INVESTOR DIGEST

Equity Research | 20 March 2019

Economic Data HIGHLIGHT

Latest 2019F
 Wijaya Karya: 4Q18 Results - Above Expectations (WIKA; Rp2,000; Buy; TP: Rp2,455) 
7-DRRR (%), eop 6.00 6.25  Market Recap March 19th 2019; JCI 6,480.28 points -29.17 pts (-0.45%); Valued
Inflation (YoY %) 2.57 3.80 $495mn; Mkt Cap $510bn; USD/IDR 14,226 
US$ 1 = Rp, period avg 14,226 14,450

CORPORATE
Stock Market Data
(19 Mar 2019)
Wijaya Karya: 4Q18 Results - Above Expectations (WIKA; Rp2,000; Buy; TP:
Rp2,455)
JCI Index 6,480.3 -0.45%
Trading T/O ( Rp bn ) 7,059.4  WIKA beat our/consensus estimate by 10%/16% after recording a strong FY18
Market Cap ( Rp tn ) 7,369.3 net profit of Rp1.7tn (+43.9% yoy), while the company’s core profit grew by 13%
yoy to Rp1.0tn. The company’s margins improved by 20-190% across the board,
aligned with management’s initial guidance. Balance sheet-wise, WIKA stood at
Market Data Summary*
net cash position with OCF firm at Rp2.7tn.
 Core profit remained solid. WIKA posted 4Q18 earnings of Rp870bn (+67.6%
2019F 2020F yoy; +153.5% qoq) with FY18 net profit at Rp1.7tn (+43.9% yoy) or accounting
for 110%/116% of our/consensus full-year estimate, above expectations. In terms
P/E (x) 17.3 15.9 of core profit, the company’s FY18 core profit grew to Rp1.0tn (+13% yoy). The
P/BV (x) 2.6 2.4 strong earnings were mainly driven by margins improvement and better
EV/EBITDA (x) 13.8 13.1 revenues delivery as WIKA’s 4Q18 top-line stood at Rp10.2tn (-1.4% yoy; +26.5%
Div. Yield (%) 2.4 2.6 qoq) and FY18 revenues at Rp31.2tn (+19% yoy), below our/consensus estimate
Net Gearing (%) 14.5 0.0 of 93%/94%. We would examine the company’s revenues segments once the
ROE (%) 15.5 15.5 full-form result has already been published.
EPS growth (%) 10.6 8.9
 Margins improvement. The company’s margins increased by 20-190% bps
EBITDA growth (%) 6.8 5.1
across the board. WIKA’s 4Q18 GPM enhanced to 12.1% (3Q18: 11.1%; 4Q17:
Earnings Yield (%) 5.8 6.3
11.9%), while its FY18 GPM was at 11.6% (FY17: 11.0%). The margins
* Aggregate of 75 companies in MS research universe,
improvement was aligned with its management’s initial guidance, as the
representing 64.2%of JCI’s market capitalization company plans to centralize its raw material purchase. Furthermore, WIKA’s
4Q18 OPM rose to 13.1% (3Q18: 9.8%; 4Q17: 11.7%) with FY18 OPM slightly
increased to 10.8% (FY17: 10.6%), as the company was able to maintain opex to
sales at 2.5% (FY17: 2.6%). Lastly, WIKA’s 4Q18 NPM jumped to 5.6% (3Q18: 4.3%;
4Q17: 5.0%), while its FY18 NPM was at 5.6% (FY17: 4.6%). Note that WIKA’s other
income jumped to Rp1.1tn (FY17: Rp416.7bn), as we suspect it was due to
interest payment from its loan to Pilar Sinergi BUMN Indonesia and property
asset revaluation from WIKA Realty.

 Stronger balance sheet. In 4Q18, the company’s total debt decreased to

Rp13.3tn (3Q18: Rp14.8tn; 4Q17: Rp11.3tn) with net cash at Rp14.0tn (3Q18:
Rp8.5tn; 4Q17: Rp11.3tn), translating to a net cash position (3Q18 net gearing:
40.5%). WIKA’s inventory also increased to Rp6.0tn (FY17: Rp3.8tn) as we believe
it was driven by its property segment, particularly at HSR surrounding area. On
the cash flow, WIKA booked operating cash flow of Rp2.7tn (2017: Rp1.9tn), as
we suspect the company has received sizeable turnkey payments from
Balikpapan–Samarinda toll road in 4Q18.

