Equity SNAPSHOT Friday, August 09, 2019

Danareksa Sekuritas – Equity SNAPSHOT

FROM EQUITY RESEARCH

Bank Tabungan Negara: Eyeing more capital

(BBTN.IJ IDR. 2,330 BUY TP IDR.3,000)

We continue to like BBTN, noting its expertise on the housing-related sector, from upstream to end-users. Nonetheless, the

implementation of PSAK 71 starting on January 1, 2020 remains an overhang given the bank’s 37.8% LLC ratio. As such, the short-term

priority for BBTN is to increase its coverage ratio by issuing subdebt instruments as tier-2 capital. Assuming a IDR3tn subdebt issuance,

CAR would reach 18.8% by the end of 2019F. Maintain BUY with a

GGM-derived TP of IDR3,000 (implying 1.1x 2020F PBV). To see the full version of this report, please click here

MARKET NEWS

MACROECONOMY

▪ Government: USD2bn of multilateral loans issued as of Jul19 SECTOR

▪ Automotive: The Indonesian President signed a regulation on accelerating the development of EV

CORPORATE

▪ Pembangunan Perumahan: Won an EPC project for a nickel smelter in Sulawesi

▪ Wika Beton: New contracts in 7M19 reached 43% of the full year target

▪ Wijaya Karya: Targets progress on the Jakarta Bandung HSR of

51% by end-2019

PREVIOUS REPORTS

▪ Indofood CBP Sukses Makmur: Outperforming its rivals

▪ Telkom Indonesia: Meeting takeaways - Upbeat on 2H19 ▪ Strategy: Continuation of the Trend

▪ Vale Indonesia: Quarterly recovery, but weak on a yearly basis ▪ Poultry 2Q19 Guidebook: Margin compression at 7.4 on

Richter scale

▪ July 2019 Inflation Update: Softening Further ▪ Alam Sutra Realty: The first to revise down its marketing sales

target ▪ XL Axiata: XLent 2Q performance & upward trajectory

▪ Business Sentiment: April-May 2019 Results: Slight Correction

on Political Noise ▪ Consumer Confidence: July Results: Resumption of the

Uptrend ▪ GDP Outlook: Q2 2019 GDP Outlook: Slowdown in Growth

KEY INDEX

Close

Chg Ytd Vol

(%) (%) (US$ m)

Asean - 5

Indonesia 6.275 1,1 1,3 487

Thailand 1.665 (0,3) 6,5 2.050

Philippines 7.914 (0,0) 6,0 114

Malaysia 1.616 0,7 (4,4) 610

Singapore 3.169 (0,5) 3,3 807

Regional

China 2.795 0,9 12,1 28.418

Hong Kong 26.121 0,5 1,1 9.693

Japan 20.593 0,4 2,9 11.210

Korea 1.921 0,6 (5,9) 4.445

Taiwan 10.494 1,0 7,9 3.937

India 37.327 1,7 3,5 347

NASDAQ 8.039 2,2 21,2 124.411

Dow Jones 26.378 1,4 13,1 11.680

CURRENCY AND INTEREST RATE

Rate

w-w m-m ytd

(%) (%) (%)

Rupiah Rp/1US$ 14.213 (0,7) (0,7) 1,2

BI7DRRR % 5,75 (0,3) (0,3) (0,3)

10y Gov Indo bond 7,34 (0,2) 0,1 (0,7)

HARD COMMODITY

Unit Price

d-d m-m ytd

(%) (%) (%)

Coal US$/ton 68 0,1 (9,8) (33,6)

Gold US$/toz 1.505 0,3 7,7 17,3

Nickel US$/mt.ton 15.844 7,0 25,0 49,4

Tin US$/mt.ton 16.880 0,6 (8,6) (13,5)

SOFT COMMODITY

Unit Price

d-d m-m ytd

(%) (%) (%)

Cocoa US$/mt.ton 2.218 (1,1) (8,0) (6,2)

Corn US$/mt.ton 151 1,1 (7,5) 13,6

Oil (WTI) US$/barrel 53 0,6 (8,6) 16,4

Oil (Brent) US$/barrel 57 2,0 (10,5) 6,7

Palm oil MYR/mt.ton 2.010 (0,1) 6,9 2,9

Rubber USd/kg 131 0,2 (8,4) 5,1

Pulp US$/tonne 1.205 N/A 2,8 20,5

Coffee US$/60kgbag 69 0,4 (3,8) (8,5)

Sugar US$/MT 311 0,9 (3,4) (6,6)

Wheat US$/ton 136 2,1 (2,4) (5,6)

Soy Oil US$/lb 29 3,6 3,9 5,1

Soy Bean US$/by 865 1,9 (1,2) (2,0)

