3.4) 21.7

34.5 44.1 25.2 39.2 24.4 28.9 22.6 17.9 20.3 34.7

32.2 42.8 21.8 35.7 15.4 26.6 35.0 16.6 21.0 28.6

23.1 31.3 15.6 26.3 9.4 20.0 17.6 13.1 13.8 22.1

21.8 30.9 13.7 23.4 8.3 17.7 17.8 11.2 16.7 18.3

24.9 55.4 3.7 9.3 2.6 5.1 5.9 3.0 3.1 7.0

2,765 900 432 692 742

2,126 101 744 691 591

2,101 652 355 431 663

0.0 (73.5) 58.1 (2.3) 45.1

0.0 537.9 (52.3) (37.6) 12.3

19.2 50.6 6.9 4.6 8.5

9.6 7.9 14.5 7.4 7.5

6.2 7.5 5.8 2.8 7.3

7.5 6.8 11.9 3.3 6.5

2,723 2,281 (250) 693

1,330 405 410 515

1,700 1,212 20 468

(53.6) (36.5) (86.3) 19.3

94.3 209.2 (61.0) (28.7)

64.9 88.6 23.0 11.7

31.8 28.7 59.1 16.4

14.8 16.9 11.5 9.6

17,126 12,743 1,046 2,714 623

11,603 10,473 648 153 329

11,830 10,535 752 154 389

24.9 26.4 (0.2) 1.8 74.0

(3.1) (4.3) 16.0 10.5 18.3

20.1 13.0 28.2 91.5 13.4

19.5 13.5 24.3 82.9 11.3

6,203 3,005 1,586 818 326 268 201

9,243 4,240 2,409 1,117 625 404 448

3,661 1,801 524 769 182 266 119

6,069 3,097 1,018 961 366 367 259

(26.7) (25.3) (54.7) (31.1) (32.5) (53.6) (63.8)

70.6 71.9 94.4 25.0 93.4 41.1 117.1

19.3 19.1 22.9 16.5 13.8 14.9 29.3

58,395 29,454 24,109 4,832

6,189 3,904 1,803 483

7,066 4,451 2,053 562

3,368 2,531 595 242

6,779 5,332 1,057 390

(10.1) (5.7) (40.0) (20.2)

28.1 21.7 77.7 61.3

39,391 5,560 7,895 3,688 4,423 7,519 3,504 5,360 1,441

12,146 2,910 1,504 1,512 1,342 1,553 1,533 1,276 516

13,525 2,626 1,826 1,934 1,347 2,176 1,654 1,432 529

9,272 2,691 1,220 1,133 1,102 977 877 851 422

11,205 3,580 1,324 1,525 978 1,194 1,401 901 302

48.0 109.3 15.1 51.4 32.9 65.8 (27.1) 6.1 40.5

19.5 33.3 8.5 36.0 (11.3) 22.3 59.8 4.8 (28.5)

(485) (485)

Net profit (IDRb) 2014 2013 2,553 244 2,160 134 393 110

EPS growth (%) 2014 2013 1,102 (70.5) 964 (87.7) 137 25.3

2 2

25,368 25,368

26,437 26,437

275 275

(170) (170)

