INVESTOR DIGEST

Equity Research | 20 May 2019

Economic Data HIGHLIGHT

Latest 2019F
 Banking Data Mar19–Slight Improvement in Liquidity 
7-DRRR (%), eop 6.00 5.75  Automotive: Behind the Wheel - Apr’19 Wholesales Volume 
Inflation (YoY %) 2.83 3.80  Market Recap May 17th 2019; JCI 5,826.87 points -68.87 pts (-1.17%); Valued $396mn;
US$ 1 = Rp, period avg 14,486 14,450 Mkt Cap $454bn; USD/IDR 14,486 

Stock Market Data SECTOR

(17 May 2019)

Banking Data Mar19–Slight Improvement in Liquidity

JCI Index
Trading T/O ( Rp bn )
Market Cap ( Rp tn )
Market Data Summary*
5,826.9 -1.17%
5,771.2  The banking system saw a slight improvement in LDR to 93.3% in March, as
6,629.6 deposit growth has started to post an upward trend since the beginning of the
year, growing faster than loan growth in February alone. In addition, NPL
improved to 2.51% from 2.59%, while NIM increased to 4.86% from 4.81%. We
maintain our Neutral stance on the sector.

2019F 2020F
 Loan growth:

 +11.6% y-y (+1.2% m-m/-0.1% ytd) in March compared to +12.1% y-y (+0.8%
P/E (x) 15.8 14.6 m-m/-1.3% ytd) in February.
P/BV (x) 2.3 2.1
 Adjusted for rupiah movement, total loan growth was +11.0% y-y, lower than
EV/EBITDA (x) 12.5 11.9
Div. Yield (%) 2.8 3.0
+11.7% y-y in February. Rupiah loan growth was +11.1% y-y (+11.8% y-y in
Net Gearing (%) 17.1 15.1
February), while FX loan growth in USD terms was at +10.4% y-y vs. +10.9%
ROE (%) 15.3 15.3 y-y in February.
EPS Growth (%) 9.5 8.1  Based on bank classification, the strongest loan growth came from BUKU IV
EBITDA Growth (%) 5.4 4.8 banks at +18.3% y-y (please note that Bank Danamon is now categorized under
Earnings Yield (%) 6.3 6.9
BUKU IV), followed by BUKU II at +7.6% y-y and BUKU III at +3.6% y-y, while BUKU
* Aggregate of 74 companies in MS research universe,
I booked a slower growth at -0.1% y-y. Sharia banks recorded +8.3% y-y loan
representing 63.4%of JCI’s market capitalization
growth compared to +7.5% y-y in February.

 In terms of usage, investment loans posted the highest growth rate of

+13.6% y-y, followed by working capital loans at +12.0% y-y and consumer loan
growth at 9.0% y-y.

 Of the large sectors with >5% loan exposure: agriculture loans (6.7%
exposure) were at +10.8% y-y, manufacturing (16.4%) at +9.5% y-y, construction
(6.1%) at +27.1% y-y, wholesale and retail trade (18.4%) at +9.8% y-y, and home
ownership/landed house (8.6%) at +12.9% y-y. We note mining and quarrying
sector continues to post strong growth of >20% y-y over the past seven
consecutive months (exposure to this sector is 2.6%).

 Regionally, Java-and-Bali posted the strongest loan growth at +13.1% y-y

(from 13.6% in February). Meanwhile, Kalimantan saw slower loan growth at
5.1% y-y (from 6.3%) and Sulawesi at 5.6% y-y (from 6.7%), while loan growth in
Sumatra slightly picked up to +6.8% y-y (from +6.7%)

Please see important disclosure at the back of this report Page 1 of 10

Equity Research | 20 May 2019

 Deposit growth:
 +7.2% y-y (+1.3% m-m/+0.8% ytd) vs. +6.6% y-y (+0.7% m-m/-0.5% ytd) in February.
 Adjusted for currency movement, deposits grew +6.6% y-y in March vs. +6.2% y-y in February. Rupiah deposits
grew +6.3% y-y vs. +6.2% y-y in February. Foreign currency deposits in rupiah terms grew +12.5% y-y vs. +9.0% y-y
in February. In USD terms, FX deposits grew +8.6% y-y vs. +6.3% in February.
 Based on bank classification, deposits in BUKU IV banks grew the highest at +15.2% y-y, followed by BUKU II at
+3.9% y-y. Meanwhile, deposits in BUKU I declined by -0.7% y-y and in BUKU III by -4.0% y-y. Deposit growth in sharia
banks was at +7.3% y-y.
 Based on type, CASA deposit growth was at +6.6% y-y in March vs. +4.5% y-y in February (CA at +6.7% y-y and
savings at +6.5% y-y), while time deposits grew by +7.9% y-y.

 Liquidity: LDR improved slightly to 93.3% in March from 93.4% in February. LDR in BUKU I banks was at 80.6% (83.8%
in February), in BUKU II at 89.9% (90.4%), in BUKU III at 102.1% (101.7%), and in BUKU IV at 90.6% (90.4%). Without BBCA,
LDR in BUKU IV banks was at 92.2% (92.0% in February); LDR in sharia banks was at 78.4% (77.5%).