Source: Bloomberg

www.danareksa.com See important disclosure at the back of this report 1

Equity Research Company Update

Friday, 09 August 2019

Bank Tabungan Negara (BBTN IJ) BUY

Maintain Eyeing more capital

We continue to like BBTN, noting its expertise on the housing-related sector, from upstream to end-users. Nonetheless, the implementation of PSAK 71 starting on January 1, 2020 remains an overhang given the bank’s 37.8% LLC ratio. As such, the short-term priority for BBTN is to increase its coverage ratio by issuing subdebt instruments as tier-2 capital. Assuming a IDR3tn subdebt issuance, CAR would reach 18.8% by the end of 2019F. Maintain BUY with a GGM-derived TP of IDR3,000 (implying 1.1x 2020F PBV).

Lower growth expectations. In view of the implementation of PSAK 71 in 2020, BBTN’s management has trimmed its targets for this year. Consequently, we also revise down some of the key items such as our loans growth estimate from 14.5%/15.3% to 12.3%/13.2% for this and next year, respectively. In addition, we also raise our blended CoF assumption despite the recent 25bps policy rate cut by BI due to BBTN’s high dependancy on TD and its potential subdebt issuance in 2H19. As such, we expect a 4.9%/4.7% blended CoF in FY19/20F, respectively. All in all, the FY19F net profits are expected to reach IDR2.5tn. Capital is a constraint. The bank’s revised targets take into consideration a 17.0% CAR as of June 2019 pre-implementation of PSAK 71 with a 37.8% Loans Loss Coverage (LLC) ratio and a 3.3% gross NPLs ratio as of June 2019. As such, BBTN plans to issue a total of IDR3-5tn of subdebt instruments (USD and IDR) as tier-2 capital. Assuming IDR3tn of proceeds from the subdebt issuance, CAR would reach 18.8% by December 2019F from previously 16.6% based on our model. For the planned rights issue, we expect it to be executed in 2020.

A focus on building up more provisions. The future implementation of PSAK 71 next year remains an overhang for BBTN. In this regard, we expect higher provisions of IDR2.1tn for this year (our previous assumption was IDR1.9tn). Assuming 12.3% yoy loans growth and a 2.6% gross NPLs ratio this year, the LLC ratio will touch 70.7% by 2019F. To reach 100% coverage by January 1, 2020, BBTN will need to allocate an additional IDR2.0tn of provisions, which will come from the issuance of subdebt instruments, in our view. BUY: unchanged TP of IDR3,000. Maintain BUY with a GGM-derived TP of IDR3,000 as we roll over our valuation to next year assuming a higher CoE of 11.0%, a sustainable ROAE of 12.1% and 3% long-term growth. Our TP implies 1.1x 2020F PBV (slightly above its -0.5SD of 10-yrs mean at 1.1x).

Last price (IDR) 2,330

Target Price (IDR) 3,000

Upside/Downside +28.8%

Previous Target Price (IDR) 3,000

Stock Statistics

Sector Banking

Bloomberg Ticker BBTN IJ

No of Shrs (mn) 10,590

Mkt. Cap (IDRbn/USDmn) 24,675/1,736

Avg. daily T/O (IDRbn/USDmn) 62.5/4.4

Major shareholders (%)

Government of Indonesia 60.0

Estimated free float 40.0

EPS Consensus (IDR)

2019F 2020F 2021F

Danareksa 236.5 284.6 357.3

Consensus 261.2 321.4 389.9

Danareksa/Cons (9.5) (11.4) (8.4)

BBTN relative to JCI Index

Source : Bloomberg

Eka Savitri

(62-21) 2955 5888 ext.3506

eka.savitri@danareksa.co.id

Key Financials

Year to 31 Dec 2017A 2018A 2019F 2020F 2021F

PPOP (IDRbn) 4,776 5,308 5,251 6,091 7,394

Net profit (IDRbn) 3,027 2,808 2,503 3,013 3,783

EPS (IDR) 285.9 265.2 236.5 284.6 357.3

EPS growth (%) 15.6 (7.3) (10.8) 20.4 25.5

BVPS (IDR) 2,046.1 2,251.8 2,440.9 2,668.6 2,954.5

PER (x) 8.1 8.8 9.9 8.2 6.5

PBV (x) 1.1 1.0 1.0 0.9 0.8

Dividend yield (%) 2.5 2.3 2.0 2.4 3.1

ROAE (%) 14.8 12.3 10.1 11.1 12.7

Source : BBTN, Danareksa Estimates

Equity SNAPSHOT Friday, August 09, 2019

Danareksa Sekuritas – Equity SNAPSHOT

MACROECONOMY Government: USD2bn of multilateral loans issued as of Jul19

The Ministry of Finance stated that as of Jul19, the government had issued USD2bn of multilateral loans as one of the financing instruments to cover the state budget deficit that is estimated to reach 1.93% of GDP in 2019. This

loan was provided by the Asian Development Bank (USD500mn) and the World Bank (USD1bn). More funds are needed as, according to the Directorate General of Tax (DGT), tax receipts in Jul19 will grow at a slower rate

resulting from tax restitution efforts. However, the government believes that the tax shortfall can be maintained at

