Banking Cement Consumer Staples Coal Construction Media Plantation Property Retail Telecommunication Tobacco

(1)

SMART MONEY

June 2018

By:

Evan Lie Hadiwidj aj a

(2)

BANKING SECTOR

H e a t M a p

Source: KSEI , Sinarm as I nvest m ent Research

D e gr e e of ch a n ge s in ow n e r sh ip

+

-Loca l PF

Loca l M F

Loca l I S

Loca l I B

Fore ign PF

Fore ign M F

Fore ign I S

Fore ign I B

Ba nk ing

Ce m e nt

Consum e r St a ple s

Coa l

Const ruct ion

M e dia

Pla nt a t ion

Prope rt y

Re t a il

Te le com m unica t ion

Toba cco

N ot e s:

(3)

BANKING SECTOR

Ba n k in g Se ct or

Av e r a ge for e ign ow n e r sh ip in t h e ba n k in g se ct or

Av e r a ge loca l m u t u a l fu n d ow n e r sh ip

Av e r a ge loca l pe n sion fu n d ow n e r sh ip

Av e r a ge for e ign m u t u a l fu n d ow n e r sh ip

We see cont inuous for eign capit al out flow due t o r ecent curr ency inst abilit y . How ev er, w e observ e gradual accum ulat ion

fr om local PF and MF back ed by an incr easingly at t ract ive valuat ion. Going forward, w e expect credit expansion t o accelerat e

st em m ed by rising dom est ic consum pt ion and posit ive changes in social assist ance program s.

Source: KSEI , Sinarm as I nvest m ent Research

75.2%75.6% 74.8%75.0% 75.1%

75.6%

71.1%71.5% 71.7%71.1% 70.3%

% Foreign Ownership

5.3%

Average of % local PF

6.7%

Average of % local MF

17.2% 16.4%

17.4% 17.3%

18.9% 19.1% 18.9% 19.2% 18.9% 18.9% 18.8% 18.7% 19.0% 19.0% 18.8% 18.7% 19.1% 19.8% 20.1%20.4%

21.0%21.5%

22.1% 22.4% 22.4%22.7% 22.7% 23.0% 23.7%

24.8% 25.1%25.9% 25.8% 25.6% 26.1% 26.1% 26.2% 26.1% 26.7% 26.4% 26.2%_25.7%

25.2%_24.7%

(4)

Source: KSEI , Sinarm as I nvest m ent Research

Despit e gradual accum ulat ion fr om for eign MF, we have not seen dist inct m ov em ent fr om local PF and MF as out look

rem ains uncert ain due t o ov er supply in t he indust ry. While t he m aj orit y of t he cem ent player s had int ended t o incr ease t he

ASP, we see m arket share and m argin t o be challenged by com pet it ion from newcom ers and rising coal prices.

BANKING SECTOR

Ce m e n t Se ct or

77.8% 78.6%79.0%

79.4% 78.6%

77.4%77.8%77.6%77.9% 77.7%

77.4% 77.5% 77.3% 77.1%76.9%_{76.6% 76.8%}77.4% 77.9%_{77.6% 77.8%}

79.3% 83.9%_83.6%

85.2%_{84.9% 85.0% 85.0%}85.6% 85.5% 85.4% 85.9%86.3%85.8% 85.8%

85.2%85.7%85.5% 85.5%

86.2% 86.1% 86.3% 86.3% 86.4% 86.1%

70.0% 72.0% 74.0% 76.0% 78.0% 80.0% 82.0% 84.0% 86.0% 88.0%

% Foreign Ownership

4.1% 3.8%4.0%

4.2% 4.6%

5.5% 5.5% 5.5% 5.5% 5.5% 5.6% 5.5% 5.5% 5.4% 5.4% 5.5% 5.5% 5.4% 5.4%5.7%5.6% 5.6%