198 198

314 233 49 0 3 7 21

154,496 82,967 21,265 3,197 23,855 10,485 12,727

235,609 88,882 88,882 3,798 25,333 13,781 14,933

32,966 25,996 2,901 1,724 1,418 437 490

36,970 29,946 1,751 2,084 1,976 622 591

13,268 14,205 1,033 169 (2,782) 295 349

17,986 15,583 242 1,258 96 405 403

20 20 0 3,496

1,681 687 994 1,486,574

2,077 865 1,213 1,719,459

439 221 218 275,537

552 293 260 311,724 13.1

217 133 85 191,479

260 161 99 226,983

13.8 13.8

na na

2014 32.9 39.5 nc

ROAE (%) 2013 7.6 1.0 40.4

2014 12.2 6.6 39.6

ROAA (%) 2013 2.5 0.4 12.8

2014 4.6 2.7 13.9

ROIC (%) 2013 13.6 9.4 34.5

2014 6.5 0.8 34.9

61.1 54.8 194.8 69.2

51.2 44.4 182.5 88.1

23.9 25.0 9.6 2.1

23.3 24.2 9.1 9.6

9.3 9.8 2.7 0.9

9.4 9.8 2.4 3.6

18.0 18.6 7.8 13.9

14.9 15.7 3.6 1.3

na na na na na na na na na na na

na na na na na na na na na na na

24.2 24.6 29.7 22.5 19.9 13.5 24.2 14.3 21.7 14.7 16.6

22.8 22.9 27.6 21.5 19.9 12.9 20.5 13.6 18.7 17.3 15.9

3.0 3.0 3.6 2.7 2.5 2.4 3.3 1.3 1.9 2.7 1.4

3.0 3.1 3.6 2.6 2.5 2.2 3.1 1.2 1.8 2.9 1.4

na na na na na na na na na na na

na na na na na na na na na na na

(12.0) 2.7 (42.5) 47.7 nc

24.4 28.0 23.7 11.1 18.3

23.4 26.4 22.8 13.3 11.8

18.2 18.7 20.3 7.0 16.0

17.4 17.7 19.6 7.6 10.7

40.0 31.0 53.0 15.5 97.6

36.3 27.2 51.6 8.8 62.6

11.4 nc 56.9 nc nc nc na

10.1 nc 50.3 nc nc nc na

16.1 15.4 8.8 23.4 22.9 12.6 na

19.0 18.0 15.0 25.3 25.5 10.3 nm

9.9 9.0 3.8 17.9 15.0 9.2 (6.5)

11.2 10.7 6.3 17.3 16.1 7.5 (4.1)

51.3 20.8 9.3 88.0 148.2 78.2 (16.6)

23.9 15.6 5.9 41.8 54.6 29.5 (14.5)

1.5 1.6 1.2 1.5 1.3 1.5 1.0 1.7 2.4

36.7 92.4 nc nc nc nc nc (16.4) nc

52.5 114.8 36.7 nc nc nc nc nc nc

20.1 14.9 20.6 14.3 23.1 16.8 38.9 30.0 27.5

18.3 16.4 19.8 14.0 23.0 16.4 22.3 21.2 18.7

5.6 5.0 4.8 9.4 4.0 4.3 9.0 4.6 9.1

5.4 5.1 4.5 9.7 3.8 4.5 8.3 3.7 6.6

20.2 11.9 26.4 17.3 17.1 17.0 78.5 18.5 (55.1)