Please see important disclosure at the back of this report Page 1 of 8

 Equity Research | 20 March 2019

 Maintain BUY. We retain our BUY recommendation with target price of Rp2,455. WIKA is currently trading at 8.8x P/E
2019F and 8.3x P/E 2020F. We believe WIKA’s premium valuation is justified given the strong new order booking at
Rp51tn in FY18 (+19% yoy) and solid earnings delivery. Key risks to our call are: slower-than-expected HSR projects,
slowing down in 2019 new contracts, and higher-than-expected land clearing costs.

% of
Rpbn 12M18 12M17 %yoy 4Q18 3Q18 %qoq 4Q17 %yoy FY18F % of ours FY18C
cons.
Revenue 31,158 26,176 19.0 10,155 8,026 26.5 10,300 -1.4 33,498 93.0 33,245 93.7
Gross profit 3,605 2,876 25.3 1,229 890 38.2 1,227 0.1 3,914 92.1 3,906 92.3
Operating profit 3,352 2,772 20.9 1,332 783 70.1 1,200 11.0 3,507 95.6 3,630 92.3
Pretax profit 3,086 2,092 47.5 1,396 672 107.7 875 59.6 2,800 110.2 2,685 114.9
Net profit 1,730 1,202 43.9 870 343 153.5 519 67.6 1,566 110.5 1,489 116.2

Gross margin (%) 11.6 11.0 12.1 11.1 11.9 11.7 11.8
Operating
10.8 10.6 13.1 9.8 11.7 10.5 10.9
margin (%)
Pretax margin
9.9 8.0 13.8 8.4 8.5 8.4 8.1
(%)
Net margin (%) 5.6 4.6 8.6 4.3 5.0 4.7 4.5

Edbert Surya (+6221 5296 9623) edbert.surya@mandirisek.co.id

Adrian Joezer (+6221 5296 9415) adrian.joezer@mandirisek.co.id

MARKET

Market Recap March 19th 2019; JCI 6,480.28 points -29.17 pts (-0.45%); Valued $495mn; Mkt Cap $510bn; USD/IDR
14,226

 TOP TURNOVER: BMRI BBCA ASII BBRI BBNI BNLI TLKM UNTR BTPS HMSP INKP WIKA (35%)

 ADVANCING SECTOR: property+0.3%; mining+0.2%

 DECLINING SECTOR: auto-1.4%; consumer & construction-1%; cement & telco-0.8%; plantation-0.5%; financial-0.1%

 Indo shares treaded water ahead of a US Fed policy meeting, while the IDR improved to 14228 level. Both BBRI (cls-1.2%
0.75x avg five-week vol) and BBCA (-0.7% in 1.1x avg five-week vol) dragged the overall market down; followed by
ASII-1.4% HMSP-2.1% GGRM-2.3% ICBP-0.7%, to name a few. While the share price of BMRI surged to 4.2% to close at
7400 in 1.7x avg five-week vol; while the share price of BNLI dropped 6.1% to 920 level in 1.6x avg five-week vol. In the
end, the JCI declined 0.5% to 6480 level. Market turnover was better at $495MN (excluding $9.3MN ASMI; $8.1MN FORZ;
$8MN ROTI; $7.9MN STAR; $7.5MN GAMA crossing). Foreign participants at 30% came up better buyer for 4%. Losers beat
gainers by 11 to 10.

 With signs of global economic growth slowing, traders were focused on the Fed, which is kicking off its two-day policy
meeting on later in the day, for clues about the likely path of US borrowing costs. In particular, investors will be focusing
on whether policymakers have sufficiently lowered their interest rate forecasts to more closely align their “dot plot”, a
diagram showing individual policymakers’ rate views for the next three years. Also expected is more detail on a plan to
stop cutting the Fed’s holdings of nearly $3.8TN in bonds. In currency, the DXY barely moved and was at 96.498. Oil prices
rose to near four-month highs on Monday, supported by the prospect of extended OPEC-led oil supply curbs and signs of
inventory declines in US crude stockpiles. Early on Tuesday, US crude futures slipped 0.2% to $58.99 a barrel.