5.4% 5.4% 5.3% 5.4% 5.3% 5.3%5.3% 5.3% 5.3% 5.2%

5.2% 5.2% 5.1% 5.1%5.1% 5.0%5.2% 5.2% 5.2% 5.2% 5.2% 5.2% 5.2%

0.0% 1.0% 2.0% 3.0% 4.0% 5.0% 6.0%

5.0%_4.9% 4.4%

4.1% 4.6%

3.9%

3.8% 3.9% 3.7%3.7% 3.8% 3.7% 3.9%

4.3% 4.5%

4.2% 4.0%

3.6% 3.2%

3.0% 2.8% 2.8% 2.8% 2.8%

2.6% 2.4%

2.2% 2.0%

1.8% 1.7% 1.7% 1.7% 1.7% 1.8% 2.1%

2.4% 2.3% 2.4%2.4% 2.2% 2.2%

2.0% 2.0% 1.9% 2.0%

0.0% 1.0% 2.0% 3.0% 4.0% 5.0% 6.0%

16.9% 17.2%17.4% 17.9% 17.7%

16.2% 16.5% 18.0%

18.9% 19.0% 18.8%

18.4%18.7% 18.7% 18.5% 18.4%18.2% 18.2% 18.2% 18.4% 18.3%18.8% 19.2%

18.8%19.2% 19.4%

19.6% 19.8%20.1% 19.8%19.6%20.0% 20.4%19.6% 19.8% 19.5%19.9% 20.0% 20.1%20.3% 20.6%20.9% 20.9% 20.7% 21.5%

0.0% 5.0% 10.0% 15.0% 20.0% 25.0%

Average of % foreign MF

Av e r a ge for e ign ow n e r sh ip in t h e ce m e n t se ct or

Av e r a ge loca l m u t u a l fu n d ow n e r sh ip

(5)

Source: KSEI , Sinarm as I nvest m ent Research

Ther e has been a const ant st ruggle bet ween local and for eign ownership in t he sect or , which r epr esent 48% and 52%

respect ively. Nonet heless, w e cont inue t o like t he sect or driven by bet t er consum pt ion and at t ract ive risk/ reward from a

valuat ion st andpoint .

BANKING SECTOR

Con su m e r St a ple s Se ct or

61.2% 61.6% 63.8% 64.5% 63.9% 63.6%

62.6% 61.8% 61.3%_{60.9% 60.1% 60.3% 60.4% 60.2% 60.0% 59.8% 60.1% 59.6% 59.7% 59.7% 60.2% 61.1%}62.0% 62.0% 59.0%_57.6%

55.6% 55.2% 54.7% 54.4% 54.2% 55.5% 54.2% 54.3% 54.0%_{53.6% 53.9% 53.8% 53.7% 53.9% 53.4% 53.5% 52.8% 52.3%} 51.8%