IDR140.03tn in 2019 as agreed by parliament. (Kontan)

SECTOR Automotive: The Indonesian President signed a regulation on accelerating the development of EV

The President of Indonesia, Joko Widodo, has signed a regulation concerning the acceleration of the development

of electric vehicles. In the regulation, the government will provide fiscal and non-fiscal incentives that will only be effective in 2021. The fiscal incentive will be a luxury tax facility linked to car emissions, import duty facility for EV

as well as components. In the early stage, to develop EV, automotive industries are allowed to import CBU. However, in the next three years, they should meet the regulation’s provision of having local content of more than 35%.

(Source: Investor Daily)

CORPORATE

Pembangunan Perumahan: Won an EPC project for a nickel smelter in Sulawesi Pembangunan Perumahan (PTPP) won an EPC contract to build a nickel smelter. The project is owned by Macika

Mineral Industri and involves an investment totaling USD127mn and is located in South Palangga, Southeast Sulawesi. For this project, PTPP will act as the contractor and form a partnership with a Chinese vendor for the

technology and machinery provision. However, the value of the EPC contracts obtained by PTPP has not been

disclosed yet. Yesterday, PTPP formed a subsidiary named Pembangunan Perumahan Semarang Demak, a concessionary holder company for the Semarang – Demak toll road. PTPP owns a 65% stake in the toll road, while

25% is owned by Wijaya Karya (WIKA) and 10% by Misi Mulia Metrical. The toll road will span 27.0km and involve an investment of IDR5.6tn. (Bisnis Indonesia)

Wika Beton: New contracts in 7M19 reached 43% of the full year target Wika Beton (WTON) booked IDR3.92tn of new contracts as of Jul19. This is 43.2% of the full year target set at

IDR9.08tn. Including IDR5.8tn of carry over contracts, the order book in 7M19 reached IDR9.7tn or 65.4% of the full year target of IDR14.9tn. WTON plans to expand into overseas markets. In regional markets, WTON is eyeing

an infrastructure project in Jurong, Singapore and railway projects in the Philippines. In addition, WTON is also eyeing African countries such as Morocco and Algeria. (Kontan)

Wijaya Karya: Targets progress on the Jakarta Bandung HSR of 51% by end-2019 Wijaya Karya (WIKA) targets the development of the Jakarta – Bandung high speed railway (HSR) to reach 49-51%

by end-2019 with budget disbursement reaching IDR40.0tn from the IDR80.0tn allocated. The track will pass through 13 tunnels of which one has been completed. The land clearing process stands at 97.3% while the remaining

land that has not been cleared are social facilities and public facilities which need to be relocated first. WIKA targets

the project to be completed by 2021. (Investor Daily)

MARKET NEWS

Danareksa Sekuritas – Equity SNAPSHOT

DANAREKSA VALUATION

Rating Price (Rp) Price Mkt Cap

Target Rp Bn 2019 2020 2019 2020 2019 2020 2019 2020 2019 2020 2019 2020 2019 2020 2019 2020

Danareksa Universe 3.982.905 227.158 249.822 253,1 278,4 9,4% 10,0% 17,5 15,9 18,1 16,7 3,0 2,8 18,2 18,1

Auto 279.336 23.749 25.429 477,6 511,4 9,6% 7,1% 11,8 11,0 9,0 8,2 1,9 1,7 16,7 16,2

Astra International ASII BUY 6.900 8.800 279.336 23.749 25.429 587 628 587 628 20,4% 7,1% 11,8 11,0 9,0 8,2 1,9 1,7 16,7 16,2

Banks 1.327.199 76.551 85.837 761,2 853,6 11,4% 12,1% 17,3 15,5 2,6 2,3 15,6 15,6

BCA BBCA HOLD 30.025 28.000 740.267 29.062 32.404 1.179 1.314 1.179 1.314 10,7% 11,5% 25,5 22,8 N/A N/A 4,3 3,7 17,8 17,4

