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DAILY UPDATE March 30, 2016 MACROECONOMIC NEWS The Fed – Federal Reserve Chair Janet Yellen said the central bank should proceed "cautiously in adjusting policy." “Developments abroad imply that meeting our objectives for employment and inflation will likely require a somewhat lower path for the federal funds rate than was anticipated in December." Yellen said, “foreign economic growth now seems likely to be weaker this year than previously expected, and earnings expectations have declined. By themselves, these developments would tend to restrain US economic activity. But those effects have been at least partially offset by downward revisions to market expectations for the federal funds rate that in turn have put downward pressure on longer-term interest rates, including mortgage rates, thereby helping to support spending. For these reasons, I anticipate that the overall fallout for the US economy from global market developments since the start of the year will most likely be limited, although this assessment is subject to considerable uncertainty.” Yellen repeated her concerns that the recent pickup in inflation: “Core PCE inflation, which strips out volatile food and energy components, was up 1.7% in February on a 12 month basis, somewhat more than my expectation in December. But it is too early to tell if this recent faster pace will prove durable.” US Housing – The national S&P/Case-Shiller Home Price Index rose 5.43% YoY. The 10-city index increased 5.1% YoY and the 20-city index gained 5.75%.

Equity Markets Closing Dow Jones

17633

0.6

NASDAQ

4847

1.7

S&P 500

2055

0.9

MSCI excl. Jap

496

0.2

17006

-0.6

2920

-1.3

20366

0.1

STI

2846

1.0

JCI

4781

0.2

Indo ETF (IDX)

20.4

1.5

Indo ETF (EIDO)

23.0

1.3

Nikkei Shanghai Comp Hang Seng

Currency Closing US$ - IDR

Japan Economy – Japan’s industrial production slumped 6.2% in February after rising in January, as falling exports sapped demand and a steel-mill explosion halted domestic car production at Toyota Motor Corp. The data underscores the weakness of Japan’s recovery from last quarter’s contraction, with overseas shipments dropping for the last five months and sluggish domestic demand.

Last Trade

13395

13364.5

US$ - Yen

112.7

112.63

Euro - US$

1.1291

1.1294

US$ - SG$

1.3544

1.3574

Commodities Last

Price Chg %Chg

Oil NYMEX

38.73

-0.55

-1.40

Oil BRENT

39.48

-0.63

-1.57

Coal NYMEX

43.62

-0.01

-0.02

Coal Newcastle

51.25

0.60

1.18

Nickel

US Economy – The Conference Board’s index of consumer confidence climbed to 96.2 from 94.0 in February. The expectations index jumped to 84.7 from 79.9. The present situation index dipped to 113.5 from 115. Lynn Franco, Director of Economic Indicators at The Conference Board said, "On balance, consumers do not foresee the economy gaining any significant momentum in the near-term, nor do they see it worsening."

% Change

8450

-200

-2.3

Tin

16800

-500

-2.9

Gold

1239.6

19.7

1.6

735

37.5

5.4

2651

26.0

1.0

CPO Rott CPO Malay

Indo Gov. Bond Yields Last

Yield Chg %Chg

1 year

6.89

0.01

0.17

3 year

7.60

0.01

0.08

5 year

7.50

0.01

0.07

10 year

7.86

0.01

0.10

15 year

8.30

-0.00

-0.05

30 year

8.50

0.00

0.04

PT. Panin Asset Management JSX Building Tower I, 3rd Floor Jl. Jend. Sudirman Kav. 52-53 , Jakarta 12190 T : (021) 515-0595 , F : (021) 515-0601

CORPORATE NEWS – cont’d BNLI – PT Bank Permata will conduct rights issue of IDR 5.5 trillion in 2Q16. BNLI targets credit growth of 8 – 10% YoY this year, below industry target of 12 – 14% YoY. UNVR – PT Unilever Indonesia announced its FY 2015 financial results: UNVR (IDR bn) Revenue Gross Profit Operating Profit Pretax Earnings Net Income EPS (IDR) Gross Profit Margin Operating Profit Margin Net Profit Margin