 Asset quality:
 NPL level improved to 2.51% from 2.59% in February, while special mention loans (category 2) also improved to
5.58% from 5.80% in February. In terms of absolute amount, total NPL increased +1.9% y-y/-1.7% m-m, while special
mention loans increased +10.8% y-y/-2.6% m-m.
 Only BUKU I banks saw NPL increasing to 3.94% from 3.92% in February. Meanwhile, NPL in BUKU II banks declined
to 3.36% from 3.39% in February, in BUKU III to 2.48% from 2.55%, and in BUKU IV to 2.28% from 2.36%. NPF in sharia
banks remained stable at 3.44% in March and February.
 In terms of loan segment, NPL in investment loans declined to 2.35% from 2.45% in February, in working capital
loans to 3.09% from 3.17%, and in consumer loans to 1.71% from 1.75% in February.
 Main industries NPL level: mining declined to 4.34% (4.64% in February), construction declined to 3.67% (3.69% in
February), wholesale & retail declined to 3.78% (3.94% in February); and accommodation and F&B increased to 6.12%
(6.05% in February). NPL in household loans declined to 1.76% (from 1.81% in February) with NPL for home
ownership (landed house) having declined to 2.56% (2.67% in February), apartment ownership to 1.63% (1.74% in
February), and shop house ownership to 5.46% (5.53% in February), while vehicle ownership NPL increased to 1.54%
(1.48% in February).
 Location wise, all regions saw NPL improving, with the largest improvement from Sulawesi to 3.26% from
3.50% in February. NPL in Java-and-Bali improved to 2.45% (from 2.52% in February), in Sumatra to 2.74% (from
2.78%), and in Kalimantan to 3.25% (from 3.26%).

 Profitability:
 Industry NIM increased to 4.86% in March from 4.81% in February.
 BUKU I banks saw the largest increase in NIM to 5.20% from 4.84% in February, followed by BUKU II to 4.82%
from 4.75% and BUKU III to 3.94% from 3.89%. Meanwhile, NIM in BUKU IV banks declined to 5.42% from 5.44% in
February.
 Interest rates have continued to trend down in the past one year across all types of loans. On average, lending rates
have declined by 32 bps over the past 12 months. On the deposit side, average 1-M T/D rates have increased 120 bps
over the past 12 months.

 Capital: average CAR was stable at 23.4% in March and February.

 We maintain our Neutral call on the banks.

Please see important disclosure at the back of this report Page 2 of 10

 Equity Research | 20 May 2019

OJK BANKING DATA SUMMARY

Mar-18 Jun-18 Sep-18 Dec-18 Jan-19 Feb-19 Mar-19
Loan growth (% y-y) 8.5 10.8 12.7 11.8 12.0 12.1 11.6
Deposits growth (% y-y) 7.7 7.0 6.6 6.5 6.4 6.6 7.2
LDR (%) 89.6 92.1 93.4 94.0 93.2 93.4 93.3
NPL (%) 2.75 2.67 2.66 2.37 2.56 2.59 2.51
Special mention loans (%) 5.6 5.7 5.3 4.5 5.3 5.8 5.6
NIM (%) 5.07 5.11 5.14 5.14 4.92 4.81 4.86
CAR (%) 22.6 22.0 22.9 23.0 23.2 23.4 23.4
Avg. Rp. lending rates (%):
Investment loans 10.38 10.35 10.54 10.38 10.38 10.36 10.34
Working capital loans 10.59 10.49 10.59 10.34 10.52 10.55 10.51
Consumer loans 12.48 12.30 11.90 11.73 11.72 11.68 11.64
Avg. Rp. deposit rates (%):
Demand deposit 2.19 2.13 2.10 2.20 2.10 2.11 2.19
Savings deposit 1.51 1.44 1.42 1.31 1.29 1.30 1.30
1-M T/D 5.63 5.69 6.28 6.92 6.87 6.78 6.79
3-M T/D 5.90 5.86 6.29 6.84 6.90 6.99 6.90
BI rate (%) 4.25 5.25 5.75 6.00 6.00 6.00 6.00
Inflation rate (% y-y) 3.40 3.12 2.88 3.13 2.82 2.57 2.48
Source: OJK, BPS, Mandiri Sekuritas

Tjandra Lienandjaja (+6221 5296 9617) tjandra.lienandjaja@mandirisek.co.id

Priscilla Thany (+62 21 5296 9546) priscilla.thany@mandirisek.co.id
Silvony Gathrie (+6221 5296 9544) silvony.gathrie@mandirisek.co.id

Automotive: Behind the Wheel - Apr’19 Wholesales Volume

 The 4W wholesales in Apr’19 stood at 84.0k units (-17.8% yoy; -6.8% mom). YTD wholesales stood at 337.9k units (-14.3%
yoy) with ASII’s market share at 53.7%. The total transaction at IIMS 2019 reached Rp5tr (+25% yoy), exceeding initial
target of Rp4.4tr. Maintain BUY on ASII with target price of Rp8,650/share.

 Another weak month in 2019. Despite the IIMS event, April'19 4W wholesale remained weak, dragged-down by
Mitsubishi. Apr’19 4W wholesales stood at 84.0k units (-17.8% yoy; -6.8% mom) with YTD wholesales at 337.9k units
(-14.3% yoy). ASII’s wholesales stood at 46.5k units (-6.8% yoy, -5.3% mom), caused by lower Daihatsu (-14.5% yoy, -17.8%
mom), while Toyota was flattish (flat yoy/+2.9% mom) but looks better relative to peers. Honda (-31.6% yoy; 42.8%
mom) showed improvement, but Mitsubishi (-43.6% yoy; -37.5%mom) was surprisingly weak. ASII’s market share in April
increased to 56.5% with YTD MS of 53.7% on the back of weaker sales of its competitors. ASII’s LCGC sales stood at 14.7k
units (-13.3% yoy, +7.6% mom) with YTD market share of 71.9%. LCGC market has been declining since 2018 due to 1) the
lack of new models, 2) weaker purchasing power, and 3) growing ride hailing app. Honda Brio Satya is the only
meaningful competitor in the LCGC market for ASII.