22.5 8.2 22.4 17.8 27.1 15.9 46.1 33.0 138.3

1.2 1.3 1.1 1.9 0.5 1.2 0.0 3.9 1.1 0.1 0.0 1.1

1.4 1.4 1.4 2.0 0.7 0.7 0.0 4.5 0.8 2.4 0.0 1.0

4.7 nc nc nc nc nc nc nc 99.1 nc 42.6 nc

22.4 47.6 na 21.5 12.5 29.0 19.1 13.9 14.3 23.5 16.1 9.3

21.8 52.2 na 20.1 11.9 26.5 5.0 13.4 16.4 12.0 14.5 7.4

23.7 32.0 39.2 17.8 6.0 23.2 10.3 10.3 4.8 8.2 8.1 5.5

26.7 38.2 50.2 17.0 6.0 20.7 3.4 9.9 5.4 4.2 8.3 4.3

(189.8) 61.8 (985.3) 24.3 4.0 37.0 14.4 25.8 14.5 0.5 8.7 13.7

26.4 59.5 na 24.5 13.3 32.4 20.5 23.7 7.8 27.0 9.6 10.1

22.6 50.3 3.4 8.0 2.4 4.6 5.1 2.7 5.0 5.9

1.8 2.1 1.7 1.1 2.1 1.7 0.9 2.3 1.8 0.7

2.1 2.2 2.0 1.2 3.3 1.6 0.6 2.5 5.7 0.9

22.8 16.8 39.5 nc 57.7 nc 53.4 nc nc 70.6

42.8 57.6 40.9 nc 96.6 nc 51.5 nc nc 51.2

62.7 130.2 15.5 25.3 11.2 18.5 31.0 17.8 20.7 21.7

59.9 123.4 16.3 24.2 16.1 18.2 18.7 16.9 19.5 22.6

24.2 42.3 9.4 25.3 3.6 11.4 11.2 12.6 15.9 10.4

22.2 37.9 9.4 24.2 4.6 10.8 6.9 12.0 16.9 9.8

57.5 109.7 12.8 37.1 15.1 31.7 14.8 38.0 48.2 20.4

55.0 109.8 11.7 30.3 8.3 26.5 19.4 31.9 32.9 13.9

1.9 1.2 2.1 1.4 2.7

1.6 1.1 1.8 1.2 2.0

0.6 0.0 0.4 2.6 0.0

1.7 3.8 0.5 2.7 0.0

13.3 47.2 nc nc nc

10.4 37.2 nc nc nc

26.9 2.5 35.0 35.3 38.8

19.2 14.6 13.4 17.5 30.8

14.7 1.3 26.3 13.0 17.7

10.2 7.4 10.0 7.0 15.3

36.5 7.1 37.6 70.5 44.2

32.3 1.7 38.3 47.2 48.6

20.8 9.5 76.5 8.0

1.8 2.0 0.7 1.8

1.6 1.8 0.7 1.8

1.2 0.8 0.7 3.2

2.2 2.6 0.0 2.6

5.5 0.1 31.2 nc

9.6 3.7 33.7 8.2

3.8 2.3 3.2 10.9

5.7 6.3 0.2 9.4

2.6 1.7 2.0 7.4

4.1 4.7 0.1 6.1

9.0 4.1 27.5 9.9

3.7 2.3 2.7 10.5

10.5 10.0 18.6 5.3 7.7

9.2 8.7 15.6 6.2 6.6

2.1 2.0 3.8 1.3 2.0

1.6 1.3 3.5 1.2 1.7

4.0 4.6 2.4 0.3 0.7

3.8 4.4 1.6 0.3 1.4

17.1 nc 90.0 86.1 59.3

16.1 nc 67.2 112.7 42.2

31.0 36.3 14.7 1.5 16.1

33.8 39.7 15.0 1.5 16.2

17.2 20.8 4.9 0.5 2.3

17.1 20.7 5.1 0.5 2.4

46.9 56.3 15.7 0.8 9.5

40.7 49.3 9.1 0.8 11.4

11.5 11.1 11.8 13.2 7.1 10.6 13.5

9.9 10.2 7.1 11.3 12.8 7.4 11.4

7.1 7.2 5.2 8.4 7.4 6.3 7.5

2.4 3.5 0.9 1.9 1.1 1.1 1.3

2.0 2.8 0.8 1.7 1.0 1.0 1.2

2.2 2.4 1.7 1.8 1.1 3.3 2.4

3.6 4.1 3.4 2.3 2.1 4.7 3.7

25.7 20.4 42.2 nc 160.2 nc 42.6

22.4 11.8 41.3 nc 149.3 nc 72.6

13.3 19.0 3.8 11.9 9.4 6.3 4.5

19.3 28.1 7.2 13.8 15.6 8.3 9.5

9.3 13.2 1.9 9.9 3.3 5.5 2.8

13.0 18.8 3.5 11.6 5.4 7.3 5.2

21.9 28.2 7.3 27.0 6.9 14.2 11.2

12.5 16.6 2.9 15.9 3.6 8.5 3.3

23.7 24.5 20.6 22.4

18.4 20.1 11.6 13.9

13.9 15.2 8.4 11.5

12.5 13.7 7.3 10.0

5.5 6.2 2.3 4.5

4.4 5.0 1.9 3.4

1.3 1.3 1.6 0.9

1.2 1.2 1.0 1.6

38.1 17.5 111.8 103.1

31.4 16.0 89.6 73.2

25.8 28.0 12.4 31.2

42.5 47.7 18.3 37.8

15.5 18.0 4.6 12.0

26.9 31.8 6.7 16.3

30.9 34.7 14.0 25.8

20.9 24.3 6.2 15.2

13.9 9.5 18.3 17.2 15.4 15.3 9.9 8.3 10.2