2014

2015

YoY

Q3 2015

Q4 2015

QoQ

34,512 17,207 8,030 7,928 5,927 776.8 49.9% 23.3% 17.2%

36,484 18,649 7,944 7,829 5,852 766.9 51.1% 21.8% 16.0%

5.7% 8.4% -1.1% -1.2% -1.3% -1.3% 1.3% -1.5% -1.1%

8,745 4,435 1,717 1,678 1,252 164.1 50.7% 19.6% 14.3%

8,937 4,685 2,276 2,231 1,669 218.7 52.4% 25.5% 18.7%

2.2% 5.6% 32.6% 33.0% 33.3% 33.3% 1.7% 5.8% 4.4%

SIDO – PT Sido Muncul announced its FY 2015 financial results: SIDO (IDR bn) Revenue Gross Profit Operating Profit Pretax Earnings Net Income EPS (IDR) Gross Profit Margin Operating Profit Margin Net Profit Margin

2014

2015

YoY

Q3 2015

Q4 2015

QoQ

2,198 840 437 549 418 27.8 38.2% 19.9% 19.0%

2,219 883 478 560 437 29.2 39.8% 21.6% 19.7%

0.9% 5.2% 9.6% 2.1% 4.8% 4.8% 1.6% 1.7% 0.7%

509 189 83 103 80 5.3 37.1% 16.4% 15.7%

568 240 116 140 111 7.4 42.3% 20.4% 19.6%

11.6% 27.3% 39.0% 12.6% 39.2% 39.2% 5.2% 4.0% 3.9%

SAME – PT Sarana Meditama Metropolitan announced its FY 2015 financial results: SAME (IDR bn) Revenue Gross Profit Operating Profit Pretax Earnings Net Income EPS (IDR) Gross Profit Margin Operating Profit Margin Net Profit Margin

2014

2015

YoY

Q3 2015

Q4 2015

QoQ

414 204 90 65 58 48.9 49.2% 21.8% 13.9%

515 254 118 68 57 48.0 49.3% 22.9% 11.0%

24.3% 24.5% 30.7% 4.9% -1.9% -1.9% 0.1% 1.1% -2.9%

127 62 30 3 5 4.2 48.8% 23.6% 3.9%

142 68 29 33 21 17.5 47.7% 20.3% 14.5%

11.9% 9.2% -3.8% 1008.8% 312.1% 312.1% -1.2% -3.3% 10.6%

QoQ

PANS – PT Panin Sekuritas announced its FY 2015 financial results: PANS (IDR bn) Revenue Operating Profit Pretax Earnings Net Income EPS (IDR) Operating Profit Margin Net Profit Margin

2014

2015

YoY

Q3 2015

Q4 2015

647 436 424 358 497.0 67.5% 55.3%

337 115 109 63 88.0 34.3% 18.8%

-47.9% -73.5% -74.3% -82.3% -82.3% -33.2% -36.5%

-37 -71 -61 -70 -97.0

221 180 138 122 170.0 81.2% 55.3%

CORPORATE NEWS – cont’d CTRA – PT Ciputra Development announced its FY 2015 results: CTRA (IDR bn) Revenue Gross Profit Operating Profit Pretax Earnings Net Income EPS (IDR) Gross Profit Margin Operating Profit Margin Net Profit Margin

2014

2015

YoY

Q3 2015

Q4 2015

QoQ

6,340 3,330 2,204 2,148 1,325 86.4 52.5% 34.8% 20.9%

7,514 3,729 2,353 2,165 1,284 83.7 49.6% 31.3% 17.1%

18.5% 12.0% 6.8% 0.8% -3.1% -3.1% -2.9% -3.4% -3.8%

2,284 1,086 768 713 456 29.8 47.6% 33.6% 20.0%

2,140 1,015 639 604 349 22.7 47.4% 29.9% 16.3%

-6.3% -6.6% -16.8% -15.3% -23.6% -23.6% -0.1% -3.8% -3.7%

CTRP – PT Ciputra Property disclosed its FY 2015 results: CTRP (IDR bn) Revenue Gross Profit Operating Profit Pretax Earnings Net Income EPS (IDR) Gross Profit Margin Operating Profit Margin Net Profit Margin

