Equity Research

Wednesday, June 17, 2015

Danareksa Sekuritas – Equity Research

FROM RESEARCH

Telekomunikasi Indonesia: Push for other revenue generators (TLKM IJ. Rp 2,870. HOLD. TP Rp 3,050) We attended Telkom’s site visit in Bali where we saw, among others: 1) Telkom’s triple play IndiHome (FTTH) expansion in Bali, 2) Telkomsel’s war room overseeing its operation in Bali and Nusa Tenggara, and 3) a phone retailer with exclusive agreement with Telkomsel to sell starter pack with every purchase of new cellular phone. From our conversation with Telkom’s employee and management, we get the impression that the company’s focus for this year lies with IndiHome where Telkom still sees scope for higher ARPU, albeit lower EBITDA margin for the time being. Telkomsel is also doing well in Bali, grabbing market share in 2Q15 at the expense of XL. We also see some new product from Telkom which we believe is a testament of Telkom’s attempt to avoid the fate of being a dumb channel. But the new businesses are still at their early stage and it remains to be seen if they can emerge as a profit contributor later on.

Previous Reports:

Weekly Report: Not so positive-Snapshot20150616 Construction Sector: May 2015 contracts: Still no surprises-

Snapshot20150615 Jasa Marga: Special discount from government- Snapshot20150615 Retail Sector: Let’s shop-Snapshot20150612 Bukit Asam: Operation of port expansion to increase capacity further-

Snapshot20150612 Waskita Karya: On higher ground-Snapshot20150611

MARKET NEWS

*Analysts’ comment inside

ADHI’s LRT Waits for Ministry of Transportation Approval (BI) AISA to Expand Its Rice Division to Papua (BI) Bulog Accelerate Absorption of Rice from Farmers (ID) CMNP-WIKA Consortium Won Toll Road Tender (BI) CPO export 2.2 million tons (ID) Felda Ready to Buy More Eagle High Stocks (BI) IMF Slashes RI’s Growh Target to 4.7 percent (TJP) KLBF to Select From 3 Contractors (BI) Malindo Targeting Revenues Increase of 10% (BI) WSKT Bagged Rp2.9tn Revenues in 5M15 (BI) 2020, entire BUS Targeted to Own Tier I Capital Above Rp1 trillion (ID)

IDX ANNOUNCEMENT

Cash Announcement

Code Ex-Date Date Payable Amount (Rp)

INTP 22-May-15 17-June-15 1350

KLBF 26-May-15 17-June-15 19

Source: KSEI

MORNING HIGHLIGHT

Key Index

Close

Chg Ytd Vol

(%) (%) (US$ m)

Asean - 5

Indonesia 4,873 0.7 (6.8) 278

Thailand 1,503 0.1 0.4 861

Philippines 7,505 0.7 3.8 160

Malaysia 1,722 0.0 (2.2) 405

Singapore 3,298 (0.8) (2.0) 663

Regional

China 4,887 (3.5) 51.1 -

Hong Kong 26,567 (1.1) 12.5 16,123

Japan 20,258 (0.6) 16.1 11,643

Korea 2,030 0.1 6.0 4,442

Taiwan 9,213 (0.5) (1.0) 2,517

India 26,687 0.4 (3.0) 390

NASDAQ 5,056 0.5 6.7 56,478

Dow Jones 17,904 0.6 0.5 6,330

Currency and Interest Rate

Rate

w-w m-m ytd

(%) (%) (%)

Rupiah (Rp/1US$) 13,348 (0.3) (1.6) (7.7)

SBI rate (%) 6.67 (0.3) (0.3) (0.6)

10y Gov Indo bond 8.67 0.0 0.7 0.9

Hard Commodities

Unit Price

d-d m-m ytd

(%) (%) (%)

Coal US$/ton 58 n/a (2.1) (18.9)

Gold US$/toz 1,182 - (3.4) (0.2)

Nickel US$/mt.ton 12,685 (1.8) (9.0) (15.8)

Tin US$/mt.ton 14,664 (0.8) (6.9) (24.5)

Soft Commodities

Unit Price

d-d m-m ytd

(%) (%) (%)

Cocoa US$/mt.ton 3,233 0.9 1.9 8.8

Corn US$/mt.ton 134 2.4 (1.4) (6.5)