12.2 7.1 16.8 12.7 17.4 12.5 6.2 7.9 14.3

10.6 8.7 14.8 11.6 11.4 8.4 7.4 9.3 9.3

9.8 9.6 14.5 9.1 11.8 5.8 6.8 5.7 9.4

2.7 2.5 1.7 5.0 3.8 2.3 1.7 1.2 1.1

2.3 1.9 1.6 3.8 3.4 2.1 1.4 1.1 1.0

1.9 2.1 1.4 1.2 2.3 2.0 2.5 2.3 2.9

2.2 2.8 1.5 1.5 2.0 2.4 4.1 2.6 2.1

12.7 nc 26.4 nc nc nc 63.0 39.6 26.7

18.6 nc 60.7 nc nc nc 50.4 41.6 36.1

22.4 29.7 10.3 33.4 27.3 16.3 18.0 15.8 10.8

22.0 30.5 9.9 33.7 20.7 17.5 24.4 14.8 7.3

9.0 13.7 4.3 13.4 9.0 5.6 6.9 4.9 6.2

8.8 14.6 3.9 13.3 6.9 5.5 9.6 4.2 3.8

21.6 28.2 8.9 20.6 35.9 14.5 34.4 12.3 9.2

22.9 35.7 8.2 27.7 32.8 19.5 13.3 11.1 9.6

na na

EV/EBITDA (x) 2013 8.3 8.8 5.7

Net gearing (%) 2014 2013 0.4 39.5 0.0 47.4 2.2 nc

3.0 nc nc nc nc nc nc nc 54.7 nc 59.6 9.2

37.0 37.0

63.6 63.6

17.4 17.4

0.6 0.6

0.6 0.6

0.0 0.0

0.0 0.0

79.1 79.1

106.1 106.1

(1.3) (1.3)

1.6 1.6

(0.8) (0.8)

0.8 0.8

(1.2) (1.2)

(0.9) (0.9)

(23.4) 10.5 (62.6) (51.4) na 29.2 (19.5)

65.3 9.7 (76.1) 646.3 na 23.7 15.6

46.1 19.7 47.9 252.7 (7.5) 19.3 8.2

31.4 18.0 223.3. 33.9 214.4 15.6 7.1

8.3 6.8 8.3 19.0 4.1 16.9 7.6

7.2 6.0 8.1 16.1 3.8 12.1 6.2

5.2 4.6 3.2 11.7 1.3 3.7 1.0

4.4 4.0 3.2 8.8 1.4 4.0 1.0

2.0 3.0 0.9 0.0 (6.6) 1.5 4.9

2.4 2.8 0.5 0.0 1.0 2.0 5.6

40.6 6.4 107.9 213.8 136.3 70.9 39.8

32.6 5.2 136.2 164.2 117.6 74.1 35.1

20.3 25.3 6.7 4.8 (16.0) 23.6 13.1

23.2 23.9 1.6 29.6 0.6 27.4 14.0

9.5 11.9 2.7 1.2 (5.1) 12.3 7.8

10.6 11.8 0.6 7.9 0.2 12.0 7.7

19.7 23.4 10.7 4.1 1.0 24.4 15.8

18.9 23.6 3.4 1.5 (7.5) 18.1 10.3

68.4 67.1 82.1 4.3

21.1 21.5 16.6 13.6

17.0 19.3 7.6 23.8

14.0 15.9 6.5 20.0

7.0 7.7 3.9 10.3

5.9 6.5 3.7 9.4

2.7 3.2 0.8 6.7

2.4 2.8 0.7 8.1

1.1 1.4 0.0 2.3

1.4 1.7 0.0 2.5

88.9 74.7 145.5 17.8

105.5 90.5 165.1 20.2

16.5 17.9 10.9 29.8

17.3 18.8 11.4 29.9

6.8 7.6 4.0 12.2

6.2 7.3 2.0 13.7

8.6 9.5 4.7 22.4

6.4 7.0 3.9 11.9

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

Source: Bloomberg, Bahana estimates

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

7

2014 Finance Asia's Best Equity House

Asiamoney's 2013 Best Domestic Equity House

AGM & EGM SCHEDULE Corporate Actions EGM AGM

Ticker PKPK IJ BORN IJ

Corporate Perdana Karya Perkasa Borneo Lumbung Energi & Metal

Date 10/15/14 10/16/14

Time 14:00 12:00

Source: Bloomberg

DIVIDEND SCHEDULE Corporate Media Nusantara Citra Tbk Pt Astra International Tbk Pt Indah Kiat Pulp & Paper Tbk Pabrik Kertas Tjiwi Kimia Pt Source: Bloomberg

Price* (IDR) MNCN IJ ASII IJ INKP IJ TKIM IJ

Cash (IDR) 2,925 6,500 1,055 945

Yield* (%) 35 64 25 10

Ex date 1.2 1.0 2.4 1.1

Record date 10/15/2014 10/15/2014 10/20/2014 10/20/2014

Payment date

Ticker

10/17/2014 10/31/2014 10/17/2014 10/31/2014 10/22/2014 11/5/2014 10/22/2014 11/5/2014