0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0%

% Foreign Ownership

3.4% 3.2%

3.9%4.1% 4.1% 4.0%

4.4% 4.5%4.5% 4.6%4.7% 4.7% 4.6%4.5% 4.4% 4.3% 4.2% 4.2%_4.0%

3.8% 3.7% 3.7% 3.4%_3.3%

3.8% 4.2%

4.6%4.7% 5.1% 5.2%

5.4%_5.3% 5.8%

6.5% 6.4% 6.4% 6.5%6.7% 6.9%7.1%

7.5%7.8% 7.8% 7.9% 8.0%

0.0% 1.0% 2.0% 3.0% 4.0% 5.0% 6.0% 7.0% 8.0% 9.0%

9.1% 9.2%

7.1% 7.1% 7.0% 7.9%8.1%

8.8%9.1% 9.3%

9.9% 9.8%

9.5% 9.5% 9.7%9.9% 9.9% 10.0% 10.1%10.3%9.9%

9.1% 8.6%

8.3% 9.7%

10.2% 11.0% 11.1%

10.8% 10.6%10.5% 10.6% 10.6% 10.2%10.6%

10.9% 10.9% 10.7%_10.6% 10.2% 10.2%10.5% 10.6%

10.8% 10.8%

0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0%

15.5% 16.1%

13.1%_12.8%_{13.0% 12.8%} 12.5% 12.3%12.1%

11.5%

11.0% 10.9% 11.0%11.3% 11.2% 11.3%11.6% 11.4% 11.5% 11.6% 11.7%

12.0% 12.1% 11.8%12.5%12.1% 11.9%

11.7% 11.5% 11.4% 11.5%11.8% 11.8% 11.9% 11.9% 11.7%

11.3% 11.4% 11.5% 11.3% 11.2% 10.9% 10.9%

10.5% 10.4%

0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% 14.0% 16.0% 18.0%

Av e r a ge for e ign ow n e r sh ip in t h e con su m e r st a ple s se ct or

Av e r a ge loca l m u t u a l fu n d ow n e r sh ip

(6)

Source: KSEI , Sinarm as I nvest m ent Research

Gradual accum ulat ion is seen fr om for eign MF despit e r educt ion fr om local PF. We r em ain bullish on t he sect or as coal price

rem ained st r ong during June boost ed by rising dem and fr om sum m er season. Not e t hat Newcast le coal price reached

$114/ Mt at t he end of June, increased by 4% m om .

BANKING SECTOR

Coa l Se ct or

42.5%_41.7%43.0% 43.5%44.3%

45.7% 45.7% 45.1% 45.1% 45.4%46.2% 46.1%_45.3% 44.2%

43.0% 43.2%44.1% 42.6% 41.9%_40.9%

40.0% 40.5% 40.3% 38.2%

35.1% 35.7% 35.3% 34.7%

33.4% 33.8% 33.5% 34.0%34.3% 34.6%

35.0%_34.0%35.0% 34.7% 34.7% 35.5%37.0% 36.8% 36.5% 37.2% 37.6%

% Foreign Ownership

6.1% 6.0%

6.3%

11.9% 9.8%

12.8% 12.9% 10.9%11.1% 11.1%

11.6% 11.8% 11.8% 12.5% 12.4%

11.7%12.0% 12.2%

0.0%

Av e r a ge for e ign ow n e r sh ip in t h e coa l se ct or

Av e r a ge loca l m u t u a l fu n d ow n e r sh ip

(7)

CONSTRUCTION SECTOR

Source: KSEI , Sinarm as I nvest m ent Research

We see a slight upt ick in for eign MF ownership paired wit h local PF cont inuing t heir upward t r end in accum ulat ing owner ship

despit e flat ov erall st ock perform ance in t he sect or. We believe bot h foreign MF and local PF will cont inue t heir accum ulat ion

as new cont ract and P&L achievem ent t end t o accelerat e during t he second half of t he year.

BANKING SECTOR

32.3% 32.5%33.4%32.1% 31.8%33.4%32.5% 34.8%

36.7% 37.1% 35.8%

37.4% 37.8%38.5% 39.0%37.6%38.7% 41.2%

42.6% 39.4% 39.0%

37.8% 37.2% 36.5% 36.9%38.1%

38.9%40.3% 40.2% 40.0% 39.7% 39.8% 41.3% 40.7%

39.5%40.4% 40.2% 38.7% 38.3%37.7%

36.6%

% Foreign Ownership

8.2%

20.6% 25.1%

22.2% 22.3% 28.9%

25.8%_25.3%26.1%

24.6%25.1% 25.0% 25.2% 24.9% 24.9% 24.8% 25.3%24.3%_23.7%24.6% 24.2%23.8% 21.8%

19.8% 19.4% 19.3% 19.1% 19.7%20.0% 18.3%

16.6% 15.3%

14.2% 14.0% 14.3% 13.6% 13.5%_{13.2% 13.0%}13.7% 15.9%

17.4%18.0% 17.2% 16.8% 16.7%

0.0%

7.3%

10.7%11.0%10.5% 12.1% 12.2% 12.2% 12.2%

11.4%

12.4%12.7%_{12.4% 12.3% 12.3% 12.3% 12.1% 12.4% 12.4%} 12.0% 12.2%

12.7% 12.7%12.9% 13.4%13.6%

13.2% 13.0%_12.7%13.0%

0.0%

Av e r a ge for e ign ow n e r sh ip in t h e con st r u ct ion se ct or

Av e r a ge loca l m u t u a l fu n d ow n e r sh ip

(8)

We see for eign owner ship inched downward due t o a huge dr op fr om for eign individual in MNCN. How ev er, we see

accum ulat ion from local PF, MF and foreign MF.