Crude Oil US$/barrel 64 (0.4) (4.7) 11.1

Palm oil MYR/mt.ton 2,253 0.1 2.9 (1.9)

Rubber USd/kg 160 0.4 4.4 5.0

Pulp US$/tonne 852 n/a (0.1) (8.6)

Coffee US$/60kgbag 94 0.0 3.7 9.9

Sugar US$/MT 344 (0.2) (6.4) (12.0)

Wheat US$/mt.ton 182 (0.2) (4.4) (18.2)

Source: Bloomberg

Equity Research

Wednesday, June 17, 2015

Danareksa Sekuritas – Equity Research

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

Agriculture Helmy Kristanto helmyk@danareksa.com (62-21) 2955 824 Automotive Helmy Kristanto helmyk@danareksa.com (62-21) 2955 824 Auto Component Joko Sogie jokos@danareksa.com (62-21) 29555 888 ext.3512 Banking Eka Savitri ekas@danareksa.com (62-21) 29555 888 ext.3509 Cement Helmy Kristanto helmyk@danareksa.com (62-21) 2955 824 Coal Stefanus Darmagiri stefanus.darmagiri@danareksa.com (62-21) 29555 888 ext.3530 Construction Joko Sogie jokos@danareksa.com (62-21) 29555 888 ext.3512 Consumer Jennifer Frederika Yapply jennifer.yapply@danareksa.com (62-21) 29555 888 ext.3508 Heavy Equipment Stefanus Darmagiri stefanus.darmagiri@danareksa.com (62-21) 29555 888 ext.3530 Media Lucky Ariesandi, CFA lucky.ariesandi@danareksa.com (62-21) 29555 888 ext.3520 Metal Mining Stefanus Darmagiri stefanus.darmagiri@danareksa.com (62-21) 29555 888 ext.3530 Pharmaceutical Armando Marulitua armandom@danareksa.com (62-21) 29555 888 ext.3503 Property Anindya Saraswati anindyas@danareksa.com (62-21) 29555 888 ext.3506 Retail Anindya Saraswati anindyas@danareksa.com (62-21) 29555 888 ext.3506 Strategy Helmy Kristanto helmyk@danareksa.com (62-21) 2955 824 Telecommunication Lucky Ariesandi, CFA lucky.ariesandi@danareksa.com (62-21) 29555 888 ext.3520 Transportation Joko Sogie jokos@danareksa.com (62-21) 29555 888 ext.3512 Utilities Lucky Ariesandi, CFA lucky.ariesandi@danareksa.com (62-21) 29555 888 ext.3520 Research Associate Puti Adani putia@danareksa.com (62-21) 29555 888 ext.3511

Sales team

Ermawati A. Erman ermawatiae@danareksa.com (62 21) 29555 888 ext. 3151 Asfarita Andalusia asfarita@danareksa.com (62 21) 29555 888 ext. 3134 Novrita E. Putrianti novrita@danareksa.com (62 21) 29555 888 ext. 3128 Ehrliech Suhartono ehrliech@danareksa.com (62 21) 29555 888 ext. 3132 Yunita L. Nababan yunita@danareksa.com (62 21) 29555 888 ext. 3145 Bram Taarea bramt@danareksa.com (62 21) 29555 888 ext. 3127 Martin Joshua martinjs@danareksa.com (62 21) 29555 888 ext. 3126 Laksmita Armandani laksmitaa@danareksa.com (62 21) 29555 888 ext. 3125 Muhammad Hardiansyah mhardiansyah@danareksa.com (62 21) 29555 888 ext. 3109 Tuty Sutopo tuty@danareksa.com (62 21) 29555 888 ext. 3121 Upik Yuzarni upik_y@danareksa.com (62 21) 29555 888 ext. 3137

Wednesday, 17 June 2015

TELECOMMUNICATION/SITE VISIT

Telekomunikasi Indonesia Push for other revenue generators

We attended Telkom’s site visit in Bali where we saw, among others: 1) Telkom’s triple play IndiHome (FTTH) expansion in Bali, 2) Telkomsel’s war room overseeing its operation in Bali and Nusa Tenggara, and 3) a phone retailer with exclusive agreement with Telkomsel to sell starter pack with every purchase of new cellular phone. From our conversation with Telkom’s employee and management, we get the impression that the company’s focus for this year lies with IndiHome where Telkom still sees scope for higher ARPU, albeit lower EBITDA margin for the time being. Telkomsel is also doing well in Bali, grabbing market share in 2Q15 at the expense of XL. We also see some new product from Telkom which we believe is a testament of Telkom’s attempt to avoid the fate of being a dumb channel. But the new businesses are still at their early stage and it remains to be seen if they can emerge as a profit contributor later on.