 IIMS exceeded internal target. Attended by 528k visitors, IIMS recorded 13.2k 4W unit sales and 2.6k 2W unit sales
during the exhibition with a total transaction value of Rp5tr (+25% yoy), well above the internal target of Rp4.4tr. We
noted several new models were launched during IIMS, including Hyundai Kona, DFSK Glory 560, BMW Z4, Wuling Cortez
Turbo, and new facelift model of Honda BR-V. During the exhibition, Mitsubishi recorded 3.1k vehicle order receipts (SPK)
(+17% yoy) vs. 2.6k in 2018’s IIMS. Mitsubishi’s sales were dominated by the contribution of Xpander (69%) and Pajero
Sport (28%), while the rest came from Mitsubishi Outlander Sport and Triton (3%). Strong sales were also recorded by
DFSK with c.1.5k vehicle order receipts (SPK) and 1k units sold (71%) from the new LSUV model–DFSK Glory 560.
Meanwhile, Daihatsu only managed to record 399 unit sales during IIMS, down by -30% yoy from last year’s IIMS.

Please see important disclosure at the back of this report Page 3 of 10

 Equity Research | 20 May 2019

 Discount in May’19. Our channel check suggests discounts on ASII’s products are flat compared to Apr’19, as Toyota
Avanza’s and Toyota Innova’s discounts are flat at Rp10mn (5%) and Rp15mn (4%), respectively. Furthermore, Honda
Mobilio’s discount has increased to Rp15mn vs. Rp10mn in Apr’19 along with additional promotion offering services to
celebrate Eid Al-Fitr holiday. Meanwhile, the all new Mitsubishi Livina offers Rp3mn discount on VA model (ready stock),
while the waiting period for the upper model (VL) is around 2 months (in July).

 Maintain BUY on ASII with SOTP price target of Rp8,650/share. ASII is currently trading at 11.4x FY19F PE.

APR’19 WHOLESALES VOLUME

4W Wholesales
Apr-18 Mar-19 Apr-19 MoM % YoY % 4M18 4M19 YoY %
(in '000 )
Toyota 29.4 28.7 29.6 2.9 0.7 113.9 106.8 (6.2)
Daihatsu 18.9 19.6 16.1 (17.8) (14.5) 70.5 66.8 (5.2)
Total for ASII 51.0 50.2 47.5 (5.3) (6.8) 192.9 181.4 (5.9)
ASII LCGC 16.9 13.6 14.7 7.6 (13.3) 58.8 51.6 (12.2)
Honda 17.0 8.1 11.6 42.8 (31.6) 53.3 40.5 (24.0)
Suzuki 8.5 6.3 7.7 22.0 (9.7) 40.9 30.5 (25.2)
Mitsubishi 17.9 16.1 10.1 (37.5) (43.6) 73.2 57.2 (21.8)
Wuling 1.7 1.2 (100.0) (100.0) 5.2 2.8 (47.2)
Others (ex Astra
6.2 8.3 7.1 (13.9) 15.0 28.9 25.5 (11.7)
products)
Total 102.3 90.2 84.0 (6.8) (17.8) 394.3 337.9 (14.3)
Total LCGC 22.3 18.2 19.4 6.7 (12.9) 80.8 71.8 (11.2)

Market Share (%) Apr-18 Mar-19 Apr-19 MoM % YoY % 4M18 4M19 YoY %
Toyota 28.7 31.8 35.2 3.3 6.5 28.9 31.6 2.7
Daihatsu 18.5 21.8 19.2 (2.6) 0.7 17.9 19.8 1.9
Total for ASII 49.8 55.6 56.5 0.9 6.7 48.9 53.7 4.8
ASII LCGC 75.9 74.9 75.6 0.6 (0.4) 72.7 71.9 (0.8)
Honda 16.6 9.0 13.8 4.8 (2.8) 13.5 12.0 (1.5)
Suzuki 8.3 7.0 9.1 2.2 0.8 10.4 9.0 (1.3)
Mitsubishi 17.5 17.9 12.0 (5.9) (5.5) 18.6 16.9 (1.6)
Others 6.1 9.2 8.5 (0.7) 2.4 7.3 7.5 0.2
Total LCGC 21.8 20.2 23.1 2.9 1.3 20.5 21.2 0.7

Source: Gaikindo

Ariyanto Kurniawan (+6221 5296 9682) ariyanto.kurniawan@mandirisek.co.id

MARKET

Market Recap May 17th 2019; JCI 5,826.87 points -68.87 pts (-1.17%); Valued $396mn; Mkt Cap $454bn; USD/IDR
14,486

 TOP TURNOVER: BBRI BBCA TLKM BBNI BMRI ASII PTPP BRPT UNVR WIKA BTPS PTBA WSKT UNTR (40%)

 ADVANCING SECTOR: plantation+0.6%; mining+0.4%; auto flat

 DECLINING SECTOR: cement-3.9%; financial-1.8%; construction-1.6%; consumer-1.2%; telco-1%; property-0.4%

 Again, the JCI opened into a better footing, but then the trading sentiment quickly deteriorated. Other Asian shares were
in the midst of trying to end a bleak week in the black as upbeat US economic news and solid company earnings offered a
respite from the interminable Sino-US trade saga. The IDR stabilized at higher range of 14486 level. The share price of
HRUM was able to reduce some earlier losses (plunging -9.1% at the opening) and ended down 4.2% at 12 60 level in 1.4x
avg five-week vol, mostly on local selling pressure. While, smaller-cap banks performed better than its big-cap

Please see important disclosure at the back of this report Page 4 of 10

 Equity Research | 20 May 2019

counterparts: BTPS+1.2% BBKP flat BJTM flat. Also, the share price of WIKA rebound sharply by 4.3% to close at 1930 level
in 1.7x avg five-week vol (from day low of -4% at 1775 level) after news report that it sold its stake in Surabaya-Kertosono
toll road to ASII at 2.4x PBV. The JCI ended at day low of 5826 level for three straight days in quiet turnover of $396MN
(excluding $12.5MN TLKM; $11.3MN BKSL; $8.7MN SPTO; $5.1MN MYRX crossing). Foreign participants at 33% came up
better seller for 35%. Losers beat gainers by 3 to 2.