BNI BBNI BUY 8.125 10.500 151.520 16.937 19.256 908 1.033 908 1.033 12,8% 13,7% 8,9 7,9 N/A N/A 1,2 1,1 14,7 14,9

Bank Tabungan Negara BBTN BUY 2.330 3.000 24.675 2.503 3.013 236 285 237 285 -28,4% 20,4% 9,9 8,2 N/A N/A 1,0 0,9 10,0 11,1

Bank Mandiri BMRI BUY 7.500 8.700 350.000 28.049 31.164 601 668 601 668 14,7% 11,1% 12,5 11,2 N/A N/A 1,8 1,6 14,9 15,1

BTPN BTPN HOLD 3.270 3.800 26.642 2.518 2.707 309 332 438 471 3,0% 7,5% 10,6 9,8 N/A N/A 1,3 1,2 13,4 12,9

BTPS BTPS HOLD 3.190 3.100 24.575 1.234 1.501 160 195 160 195 23,4% 21,6% 19,9 16,4 N/A N/A 5,0 4,1 27,7 27,4

BPD Jatim BJTM BUY 635 850 9.520 1.356 1.446 90 96 91 97 7,3% 6,6% 7,0 6,6 N/A N/A 1,0 1,0 15,5 15,4

Cigarettes 484.358 24.145 26.773 204 226 13,2% 10,9% 20,1 18,1 13,9 12,3 5,6 5,0 28,3 29,1

Gudang Garam GGRM BUY 74.000 96.400 142.383 9.134 10.423 4.747 5.417 4.747 5.416 10,3% 14,1% 15,6 13,7 10,0 8,8 2,8 2,5 18,6 19,3

HM Sampoerna HMSP BUY 2.940 4.400 341.975 15.011 16.350 129 141 129 141 11,5% 8,9% 22,8 20,9 16,9 15,0 9,2 8,8 41,6 43,2

Construction 117.022 11.594 13.023 155 174 -0,3% 12,3% 10,1 9,0 8,79 7,83 1,3 1,2 13,8 13,7

Wijaya Karya WIKA BUY 2.270 3.400 20.362 2.320 2.738 259 305 259 305 46,1% 18,0% 8,8 7,4 5,1 3,8 1,2 1,1 15,1 15,3

Pembangunan Perumahan PTPP BUY 1.890 2.900 11.718 1.703 1.965 275 317 275 317 -2,2% 15,4% 6,9 6,0 3,3 3,0 0,8 0,7 12,4 12,8

Adhi Karya ADHI BUY 1.410 2.300 5.021 733 847 206 238 206 238 -2,7% 15,6% 6,8 5,9 5,1 4,6 0,7 0,6 10,0 10,4

Waskita Karya WSKT BUY 1.790 2.900 24.297 2.903 3.215 214 237 214 237 -33,6% 10,7% 8,4 7,6 11,0 10,4 1,2 1,1 15,4 15,0

Waskita Beton WSBP BUY 352 500 9.279 1.189 1.335 45 51 49 54 -15,1% 12,3% 7,8 7,0 7,5 7,1 1,1 1,1 14,8 15,8

Wika Beton WTON BUY 550 730 4.794 554 651 64 75 66 78 25,3% 17,5% 8,7 7,4 5,7 5,0 1,4 1,2 16,9 17,5

Jasa Marga JSMR BUY 5.725 6.700 41.551 2.192 2.272 302 313 302 313 25,8% 3,6% 19,0 18,3 17,8 15,6 2,2 2,0 12,5 11,4

Consumer 672.131 18.844 20.603 282 308 -4,4% 9,3% 35,7 32,6 20,6 19,3 8,4 7,7 24,9 24,7

Indofood CBP ICBP BUY 11.175 11.000 130.322 4.620 4.885 396 419 396 419 10,6% 5,7% 28,2 26,7 22,3 22,2 5,4 4,9 20,2 19,4

Indofood INDF BUY 7.425 7.950 65.195 4.494 5.083 512 579 512 579 0,0% 13,1% 14,5 12,8 6,0 6,1 1,8 1,7 12,9 13,6

Unilever UNVR HOLD 44.650 44.000 340.680 7.532 8.041 987 1.054 987 1.054 -1,8% 6,8% 45,2 42,4 32,0 29,6 44,8 44,7 114,5 105,6

Kino Indonesia KINO BUY 3.090 3.400 4.414 188 232 132 162 131 163 102,9% 23,4% 23,5 19,0 13,2 11,6 1,9 1,8 8,5 9,6

Mayora Indah MYOR BUY 2.440 3.050 54.555 2.010 2.362 90 106 90 106 15,1% 17,5% 27,1 23,1 15,1 13,1 5,5 4,7 22,1 22,0

Sido Muncul SIDO BUY 1.095 1.250 16.425 803 928 54 62 54 62 17,1% 15,6% 20,5 17,7 18,1 15,4 5,4 5,0 26,3 29,3