Telkom targets 3mn IndiHome subs this year from 200k early this year, of which Bali is expected to contribute 60-70k subs. Telkom said that most of South Bali, where 60% of Bali’s 4mn pops reside, are already fiberized, thus are ready for FTTH. In paper, the target is easily attainable Telkom can also convert Speedy’s subs in Bali which numbered at 57k as of March to IndiHome. We witness a demonstration of service registration, and Telkom promises that new applicant can expect IndiHome to be on line within 3x24 hours. By bundling services, Telkom expects to increase ARPU from IDR120k and trending down under Speedy. Margin may suffer initially as Telkom is still selling IndiHome service at around IDR100-120k below its economical price, but should recover once Telkom gets the critical mass and gradually re-price service.

Currently the lowest IndiHome plan is priced at IDR320k (including set top box rental) for 10MBPS of internet, 1,000 free minutes of local and DLD call, and 99 channels of USeeTV, including premium movies and sports channels such as HBOs, Fox Movies, and BeIn Sports, which we estimate cost around IDR100k in program cost alone. Also included are other perks such as free music streaming for 12 months and free usage of Telkom’s omnipresent Wifi spots for one month. As a comparison, LinkNet’s First Media, charged similar amount for 6MBPS of internet, no free calls, and 106 channels, but no premium movies and sports channels. USeeTV is also interactive, allowing playback for up to seven days, pause and rewind, VoD, and Video Recorder. All in, we believe IndiHome offers a good value proposition and may soon get traction.

We also see Telkom’s MooviGo service, which is a VoD app bundled with Telkomsel’s broadband service. Telkomsel customers can watch Disney Movies on their mobile devices for around USD3/movie, with data consumption for streaming the movie included in the pricing. The app has just 10k downloads and according to Telkom, needs at least 500k users to break even, thus still has a long way to go before it becomes a profit contributor. Telkom is actively negotiating with other large movie distributors to add more content for the app. By introducing this service, we believe Telkom is ahead of competitors in selling content and thus, in avoiding the fate of being a dumb channel in the data era. 2013 2014 2015F 2016F 2017F Revenue, IDRbn 82,967 89,696 96,111 102,204 109,557 EBITDA, IDRbn 41,776 45,844 48,954 51,672 55,364 EBITDA growth, % 5.1 9.7 6.8 5.6 7.1 Net profit, IDRbn 14,205 14,638 15,554 16,458 17,616 Core profit, IDRbn 14,391 14,648 15,554 16,458 17,616 EPS, IDR 147 150 158 168 179 EPS growth, % 10.1 1.6 5.7 5.8 7.0 Core EPS, IDR 149 150 158 168 179 Core EPS growth, % 10.4 0.4 5.7 5.8 7.0 Net gearing, % (2.2) 4.4 (6.9) (14.2) (21.1) PER, x 19.5 19.2 18.1 17.1 16.0 Core PER, x 19.2 19.1 18.1 17.1 16.0 Yield, % 3.0 3.5 3.6 3.9 0.0 EV/EBITDA, x 6.6 6.2 5.7 5.2 0.0

HOLD Target Price, IDR 3,050

Upside 6%

TLKM IJ/TLKM.JK

Last Price, IDR 2,870

No. of shares (bn) 100.8

Market Cap, IDRbn 289,296 (USDmn) 21,673

3M T/O, USDmn 17.9

Last Recommendation

30-Apr-15 HOLD Rp 3,050

10-Mar-15 BUY Rp 3,250

08-Jan-15 BUY Rp 3,250

TLKM relative to JCI Index

Market Recommendation

Consensus

Our Cons % Diff

Target Price, IDR 3,050 3,121 -2

EPS 2015F, IDR 158 169 -7

PE 2015F, x 18 17 7

Lucky Ariesandi, CFA (62-21) 2955 5777 ext 3520 Lucky.ariesandi@danareksa.com Danareksa research reports are also available at Reuters Multex and First Call Direct and Bloomberg.