Sales Team +6221 527 5375

Please see important disclosure at the back of this report Page 2 of 8

 Equity Research | 20 March 2019

FROM THE PRESS

Budget deficit reached -0.34% of GDP in 2M19

As of Feb19, government revenue has reached Rp217.2tn (8.21% YoY vs. 6.6% in Jan19) while expenditure reached Rp271.8tn
(9.2% YoY vs. 11.2% YoY in Jan19). Tax revenue improved, as it grew 9.97% YoY from 8.8% in Jan19 and likewise non-tax
revenue (1.3% from -3.1%). Overall, the posture creates deficit balance at –Rp54.6tn, or -0.34% of GDP, similar with 2M18
at -0.33% of GDP. For FY19 posture, government targets budget deficit of -1.84% of GDP. (Kontan)

Value added tax drop mostly caused by tax restitution

Finance Minister Sri Mulyani stated that the contraction of value added tax (-10.0% in 2M19 from -9.4% in 1M19) was mainly
caused by tax restitution conducted since May 2018. She mentioned that businessmen Have utilized the Ministry of Finance
Regulation (PMK) No. 39/2018 regarding the guideline to return the excess payment on tax. The following are the value of
restitution based on industry: 1) palm oil (Rp4.9tn), mining (Rp3.3tn), base metal (Rp2.9tn), vehicles and paper pulp (Rp1.9tn).
All of these industries conducted exports and asked for restitution, which is a good practice, according to the Finance
Minister. (Kontan)

Jusuf Kalla said BPJS Kesehatan premium should increase this year
Jusuf Kalla, Vice President of Indonesia, said that current premium is too low to cater 220mn people registered in the UHC
system. He said that in order to reduce the deficit, the solution would be to increase BPJS monthly premium. In 2018, BPJS
Kesehatan managed to get Rp81.8trn from premium paid while the cost for UHC reached Rp94.05trn. Hence, there is a
mismatch/deficit of Rp12.25trn or 20.11% increase from 2017. (Bisnis)

OJK on dishonest banking ads

The Financial Services Authority (OJK) is imposing a stricter advertisement guidelines for banks and financial service
companies to improve market conduct and strengthen customer protection. The new guidelines cover a set of words and
phrases that are allowed and prohibited in advertisement for banks, insurance, multifinance and leasing products and
services. One example of the prohibited use of superlatives, such as “the best” or “the biggest” in the advertisement without
any credible evidence that can back their claims. (Jakarta Post).

SOE banks to issue global bonds

Some of the state banks plan to issue global bonds including BMRI USD1bn in April, BBTN maximum USD300m and BBRI
USD500m. Aside from liquidity purpose the banks will use the funds to finance demand on FX loans. Funds originated from
the tax amnesty in the banks maybe transferred out of Indonesia when the 3-year lock up period ends by Sep19. (Kontan).

Bank Mandiri (BMRI) to inject capital to three subsidiaries

BMRI plans to inject capital over the medium term to three of its subsidiaries which include Bank Mandiri Taspen (Bank
Mantap), Mandiri Utama Finance (MUF), and Mandiri Capital Indonesia (MCI). However, details of the amount to be injected
have yet to be disclosed. According to President Director of Bank Mantap Josephus K Triprakoso, in accordance with its
corporate plan, Bank Mantap should receive capital injection to support its business expansion in 2020—the capital injection
will be in the form of a rights issue totaling to Rp650-700bn. President Director of Mandiri Utama Finance Stanley Setia
Atmadja, the company needs another Rp4-5tn to fulfill its expansion plans. (Investor Daily)

Bank Panin (PNBN) is the 6th BUKU IV bank

The bank receive the status of BUKU IV bank (bank with primary capital of >Rp30tr) from OJK on 1 March 2019, according to
the bank’s Corporate Secretary, Jasman Ginting. This will be the sixth bank in the category aside from BBRI, BMRI, BBCA, BBNI
and BNGA. (Kontan).