Healthcare 83.823 3.074 3.398 141 159 37,5% 13,0% 27,3 24,7 17,7 16,1 4,2 3,8 16,4 16,2

Kalbe Farma KLBF HOLD 1.415 1.400 66.328 2.600 2.852 55 61 56 61 2,4% 9,7% 25,5 23,3 16,3 14,8 4,1 3,7 16,7 16,6

Kimia Farma KAEF HOLD 3.150 3.120 17.495 474 546 85 98 85 98 76,9% 15,2% 36,9 32,0 24,3 21,8 4,9 4,3 15,0 14,3

Heavy Equipment 86.539 11.749 12.266 3.150 3.288 5,6% 4,4% 7,4 7,1 3,5 3,3 1,4 1,3 21,4 19,0

United Tractors UNTR BUY 23.200 36.000 86.539 11.749 12.266 3.150 3.288 3.150 3.288 33,8% 4,4% 7,4 7,1 3,5 3,3 1,4 1,3 21,4 19,0

Industrial Estate 21.773 1.311 1.836 21 29 35,1% 40,0% 16,6 11,9 11,7 8,2 1,3 1,2 8,2 10,7

Puradelta Lestari DMAS BUY 314 310 15.134 697 907 14 19 15 19 8,0% 30,1% 21,7 16,7 21,4 15,3 2,0 2,0 9,5 12,0

Bekasi Fajar BEST BUY 298 370 2.875 561 668 58 69 58 69 12,7% 19,1% 5,1 4,3 5,5 3,7 0,6 0,6 12,5 13,6

Surya Semesta SSIA BUY 800 950 3.764 53 261 11 55 11 56 -158,3% 392,5% 71,0 14,4 8,2 5,0 0,8 0,8 1,3 5,5

Media 37.845 3.409 3.736 117 129 10,3% 9,6% 11,1 10,1 6,6 6,0 2,3 2,1 21,9 21,8

Media Nusantara Citra MNCN BUY 1.275 1.200 18.202 1.613 1.761 113 123 113 123 -17,7% 9,2% 11,3 10,3 6,2 5,8 1,7 1,5 15,3 15,6

Surya Citra Media SCMA BUY 1.330 2.350 19.642 1.796 1.975 122 134 123 135 13,2% 10,0% 10,9 9,9 7,2 6,3 3,6 3,1 35,9 33,9

Mining 148.623 17.334 18.039 195 203 -0,5% 4,1% 8,6 8,2 3,9 3,8 1,0 1,0 12,5 12,1

Adaro Energy ADRO BUY 1.100 2.000 35.185 6.135 5.881 192 184 198 184 -16,8% -4,1% 5,7 6,0 2,5 2,4 0,6 0,6 12,0 10,5

Timah TINS BUY 995 1.700 7.411 721 835 97 112 97 112 19,6% 15,8% 10,3 8,9 5,2 4,8 1,1 1,0 10,6 11,5

Vale Indonesia INCO BUY 3.110 4.400 30.902 679 1.315 68 132 71 127 -39,2% 93,8% 45,5 23,5 9,5 7,1 1,1 1,1 2,7 4,7

Aneka Tambang ANTM BUY 1.020 1.000 24.511 807 856 34 36 34 36 88,5% 6,1% 30,4 28,6 10,9 10,8 1,2 1,2 4,1 4,2

Bukit Asam PTBA BUY 2.570 5.200 29.608 5.161 5.321 448 462 475 490 2,8% 3,1% 5,7 5,6 3,8 4,1 1,7 1,5 30,2 28,3

Indo Tambangraya Megah ITMG BUY 15.325 30.000 17.316 3.350 3.294 2.965 2.915 2.969 2.912 -14,2% -1,7% 5,2 5,3 2,4 2,3 1,3 1,3 24,1 24,3

Harum Energy HRUM BUY 1.365 2.000 3.690 481 537 178 199 184 198 -27,5% 11,8% 7,7 6,9 0,6- 1,1- 0,8 0,8 10,9 11,6

Plantation 31.792 3.068 2.995 288 282 9,1% -2,4% 10,4 10,6 5,2 5,0 0,9 0,9 9,3 8,6

Astra Agro Lestari AALI BUY 10.250 16.500 19.728 1.868 1.761 971 915 970 915 14,0% -5,7% 10,6 11,2 5,3 5,2 1,0 0,9 9,5 8,4

Sampoerna Agro SGRO BUY 2.340 3.000 4.423 397 402 210 213 218 221 10,3% 1,3% 11,1 11,0 6,6 6,5 1,0 0,9 9,3 8,8