17 June 2015 Telekomunikasi Indonesia

2

Figure 1. Channel list of USeeTV Figure 2. Other perks of being IndiHome subs

Source: Company Source: Company

Figure 3. Priced similar to First Media service, with more

benefits to boast

Figure 4. Indovision price for movie add-ons

Source: Company Source: Company

Figure 5. Orange TV charge for sports add-ons

Source: Company

Equity Research

Wednesday, June 17, 2015

Danareksa Sekuritas – Equity Research

ADHI’s LRT Waits for Ministry of Transportation Approval (BI)

To be submitted to the president, ADHI’s LRT requires the approval of two relevant ministries, namely the Ministry of SOE and

the Ministry of Transportation. Ministry of SOE has given the approval through the government capital injection worth Rp1.4tn,

hence the company still wait for further approval from Ministry of Transportation at the moment to build the LRT. Yet, both

ADHI as well as Ministry of SOE assured that the groundbreaking target on 17 August 2015 can still be accomplished.

AISA to Expand Its Rice Division to Papua (BI)

Tiga Pilar Sejahtera (AISA) plans to expand its rice business to Papua, by developing rice field and building rice processing plant.

According to Joko Mokoginta, CEO of AISA, the company has been asked by the government to aid the plan to open additional

1mn ha rice field in Papua.

Bulog Accelerate Absorption of Rice from Farmers (ID)

Bulog will accelerate the absorption of rice from farmers to pursue the procurement target of 4 million tons this year set by the

government. Until mid-June 2015, the absorption by Bulog has just reached 1.3 million tons. But in the next two months, the

absorption is expected to reach 2 million tons by coordinating with the Ministry of Agriculture, Ministry of Cooperatives and

SMEs as well as the military, bringing the total procurement to 3.3 million tons. Currently, the stock of rice in Bulog warehouses

recorded at 1.4 million tons.

CMNP-WIKA Consortium Won Toll Road Tender (BI)

Consortium that is made up of Citra Marga Nusaphala Persada (CMNP), Wijaya Karya (WIKA) and Jasa Sarana won the tender for

Soreang-Pasir Koja (Soroja) toll road project. The project will have a total length of 12 km, with Suarmin Tioni, CMNP's Operation

Director, stating that CMNP will most likely obtain 60-70% of the project, WIKA to get 20-25% and the remaining goes to Jasa

Sarana. The consortium soon begin the physical construction of this toll road given current land clearing already above 80%.

Once completed, the Soroja toll road will be interconnected with the existing Padalarang-Cileunyi section, owned by JSMR.

CPO export 2.2 million tons (ID)

Exports of CPO and its derivative products in May 2015 reached 2.22 mn tons, down by 1.7% from the previous month of 2.25

mn tons. The beginning of Ramadhan was not able to support the increase in the consumption from countries with a Muslim

majority population, whereas in previous years this festivity season is a trigger on a surge in consumption that impact

Indonesia's CPO exports. However Gapki on YoY basis revealed that Indonesian CPO exports in January-May 2015 reached 10.1

mn tons, up 26% compared to the same period of the previous year of 8 mn tons.

Felda Ready to Buy More Eagle High Stocks (BI)

Felda Global Ventures (FGV) Holding, ready to acquire shares of Eagle High from Rajawali. Under an agreement on Friday (12/6),

which there had been an urge to cancel it by a parlement member from the opposition parties in Malaysia, Rajawali would sell

37% stake in the Eagle High to FGV and FGV will also acquire a 95% stake of Rajawali’s sugar plantation. Both transactions will be

paid in cash and stock deal worth USD 860mn with the selling price of shares of IDR 780-800 per share. After this transaction,

Rajawali stakes in Eagle High will be 28.51%. FGV chosen as a partner for their experience in the application of downstream

technology.