Please see important disclosure at the back of this report Page 3 of 8

 Equity Research | 20 March 2019

PT Matahari Department Store (LPPF) plans to do another buyback shares

The buyback shares are maximum 3% of paid-up capital or 87,537,542 shares. The repurchase of shares will be carried out
within maximum of 18 months after the Company’s AGM on 26th April 2019. The maximum buyback price will be limited to
Rp13,330/share or as regulated in the Financial Services Authority Regulation No. 30/POJK.04/2017. The Company prepared
Rp1.4trn for this buyback shares plan. Previously, shareholders of LPPF already approved the Company’s plan to repurchase
maximum 7% of shares last October. (Investor Daily)

MAP Aktif Adiperkasa (MAPA) plans to add 110-150 new stores this year
Ratih D Gianda, MAPA Corporate Secretary, said the Company targets Rp7.5trn (20% YoY) sales this year with SSSG of 8-10%.
With multi-tier formula strategy, the Company managed to achieve 11% SSSG last year. Multi-tier strategy means that MAPA
targets all market from premium to low segment. MAPA also targets to increase their store area by 10% this year by adding
110-150 new stores this year. The Company currently operated 194,678sqm by the end of 2018. As a comparison, MAPA
increased their store area by 14% last year. (Kontan)

Telkom (TLKM) and Lintasarta have trialed Palapa Ring Tengah

Anang Latif, CEO of Telecommunication and Information Accessibility Body (BAKTI), stated that both Telkom and Aplikanusa
Lintasarta have trialed Palapa Ring Tengah, especially for submarine communication system. To note, Palapa Ring Tengah has
been claimed to have more coverage compared to Palapa Ring Barat, up to 17 cities in Indonesia. The package price of Palapa
Ring Tengah currently is not fix yet by BAKTI. (Bisnis Indonesia)

Soft drinks and bottled water companies is optimistic to grow by double digit
Muhammad Muthassawar, Public Relations of Ultra Jaya (ULTJ), stated that the Company targets 10% sales growth this year
with 50% contribution from UHT fresh milk followed by 40% contribution from Teh Kotak. He also said that Teh Kotak can
grow by more than 5% this year. On the other hand, Multi Bintang (MLBI) will focus on non-alcoholic beverages this year by
launching another product called Fayrouz Dates. Singa Mas Indonesia (SMInd), subsidiary of Charoen Pokphand (CPIN), also
targets 10-15% sales growth for their soft drink business. Last year, 60% of SMInd was contributed by bottled water and 40%
was contributed by RTD tea. (Bisnis)

Wijaya Karya (WIKA) targets high speed train’s land clearing to reach 100% in April 2019
Corporate Secretary of WIKA, Anggraini said up to mid-March’19, the land clearing has reached 92%, while the company
targets land clearing to fully complete in April 2019. Further, the company targets new contracts of Rp61.7tn mainly came
from railway, roads, dam, power plant, and industrial plant. (Investor Daily)

XL Axiata (EXCL) will negotiate with MRT Jakarta operator

XL Axiata is currently negotiating with MRT Jakarta operator to improve network quality within MRT’s underground lines. To
note, Telkomsel has just improved their network within MRT’s underground by developing 48 BTS in 13 MRT stations. (CNN
Indonesia)

Please see important disclosure at the back of this report Page 4 of 8

 Equity Research | 20 March 2019

Indices and Fund Flows Currencies and Bonds Major Commodities

YTD Chg YTD YTD

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

JCI 6,480.3 -0.4 +4.6 Rp/US$ 14,190 -0.07 +1.6 Oil spot (US$/bl) 59.03 -0.1 +30.0
Dow Jones 25,887.4 -0.1 +11.0 US$/EUR 1.135 +0.13 +1.0 Nickel spot (US$/mt) 13,049 +1.0 +23.1
Nikkei 21,566.9 -0.1 +7.8 YEN/US$ 111.39 -0.04 -1.5 Gold spot (US$/oz) 1,307 +0.2 +1.9
Hang Seng 29,466.3 +0.2 +14.0 SGD/US$ 1.351 -0.01 +0.9 Tin 3-month (US$/mt) 21,275 +0.5 +9.2
STI 3,220.9 +0.3 +5.0 CPO futures (Ringgit/ton) 2,131 +1.2 +0.5
Ishares indo 26.2 -0.2 +5.4 Coal (US$/ton) 93.5 -0.4 -8.4
Rubber forward (US¢/kg) 172.5 +0.4 +16.2
Foreign YTD
YTD Gov. Bond Chg Soybean oil
Fund Flows Last Chg Last Chg 29.24 -0.7 +6.1
Chg Yield (bps) (US$/100gallons)
(US$mn) (bps)
Equity Flow +12.0 +747 5Yr 7.31 -1 -60 Baltic Dry Index 712.0 -1.0 -44.0
Bonds Flow +205.3 +3,070 10Yr 7.72 -0 -30