*as per closing price 10 October 2014

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

8

Asiamoney's 2013 Best Domestic Equity House

2014 Finance Asia's Best Equity House

Actual and upcoming IPOs, 2013-2014 No

Code

1 BBRM 2 HOTL 3 SAME 4 MAGP 5 TPMA 6 ISSP 7 DYAN 8 ANJT 9 NOBU 10 MPMX 11 DSNG 12 SRIL 13 ACST 14 SRTG 15 NRCA 16 SMBR 17 ECII 18 BBMD 19 MLPT 20 VICO 21 CPGT 22 NAGA 23 BMAS 24 SILO 25 APII 26 KRAH 27 IMJS 28 LEAD 29 SSMS 30 SIDO 2013 total 31 PNBS 32 ASMI 33 CANI 34 BINA 35 BALI 36 WTON 37 BLTZ 38 MDIA 39 LRNA 40 DAJK 41 LINK 42 CINT 43 MGNA 44 BPII 45 MBAP 46 TARA 47 DNAR 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 73 74 75 76 77 78 79 80 81 2014 total

Date

Company name

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

01/15/14 01/16/14 01/16/14 01/16/14 03/13/14 04/08/14 04/10/14 04/11/14 04/15/14 05/14/14 02/06/14 06/27/14 07/07/14 07/08/14 07/10/14 07/11/14 07/11/14

Bank Panin Syariah Mitra Maparya Capitol Nusantara Bank INA Bali Towerindo Sentra Wika Beton Graha Layar Prima Intermedia Capital Eka Sari Lorena Transport Dwi Aneka Jaya Kemasindo Link Net Chitose Internasional Magna Finance Batavia Prosperindo Internasional Mitrabara Adiperdana Sitara Propertindo Bank Dinar Airasia Indonesia Andira Agro Asia Mangan Group Bank DKI Bank Kesejahteraan Ekonomi Bank Muamalat Bank Sumatera Utara Bank Syariah Mandiri Blue Bird Group Daya Mitra Telekomunikasi Daya Mandiri Resources Indonesia Dutapalma Nusantara GMF Aero Asia Target Indoprima Gemilang Infomedia Nusantara Intan Baruprana Finance Kawasan Berikat Nusantara Krakatau Wijatama Pacific Agro Sentosa Pegadaian Indonesia Pelita Cengkareng Paper Perkebunan Nusantara III, IV and VII Pertamina Drilling Services Indonesia Pertamina Hulu Energi Pertamina Gas Pertamina Geothermal Energy PLN Batam Pos Indonesia Pos Logistik Puradelta Lestari Semen Batam Siba Surya Soechi Lines Sriboga Raturaya

Industry 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 Banking Insurance Transporation Banking Construction Construction material Entertainment Entertainment Transportation Paper manufacture Telecommunication Manufacture Finance Finance Coal Property Bank Airlines Plantations Mining Banking Banking Banking Banking Banking Transportation Telecommunication Coal mining Plantations Aero services Auto-parts Services Multi-finance Industrial estates Steel manufacture Plantations Finance Packaging manufacture Plantations Oil-related Oil-related Gas distribution Electricity Electricity Logistics Logistics Property Cement Logistics Trading Restaurant

Amount (IDRbn) 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 35 1,207 223 541 135 470 487 99 74 75 319 424 55 1,800

Public (%) 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

458

55.0

49.3 29.0 25.0 24.8 14.7 30.0 31.3 15.0 20.0 40.0

20.0

800 2,438

20.0 49.0

1,000

2,760 500 500 31,886

Source: various media (Bloomberg, Kontan, Bisnis Indonesia, Investor Daily, Jakarta Globe, Jakarta Post, Kompas, Indonesian Finance Today)

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

9

Asiamoney's 2013 Best Domestic Equity House

2014 Finance Asia's Best Equity House

Actual and upcoming rights issues, 2011-2013 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

Ex-rights date 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

Company name 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

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

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

02/01/13 03/08/13 04/08/13 04/25/13 05/13/13 06/03/13 06/04/13 06/11/13 06/14/13 07/01/13 07/02/13 07/04/13 07/05/13 07/08/13 07/08/13 08/07/13

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

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

Source: various media (Bloomberg, Kontan, Bisnis Indonesia, Investor Daily, Jakarta Globe, Jakarta Post, Kompas, Indonesian Finance Today)