MARKET NEWS

Equity Research

Wednesday, June 17, 2015

Danareksa Sekuritas – Equity Research

IMF Slashes RI’s Growh Target to 4.7 percent (TJP)

IMF has slashed its estimate on Indonesia’s economic growth to 4.7% for 2015, a growth revision similar to that made by World

Bank on the country’s economy last week. It is the second revision that IMF has made this year after it cut the projection to 5.2%

in May from its original projection of 5.5% made in Oct 2014. Among the components the IMF used for its new projection were

weak trade data and the lackluster 4.7% growth in the first quarter.

KLBF to Select From 3 Contractors (BI)

Kalbe Farma (KLBF) is selecting among 3 contractors from China, South Korea and Australia to help the firm to build a

biopharmacy plant. The company targets the groundbreaking for the site to be commenced on July 2015, and has allocated

US$25-30mn for the project. No other details have been released.

Malindo Targeting Revenues Increase of 10% (BI)

Malindo Feedmill (MAIN) is targeting revenue growth of 10% YoY to IDR 4.95tn, which will be supported by the operation of the

new plant in Makassar and processed food exports to Japan in cooperation with local partners. MAIN allocated IDR 500bn capex

for this year, come from internal cash, which IDR 300bn has been used for plant development.

WSKT Bagged Rp2.9tn Revenues in 5M15 (BI)

WSKT stated that the company’s revenues reached Rp2.9tn in 5M15, up 36%y-y. At the bottom line, WSKT bagged Rp70bn,

three times bigger compared to last year achievement. Up until end of May, the company also has won Rp4.7tn of new

contracts, with the majority still sourced from the private projects.

2020, entire BUS Targeted to Own Tier I Capital Above Rp1 trillion (ID)

FSA targets the entire Sharia Banks (BUS) to own a core capital above Rp1 trillion. Until March 2015, from 12 existing BUS, only 5

BUS that already meet that kind of requirement. In the Indonesia’s Sharia Banking Roadmap 2015-19, the FSA has a policy

direction to strengthen the capital and the operation scale as well as improve the efficiency of Sharia banking, includes by

improving the minimum core capital policy and classification BUKU.

Price Mkt Cap

Target Rp Bn 2015 2016 2015 2016 2015 2016 2015 2016 2015 2016 2015 2016 2015 2015

Danareksa Universe 2,831,345 197,708 225,702 328.3 374.8 11% 14% 14.3 12.5 12.5 11.3 2.5 2.2 18.9

Auto 294,543 24,660 29,165 451.7 534.3 15% 18% 11.9 10.1 9.6 8.3 2.1 1.8 18.6

Astra International HOLD 6,975 8,300 282,373 23,976 28,096 592 694 16% 17% 11.8 10.1 9.9 8.5 2.1 1.8 33.5 19.1

Gajah Tunggal BUY 900 1,500 3,136 266 633 76 182 -1% 139% 11.8 4.9 4.4 4.2 0.5 0.5 80.8 4.4

Selamat Sempurna BUY 4,470 5,300 6,435 419 437 291 303 14% 4% 15.4 14.7 8.9 8.4 4.5 3.9 net cash 32.3

Banks 949,294 84,332 96,420 782.9 895.1 13% 14% 11.3 9.8 2.2 1.9 21.4

BCA HOLD 13,350 14,050 329,144 19,127 21,921 767 879 15% 15% 17.4 15.2 NA NA 3.5 2.9 NA 22.4

BNI BUY 5,500 7,450 102,568 12,142 13,914 651 746 13% 15% 8.4 7.4 NA NA 1.5 1.3 NA 19.1

BRI BUY 10,550 13,800 260,260 27,391 31,497 1,110 1,277 13% 15% 9.5 8.3 NA NA 2.2 1.8 NA 25.2

Bank Tabungan Negara BUY 1,100 1,400 11,624 1,357 1,609 129 153 22% 19% 8.5 7.2 NA NA 0.9 0.8 NA 10.6

Bank Mandiri BUY 9,550 13,600 222,833 22,087 24,946 947 1,069 11% 13% 10.1 8.9 NA NA 1.9 1.6 NA 19.8

Bank Tabungan Pensiunan BUY 3,915 5,450 22,865 2,228 2,533 381 434 19% 14% 10.3 9.0 NA NA 1.6 1.4 NA 17.2

Cement 159,641 12,525 15,375 725 890 7% 23% 12.7 10.4 7.7 6.8 2.4 2.1 20.0

Holcim HOLD 1,460 2,300 11,188 923 1,213 120 158 12% 31% 12.1 9.2 6.5 5.0 1.1 1.0 30.0 9.1