2014

2015

YoY

Q3 2015

Q4 2015

QoQ

1,662 957 667 508 394 63.0 57.5% 40.1% 23.7%

2,460 1,131 754 507 327 52.3 46.0% 30.7% 13.3%

48.0% 18.2% 13.0% -0.3% -16.9% -16.9% -11.6% -9.5% -10.4%

1,178 506 386 323 244 39.0 43.0% 32.8% 20.7%

610 277 190 124 63 10.1 45.4% 31.1% 10.3%

-48.2% -45.2% -50.8% -61.7% -74.2% -74.2% 2.5% -1.7% -10.4%

CTRS – PT Ciputrta Surya reported its FY 2015 results: CTRS (IDR bn) Revenue Gross Profit Operating Profit Pretax Earnings Net Income EPS (IDR) Gross Profit Margin Operating Profit Margin Net Profit Margin

2014

2015

YoY

Q3 2015

Q4 2015

QoQ

1,713 868 574 676 523 260.7 50.7% 33.5% 30.5%

1,909 993 645 759 597 297.8 52.0% 33.8% 31.3%

11.5% 14.3% 12.4% 12.3% 14.2% 14.2% 1.3% 0.3% 0.8%

477 233 172 192 153 76.3 48.7% 36.1% 32.1%

468 242 127 162 136 67.9 51.8% 27.0% 29.1%

-2.0% 4.2% -26.5% -15.8% -11.1% -11.1% 3.1% -9.0% -3.0%

MTLA – PT Metropolitan Land announced its FY 2015 results: MTLA (IDR bn) Revenue Gross Profit Operating Profit Pretax Earnings Net Income EPS (IDR) Gross Profit Margin Operating Profit Margin Net Profit Margin

2014

2015

YoY

Q3 2015

Q4 2015

QoQ

1,118 648 433 379 268 35.0 58.0% 38.7% 24.0%

1,089 660 419 308 214 28.0 60.6% 38.5% 19.7%

-2.6% 1.9% -3.2% -18.6% -20.1% -20.1% 2.6% -0.3% -4.3%

223 129 56 44 32 4.2 58.0% 25.0% 14.5%

339 212 150 108 56 7.3 62.7% 44.2% 16.4%

51.8% 64.2% 168.2% 145.6% 70.9% 70.9% 4.8% 19.2% 1.8%

CORPORATE NEWS – cont’d PWON – PT Pakuwon Jati reported its FY 2015 results: PWON (IDR bn) Revenue Gross Profit Operating Profit Pretax Earnings Net Income EPS (IDR) Gross Profit Margin Operating Profit Margin Net Profit Margin

2014

2015

YoY

Q3 2015

Q4 2015

QoQ

3,872 2,158 1,889 2,859 2,515 52.2 55.7% 48.8% 65.0%

4,625 2,669 2,265 1,741 1,262 26.2 57.7% 49.0% 27.3%

19.4% 23.7% 19.9% -39.1% -49.8% -49.8% 2.0% 0.2% -37.7%

1,137 658 569 508 413 8.6 57.9% 50.0% 36.3%

1,062 576 426 228 94 2.0 54.2% 40.1% 8.9%

-6.6% -12.5% -25.2% -55.0% -77.2% -77.2% -3.6% -9.9% -27.4%

SMRA – PT Summarecon Agung disclosed its FY 2015 results: SMRA (IDR bn) Revenue Gross Profit Operating Profit Pretax Earnings Net Income EPS (IDR) Gross Profit Margin Operating Profit Margin Net Profit Margin

2014

2015

YoY

Q3 2015

Q4 2015

QoQ

5,757 3,057 2,077 1,936 1,385 96.0 53.1% 36.1% 24.1%

5,624 2,907 1,768 1,382 855 59.3 51.7% 31.4% 15.2%

-2.3% -4.9% -14.9% -28.6% -38.3% -38.3% -1.4% -4.7% -8.9%

1,900 930 667 549 278 19.3 49.0% 35.1% 14.6%

1,127 583 271 165 48 3.3 51.7% 24.0% 4.2%

-40.7% -37.4% -59.4% -69.9% -82.8% -82.8% 2.7% -11.1% -10.4%

WSKT – PT Waskita Karya will distribute 2015 dividend of IDR 15.44 per share (20% payout ratio). On a separate note, WSKT plans to divest 30 – 40% stake in PT Waskita Beton Precast in 3Q16. BFIN – PT BFI Finance Indonesia targets credit growth for the year at 10% reaching IDR 11 trillion. TPIA – PT Chandra Asri Petrochemical considers distributing dividend of 25% from its retained earnings last year. On a separate note, the company reported 2015 financial results: TPIA (USD mn) Revenue Gross Profit Operating Profit Pretax Earnings Net Income EPS (USD) Gross Profit Margin Operating Profit Margin Net Profit Margin