 The pullback in risk aversion lifted Treasury yields, particularly at the short end where two-year yields rose to 2.19%. Bond
prices might also have been pressured by a speech from influential Fed Governor Lael Brainard who said the central bank
could encourage “opportunistic reflation” by allowing inflation to run above its 2% target for some years. The rise in yields
underpinned the USD, which hit a two-week high against a basket of currencies at 96.882. The dollar regained a little lost
ground on the safe-haven yen to stand at 109.85, while the euro eased to $1.1171 and was off 0.5% for the week so far.
Sterling was one of the worst performers as Britain’s Prime Minister Theresa May battled to keep her Brexit deal, and her
premiership, intact amid growing fears of a disorderly departure from the EU. The pound touched a three-month low of
$1.2785 and was down a hefty 1.6% for the week so far. Also under pressure was the AUD, losing 1.5% for the week to
$0.6890 as investors piled into bets that interest rates would be cut in June. In commodity markets, spot gold dropped off
to $1286.37 per ounce as risk sentiment improved. Oil futures firmed as tensions in the Middle East grew, with a Saudi-led
coalition launching air strikes in retaliation for recent attacks on its crude infrastructure. US crude was last up 31 cents at
$63.18 a barrel, while Brent crude futures rose 13 cents to $72.75.

Sales Team +6221 527 5375

FROM THE PRESS

Astra Tol Nusantara (Astra Infra) to acquire 44.5% stake in Surabaya – Mojokerto toll road (36.3km)
The company set Rp1.7tn to acquire 44.5% stake in Surabaya – Mojokerto toll road, 20.3% of the stake was owned by Wijaya
Karya (WIKA) and 24.2% stake from Moeladi, while the remaining 55.5% stake is still owned by Jasa Marga (JSMR). The CEO of
Astra Infra, Tjap Tet Fa said this acquisition would translate to Astra Infra’s 30% market share of Trans Java toll road.
Furthermore, the company has set another Rp1tn capex to expand its toll road length. (Investor Daily)

Bank BTN (BBTN) to distribute Rp53.29 per share dividend

On its latest AGM, BBTN concludes to distribute dividend totaling to Rp561bn, equivalent to 20% of 2018’s net income,
Rp53.29 per share. Director of Finance, Treasury & Strategy of BBTN, Nixon LP Napitupulu states that BBTN’s CAR stood at
around 17%, and the remaining 80% of 2018’s net income will be used for business expansion as well as to prepare for IFRS 9
implementation. Moreover, the management also concludes Nixon L.P Napitupulu to hold a concurrent position as Director of
Finance, Treasury & Strategy which was previously held by Iman Nugroho Soeko. The management also appointed Asmawi
Syam as President Commissioner, replacing I Wayan Agus Mertayasa and Kamaruddin Sjam and Eko Djoeli Heripoerwanto as
Comissioner, replacing Parman Nataatmadja and Maurin Sitorus. (Bisnis Indonesia)

Bank Muamalat’s EGM approved Al Falah acquisition in Bank Muamalat

Bank Muamalat’s latest EGM approved Al Falah acquisition totaling to 50.3% in Bank Muamalat. Now, Al Falah needs to wait
for OJK’s approval. Also, during the EGM, Bank Muamalat add one new director position, namely director of risk, and
appointed Avianto Istihardjo to fill in the position. (Investor Daily)

Please see important disclosure at the back of this report Page 5 of 10

 Equity Research | 20 May 2019

Wijaya Karya (WIKA) to divest its 20.34% stake in Surabaya – Mojokerto toll road
Finance Director of WIKA, Ade Wahyu said the company got Rp715bn from 20.34% divestment stake in Surabaya – Mojokerto
toll road. (Bisnis Indonesia)
Comment: Based on 1Q19 financial statement, WIKA’s equity value for Surabaya – Mojokerto toll road stood at Rp165.1bn, thus,
this transaction would translate to 4.3x PBV or accounting one-off gain of Rp550bn excluding the tax. Note that our FY19 earnings
estimate at Rp2.0tn (consensus FY19: Rp1.9tn) have not taken into account the divestment gain, while the company’s guidance of
Rp3.0tn comprehensive net profit has priced the divestment.

Waskita Beton Precast (WSBP) and Pembangunan Perumahan (PTPP) new contracts update
Up to 4M19, WSBP has got Rp2.27tn of new contracts, translating to 21.8% achievement of company’s FY19 target.
Meanwhile, PTPP managed to secure Rp10.75tn of new contracts (-5% yoy), which translates to 21.4% of company’s FY19
target. SOE projects dominated PTPP’s new contracts with 67.6% contribution, followed by private at 23.5%, and government
at 8.9%. (Investor Daily)