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

10

2014 Finance Asia's Best Equity House

Asiamoney's 2013 Best Domestic Equity House

1H14 Results Round-ups to consensus No Company 1 ACE Hardware Indonesia 2 Adhi Karya 3 Adi Sarana Armada 4 Agung Podomoro Land 5 AKR Corporindo 6 Alam Sutera Realty 7 Astra Agro Lestari 8 Astra International 9 Austindo Nusantara Jaya* 10 Bank Bukopin 11 Bank Central Asia 12 Bank Danamon 13 Bank Jabar Banten 14 Bank Jatim 15 Bank Mandiri 16 Bank Negara Indonesia 17 Bank Rakyat Indonesia 18 Bank Tabungan Negara 19 Bank Tabungan Pensiunan Negara 20 Bekasi Fajar Industrial Estate 21 Bukit Asam 22 Bumi Resources* 23 Bumi Serpong Damai 24 Cardig Aero Service 25 Charoen Pokphand Indonesia 26 Ciputra Development 27 Ciputra Property 28 Citra Marga Nusaphala Persada 29 Erajaya Swasembada 30 Express Transindo 31 Gajah Tunggal 32 Garuda Indonesia* 33 Gudang Garam 34 Harum Energy* 35 Holcim Indonesia 36 Indocement Tunggal Prakarsa 37 Indofood CBP 38 Indofood Sukses Makmur 39 Indomobil Sukses International 40 Jasa Marga 41 Kalbe Farma 42 Lippo Cikarang 43 Lippo Karawaci 44 London Sumatra Indonesia 45 Malindo Feedmill 46 Matahari Department Store 47 Mayora Indah 48 Medco Energi* 49 Media Nusantara Citra 50 Mitra Adiperkasa 51 Nippon Indosari Corpindo 52 Pakuwon Jati 53 Pembangunan Perumahan 54 Ramayana Lestari Sentosa 55 Salim Ivomas Pratama 56 Sampoerna Agro 57 Semen Baturaja 58 Semen Indonesia 59 Sido Muncul 60 Summarecon Agung 61 Supermarket HERO 62 Supra Boga Lestari 63 Surya Citra Media 64 Surya Semesta Internusa 65 Telekomunikasi Indonesia 66 Tempo Scan Pacific 67 Timah 68 Total Bangun Persada 69 Unilever Indonesia 70 United Tractors 71 Vale Indonesia* 72 Waskita Karya 73 Wijaya Karya 74 Wijaya Karya Beton Source: Bloomberg, Company, Bahana estimates

Ticker ACES IJ ADHI IJ ASSA IJ APLN IJ AKRA IJ ASRI IJ AALI IJ ASII IJ ANJT IJ BBKP IJ BBCA IJ BDMN IJ BJBR IJ BJTM IJ BMRI IJ BBNI IJ BBRI IJ BBTN IJ BTPN IJ BEST IJ PTBA IJ BUMI IJ BSDE IJ CASS IJ CPIN IJ CTRA IJ CTRP IJ CMNP IJ ERAA IJ TAXI IJ GJTL IJ GIAA IJ GGRM IJ HRUM IJ SMCB IJ INTP IJ ICBP IJ INDF IJ IMAS IJ JSMR IJ KLBF IJ LPCK IJ LPKR IJ LSIP IJ MAIN IJ LPPF IJ MYOR IJ MEDC IJ MNCN IJ MAPI IJ ROTI IJ PWON IJ PTPP IJ RALS IJ SIMP IJ SGRO IJ SMBR IJ SMGR IJ SIDO IJ SMRA IJ HERO IJ RANC IJ SCMA IJ SSIA IJ TLKM IJ TSPC IJ TINS IJ TOTL IJ UNVR IJ UNTR IJ INCO IJ WSKT IJ WIKA IJ WTON IJ *In USDm

Actual 294 129 96 583 481 897 1,924 9,920 17 637 9,777 2,071 630 748 12,552 6,058 13,728 743 1,357 136 1,331 111 1,145 161 1,772 953 250 247 200 99 519 (390) 4,073 18 701 2,701 1,647 4,254 160 1,586 1,328 447 1,034 641 147 707 626 111 1,334 293 134 1,032 373 74 1,262 302 66 3,563 242 695 5 6 1,074 308 14,165 449 360 90 3,841 4,287 118 181 584 221