Indocement BUY 20,750 28,300 76,386 5,741 6,595 1,559 1,792 8% 15% 13.3 11.6 7.7 6.5 2.7 2.4 net cash 21.2

Semen Indonesia BUY 12,150 18,800 72,068 5,861 7,567 988 1,276 5% 29% 12.3 9.5 8.0 7.5 2.7 2.3 12.3 23.2

Construction 100,144 4,693 5,888 123 154 28% 25% 21.3 17.0 10.7 9.1 2.9 2.5 15.5

Jasa Marga BUY 5,900 8,200 40,120 1,600 1,877 422 547 25% 30% 14.0 10.8 13.8 12.5 3.2 2.9 116.4 13.4

Wijaya Karya BUY 2,600 4,000 15,988 843 1,004 137 164 37% 19% 18.9 15.9 7.9 6.6 2.7 2.3 8.9 15.4

Pembangunan Perumahan BUY 3,275 4,600 15,859 694 856 143 177 30% 23% 22.9 18.5 9.0 7.4 5.3 4.3 18.0 25.8

Adhi Karya BUY 2,005 3,700 3,612 399 531 221 295 23% 33% 9.1 6.8 5.1 4.4 1.7 1.4 66.5 20.8

Waskita Karya BUY 1,590 2,150 15,763 762 1,129 56 83 8% 48% 28.4 19.2 11.9 9.3 1.8 1.6 14.9 13.1

Wika Beton HOLD 1,010 1,350 8,803 396 491 45 56 32% 24% 22.3 17.9 11.7 9.4 3.5 3.0 net cash 17.1

Consumer 446,924 13,686 15,530 498 565 9% 13% 32.7 28.8 19.5 17.6 8.6 7.8 27.8

Indofood CBP HOLD 12,700 13,800 74,053 3,033 3,308 520 567 16% 9% 24.4 22.4 16.8 15.8 4.7 4.2 net cash 20.3

Indofood BUY 6,575 8,050 57,731 3,811 4,287 434 488 -2% 12% 15.1 13.5 7.2 6.6 2.0 1.9 19.2 14.1

Unilever SELL 40,000 30,000 305,200 6,365 7,332 834 961 11% 15% 48.0 41.6 33.5 29.3 56.6 50.7 net cash 129.7

Nippon Indosari Corpindo HOLD 1,185 1,200 5,998 266 377 53 75 41% 42% 22.5 15.9 13.0 9.1 5.1 4.1 63.0 25.0

Mandom BUY 19,600 19,300 3,941 210 226 1,045 1,126 8% 8% 18.8 17.4 10.1 9.4 2.7 2.5 2.6 15.3

Heavy Equipment 77,575 5,764 6,341 1,261 1,387 4% 10% 13.5 12.2 5.9 5.0 1.8 1.7 14.1

Hexindo Adiperkasa HOLD 2,650 3,650 2,226 220 260 262 309 13% 18% 10.1 8.6 4.8 3.7 0.8 0.8 net cash 8.0

United Tractors HOLD 20,200 22,200 75,349 5,544 6,081 1,486 1,630 3% 10% 13.6 12.4 5.9 5.0 1.9 1.7 net cash 14.5

Healthcare 96,904 2,633 3,039 49 57 11% 15% 36.8 31.9 22.0 18.4 6.7 6.0 19.3

Kalbe Farma HOLD 1,620 1,900 75,938 2,273 2,593 48 55 9% 15% 33.8 29.5 22.1 18.9 7.1 6.3 net cash 22.7

Kimia Farma BUY 970 1,500 5,387 258 313 47 56 12% 19% 20.6 17.3 14.0 11.3 2.7 2.4 2.3 13.5

Siloam Hospital BUY 13,475 15,750 15,578 102 133 89 115 64% 30% 152.1 117.3 26.8 19.9 8.9 8.2 64.2 6.0

Mining 105,828 8,963 10,056 138 155 5% 12% 11.8 10.5 5.4 4.7 1.1 1.0 9.4

Adaro Energy BUY 780 1,150 24,949 2,095 2,202 66 69 2% 5% 11.9 11.3 4.3 3.8 0.7 0.7 33.0 6.2