2014

2015

YoY

Q3 2015

Q4 2015

QoQ

2,460 117 50 25 18 0.0 4.8% 2.0% 0.7%

1,378 146 79 56 26 0.0 10.6% 5.8% 1.9%

-44.0% 24.1% 57.9% 125.4% 44.4% 44.4% 5.8% 3.7% 1.2%

344 32 21 0 1 0.0 9.3% 6.1% 0.2%

234 25 11 17 -5

-32.1% -20.9% -47.7% 4928.2%

10.8% 4.7%

1.5% -1.4%

AGRO – PT Bank Rakyat Indonesia Agroniaga targets 2016 net income to grow 29% yoy to IDR 103.83 billion. SIPD – PT Sierad Produce will raise new capital of IDR 400 billion through rights issue. Rights issue ratio is 108:46 at IDR 1,000 per share. ERAA – PT Erafone Artha Retailindo, subsidiary of PT Erajaya Swasembada, is prepared to add 40 new outlets this year with IDR 100 billion investment.

CORPORATE NEWS – cont’d SUPR – PT Solusi Tunas Pratama reported 2015 financial results: SUPR (IDR bn) Revenue Gross Profit Operating Profit Pretax Earnings Net Income EPS (IDR) Gross Profit Margin Operating Profit Margin Net Profit Margin

2014

2015

YoY

Q3 2015

Q4 2015

QoQ

1,072 863 760 -508 -380 -334.1 80.5% 70.9%

1,786 1,462 1,331 242 137 120.3 81.9% 74.5% 7.7%

66.6% 69.3% 75.1%

447 367 330 65 43 37.6 82.0% 73.8% 9.6%

459 364 339 40 -4 -3.1 79.2% 73.8%

2.7% -0.8% 2.7% -37.7%

1.3% 3.6%

-2.8% 0.0%

TOWR – PT Sarana Menara Nusantara will buy 2,500 telecommunication towers from PT XL Axiata at IDR 3.56 trillion. Post transaction EXCL will lease back 2,432 of the towers.

Disclaimer The analyst(s) whose work appears in this report certifies that his or her remuneration is not correlated to his or her judgment(s) on the performance of the company(ies). The information and/or opinions contained in this report has been assembled by Panin Asset Management from sources which we deem to be reliable and in good faith, but no representation or warranty, express or implied, is made as to their accuracy, completeness or correctness. This report may not be reproduced, distributed or published by any recipient for any purpose. Any recommendations contained herein are based on a consideration of the securities alone, and as such are conditional and must not be relied upon as a solitary basis for investment decisions. Under no circumstances is this report to be used or considered as an offer to sell, or a solicitation of an offer buy. All opinions and estimates herein reflect the author’s judgment on the date of this report and are subject to change without notice. Panin Asset Management, its related companies, their officers, employees, representatives and agents expressly advice that they shall not be liable in any way whatsoever for any loss or damage, whether direct, indirect, consequential or othe wise howsoever arising (whether in negligence or otherwise) out of or in connection with the contents of and/or any omi sions from this communication. Any investments referred to herein may involve significant risk, are not necessarily available in all jurisdictions, may be illiquid and may not be suitable for all investors. Investors should make their own independent assessment and seek professional financial advice before they make their investment decisions. Due to its nature as an asset management firm, it is very much possible that Panin Asset Management and/or persons connected with it may, to the extent permitted by law, have long or short positions or may otherwise be interested in any transactions or investments (including derivatives) referred to in this publication. In addition, Panin Asset Management and/or its parent, Panin Sekuritas, and/or its affiliated companies may provide services for or solicit business from any company referred to in this publication. The analyst(s) named in this report certifies that all of the views expressed by the analyst(s) in this report reflect the personal views of the analyst(s) with regard to any and all of the content of this report relating to the subject securities and issuers covered by the analyst(s) and no part of the compensation of the analyst(s) was, is, or will be, directly or indirectly, related to the specific recommendation or views expressed by the analyst(s) in this report.

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