Operating profit (IDRbn) Consensus (%) 676 43.5 1,043 12.3 na na 1,619 36.0 1,208 39.8 1,921 46.7 4,084 47.1 20,620 48.1 na na 1,326 48.0 19,366 50.5 4,868 42.5 1,637 38.5 1,390 53.8 26,660 47.1 12,426 48.8 29,457 46.6 2,030 36.6 3,002 45.2 618 22.0 2,278 58.4 230 48.2 2,616 43.8 369 43.7 4,406 40.2 2,083 45.7 416 60.0 na na 572 35.0 278 35.8 1,410 36.8 35 (1,123.9) 8,518 47.8 55 33.4 1,938 36.2 6,697 40.3 3,165 52.0 8,781 48.4 609 26.4 2,986 53.1 2,995 44.4 800 56.0 1,943 53.2 1,341 47.8 507 29.0 2,172 32.6 1,400 44.8 246 45.0 2,914 45.8 780 37.6 307 43.7 1,941 53.2 1,388 26.8 448 16.6 2,595 48.6 540 55.9 360 18.2 7,760 45.9 589 41.1 1,491 46.6 na na 25 23.1 2,268 47.4 770 40.0 29,104 48.7 na na 944 38.1 191 47.1 7,867 48.8 7,847 54.6 241 49.0 779 23.2 1,344 43.5 422 52.4

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

Comment In Line Below Below Below In Line Below In Line Above Above In Line In Line Below Below In Line In Line In Line In Line Below In Line Below Above Below In Line Below Below Below Below Below Below In Line Below Below Below Below Below Below In Line In Line In Line Above Below In Line Above In Line Below In Line In Line Below In Line Below Below Above Below Below Above Above Below In Line Below In Line Below Below In Line Below In Line Below In Line Below Below In Line Above Below In Line Above

Actual 246 60 27 355 375 515 1369 9638 6 516 7852 1489 478 543 9585 4936 11744 539 996 125 1156 (101) 2565 49 1251 601 127 205 126 79 228 (376) 2713 18 449 2509 1348 2137 49 812 993 403 673 471 87 362 304 9 973 100 127 906 146 103 498 186 88 2740 353 542 95 10 813 190 7403 414 203 78 2848 3324 68 61 283 172

Net profit (IDRbn) Consensus (%) 576 42.6 451 13.3 98 27.5 959 37.0 820 45.8 1337 38.5 2852 48.0 20822 46.3 na na 955 54.0 16176 48.5 3526 42.2 1267 37.7 1043 52.1 20271 47.3 9923 49.7 23995 48.9 1499 36.0 2188 45.5 620 20.2 1882 61.5 (146) 69.3 2260 113.5 127 38.2 3204 39.0 1193 50.3 352 36.0 464 44.3 361 34.8 139 56.9 931 24.5 (27) 1388.0 5359 50.6 36 48.6 1201 37.4 5447 46.1 2496 54.0 4148 51.5 709 6.9 1613 50.3 2239 44.3 734 54.9 1627 41.4 1075 43.8 346 25.2 1607 22.5 813 37.4 21 41.0 2097 46.4 334 30.0 206 61.7 1503 60.3 535 27.4 443 23.2 1088 45.7 320 58.1 368 23.9 5873 46.6 461 76.7 1143 47.4 na na 42 22.6 1718 47.3 594 32.0 15528 47.7 688 60.2 671 30.2 177 43.9 5824 48.9 5793 57.4 176 38.5 421 14.4 695 40.6 302 57.0

Comment In Line Below Below Below In Line In Line Below In Line Below Above In Line Below Below Below In Line In Line In Line Below Below Below Above Below Above In Line Below Below Below Below Below In Line Below Below In Line Below Below In Line In Line In Line Below Above Below In Line In Line In Line Below In Line In Line Above In Line Below Above Above Below Below In Line Above In Line Above In Line In Line Below Below In Line Below In Line Below In Line Above Below In Line In Line In Line Below Above

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Asiamoney's 2013 Best Domestic Equity House

2014 Finance Asia's Best 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, Aviation ext 3610

Leonardo Henry Gavaza, CFA [email protected] Senior Research Manager Auto, Plantations, Heavy equipment, Telco ext 3608

Arga Samudro [email protected] Economist ext 3602

Muhammad Wafi [email protected] Technical Analyst ext 3609

Maxi Liesyaputra [email protected] Research Analyst Construction, Toll Roads, Steel, Oil and Gas ext 3615

Michael W Setjoadi [email protected] Research Analyst Consumer, Poultry ext 3613

Robin Sutanto [email protected] Research Analyst Property ext 3620

Wendy Chandra [email protected] Research Analyst Consumer, Media ext 3606

Bob Setiadi [email protected] Research Analyst Cement ext 3605

Chandra Widjanarka Agustinus Reza Kirana [email protected] [email protected] Technical ResearchAnalyst Analyst ext 1252 Transportation ext 3616