Timah BUY 740 1,400 5,511 651 765 87 103 40% 18% 8.5 7.2 4.2 3.8 1.0 0.9 10.2 12.4

Vale Indonesia BUY 2,940 4,200 29,213 2,375 2,566 239 258 17% 8% 12.3 11.4 5.6 4.8 1.3 1.3 2.6 11.0

Aneka Tambang HOLD 725 1,100 6,915 194 400 20 42 -148% 106% 35.6 17.3 13.8 10.3 0.5 0.5 62.8 1.6

Bukit Asam BUY 9,250 13,500 21,313 1,746 1,939 803 892 -13% 11% 11.5 10.4 8.3 7.2 2.3 2.1 net cash 19.7

Indo Tambangraya Megah HOLD 13,125 16,000 14,830 1,782 1,982 1,577 1,755 -15% 11% 8.3 7.5 3.7 3.4 1.4 1.4 net cash 18.0

Harum Energy HOLD 1,145 1,750 3,096 119 202 44 75 -53% 69% 26.0 15.4 1.9 1.4 0.8 0.8 net cash 3.1

Plantation 60,166 5,510 5,938 211 227 11% 8% 10.9 10.1 5.9 5.3 1.6 1.5 14.9

Astra Agro Lestari BUY 22,900 27,100 36,062 2,770 2,832 1,759 1,798 4% 2% 13.0 12.7 7.8 7.3 3.1 2.8 net cash 24.5

Sampoerna Agro BUY 1,795 2,600 3,393 464 550 245 291 18% 19% 7.3 6.2 4.8 4.1 1.0 0.9 31.8 14.5

PP London Sumatra HOLD 1,610 2,090 10,985 1,055 1,133 155 166 8% 7% 10.4 9.7 5.3 4.5 1.4 1.3 net cash 13.9

Salim Ivomas Pratama BUY 615 850 9,727 1,221 1,423 77 90 33% 17% 8.0 6.8 4.2 3.7 0.6 0.6 37.6 8.2

Property 75,551 5,943 6,634 80 89 -25% 12% 12.7 11.4 9.6 8.5 1.7 1.5 14.4

Alam Sutera BUY 515 700 10,119 1,254 1,516 64 77 15% 21% 8.1 6.7 8.0 6.8 1.4 1.2 75.3 18.9

Bumi Serpong Damai BUY 1,665 2,100 32,046 2,369 2,617 135 150 -36% 10% 12.3 11.1 10.7 9.4 2.1 1.9 net cash 16.6

Metropolitan Land BUY 404 620 3,062 290 322 38 43 14% 11% 10.5 9.5 7.2 6.7 1.4 1.2 27.7 14.2

Surya Semesta Internusa HOLD 1,025 1,040 4,823 464 415 99 88 32% -11% 10.4 11.6 4.7 4.8 1.6 1.5 net cash 16.9

Lippo Karawaci BUY 1,105 1,200 25,501 1,565 1,763 72 82 -38% 13% 15.3 13.6 11.7 10.0 1.6 1.5 29.1 10.1

Telco & Infrastructure 435,592 19,454 22,656 142 166 25% 16% 22.4 19.2 6.5 5.9 3.6 3.3 17.1

XL Axiata BUY 4,050 4,710 34,593 356 680 42 80 -140% 91% 97.0 50.8 6.3 5.7 2.4 2.3 120.7 2.5

Indosat BUY 3,960 4,200 21,518 312 588 57 108 -152% 89% 69.0 36.6 3.8 3.4 1.3 1.3 132.4 2.0

Telkom HOLD 2,870 3,050 289,296 15,554 16,458 158 168 6% 6% 18.1 17.1 5.8 5.4 4.0 3.7 net cash 22.1

Sarana Menara Nusantara BUY 4,000 4,525 40,812 1,702 2,121 167 208 35% 25% 24.0 19.2 12.0 10.2 6.3 5.0 107.9 29.8

Tower Bersama HOLD 8,600 8,725 41,250 1,528 2,387 300 429 9% 43% 28.6 20.0 15.7 12.5 3.5 2.9 129.0 19.3

MNC Sky Vision HOLD 1,150 1,410 8,123 2 423 0 60 -101% 19638% 3,790.2 19.2 8.1 6.7 5.0 3.9 150.1 0.1