Please see important disclosure at the back of this report Page 6 of 10

 Equity Research | 20 May 2019

Indices and Fund Flows Currencies and Bonds Major Commodities

YTD Chg YTD YTD

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

JCI 5,826.9 -1.2 -5.9 Rp/US$ 14,506 +0.24 -0.6 Oil spot (US$/bl) 62.76 -0.2 +38.2
Dow Jones 25,764.0 -0.4 +10.4 US$/EUR 1.116 -0.14 +2.8 Nickel spot (US$/mt) 12,002 -1.6 +13.2
Nikkei 21,250.1 +0.9 +6.2 YEN/US$ 110.08 +0.21 -0.4 Gold spot (US$/oz) 1,278 -0.7 -0.4
Hang Seng 27,946.5 -1.2 +8.1 SGD/US$ 1.377 +0.36 -1.1 Tin 3-month (US$/mt) 19,500 +0.1 +0.1
STI 3,205.5 -0.8 +4.5 CPO futures (Ringgit/ton) 2,098 +0.1 -1.1
Ishares indo 22.4 -1.9 -9.9 Coal (US$/ton) 84.1 -0.1 -17.6
Rubber forward (US¢/kg) 178.1 -0.4 +19.9
Foreign YTD
YTD Gov. Bond Chg Soybean oil
Fund Flows Last Chg Last Chg 27.22 -1.8 -1.2
Chg Yield (bps) (US$/100gallons)
(US$mn) (bps)
Equity Flow -54.5 +4,040 5Yr 7.54 +3 -37 Baltic Dry Index 1,040.0 +1.0 -18.2
Bonds Flow -94.8 +4,055 10Yr 8.05 +5 +3