PP London Sumatra LSIP BUY 1.120 2.000 7.642 803 832 118 122 118 122 -2,8% 3,6% 9,5 9,2 3,7 3,3 0,8 0,8 9,1 9,0

Poultry 101.631 6.029 7.087 40 47 -14,0% 17,5% 16,9 14,3 10,8 9,3 2,9 2,6 18,4 19,1

Charoen Pokphand CPIN SELL 4.940 4.500 81.006 3.878 4.511 236 275 237 275 13,9% 16,3% 20,9 18,0 14,0 11,9 3,8 3,3 19,4 19,6

Japfa Comfeed JPFA HOLD 1.565 1.600 18.352 1.887 2.292 161 195 161 195 5,6% 21,5% 9,7 8,0 6,2 5,7 1,7 1,4 17,5 19,3

Malindo Feedmill MAIN HOLD 1.015 1.300 2.272 264 284 118 127 118 127 118,0% 7,6% 8,6 8,0 7,6 5,9 1,0 0,9 13,3 12,4

Property 107.861 7.297 7.857 61 65 13,3% 7,7% 14,8 13,7 9,4 9,5 1,4 1,3 9,8 9,8

Alam Sutera ASRI BUY 322 400 6.327 1.200 1.371 61 70 61 70 -25,2% 14,3% 5,3 4,6 5,8 5,4 0,6 0,5 11,7 12,1

Bumi Serpong Damai BSDE BUY 1.395 1.700 26.849 2.034 2.050 106 107 106 107 -28,4% 0,8% 13,2 13,1 8,5 10,7 1,0 0,9 7,3 7,1

Ciputra Development CTRA BUY 1.210 1.350 22.458 953 1.115 51 60 51 60 -18,6% 17,0% 23,6 20,1 13,5 11,8 1,4 1,3 6,3 6,8

Pakuw on Jati PWON HOLD 710 690 34.193 2.667 2.777 55 58 55 58 14,6% 4,1% 12,8 12,3 8,1 7,6 2,3 2,0 19,6 17,3

Summarecon SMRA HOLD 1.250 1.100 18.033 443 544 31 38 31 38 15,7% 22,8% 40,7 33,1 13,9 13,7 2,5 2,3 6,3 7,2

Retail 71.964 4.212 4.775 82 93 14,1% 13,4% 17,1 15,1 8,9 7,7 4,1 3,6 25,2 25,5

Mitra Adi Perkasa MAPI BUY 1.000 1.050 16.600 826 932 50 56 50 56 -90,6% 12,8% 20,1 17,8 7,5 6,3 3,3 2,9 17,5 17,4

Ramayana RALS BUY 1.280 1.900 9.083 683 736 96 104 101 109 10,2% 7,7% 13,3 12,3 6,4 5,6 2,2 2,0 17,1 17,0

Matahari Department Store LPPF BUY 3.290 11.000 9.228 2.069 2.182 738 778 709 748 5,6% 5,5% 4,5 4,2 2,1 1,8 2,5 2,1 61,6 53,8

Matahari Putra Prima MPPA SELL 190 200 1.431 (496) (348) (66) (46) (92) (65) 53,4% 29,8% (2,9) (4,1) 26,3- 28,9 (357,6) (4,1) (241,9) 195,5

Ace Hardw are ACES SELL 1.720 1.635 29.498 1.130 1.273 66 74 66 74 17,9% 12,7% 26,1 23,2 20,5 18,1 6,1 5,4 25,4 24,8

Erajaya Sw asembada ERAA BUY 1.920 4.000 6.125 931 1.075 292 337 292 337 33,5% 15,5% 6,6 5,7 3,7 4,3 1,1 1,0 19,3 18,5

Telco 532.676 21.275 23.302 125 136 39,9% 9,5% 25,0 22,9 6,3 5,9 3,5 3,3 14,4 14,8

Telekomunikasi Indonesia TLKM BUY 4.260 4.300 422.005 19.231 20.246 194 204 194 204 -5,8% 5,3% 21,9 20,8 6,4 5,9 3,9 3,5 18,7 17,7

Indosat ISAT BUY 3.330 3.100 18.095 (1.769) (1.556) (326) (286) (326) (286) -391,7% 12,0% (10,2) (11,6) 3,9 4,5 1,9 2,3 (15,8) (18,0)

XL Axiata EXCL BUY 3.350 3.600 35.805 419 708 39 66 39 66 -6,8% 69,0% 85,5 50,6 5,3 4,7 1,9 1,8 2,1 3,7

Tow er Bersama TBIG BUY 4.310 4.500 19.530 917 1.144 202 252 211 264 -5,9% 24,8% 21,3 17,1 9,9 9,1 4,0 3,6 23,4 22,1