BANKING SECTOR

M e dia Se ct or

Source: KSEI , Sinarm as I nvest m ent Research

22.5% 22.8%

24.0% 26.6%

28.9%

30.1%30.8% 30.3% 30.6% 30.6% 30.2% 30.1% 30.2% 30.4% 30.5% 30.2% 30.4% 30.6%31.1% 31.4%

32.0% 32.3% 32.4%33.5% 33.2%32.4% 32.4% 32.3% 32.5% 32.4% 32.4% 32.6% 32.5% 32.5% 32.8% 32.9%33.3% 33.8% 33.2% 32.9% 32.9% 32.5% 32.7% 33.5% 32.8%

0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 35.0% 40.0%

% Foreign Ownership

0.7% 0.6% 0.6%

0.7% 0.7%

0.5%

0.4%0.4% 0.4% 0.4% 0.4% 0.4%

0.4% 0.4% 0.4% 0.4%0.4% 0.4% 0.4% 0.4% 0.4%

0.4% 0.4% 0.4% 0.4% 0.4%_0.4%0.4% 0.4% 0.4%0.4% 0.4% 0.4% 0.4%

0.4%_0.4% 0.3%0.4% 0.4%

0.3%_{0.3% 0.3% 0.3% 0.3%} 0.4%

0.0% 0.1% 0.2% 0.3% 0.4% 0.5% 0.6% 0.7% 0.8%

3.3% 3.2%

2.9%_2.9% 3.2%

2.6% 2.5%

2.4%

2.3% 2.3% 2.4%2.4% 2.4% 2.5%2.5%

2.7% 2.6%

2.5%_{2.4% 2.4%}2.5%_2.4% 2.3%

2.1% 2.3%

2.4%_2.4% 2.3%

2.1% 2.0%_2.0%

1.8% 1.8% 1.8% 1.5% 1.4%

1.3%1.4% 1.6%

1.8% 2.2% 2.3%2.3%

2.4%2.5%

0.0% 0.5% 1.0% 1.5% 2.0% 2.5% 3.0% 3.5%

6.9% 6.5%

7.8% 9.0%9.3% 9.4%

9.9%10.1% 10.2% 10.0% 9.9%

9.6% 9.6% 9.7% 9.6%_9.3% 8.7%

8.4% 8.4% 8.8%9.0% 9.0%9.2%

9.3% 9.4% 9.5% 9.0% 9.0% 9.0% 8.9%

8.7% 8.6%8.9%9.1%_{8.7% 8.8%}8.9% 8.4%

7.8% 7.7%7.9% 8.4% 8.6%_8.2%

8.9%

0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0%

Av e r a ge for e ign ow n e r sh ip in t h e m e dia se ct or

Av e r a ge loca l m u t u a l fu n d ow n e r sh ip

(9)

No significant m ov em ent as w e see lack of cat alyst in t he sect or. We r em ain neut ral on t he sect or on t he back of w eak CPO

price which pot ent ially leads t o poor profit abilit y from CPO plant ers ( AALI and LSI P) .