Please see important disclosure at the back of this report Page 5 of 8

 Equity Research | 20 March 2019

Equity Valuation
Price Price % of Mkt Cap Net Profit PER (x) P/BV (x) EV/EBITDA (x) EPS Growth Div.Yield
Code Rating (Rp) Target PT (Rp Bn) 2019 2020 2019 2020 2019 2020 2019 2020 2019 2020 2019 2020
MANSEK universe 6,480 7,000 8.0 4,729,729 273,274 297,726 17.3 15.9 2.6 2.4 13.8 13.1 10.6% 8.9% 2.4% 2.6%
Financials 1,612,752 108,997 122,912 14.8 13.1 2.2 2.0 0.0 0.0 15.0% 12.8% 2.1% 2.4%
BBCA Neutral 27,500 24,500 (10.9) 678,013 28,938 33,056 23.4 20.5 4.0 3.5 N.A. N.A. 14.2% 14.2% 1.0% 1.3%
BBNI Neutral 9,325 8,000 (14.2) 173,899 17,418 19,587 10.0 8.9 1.5 1.3 N.A. N.A. 11.1% 12.5% 2.7% 3.2%
BBRI Buy 3,990 4,300 7.8 491,961 36,812 42,560 13.4 11.6 2.4 2.3 N.A. N.A. 13.8% 15.6% 3.3% 3.7%
BBTN Buy 2,420 3,250 34.3 25,628 4,088 4,882 6.3 5.2 0.9 0.9 N.A. N.A. 23.9% 19.4% 2.6% 2.6%
BDMN Neutral 8,150 9,000 10.4 78,114 5,804 4,758 13.5 16.4 1.7 1.6 N.A. N.A. 43.3% -18.0% 1.6% 1.6%
BJBR Neutral 2,000 1,900 (5.0) 20,113 1,627 1,749 12.4 11.5 1.5 1.5 N.A. N.A. -3.5% 7.5% 4.5% 4.4%
BJTM Neutral 655 655 0.0 9,771 1,275 1,302 7.7 7.5 1.1 1.0 N.A. N.A. 3.5% 2.1% 6.9% 7.2%
BNGA Neutral 1,115 1,350 21.1 28,022 3,946 4,261 7.1 6.6 0.7 0.6 N.A. N.A. 13.3% 8.0% 2.5% 2.8%
BNLI Neutral 920 465 (49.5) 25,799 1,081 1,409 23.9 18.3 1.1 1.1 N.A. N.A. 69.0% 30.3% 0.0% 0.0%
BTPN Neutral 3,600 4,000 11.1 21,025 2,426 2,787 8.7 7.5 1.1 1.0 N.A. N.A. 15.3% 14.9% 3.5% 4.0%
PNBN Buy 1,410 1,500 6.4 33,964 2,914 3,358 11.7 10.1 0.9 0.8 N.A. N.A. 8.8% 15.3% 0.0% 0.0%
BTPS Buy 2,170 2,250 3.7 16,717 1,224 1,547 13.7 10.8 3.2 2.6 N.A. N.A. 31.0% 26.4% 0.0% 1.5%
BFIN Buy 650 1,000 53.8 9,727 1,445 1,655 6.7 5.9 1.6 1.4 N.A. N.A. 7.3% 14.5% 7.6% 8.2%
Construction & materials 265,507 15,612 18,861 17.0 14.1 1.9 1.7 10.0 9.3 0.2% 20.8% 1.5% 1.7%
