DAILY UPDATE April 30, 2020

MACROECONOMIC NEWS

US Economy – The economy shrank an annualized 4.8% in the

first quarter, a steeper decline than forecast and the biggest slide

since 2008. The biggest drags on the economy were consumer

spending, nonresidential fixed investment, exports and

inventories. Residential fixed investment, which jumped 21%,

along with spending from both the federal and state

governments helped offset some of the damage. Federal

spending was up 1.7%. Consumer expenditures, which comprise

67% of total GDP, plunged 7.6% in the quarter as all nonessential

stores were closed and the cornerstone of the U.S. economy was

taken almost completely out of commission. Durable goods

spending tumbled 16.1% while expenditures on services were

down 10.2%. Exports dropped 8.7% while imports fell 15.3%,

including a 30% drop in services.

Australia Economy – Australian inflation accelerated to its

highest in over five years last quarter, but the long-desired pick-

up is likely to be fleeting in the face of a coronavirus lockdown

and collapsing energy prices. The headline consumer price index

(CPI) rose 0.3% in the first quarter, from the previous quarter,

lifting annual inflation to 2.2% from 1.8%. That was the highest

reading since the third quarter of 2014 and topped forecasts of

2.0%. It was also the first time inflation reached the Reserve Bank

of Australia's (RBA) 2-3% target band since early 2018 and could

have led to a much-needed pick up in wage growth.

CORPORATE NEWS

GIAA – PT Garuda Indonesia considers 3 options to pay off its USD

498.99 million worth of global Islamic bonds (sukuk) that will be

due on 3 June 2020. The options are: full repayment, extension

of due date and repayment at discount. The options are currently

under discussion while considering the financial (cash flow

position), capability and the reputation of the company.

INKP – PT Indah Kiat Pulp & Paper to issue IDR 3 trillion worth of

continuous bonds I phase I year 2020 in 3 series with tenor

starting from 370 days to 5 years and the coupon rate will be paid

in every 3 months. 60% of the proceeds will be used to repay debt

while the rest will be used as working capital. The issuance is part

of its continuous bonds I program with target proceeds of IDR 10

trillion. No further details has been disclosed.

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Commodities Last Price Chg %Chg

Oil NYMEX 15.89 2.5 18.3

Oil Brent 23.56 2.81 13.5

Coal Newcastle 51.25

Nickel 12315 21 0.2

Tin 15305 -40 -0.3

Gold 1711.4 2.7 0.2

CPO Rott 545

CPO Malay 2031 11 0.5

Indo Gov. Bond Yields

Last Yield Chg %Chg

1 year 5.765 0.01 0.12

3 year 6.961 -0.01 -0.09

5 year 7.503 -0.03 -0.35

10 year 8.072 0.00 -0.05

15 year 8.136 0.01 0.10

30 year 8.235 0.06 0.77

Currency

Closing Last Trade

US$ - IDR 15295 15295

US$ - Yen 106.68 106.8

Euro - US$ 1.0873 1.09

US$ - SG$ 1.412 1.41

Equity Markets

Closing % Change

Dow Jones 24634 2.21

NASDAQ 8915 3.57

S&P 500 2940 2.66

MSCI excl. Jap 604 1.24

Nikkei 20252 2.43

Shanghai Comp 2822 0.44

Hang Seng 24644 0.28

STI 2575 0.46

JCI 4567 0.83

Indo ETF (IDX) 14 4.21

Indo ETF (EIDO) 16 4.66

CORPORATE NEWS – cont’d

INCO – PT Vale Indonesia disclosed its 3M 2020 financial results:

INCO (USD Mn) 3M 2019 3M 2020 YoY Q1 2019 Q4 2019 Q1 2020 YoY QoQ

Revenue 126 175 38.1% 126 276 175 38.1% -36.6%

Gross Profit -23 20 -23 95 20 -78.4%

Operating Profit -26 19 -26 92 19 -79.4%

Pretax Earnings -27 23 -27 88 23 -73.8%

Net Income -20 29 -20 57 29 -49.1%

EPS (USD) -0.0020 0.0029 -0.0020 0.0057 0.0029 -49.3%

Gross Profit Margin -18.4% 11.7% 30.1% -18.4% 34.5% 11.7% 30.1% -22.7%

Operating Profit Margin -20.8% 10.8% 31.6% -20.8% 33.3% 10.8% 31.6% -22.5%

Net Profit Margin -15.9% 16.6% 32.5% -15.9% 20.6% 16.6% 32.5% -4.0%

RALS – PT Ramayana Lestari Sentosa disclosed its FY 2019 financial results:

RALS (IDR Bn) 2018 2019 YoY Q4 2018 Q3 2019 Q4 2019 YoY QoQ

Revenue 5,740 5,596 -2.5% 1,223 937 1,170 -4.3% 24.8%

Gross Profit 2,507 2,494 -0.5% 502 432 492 -1.8% 13.9%

Operating Profit 608 571 -6.0% 47 -37 11 -77.5% Pretax Earnings 717 733 2.2% 65 5 31 -52.3% 480.9%

Net Income 587 648 10.4% 60 25 35 -41.0% 39.2%

EPS (IDR) 87 96 10.1% 9 3 5 -40.9% 57.5%

Gross Profit Margin 43.7% 44.6% 0.9% 41.0% 46.1% 42.1% 1.1% -4.0%

Operating Profit Margin 10.6% 10.2% -0.4% 3.8% -3.9% 0.9% -2.9% 4.8%

Net Profit Margin 10.2% 11.6% 1.3% 4.9% 2.7% 3.0% -1.9% 0.3%

GGRM – PT Gudang Garam disclosed its 3M 2020 financial results:

GGRM (IDR Bn) 3M 2019 3M 2020 YoY Q1 2019 Q4 2019 Q1 2020 YoY QoQ

Revenue 26,197 27,261 4.1% 26,197 28,803 27,261 4.1% -5.4%

Gross Profit 4,919 4,942 0.5% 4,919 7,046 4,942 0.5% -29.9%

Operating Profit 3,280 3,239 -1.3% 3,280 4,817 3,239 -1.3% -32.8%

Pretax Earnings 3,145 3,173 0.9% 3,145 4,817 3,173 0.9% -34.1%

Net Income 2,355 2,447 3.9% 2,355 3,700 2,447 3.9% -33.9%

EPS (IDR) 1,224 1,272 3.9% 1,224 1,888 1,272 3.9% -32.6%

Gross Profit Margin 18.8% 18.1% -0.6% 18.8% 24.5% 18.1% -0.6% -6.3%

Operating Profit Margin 12.5% 11.9% -0.6% 12.5% 16.7% 11.9% -0.6% -4.8%

Net Profit Margin 9.0% 9.0% 0.0% 9.0% 12.8% 9.0% 0.0% -3.9%

UNVR – PT Unilever Indonesia disclosed its 3M 2020 financial results:

UNVR (IDR Bn) 3M 2019 3M 2020 YoY Q1 2019 Q4 2019 Q1 2020 YoY QoQ

Revenue 10,665 11,153 4.6% 10,665 10,562 11,153 4.6% 5.6%

- HPC 7,466 7,845 5.1% 7,466 7,517 7,845 5.1% 4.4%

- F & R 3,198 3,308 3.4% 3,198 3,045 3,308 3.4% 8.6%

Gross Profit 5,306 5,848 10.2% 5,306 5,591 5,848 10.2% 4.6%

Operating Profit 2,364 2,394 1.3% 2,364 2,593 2,394 1.3% -7.7%

Pretax Earnings 2,330 2,339 0.4% 2,330 2,535 2,339 0.4% -7.7%

Net Income 1,749 1,863 6.5% 1,749 1,883 1,863 6.5% -1.1%

EPS (IDR) 46 49 6.5% 46 49 49 6.5% -0.8%

Gross Profit Margin 49.8% 52.4% 2.7% 49.8% 52.9% 52.4% 2.7% -0.5%

Operating Profit Margin 22.2% 21.5% -0.7% 22.2% 24.6% 21.5% -0.7% -3.1%

Net Profit Margin 16.4% 16.7% 0.3% 16.4% 17.8% 16.7% 0.3% -1.1%

CORPORATE NEWS – cont’d

BJBR – PT Bank Pembangunan Daerah Jawa Barat dan Banten disclosed its 3M 2020 financial results:

BJBR (IDR Bn) 3M 2019 3M 2020 YoY Q1 2019 Q4 2019 Q1 2020 YoY QoQ

Net Interest Income 1,494 1,499 0.3% 1,494 1,624 1,499 0.3% -7.7%

Non-Interest Income 458 786 71.7% 458 549 786 71.7% 43.1%

Other Operating Expense 1,388 1,738 25.3% 1,388 1,638 1,738 25.3% 6.1%

Operating Profit 564 546 -3.2% 564 536 546 -3.2% 1.9%

PPOP 627 601 -4.1% 627 838 601 -4.1% -28.3%

Net Income 420 418 -0.5% 420 433 418 -0.5% -3.6%

EPS (IDR) (Diluted) 43 42 -0.7% 43 42 42 -0.7% 0.8%

CAR 18.6% 17.1% -1.5% 18.6% 17.7% 17.1% -1.5% -0.6%

NIM 5.9% 5.5% -0.3% 5.9% 5.8% 5.5% -0.3% -0.3%

ROE 17.4% 16.2% -1.2% 17.4% 16.5% 16.2% -1.2% -0.3%

ROA 1.9% 1.8% -0.1% 1.9% 1.7% 1.8% -0.1% 0.1%

NPL (Gross) 1.7% 1.7% 0.0% 1.7% 1.6% 1.7% 0.0% 0.1%

NPL (Net) 0.9% 0.4% -0.6% 0.9% 0.8% 0.4% -0.6% -0.5%

LDR 88.9% 93.6% 4.7% 88.9% 97.8% 93.6% 4.7% -4.2%

Coverage Ratio 51.2% 140.0% 88.8% 51.2% 53.0% 140.0% 88.8% 87.0%

BALI – PT Bali Towerindo Sentra to issue IDR 800 billion worth of continuous bonds I phase I year 2020 in 2 series

with tenor starting from 3 to 5 years. 80% of the proceeds will be used to repay debt while the rest will be for

investment purpose and for working capital. The issuance is part of its continuous bonds I program with target

proceeds of IDR 1.6 trillion. No further details has been disclosed.

AALI – PT Astra Agro Lestari expects the average selling price of CPO in 2Q 2020 to be lower than the average selling

price in 1Q 2020 due to Covid-19. In March 2020, AALI saw an average selling price for CPO of IDR 9,037 per kg and

a fresh fruit bunch production of 1.1 million tons in 1Q 2020.

UCID – PT Uni-Charm Indonesia plans to buyback up to IDR 20 billion of shares between 30 April 2020 and 30 July

2020.

UNVR – PT Unilever Indonesia has realised IDR 200 billion of capex in 1Q 2020 to increase production capacity. The

realised capex in 1Q 2020 is roughly inline with the 2019 capex of IDR 1.1 trillion. However, due to Covid-19, UNVR

will adjust the capex budget for the rest of the year.

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