Please see important disclosure at the back of this report Page 7 of 10

 Equity Research | 20 May 2019

Equity Valuation
Price Price % of Mkt Cap Net Profit PER (x) P/BV (x) EV/EBITDA (x) EPS Growth Div.Yield
Code Rating (Rp) Target PT (Rp Bn) 2019 2020 2019 2020 2019 2020 2019 2020 2019 2020 2019 2020
MANSEK universe 5,827 6,800 16.7 4,205,443 266,604 288,154 15.8 14.6 2.3 2.1 12.5 11.9 9.5% 8.1% 2.8% 3.0%
Financials 1,455,234 105,062 116,743 13.9 12.5 2.1 1.9 0.0 0.0 13.7% 11.1% 2.4% 2.7%
BBCA Neutral 25,900 26,500 2.3 638,565 29,483 32,062 21.7 19.9 3.7 3.3 N.A. N.A. 14.0% 8.7% 1.3% 1.4%
BBNI Neutral 8,100 9,000 11.1 151,054 16,642 18,879 9.1 8.0 1.3 1.2 N.A. N.A. 10.8% 13.4% 4.0% 5.0%
BBRI Buy 3,790 5,000 31.9 467,301 36,551 41,656 12.8 11.2 2.3 2.2 N.A. N.A. 13.0% 14.0% 3.5% 3.9%
BBTN Buy 2,240 3,000 33.9 23,722 3,225 4,038 7.4 5.9 0.9 0.8 N.A. N.A. 14.9% 25.2% 2.4% 2.4%
BDMN Neutral 4,840 9,000 86.0 46,389 5,804 4,758 8.0 9.7 1.0 1.0 N.A. N.A. 43.3% -18.0% 2.6% 2.6%
BJBR Neutral 1,530 1,770 15.7 15,386 1,444 1,838 10.7 8.4 1.3 1.2 N.A. N.A. -8.8% 27.4% 5.8% 5.2%
BJTM Neutral 605 630 4.1 9,025 1,145 1,221 7.9 7.4 1.0 1.0 N.A. N.A. -9.2% 6.7% 7.7% 7.0%
BNGA Neutral 1,000 1,350 35.0 25,132 3,946 4,261 6.4 5.9 0.6 0.6 N.A. N.A. 13.3% 8.0% 2.8% 3.1%
BNLI Neutral 800 465 (41.9) 22,434 1,081 1,409 20.7 15.9 1.0 0.9 N.A. N.A. 69.0% 30.3% 0.0% 0.0%
PNBN Buy 1,140 1,550 36.0 27,460 2,990 3,318 9.2 8.3 0.7 0.7 N.A. N.A. -3.0% 11.0% 0.0% 0.0%
BTPS Buy 2,520 3,150 25.0 19,413 1,307 1,648 14.9 11.8 3.7 2.9 N.A. N.A. 35.4% 26.1% 0.0% 1.3%
BFIN Buy 625 1,000 60.0 9,353 1,445 1,655 6.5 5.7 1.5 1.3 N.A. N.A. 7.3% 14.5% 7.9% 8.5%
Construction & materials 234,643 15,406 17,802 15.2 13.2 1.6 1.5 9.3 9.0 -4.0% 15.6% 1.7% 2.0%
INTP Buy 17,800 23,500 32.0 65,526 1,868 2,478 35.1 26.4 2.7 2.5 18.2 14.4 65.5% 32.7% 0.6% 1.0%
SMGR Buy 10,550 16,100 52.6 62,578 2,253 3,708 27.8 16.9 1.9 1.8 10.9 8.9 -26.8% 64.6% 1.3% 2.0%
ADHI Buy 1,395 2,035 45.9 4,967 800 741 6.2 6.7 0.7 0.6 4.3 3.8 19.6% -7.3% 2.7% 3.2%
PTPP Buy 1,790 3,085 72.3 11,098 1,733 2,126 6.4 5.2 0.8 0.7 3.8 3.5 17.5% 22.7% 4.0% 4.7%
WIKA Buy 1,930 2,455 27.2 17,293 1,873 1,999 9.2 8.7 1.1 1.0 6.0 6.0 19.6% 6.7% 2.2% 2.3%
WSKT Buy 1,715 2,280 32.9 22,948 3,504 3,051 6.5 7.5 1.1 1.0 9.2 10.0 -24.8% -12.9% 3.1% 2.7%
WTON Buy 472 700 48.3 4,114 525 608 7.8 6.8 1.2 1.0 4.4 3.8 8.0% 15.7% 3.5% 3.8%
WSBP Buy 366 480 31.1 9,648 1,268 1,409 7.6 6.8 1.2 1.1 4.7 4.1 15.1% 11.1% 5.7% 6.6%
JSMR Buy 5,025 5,600 11.4 36,471 1,583 1,683 23.0 21.7 2.1 1.9 13.2 14.7 -15.9% 6.3% 1.0% 0.9%
Consumer staples 1,145,373 46,130 50,049 24.8 22.9 6.2 5.7 15.8 14.6 7.6% 8.5% 2.7% 2.8%
ICBP Buy 9,300 10,550 13.4 108,456 4,512 4,613 24.0 23.5 4.5 4.1 15.3 15.1 5.9% 2.2% 2.0% 2.1%
INDF Buy 6,000 9,950 65.8 52,680 4,005 3,958 13.2 13.3 1.5 1.4 6.8 6.8 4.2% -1.2% 3.6% 3.8%
MYOR Neutral 2,520 2,550 1.2 56,345 1,882 2,061 29.9 27.3 5.9 5.1 15.4 13.9 13.9% 9.5% 1.0% 1.2%
UNVR Neutral 41,600 43,100 3.6 317,408 7,560 8,123 42.0 39.1 52.6 48.2 29.1 26.9 -17.0% 7.4% 2.9% 2.4%
GGRM Buy 79,725 99,000 24.2 153,398 9,462 10,433 16.2 14.7 3.0 2.6 10.6 9.6 21.4% 10.3% 1.9% 1.9%
HMSP Buy 3,300 4,000 21.2 383,850 15,337 17,177 25.0 22.3 10.3 9.7 18.4 16.4 16.9% 12.0% 3.3% 3.9%
KLBF Neutral 1,260 1,700 34.9 59,063 2,631 2,856 22.5 20.7 3.6 3.3 14.0 12.8 7.5% 8.6% 2.0% 2.2%
SIDO Buy 945 1,050 11.1 14,175 739 827 19.2 17.1 4.3 3.8 13.8 12.2 11.4% 11.9% 4.1% 4.6%
Healthcare 47,931 851 987 56.3 48.5 3.9 3.5 17.1 14.7 7.7% 16.0% 0.2% 0.2%
MIKA Buy 2,090 2,300 10.0 30,411 643 713 47.3 42.6 7.6 6.0 29.1 26.4 4.8% 10.9% 0.0% 0.0%
SILO Buy 4,360 4,300 (1.4) 7,085 39 46 181.6 154.0 1.1 1.1 6.6 5.7 41.1% 18.0% 0.0% 0.0%
HEAL Buy 3,510 4,500 28.2 10,435 169 228 61.8 45.7 5.6 5.1 16.0 12.8 13.6% 35.1% 0.7% 0.8%
Consumer discretionary 376,115 31,826 32,463 11.8 11.6 2.0 1.8 8.7 8.7 12.8% 2.0% 3.6% 4.0%
ACES Buy 1,640 1,700 3.7 28,126 1,113 1,232 25.3 22.8 5.7 4.9 19.3 17.4 14.8% 10.6% 1.4% 1.6%
LPPF Buy 3,670 7,500 104.4 10,709 2,092 2,278 5.1 4.7 3.1 2.5 2.5 2.0 48.9% 8.9% 9.2% 13.7%
MAPI Buy 840 1,100 31.0 13,944 815 815 17.1 17.1 2.7 2.4 7.1 7.0 13.4% 0.0% 0.8% 0.9%
-
MPPA Sell 167 250 49.7 898 -335 -462 -2.7 -1.9 0.5 0.7 15.1 38.9 -20.3% -37.9% -9.3%
11.2%
RALS Buy 1,700 1,700 0.0 12,063 558 626 21.6 19.3 3.0 2.8 14.5 13.1 9.2% 12.2% 2.5% 2.8%
ASII Buy 6,700 8,650 29.1 271,240 23,941 24,095 11.3 11.3 1.8 1.6 9.1 9.4 10.5% 0.6% 3.6% 4.0%
SCMA Buy 1,510 2,200 45.7 22,078 1,628 1,773 13.6 12.5 4.9 4.5 9.5 8.8 8.5% 8.9% 5.9% 6.4%
MNCN Buy 920 1,250 35.9 11,797 1,586 1,610 7.4 7.3 1.1 1.0 4.8 4.5 15.3% 1.5% 5.4% 5.5%
MSIN Buy 320 570 78.1 1,665 229 257 7.3 6.5 1.2 1.1 3.9 3.2 27.2% 12.1% 6.9% 7.7%
PZZA Buy 1,190 1,400 17.6 3,596 199 239 18.1 15.1 2.7 2.4 8.6 7.5 24.2% 20.0% 0.0% 0.0%
Commodities 279,104 32,413 32,039 8.5 8.6 1.1 1.0 3.9 3.7 -0.9% -1.3% 4.7% 4.6%
AALI Buy 10,350 14,200 37.2 19,921 1,817 1,968 11.0 10.1 1.0 0.9 4.2 3.5 16.6% 8.3% 3.1% 3.6%
LSIP Buy 1,090 1,450 33.0 7,437 650 665 11.4 11.2 0.8 0.8 3.9 3.6 11.4% 2.3% 3.2% 3.5%
SSMS Neutral 1,025 1,300 26.8 9,763 1,158 1,263 8.4 7.7 1.7 1.5 5.2 4.6 27.0% 9.1% 2.8% 3.6%
BWPT Neutral 137 195 42.3 4,319 -67 -189 -64.0 -22.8 0.7 0.8 7.4 6.5 70.0% -180.3% 0.0% 0.0%
UNTR Buy 24,825 35,000 41.0 92,601 11,287 10,698 8.2 8.7 1.5 1.3 4.0 4.1 1.4% -5.2% 3.7% 3.5%
ADRO* Neutral 1,175 1,540 31.1 37,584 395 370 6.5 7.0 0.7 0.6 3.2 3.0 -5.4% -6.5% 6.1% 5.3%