INTP Buy 19,475 23,500 20.7 71,692 1,868 2,478 38.4 28.9 2.9 2.7 20.1 16.0 65.5% 32.7% 0.6% 0.9%
SMGR Buy 13,100 16,800 28.2 77,703 2,459 4,767 31.6 16.3 2.4 2.2 12.1 8.7 -6.0% 93.9% 1.0% 1.3%
ADHI Buy 1,570 2,035 29.6 5,591 800 741 7.0 7.5 0.8 0.7 4.6 4.2 19.6% -7.3% 2.4% 2.9%
PTPP Buy 2,110 3,085 46.2 13,082 1,733 2,126 7.6 6.2 0.9 0.8 4.3 3.8 17.5% 22.7% 3.4% 4.0%
WIKA Buy 2,000 2,455 22.8 17,920 1,873 1,999 9.6 9.0 1.2 1.1 6.1 6.1 19.6% 6.7% 2.1% 2.2%
WSKT Buy 1,920 2,280 18.75 25,692 3,504 3,051 7.3 8.4 1.3 1.1 9.5 10.3 -24.8% -12.9% 2.7% 2.4%
WTON Buy 595 700 17.6 5,186 525 608 9.9 8.5 1.5 1.3 5.4 4.7 8.0% 15.7% 2.8% 3.0%
WSBP Buy 386 480 24.4 10,175 1,268 1,409 8.0 7.2 1.2 1.1 4.9 4.3 15.1% 11.1% 5.4% 6.2%
JSMR Buy 5,300 5,600 5.7 38,467 1,583 1,683 24.3 22.9 2.2 2.0 13.5 14.9 -15.9% 6.3% 1.0% 0.8%
Consumer staples 1,315,516 46,276 50,135 28.4 26.2 7.1 6.4 18.1 16.7 7.1% 8.3% 2.3% 2.4%
ICBP Buy 10,325 10,550 2.2 120,409 4,512 4,613 26.7 26.1 5.0 4.5 17.1 16.9 5.9% 2.2% 1.8% 1.9%
INDF Buy 7,300 9,950 36.3 64,094 4,005 3,958 16.0 16.2 1.8 1.7 7.8 7.7 4.2% -1.2% 3.0% 3.1%
MYOR Neutral 2,630 2,550 (3.0) 58,804 1,882 2,061 31.2 28.5 6.1 5.3 16.1 14.5 13.9% 9.5% 1.0% 1.1%
UNVR Neutral 49,325 43,100 (12.6) 376,350 7,560 8,123 49.8 46.3 62.4 57.1 34.5 31.9 -17.0% 7.4% 2.4% 2.0%
GGRM Buy 89,925 94,050 4.6 173,024 9,609 10,519 18.0 16.4 3.2 2.7 11.9 10.7 18.5% 9.5% 1.3% 1.3%
HMSP Buy 3,740 4,000 7.0 435,030 15,337 17,177 28.4 25.3 11.7 11.0 20.9 18.7 16.9% 12.0% 3.0% 3.5%
KLBF Neutral 1,550 1,700 9.7 72,656 2,631 2,856 27.6 25.4 4.5 4.1 17.4 16.0 7.5% 8.6% 1.6% 1.8%
SIDO Buy 1,010 1,050 4.0 15,150 739 827 20.5 18.3 4.6 4.1 14.8 13.1 11.4% 11.9% 3.8% 4.3%
Healthcare 44,373 911 1,018 48.7 43.6 3.6 3.4 16.2 14.1 6.5% 11.8% 0.2% 0.2%