Tranportation 19,767 1,253 1,554 501 621 62% 24% 15.8 12.7 8.9 7.3 4.5 3.5 32.3

Blue Bird BUY 7,900 12,200 19,767 1,253 1,554 501 621 62% 24% 15.8 12.7 8.9 7.3 4.5 3.5 47.8 32.3

Utility 101,208 11,088 10,313 457 425 3% -7% 9.1 9.8 6.1 6.6 2.5 2.2 28.7

PGN BUY 4,175 6,650 101,208 11,088 10,313 457 425 3% -7% 9.1 9.8 6.1 6.6 2.5 2.2 net cash 28.7

Retail 24,878 1,091 1,385 42 53 11% 27% 22.8 18.0 10.5 8.8 2.8 2.5 12.6

Mitra Adi Perkasa BUY 5,550 6,525 9,213 287 492 173 296 284% 72% 32.1 18.7 9.6 7.6 3.3 2.8 111.8 10.7

Ramayana SELL 685 660 4,861 243 255 34 36 -31% 5% 20.0 19.1 9.6 8.8 1.4 1.4 net cash 7.2

Ace Hardware BUY 630 780 10,805 561 638 33 37 2% 12% 19.1 17.0 12.7 10.8 3.8 3.2 net cash 21.7

PBV (x)Equity

Valuation Rating Price (Rp)

Net profit, Rp bn EPS (Rp) EPS Growth PER (x) EV / EBITDA (x) ROENet Gearing

Equity Research

Wednesday, June 17, 2015

Danareksa Sekuritas – Equity Research

LEADERS Price as on

Code 16-Jun-2015 15-Jun-2015 Chg, % w-w, % m-m, % YTD, % Rating

Bank Rakyat Indonesia BBRI 10,550 10,150 3.9 0.7 (10.6) (9.4) BUY

Wika Beton WTON 1,010 975 3.6 0.5 (7.8) (22.3) HOLD

Adhi Karya ADHI 2,005 1,940 3.4 (8.2) (26.7) (42.4) BUY

Bumi Serpong Damai BSDE 1,665 1,615 3.1 (4.3) (13.3) (7.8) BUY

Metropolitan Land MTLA 404 392 3.1 (2.4) (2.7) (9.2) BUY

Ramayana RALS 685 665 3.0 0.7 (11.0) (13.3) SELL

Bank Negara Indonesia BBNI 5,500 5,375 2.3 (5.2) (18.2) (9.8) BUY

Telkom TLKM 2,870 2,810 2.1 1.4 1.1 0.7 HOLD

Alam Sutera ASRI 515 505 2.0 (1.9) (18.9) (8.0) BUY

Wijaya Karya WIKA 2,600 2,550 2.0 (7.1) (16.0) (29.3) BUY

Sources: Bloomberg

LAGGARDS Price as on

Code 16-Jun-2015 15-Jun-2015 Chg, % w-w, % m-m, % YTD, % Rating

Gajah Tunggal GJTL 900 950 (5.3) (10.0) (14.3) (36.8) BUY

Selamat Sempurna SMSM 4,470 4,625 (3.4) (4.9) (4.0) (5.9) BUY

Tower Bersama TBIG 8,600 8,875 (3.1) (3.4) (6.5) (11.3) HOLD

Jasa Marga JSMR 5,900 6,000 (1.7) (3.3) (4.1) (16.3) BUY

Ace Hardware ACES 630 640 (1.6) 1.6 (10.0) (19.7) BUY

Blue Bird BIRD 7,900 8,000 (1.3) (1.3) (4.5) (16.2) BUY

Semen Indonesia SMGR 12,150 12,300 (1.2) (3.4) (8.6) (25.0) BUY

Lippo Karawaci LPKR 1,105 1,115 (0.9) (3.9) (13.7) 8.3 BUY

Mitra Adi Perkasa MAPI 5,550 5,600 (0.9) - 3.3 9.4 BUY

XL Axiata EXCL 4,050 4,085 (0.9) 4.4 3.3 (16.8) BUY

Sources: Bloomberg

COVERAGE PERFORMANCE

Equity Research

Wednesday, June 17, 2015

Danareksa Sekuritas – Equity Research

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