COMPANY FOCUS PT Trimegah Securities Tbk - www.trimegah.com 1

Revenue growth target of 10-12%YoY MTDL’s business (and sales contribution) are as follows: Information and

communication technology (ICT) distribution ~75-80%, ICT solution ~15-18%, consulting ~5%, and retail (insignificant contribution). The

retail segment includes e-commerce (metrodataonline.com). MTDL targets 2015E and 2016E topline to grow 10-12%YoY. It targets same revenue growth rate for its major businesses (Distribution and Solution). Market leader in ICT Distribution Business MTDL is still the market leader in ICT distribution business. Its ICT distribution (GPM ~5%) business is a JV 50% with Synnex from Taiwan.

Pricing is set by the principals. To achieve targeted 10-12%YoY growth, the company plan to focus in diversifying products and be more agressive (better relationship with customers, grab competitor’s market

share). MTDL also intends to focus in smartphone products. Last year’s revenue growth was supported by launching ASUS’ smartphone (Zenphone). Top sales by product includes: PCs, notebooks, printer,

server & storage. Top brands includes: HP, Asus, Lenovo, Oracle, and Dell. Providing ICT Solutions for Enterprises ICT Solution Business (GPM ~15%) clients are corporate and enterpris-es. MTDL said that majority of national companies are their clients. The company’s growth strategy for solution business is by directing its prod-

ucts based on “5 Development Pillars”: Cloud Computing, Mobility, Big Data, Social Media, and Security.

Most of capex to be leased to its customers 2015E capex is Rp150bn with expected growth of 10-20%YoY. ~93-97% of MTDL’s capex plan is allocated for equipment to be leased to its cus-tomers (part of the projects with the customers). Majority of the capex

is financed through bank loans. Margin expansion strategy MTDL’s strategies to expand overall margin are: Selling more new brands (typically better margin than old brand), improve product mix to sell more services and software, and targeting more small and medium

enterprises (typically more margin than big enterprises).

Valuation The company targets its bottom line to grow 12%YoY in 2015E and 2016E, supported by same net income growth rate target for its distri-bution and solution businesses. If we annualize 9m14 target and apply 12% growth in 2015 (as per company target), we arrive at Rp163bn net

profit in 2015 which implies 9.0x PE.

Established in 1983, MTDL is one of the leading ICT companies in Indonesia. MTDL has built strategic partnership with world-class ICT companies, such as HP, Cisco, Dell, Microsoft, Oracle, etc.

Share Price 655

Sector Consumer

Year end Dec 2011 2012 2013 9M13 9M14

Revenue (Rp bn) 4,409 5,173 7,325 4,981 5,926

Gross profit (Rp bn) 379 428 564 396 463

Opr. profit (Rp bn) 159 200 299 201 247

Net profit (Rp bn) 37 80 114 74 109

Gross margin (%) 8.6% 8.3% 7.7% 7.9% 7.8%

Opr. margin (%) 3.6% 3.9% 4.1% 4.0% 4.2%

Net margin (%) 0.8% 1.5% 1.6% 1.5% 1.8%

Metrodata Electronics Flash Note

NOT RATED

Paula Ruth

(paula@trimegah.com)

Feb 27, 2015

Reuters Code MTDL.JK

Bloomberg Code MTDL.IJ

Issued Shares (m) 2,246

Mkt Cap (Rpbn) 1,471

Avg. Value Daily 1.1

52-Wk range (Rp) 700 / 295

PT Ciputra Copora 25.0%

Ir. Hiskak Secakusuma, SE MM. 14.7%

Others 9.1%

Public 51.2%

Top IT Distributor & Solution Provider

Company Update

Stock Data

Major Shareholders

Stock Price

Companies Data

-

5

10

15

20

25

30

-

100

200

300

400

500

600

700

800

Feb-14 Apr-14 Jun-14 Aug-14 Oct-14 Dec-14

(mn)

Mill

ions

(Rp)Volume (RHS) Price (LHS)

PT Trimegah Securities Tbk - www.trimegah.com COMPANY FOCUS 2

Source: TRIM Research

Figure 2. MTDL’s Distribution Business - Regions

Source: Company

Figure 1. MTDL’s Structure (2013)

PT Trimegah Securities Tbk - www.trimegah.com COMPANY FOCUS 3

Source: TRIM Research

Figure 3. Metrodata Solution Day (Sep 2014) at Jakarta

Keeping Good Relationship with Customers — “Metrodata Solution Day” Event

Since 2009, the company held annual event (“Metrodata Solution Day”) for corporate end users. This event com-

prises of forums (main sessions) and products exhibitions / booths for customers to learn about IT trends and

MTDL’s products & services. In the main session, MTDL’s President Director gave welcoming speech to open the

event. Starting 2013, the event is held for 2 days, longer than previously only 1 day. During our visit to the

event last September, the venue (2 floors) was crowded. According to MTDL, there were ~1,000-1,200 visitors

(representing ~700 companies) per day. We met with several visitors, including IT people from companies and

Executive level of IT Audit Services from one of The Big Four Public Accounting Firms.

PT Trimegah Securities Tbk

Gedung Artha Graha 18th Floor

Jl. Jend. Sudirman Kav. 52-53

Jakarta 12190, Indonesia

t. +62-21 2924 9088

f. +62-21 2924 9150

www.trimegah.com

DISCLAIMER

This report has been prepared by PT Trimegah Securities Tbk on behalf of itself and its affiliated companies and is provided for information

purposes only. Under no circumstances is it to be used or considered as an offer to sell, or a solicitation of any offer to buy. This report has

been produced independently and the forecasts, opinions and expectations contained herein are entirely those of Trimegah Securities.

While all reasonable care has been taken to ensure that information contained herein is not untrue or misleading at the time of publication,

Trimegah Securities makes no representation as to its accuracy or completeness and it should not be relied upon as such. This report is

provided solely for the information of clients of Trimegah Securities who are expected to make their own investment decisions without reliance

on this report. Neither Trimegah Securities nor any officer or employee of Trimegah Securities accept any liability whatsoever for any direct or

consequential loss arising from any use of this report or its contents. Trimegah Securities and/or persons connected with it may have acted

upon or used the information herein contained, or the research or analysis on which it is based, before publication. Trimegah Securities may in

future participate in an offering of the company’s equity securities.