Sarana Menara Nusantara TOWR BUY 730 960 37.241 2.477 2.760 49 54 49 54 7,8% 11,4% 15,0 13,5 8,4 8,1 4,0 3,6 28,3 27,9

EV / EBITDA (x) PBV (x) ROE

Equity

Valuation Net profit, Rp bn EPS (Rp) Core EPS (Rp) EPS Growth PER (x)

Equity SNAPSHOT Friday, August 09, 2019

Danareksa Sekuritas – Equity SNAPSHOT

LEADERS Price as on Code 07-Aug-19 06-Aug-19 Chg, % w-w, % m-m, % YTD, % Rating

PP London Sumatra LSIP 1.120 1.020 9,8 5,7 (4,3) (10,4) BUY

Bumi Serpong Damai BSDE 1.395 1.295 7,7 0,7 (4,8) 11,2 BUY

Charoen Pokphand CPIN 4.940 4.600 7,4 (5,9) (9,8) (31,6) SELL

Surya Citra Media SCMA 1.330 1.265 5,1 (9,5) (16,9) (28,9) BUY

Sarana Menara Nusantara TOWR 730 695 5,0 (0,7) (5,8) 5,8 BUY

Astra Agro Lestari AALI 10.250 9.800 4,6 2,8 (4,2) (13,3) BUY

Japfa Comfeed JPFA 1.565 1.500 4,3 (2,5) (5,4) (27,2) HOLD

Vale Indonesia INCO 3.110 2.990 4,0 5,8 4,7 (4,6) BUY

Alam Sutera ASRI 322 310 3,9 - (4,7) 3,2 BUY

Sampoerna Agro SGRO 2.340 2.260 3,5 2,6 4,5 (1,3) BUY

Sources: Bloomberg

LAGGARDS Price as on Code 07-Aug-19 06-Aug-19 Chg, % w-w, % m-m, % YTD, % Rating

BTPS BTPS 3.190 3.300 (3,3) (7,8) (5,1) 77,7 HOLD

Indo Tambangraya Megah ITMG 15.325 15.700 (2,4) (9,1) (11,9) (24,3) BUY

Kino Indonesia KINO 3.090 3.140 (1,6) (0,3) 8,0 10,4 BUY

BTPN BTPN 3.270 3.320 (1,5) 0,6 (8,7) (4,9) HOLD

Kalbe Farma KLBF 1.415 1.430 (1,0) (4,7) (2,4) (6,9) HOLD

Indosat ISAT 3.330 3.360 (0,9) (1,5) 26,6 97,6 BUY

Waskita Karya WSKT 1.790 1.805 (0,8) (7,3) (8,4) 6,5 BUY

Semen Baturaja SMBR 845 850 (0,6) (11,5) (31,6) (51,7) SELL

Timah TINS 995 1.000 (0,5) (1,5) (4,3) 31,8 BUY

Indocement INTP 21.725 21.825 (0,5) (3,0) (0,1) 17,8 HOLD

Sources: Bloomberg

COVERAGE PERFORMANCE

Equity SNAPSHOT Friday, August 09, 2019

Danareksa Sekuritas – Equity SNAPSHOT

PREVIOUS REPORTS

▪ Indofood CBP Sukses Makmur: Outperforming its rivals

▪ Telkom Indonesia: Meeting takeaways - Upbeat on 2H19 ▪ Strategy: Continuation of the Trend

▪ Vale Indonesia: Quarterly recovery, but weak on a yearly basis ▪ Poultry 2Q19 Guidebook: Margin compression at 7.4 on Richter scale

▪ July 2019 Inflation Update: Softening Further

▪ Alam Sutra Realty: The first to revise down its marketing sales target ▪ XL Axiata: XLent 2Q performance & upward trajectory

▪ Business Sentiment: April-May 2019 Results: Slight Correction on Political Noise ▪ Consumer Confidence: July Results: Resumption of the Uptrend

▪ GDP Outlook: Q2 2019 GDP Outlook: Slowdown in Growth

▪ Semen Indonesia (SMGR): Hit by large interest expenses ▪ Waskita Beton Precast (WSBP): Normalizing margins and cash flow

▪ Waskita Karya (WSKT): Weak results

▪ Indofood CBP Sukses Makmur (ICBP): Solid volume growth in most divisions ▪ Indofood Sukses Makmur (INDF): A good set of results

▪ Harum Energy (HRUM): Soft earnings

▪ Garuda Maintenance Facility(GMFI): Better qoq, but still weak on yoy ▪ Charoen Pokphand Indonesia (CPIN): Margins compression as expected ▪ Malindo Feedmill Indonesia (MAIN): Strong volume offset by lower ASP