Please see important disclosure at the back of this report Page 8 of 10

 Equity Research | 20 May 2019

Price Price % of Mkt Cap Net Profit PER (x) P/BV (x) EV/EBITDA (x) EPS Growth Div.Yield
Code Rating (Rp) Target PT (Rp Bn) 2019 2020 2019 2020 2019 2020 2019 2020 2019 2020 2019 2020
HRUM* Neutral 1,260 1,500 19.0 3,236 24 20 9.1 11.0 0.7 0.7 0.2 -0.1 -23.1% -17.7% 6.1% 5.0%
INDY* Neutral 1,215 1,700 39.9 6,330 69 63 6.3 6.9 0.4 0.4 2.0 1.7 -13.7% -8.5% 4.0% 3.6%
ITMG* Buy 16,200 33,400 106.2 17,764 226 224 5.4 5.4 1.3 1.2 2.1 2.0 -12.5% -1.0% 15.8% 15.6%
PTBA Neutral 2,750 4,000 45.5 31,687 4,194 3,665 6.9 7.9 1.8 1.6 5.2 5.3 -16.5% -12.6% 6.6% 5.8%
ANTM Buy 670 1,100 64.2 16,101 924 1,006 17.4 16.0 0.8 0.8 9.0 8.4 5.7% 8.9% 2.0% 2.2%
INCO* Buy 2,470 4,000 62.0 24,543 54 111 31.3 15.2 0.9 0.8 6.2 4.4 -11.0% 106.7% 1.0% 2.0%
TINS Buy 1,050 2,200 109.5 7,820 1,262 1,492 6.2 5.2 1.0 0.9 3.7 3.3 137.4% 18.3% 5.6% 6.7%
Property & Industrial Estate 110,292 8,720 9,656 12.6 11.4 1.2 1.1 9.9 9.4 3.8% 10.7% 1.1% 1.1%
ASRI Sell 308 280 (9.1) 6,052 997 1,578 6.1 3.8 0.6 0.5 7.0 5.5 5.8% 58.3% 0.6% 0.6%
BSDE Neutral 1,150 1,450 26.1 22,134 1,972 2,043 11.2 10.8 0.8 0.7 10.3 10.6 10.0% 3.6% 0.0% 0.0%
CTRA Buy 905 1,450 60.2 16,797 981 1,039 17.1 16.2 1.1 1.1 11.1 10.8 -14.0% 5.9% 1.1% 0.9%
JRPT Buy 575 980 70.4 7,906 1,005 919 7.9 8.6 1.1 1.0 6.9 7.4 5.7% -8.6% 3.5% 2.5%
PWON Neutral 630 680 7.9 30,341 2,399 2,426 12.6 12.5 2.1 1.8 9.4 9.4 4.8% 1.2% 1.0% 1.0%
SMRA Buy 955 1,200 25.7 13,778 313 486 44.0 28.3 2.0 1.9 13.4 11.5 -1.8% 55.3% 0.5% 0.5%
DMAS Buy 228 250 9.6 10,989 631 650 17.4 16.9 1.4 1.4 16.3 15.8 12.0% 3.0% 2.9% 3.0%
BEST Buy 238 320 34.5 2,296 422 516 5.4 4.5 0.5 0.5 6.0 5.3 3.9% 22.3% 3.7% 4.5%
Telco 445,090 20,644 22,516 21.6 19.8 3.0 2.9 6.2 5.9 19.3% 9.1% 3.8% 3.9%
EXCL Buy 2,540 3,100 22.0 27,147 25 335 1,087.0 81.1 1.5 1.5 5.4 4.9 N/M 1240.2% 0.0% 0.0%
TLKM Neutral 3,510 3,800 8.3 347,708 18,948 19,871 18.4 17.5 3.4 3.2 6.3 6.0 3.5% 4.9% 4.1% 4.3%
ISAT Neutral 1,715 2,800 63.3 9,319 -2,810 -2,598 -3.3 -3.6 1.1 1.5 4.7 4.3 -37.5% 7.6% 0.0% 0.0%
LINK Buy 4,030 6,200 53.8 11,911 1,209 1,328 9.9 9.0 2.2 1.9 4.7 4.2 9.7% 9.9% 5.1% 5.6%
TBIG Buy 3,050 5,700 86.9 13,549 908 1,113 14.9 12.2 4.0 3.6 9.1 8.6 1.8% 22.5% 5.5% 5.5%
TOWR Buy 695 950 36.7 35,455 2,364 2,467 15.0 14.4 3.8 3.3 8.2 7.8 0.7% 4.4% 3.4% 3.4%
Chemical 53,013 1,988 1,955 26.7 27.1 2.7 2.5 7.8 7.6 25.1% -1.7% 0.0% 0.0%
AGII Buy 535 700 30.8 1,641 105 136 15.7 12.1 0.5 0.5 6.4 5.9 5.0% 29.5% 0.0% 0.0%
BRPT* Neutral 3,680 2,640 (28.3) 51,372 129 125 27.3 28.2 3.1 2.8 7.9 7.8 25.4% -3.4% 0.0% 0.0%
Airlines 5,929 436 549 13.6 10.8 1.2 1.0 7.7 6.5 -1.1% 26.1% 0.0% 0.0%
GMFI* Neutral 210 275 30.8 5,929 30 38 13.6 10.8 1.1 1.0 7.7 6.5 -2.0% 26.1% 0.0% 0.0%
Oil and Gas 45,210 2,618 2,797 17.3 16.2 0.9 0.9 5.5 5.2 14.7% 6.8% 2.0% 2.3%
PGAS* Buy 1,865 3,150 68.9 45,210 180 192 17.3 16.2 0.9 0.9 5.5 5.2 13.7% 6.8% 2.0% 2.3%
Transportation 7,506 510 599 14.7 12.5 1.4 1.3 6.3 5.6 11.6% 17.3% 1.9% 2.2%
BIRD Buy 3,000 4,400 46.7 7,506 510 599 14.7 12.5 1.4 1.3 6.3 5.6 11.6% 17.3% 1.9% 2.2%
Note:
- *) net profit in USD mn
- U/R means Under Review
- n/a means Not Available
- N/M means Not Meaningful
- N.A means Not Applicable