Adi Saputra [email protected] Research Associate ext 3693

Made Ayu Wijayati [email protected] Research Executive ext 3607

Adrian Mahendra Putra [email protected] Research Analyst Industrial Estate ext 3614

William Tong [email protected] Research Associate ext 3604

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)

Ashish Agrawal [email protected] Vice President Institutional Equity Sales 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 [email protected] Equity Sales ext 2548

Reynard Poernawan [email protected] Institutional Equity Sales ext 2528

Nurul Farida [email protected] Equity Sales ext 2543

Hanna Marionda [email protected] Sales Trader ext 2525

Ari Santosa [email protected] Sales Trader ext 2554

Adriana Kosasih [email protected] Sales Executive ext 2541

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

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Asiamoney's 2013 Best Domestic Equity House

2014 Finance Asia's Best Equity House

Disclaimer This publication is prepared by PT.Bahana Securities and reviewed by Daiwa Securities Group Inc. and/or its affiliates, and distributed outside Indonesia by Daiwa Securities Group Inc. and/or its affiliates, except to the extent expressly provided herein. Certain copies of this pu blication may be distributed inside and outside of Indonesia by PT. Bahana Securities in accordance with relevant laws and regulations. This publication and the contents hereof are intended for information purposes only, and may be subject to change without further notice. Any use, disclosure, distribution, dissemination, copying, printing or reliance on this publication for any other purpose without our prior consent or approval is strictly prohibited. Any review does not constitute a full verification of the publication and merely provides a minimum check. 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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 may 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: Modern Land (China) Co. Ltd (1107 HK); China Everbright Bank Company Limited (6818 HK); econtext Asia Ltd (1390 HK); Lotte Shopping Co (023530 KS); Rexlot Holdings Ltd (555 HK); Neo Solar Power Corp (3576 TT); Accordia Golf Trust (AGT SP). *Subsidiaries of Daiwa Securities Group Inc. for the purposes of this section shall mean any one or more of: • Daiwa Capital Markets Hong Kong Limited (大和資本市場香港有限公司) • Daiwa Capital Markets Singapore Limited • Daiwa Capital Markets Australia Limited • Daiwa Capital Markets India Private Limited • Daiwa-Cathay Capital Markets Co., Ltd. • Daiwa Securities Capital Markets Korea Co., Ltd Disclosure of Interest of Bahana Securities Investment Banking Relationship Within the preceding 12 months, Bahana Securities has lead-managed public offerings and/or secondary offerings (excluding straight bonds) of the securities of the following companies: PT Telekomunikasi Indonesia (Persero) Tbk (TLKM IJ); Garuda Indonesia (Persero) (GIAA IJ); Wijaya Karya Beton Tbk PT (WTON IJ). 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2014 Finance Asia's Best Equity House

contents of and/or omissions from this document. Consequently DAIWA expressly disclaims any and all liability for, or based on or relating to any such information contained in or errors in or omissions in this report. Accordingly, you are recommended to seek your own legal, tax or other advice and should rely solely on your own judgment, review and analysis, in evaluating the information in this document. The data contained in this document is subject to change without any prior notice DAIWA reserves its right to modify this report as maybe required from time to time. DAIWA is committed to providing independent recommendations to its Clients and would be happy to provide any information in response to any query from its Clients. This report is strictly confidential and is being furnished to you solely for your information. The information contained in this document should not be reproduced (in whole or in part) or redistributed in any form to any other person. 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Asiamoney's 2013 Best Domestic Equity House

2014 Finance Asia's Best Equity House

Investment Banking Relationships For “Investment Banking Relationships” please visit BlueMatrix disclosure link at https://daiwa3.bluematrix.com/sellside/Disclosures.action . DCMA Market Making For “DCMA Market Making” please visit BlueMatrix disclosure link at https://daiwa3.bluematrix.com/sellside/Disclosures.action . Research Analyst Conflicts For updates on “Research Analyst Conflicts” please visit BlueMatrix disclosure link at https://daiwa3.bluematrix.com/sellside/Disclosures.action. The principal research analysts who prepared this report have no financial interest in securities of the issuers covered in the report, are not (nor are any members of their household) an officer, director or advisory board member of the issuer(s) covered in the report, and are not aware of any material relevant conflict of interest involving the analyst or DCMA, and did not receive any compensation from the issuer during the past 12 months except as noted: no exceptions. 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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 . 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 co mpanies 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. 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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

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