▪ Ciputra Development (CTRA): Flat revenues from development property ▪ Ramayana Lestari Sentosa (RALS): In-line despite lower growth

▪ Bekasi Fajar Industrial Estate (BEST): Weak recognition but ample backlog ▪ Surya Semesta Internusa (SSIA): Sufficient land backlog to make a turnaround

▪ Sarana Menara Nusantara (TOWR): Bottom line missed but very bright outlook

Equity SNAPSHOT Friday, August 09, 2019

Danareksa Sekuritas – Equity SNAPSHOT

PT Danareksa Sekuritas

Jl. Medan Merdeka Selatan No. 14 Jakarta 10110 Indonesia Tel (62 21) 29 555 888 Fax (62 21) 350 1709

Equity Research Team S

Sales team

Maria Renata

maria.renata@danareksa.co.id (62-21) 29555 888 ext.3513 Construction

Stefanus Darmagiri

stefanus.darmagiri@danareksa.co.id (62-21) 2955 888 ext. 3530

Auto, Coal, Heavy Equip, Metal

Natalia Sutanto

natalia.sutanto@danareksa.com (62-21) 29555 888 ext.3508

Consumer, Tobacco, Property

Niko Margaronis

niko.margaronis@danareksa.co.id (62-21) 29555 888 ext.3512 Telco, Tower

Helmy Kristanto

helmy.kristanto@danareksa.co.id (62-21) 2955 888 ext. 3500

Head of Research, Strategy

Eka Savitri

Eka.savitri@danareksa.co.id (62-21) 29555 888 ext.3506 Banking

Victor Stefano

victor.stefano@danareksa.co.id (62-21) 29555 888 ext.3503 Poultry, Property

Ehrliech Suhartono

ehrliech@danareksa.co.id (62-21) 29555 888 ext. 3132

Laksmita Armandani

laksmitaa@danareksa.co.id (62-21) 29555 888 ext. 3125

Vera Ongyono

vera.ongyono@danareksa.co.id (62-21) 29555 888 ext. 3120

Tuty Sutopo

tuty@danareksa.co.id (62-21) 29555 888 ext. 3121

Wisnu Budhiargo

Wisnu.budhiargo@danareksa.co.id (62-21) 29555 888 ext. 3117

Upik Yuzarni

upik_y@danareksa.co.id (62-21) 29555 888 ext. 3137

Anetta Hasan

anetta.hasan@danareksa.co.id

(62-21) 29555 888 ext. 3140

Adeline Solaiman

adeline.solaiman@danareksa.co.id

(62-21) 29555 888 ext. 3503

Rendy Ben Philips

rendy.philips@danareksa.co.id (62-21) 29555 888 ext. 3148

Ignatius Teguh Prayoga

ignatius.prayoga@danareksa.co.id (62-21) 29555 888 ext.3511 Media

Andreas Kenny

andreas.kenny@danareksa.co.id (62-21) 29555 888 ext.3509 Retail

Thalia Kadharusman

thalia.kadharusman@danareksa.co.id (62-21) 29555 888 ext. 3124

Muhammad Naufal Yunas

muhammad.yunas@danareksa.co.id (62-21) 29555 888 ext.3507 Research Associate

Equity SNAPSHOT Friday, August 09, 2019

Danareksa Sekuritas – Equity SNAPSHOT

Disclaimer

The information contained in this report has been taken from sources which we deem reliable. However, none of P.T. Danareksa Sekuritas and/or its affiliated companies and/or their respective employees and/or agents makes any representation or warranty (express or implied) or accepts any responsibility or liability as to, or in relation to, the accuracy or completeness of the information and opinions contained in this report or as to any information contained in this report or any other such information

or opinions remaining unchanged after the issue thereof.

We expressly disclaim any responsibility or liability (express or implied) of P.T. Danareksa Sekuritas, its affiliated companies and their respective employees and agents

whatsoever and howsoever arising (including, without limitation for any claims, proceedings, action , suits, losses, expenses, damages or costs) which may be brought against or suffered by any person as a results of acting in reliance upon the whole or any part of the contents of this report and neither P.T. Danareksa Sekuritas, its

affiliated companies or their respective employees or agents accepts liability for any errors, omissions or misstatements, negligent or otherwise, in the report and any liability in respect of the report or any inaccuracy therein or omission there from which might otherwise arise is hereby expresses disclaimed.

The information contained in this report is not be taken as any recommendation made by P.T. Danareksa Sekuritas or any other person to enter into any agreement with regard to any investment mentioned in this document. This report is prepared for general circulation. It does not have regards to the specific person who may receive this report. In considering any investments you should make your own independent assessment and seek your own professional financial and legal advice.