MIKA Buy 1,960 2,200 12.2 28,519 703 743 40.6 38.4 7.1 6.4 28.7 26.8 3.6% 5.8% 0.0% 0.0%
SILO Buy 3,700 4,300 16.2 6,013 39 46 154.1 130.7 0.9 0.9 5.6 4.8 41.1% 18.0% 0.0% 0.0%
HEAL Buy 3,310 4,500 36.0 9,841 169 228 58.2 43.1 5.3 4.8 15.2 12.2 13.6% 35.1% 0.8% 0.9%
Consumer discretionary 412,142 31,826 32,463 12.9 12.7 2.2 2.0 9.4 9.4 12.8% 2.0% 3.3% 3.7%
ACES Buy 1,795 1,700 (5.3) 30,784 1,113 1,232 27.7 25.0 6.3 5.4 21.3 19.2 14.8% 10.6% 1.3% 1.4%
LPPF Buy 4,010 7,500 87.0 11,701 2,092 2,278 5.6 5.1 3.3 2.7 2.8 2.3 48.9% 8.9% 8.4% 12.5%
MAPI Buy 1,080 1,100 1.9 17,928 815 815 22.0 22.0 3.5 3.1 8.8 8.7 13.4% 0.0% 0.6% 0.7%
MPPA Sell 304 250 (17.8) 1,635 -335 -462 -4.9 -3.5 0.9 1.2 20.6 49.9 -20.3% -37.9% -5.1% -6.1%
RALS Buy 1,850 1,700 (8.1) 13,128 558 626 23.5 21.0 3.3 3.1 15.9 14.4 9.2% 12.2% 2.3% 2.6%
ASII Buy 7,300 8,650 18.5 295,530 23,941 24,095 12.3 12.3 2.0 1.8 9.7 10.0 10.5% 0.6% 3.3% 3.6%
SCMA Buy 1,750 2,200 25.7 25,587 1,628 1,773 15.7 14.4 5.7 5.2 11.1 10.3 8.5% 8.9% 5.1% 5.5%
MNCN Buy 835 1,250 49.7 10,707 1,586 1,610 6.8 6.6 1.0 0.9 4.4 4.2 15.3% 1.5% 5.9% 6.0%
MSIN Buy 306 570 86.3 1,592 229 257 6.9 6.2 1.2 1.1 3.6 3.1 27.2% 12.1% 7.2% 8.1%
PZZA Buy 1,175 1,400 19.1 3,551 199 239 17.8 14.9 2.7 2.4 8.5 7.4 24.2% 20.0% 0.0% 0.0%
Commodities 348,761 34,601 34,131 10.0 10.1 1.3 1.2 4.6 4.4 2.3% -1.5% 4.0% 3.9%
AALI Buy 12,200 14,200 16.4 23,481 1,817 1,968 12.9 11.9 1.2 1.1 5.1 4.3 16.6% 8.3% 2.7% 3.1%
LSIP Buy 1,155 1,450 25.5 7,880 650 665 12.1 11.9 0.9 0.9 4.3 4.0 11.4% 2.3% 3.0% 3.3%
SSMS Neutral 1,070 1,300 21.5 10,192 1,158 1,263 8.8 8.1 1.8 1.6 5.4 4.7 27.0% 9.1% 2.7% 3.4%
BWPT Neutral 160 195 21.9 5,044 -67 -189 -74.8 -26.7 0.9 0.9 7.9 7.0 70.0% -180.3% 0.0% 0.0%
UNTR Buy 27,500 35,000 27.3 102,579 11,287 10,698 9.1 9.6 1.7 1.5 4.5 4.6 1.4% -5.2% 3.3% 3.1%