Please see important disclosure at the back of this report Page 9 of 10

 Mandiri Sekuritas A subsidiary of PT Bank Mandiri (Persero) Tbk
Menara Mandiri Tower I, 25th floor, Jl. Jend. Sudirman Kav. 54 – 55, Jakarta 12190, Indonesia
General: +62 21 526 3445, Fax : +62 21 527 5374 (Equity Sales)

RESEARCH
Adrian Joezer Head of Equity Research, Strategy, Consumer adrian.joezer@mandirisek.co.id +6221 5296 9415
Tjandra Lienandjaja Deputy Head of Equity Research, Banking tjandra.lienandjaja@mandirisek.co.id +6221 5296 9617
Ariyanto Kurniawan Automotive, Coal, Chemical ariyanto.kurniawan@mandirisek.co.id +6221 5296 9682
Kresna Hutabarat Telecom, Media kresna.hutabarat@mandirisek.co.id +6221 5296 9542
Priscilla Thany Banking, Building Material priscilla.thany@mandirisek.co.id +6221 5296 9569
Lakshmi Rowter Healthcare, Consumer lakshmi.rowter@mandirisek.co.id +6221 5296 9549
Robin Sutanto Property robin.sutanto@mandirisek.co.id +6221 5296 9572
Edbert Surya Construction, Transportation edbert.surya@mandirisek.co.id +6221 5296 9623
Silvony Gathrie Research Assistant Silvony.gathrie@mandirisek.co.id +6221 5296 9544
Riyanto Hartanto Research Assistant riyanto@mandirisek.co.id +6221 5296 9488
Henry Tedja Research Assistant henry.tedja@mandirisek.co.id +6221 5296 9434
Leo Putera Rinaldy Chief Economist leo.rinaldy@mandirisek.co.id +6221 5296 9406
Aziza Nabila Amani Economist aziza.amani@mandirisek.co.id +6221 5296 9651

INSTITUTIONAL SALES
Silva Halim Head Institutional Equities silva.halim@mandirisek.co.id +6221 527 5375
Andrew Handaya Institutional Sales andrew.handaya@mandirisek.co.id +6221 527 5375
Feliciana Ramonda Institutional Sales feliciana.ramonda@mandirisek.co.id +6221 527 5375
Henry Pranoto Institutional Sales henry.pranoto@mandirisek.co.id +6221 527 5375
Kevin Giarto Institutional Sales kevin.giarto@mandirisek.co.id +6221 527 5375
Sharon Anastasia Tjahjadi Institutional Sales sharon.tjahjadi@mandirisek.co.id +6221 527 5375
Talitha Medha Anindya Institutional Sales talitha.anindya@mandirisek.co.id +6221 527 5375
Kusnadi Widjaja Equity Dealing kusnadi.widjaja@mandirisek.co.id +6221 527 5375
Edwin Pradana Setiadi Equity Dealing edwin.setiadi@mandirisek.co.id +6221 527 5375
Jane Theodoven Sukardi Equity Dealing jane.sukardi@mandirisek.co.id +6221 527 5375
Michael Taarea Equity Dealing michael.taarea@mandirisek.co.id +6221 527 5375

RETAIL SALES
Andreas M. Gunawidjaja Head Retail Equities andreas@mandirisek.co.id +6221 526 9693
Boy Triyono Jakarta boy.triyono@mandirisek.co.id +6221 526 5678
Dhanan Febrie Handita Bandung dhanan.handita@mandirisek.co.id +6222 426 5088
Yogiswara Perdana Yogyakarta yogiswara.perdana@mandirisek.co.id +62274 560 596
Widodo Solo widodo@mandirisek.co.id +62271 788 9290
Linawati Surabaya Linawati@mandirisek.co.id +6231 535 7218
Ruwie Medan ruwie@mandirisek.co.id +6261 8050 1825
Aidil Idham Palembang aidil.idham@mandirisek.co.id +62711 319 900
Yuri Ariadi Pontianak yuri.ariadi@mandirisek.co.id +62561 582 293

INVESTMENT RATINGS: Indicators of expected total return (price appreciation plus dividend yield) within the 12-month period from the date of the last
published report, are: Buy (15% or higher), Neutral (-15% to15%) and Sell (-15% or lower).

DISCLAIMER: This report is issued by PT. Mandiri Sekuritas, a member of the Indonesia Stock Exchanges (IDX) and Mandiri Sekuritas is registered and
supervised by the Financial Services Authority (OJK). Although the contents of this document may represent the opinion of PT. Mandiri Sekuritas, deriving its
judgement from materials and sources believed to be reliable, PT. Mandiri Sekuritas or any other company in the Mandiri Group cannot guarantee its
accuracy and completeness. PT. Mandiri Sekuritas or any other company in the Mandiri Group may be involved in transactions contrary to any opinion herein
to make markets, or have positions in the securities recommended herein. PT. Mandiri Sekuritas or any other company in the Mandiri Group may seek or will
seek investment banking or other business relationships with the companies in this report. For further information please contact our number
62-21-5263445 or fax 62-21-5275374.

ANALYSTS CERTIFICATION: Each contributor to this report hereby certifies that all the views expressed accurately reflect his or her views about the
companies, securities and all pertinent variables. It is also certified that the views and recommendations contained in this report are not and will not be
influenced by any part or all of his or her compensation.