Please see important disclosure at the back of this report Page 6 of 8

 Equity Research | 20 March 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
ADRO* Neutral 1,435 1,540 7.3 45,900 395 370 8.0 8.5 0.8 0.8 3.7 3.5 -5.4% -6.5% 5.0% 4.4%
HRUM* Neutral 1,475 2,000 35.6 3,788 32 26 8.1 10.0 0.8 0.7 0.2 -0.1 -9.9% -19.0% 6.8% 5.5%
INDY* Neutral 2,050 2,100 2.4 10,681 122 115 6.0 6.4 0.6 0.6 2.1 1.7 -13.5% -5.6% 4.2% 3.9%
ITMG* Buy 22,850 33,400 46.2 25,056 225 224 7.6 7.7 1.7 1.6 3.1 3.1 -13.7% -0.6% 11.1% 11.1%
PTBA Neutral 4,020 4,000 (0.5) 46,320 4,194 3,665 10.1 11.6 2.6 2.4 7.8 8.0 -16.5% -12.6% 4.5% 4.0%
ANTM Buy 960 1,200 25.0 23,070 1,230 1,423 18.8 16.2 1.1 1.1 9.9 8.8 40.7% 15.7% 1.9% 2.2%
INCO* Buy 3,550 5,000 40.8 35,274 124 169 19.6 14.4 1.2 1.2 6.7 5.4 76.9% 36.5% 1.5% 2.1%
TINS Buy 1,275 2,200 72.5 9,496 1,262 1,492 7.5 6.4 1.2 1.1 4.4 3.9 137.4% 18.3% 4.6% 5.5%
Property & Industrial Estate 118,911 8,720 9,656 13.6 12.3 1.2 1.1 10.4 10.0 3.8% 10.7% 1.1% 1.0%
ASRI Sell 316 280 (11.4) 6,209 997 1,578 6.2 3.9 0.6 0.5 7.1 5.6 5.8% 58.3% 0.6% 0.6%
BSDE Neutral 1,415 1,450 2.5 27,234 1,972 2,043 13.8 13.3 0.9 0.9 11.9 12.3 10.0% 3.6% 0.0% 0.0%
CTRA Buy 935 1,450 55.1 17,354 981 1,039 17.7 16.7 1.1 1.1 11.4 11.1 -14.0% 5.9% 1.1% 0.9%
JRPT Buy 595 980 64.7 8,181 1,005 919 8.1 8.9 1.2 1.0 7.1 7.6 5.7% -8.6% 3.4% 2.4%
PWON Neutral 680 680 0.0 32,749 2,399 2,426 13.7 13.5 2.3 2.0 10.0 10.1 4.8% 1.2% 0.9% 0.9%
SMRA Buy 930 1,200 29.0 13,417 313 486 42.9 27.6 1.9 1.8 13.1 11.3 -1.8% 55.3% 0.5% 0.5%
DMAS Buy 236 250 5.9 11,375 631 650 18.0 17.5 1.5 1.4 17.0 16.5 12.0% 3.0% 2.8% 2.9%
BEST Buy 248 320 29.0 2,393 422 516 5.7 4.6 0.5 0.5 6.2 5.5 3.9% 22.3% 3.6% 4.3%
Telco 489,048 20,644 22,516 23.7 21.7 3.3 3.2 6.7 6.3 19.3% 9.1% 3.4% 3.6%
EXCL Buy 2,650 3,100 17.0 28,323 25 335 1,134.1 84.6 1.5 1.5 5.5 5.0 N/M 1240.2% 0.0% 0.0%
TLKM Neutral 3,780 3,800 0.5 374,455 18,948 19,871 19.8 18.8 3.7 3.5 6.7 6.4 3.5% 4.9% 3.8% 4.0%
ISAT Neutral 3,000 2,800 (6.7) 16,302 -2,810 -2,598 -5.8 -6.3 1.9 2.6 5.6 5.1 -37.5% 7.6% 0.0% 0.0%
LINK Buy 4,390 6,200 41.2 12,975 1,209 1,328 10.7 9.8 2.4 2.1 5.1 4.6 9.7% 9.9% 4.7% 5.1%
TBIG Buy 3,700 5,700 54.1 16,436 908 1,113 18.1 14.8 4.9 4.4 9.8 9.3 1.8% 22.5% 4.6% 4.6%
TOWR Buy 795 950 19.5 40,557 2,364 2,467 17.2 16.4 4.3 3.8 9.2 8.7 0.7% 4.4% 3.0% 3.0%
Chemical 47,272 1,993 1,957 23.7 24.2 2.4 2.2 7.1 7.0 25.7% -1.8% 0.0% 0.0%
AGII Buy 575 770 33.9 1,763 110 138 16.0 12.8 0.5 0.5 6.2 5.7 13.2% 25.0% 0.0% 0.0%
BRPT* Neutral 3,260 2,640 (19.0) 45,509 129 125 24.2 25.0 2.8 2.5 7.2 7.1 25.4% -3.4% 0.0% 0.0%
Airlines 7,905 516 652 15.3 12.1 1.5 1.3 8.6 7.1 17.2% 26.4% 0.0% 0.0%
GMFI* Buy 280 310 10.9 7,905 35 45 15.3 12.1 1.5 1.3 8.6 7.1 16.2% 26.4% 0.0% 0.0%
Oil and Gas 59,634 2,618 2,797 22.8 21.3 1.2 1.2 7.0 6.6 14.7% 6.8% 1.5% 1.8%
PGAS* Buy 2,460 3,150 28.0 59,634 180 192 22.8 21.3 1.2 1.2 7.0 6.6 13.7% 6.8% 1.5% 1.8%
Transportation 7,907 560 630 14.1 12.6 1.4 1.3 6.0 5.6 17.0% 12.6% 2.1% 2.4%
BIRD Buy 3,160 3,700 17.1 7,907 560 630 14.1 12.6 1.4 1.3 6.0 5.6 17.0% 12.6% 2.1% 2.4%
Note:
- *) net profit in USD mn
- U/R means Under Review
- n/a means Not Available
- N/M means Not Meaningful
- N.A means Not Applicable

Please see important disclosure at the back of this report Page 7 of 8

 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
Ryan Winipta Research Assistant ryan.winipta@mandirisek.co.id +6221 5296 9510
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.