BANKING SECTOR

Pla n t a t ion Se ct or

Source: KSEI , Sinarm as I nvest m ent Research

46.8% 41.3% 42.1%42.3% 41.5%

44.1%

42.9%_{41.9% 42.0%}44.0%45.5% 44.7%42.2% 37.1% 37.0%

35.2%

33.9% 33.7% 34.4% 34.6% 34.4%34.7% 35.1% 34.3%

36.5% 36.4% 36.9% 35.8%35.0%36.0% 36.5% 36.2% 35.9%37.0% 37.0% 37.2% 36.6% 36.4%

0.0%

% Foreign Ownership

7.3% 6.8%7.0%

11.1% 12.8%_12.6%12.9%

12.5% 12.6% 12.6%12.9% 12.8%

11.7% 11.5% 11.6% 11.5% 11.4%11.2% 11.2% 11.7%

12.4% 12.4% 12.5% 13.4% 13.5%

12.7% 12.5%12.8% 12.7% 12.7%12.5%

12.1% 12.1% 12.1%11.9% 12.0% 12.1% 12.1%

13.7% 13.7% 13.6% 13.5% 13.5% 13.6% 13.6%

0.0%

17.5% 15.6% 15.5% 15.6%

16.9% 16.8% 17.0% 14.5% 10.3% 10.5% 10.4%

9.3%

14.5% 17.1%17.6%

12.8% 11.8% 11.9%

11.4% 11.4%11.1% 12.2% 12.2%

13.5% 13.7% 13.5% 12.3% 12.5%

11.9%_11.5%11.8%12.4% 12.7% 12.9%

12.3% 12.3% 11.8%12.3% 12.3%

12.6% 12.6% 12.5%13.0% 13.0% 12.9% 13.2% 13.3%13.6%

14.1% 14.0% 14.1%

0.0%

Av e r a ge for e ign ow n e r sh ip in t h e pla n t a t ion se ct or

Av e r a ge loca l m u t u a l fu n d ow n e r sh ip

(10)

We see an incr ease in local MF owner ship as BI r elaxed m acr o prudent ial policy, which will be applied st art ing August 1

st

_,

2018, t o give a br eat h of fr esh air t o t he sect or. We ar e caut iously opt im ist ic on t he sect or as we believe t he r elaxat ion will

ease developers’ cash flow and support supply- dem and.

BANKING SECTOR

Pr ope r t y Se ct or

Source: KSEI , Sinarm as I nvest m ent Research

46.3%47.5% 47.6% 47.6%46.1% 46.9%47.3%46.3%47.3% 46.9% 46.6% 46.6% 46.9% 46.3% 46.4% 46.3% 46.9%47.9% 48.1% 47.8% 47.7%

48.8% 49.4% 48.9% 49.3% 48.7% 48.8%_{47.5% 47.9% 48.3%}49.1% 49.8% 44.5%

42.3% 42.2% 41.7% 40.0%

38.8%

35.0% 35.2% 34.9% 34.7% 34.7% 34.6% 34.3%

0.0%

% Foreign Ownership

2.3%

7.5% 7.5%

4.9%

Av e r a ge for e ign ow n e r sh ip in t h e pr ope r t y se ct or

Av e r a ge loca l m u t u a l fu n d ow n e r sh ip

(11)

RETAIL SECTOR

Source: KSEI , Sinarm as I nvest m ent Research

For eign flow has been st abilizing backed by SSSG im pr ov em ent , which r eflect s st r onger pur chasing pow er com par ed t o prior

year s. I n addit ion, we expect bet t er operat ing efficiency driven by new m er chandising sy st em being im plem ent ed and

non-perform ing st ore closures.

BANKING SECTOR

67.7%_67.5%67.8% 68.0%

68.3%_68.1%

65.2% 65.2% 65.0% 63.9%

64.6% 65.1%

64.2% 62.9% 62.9% 63.0%

63.7% 63.2%

62.8%63.2% 61.9%

61.7% 61.7% 62.6%_62.3%62.8%

64.7%

% Foreign Ownership

1.9%

7.5%

18.3%19.1% 19.7%

21.1% 22.3%

23.9%

23.3% 23.0% 23.3% 23.5%23.7% 23.4% 23.3%24.2%

24.9% 25.1%25.5% 25.2% 25.0%25.9% 26.4% 26.4%27.2%

27.8%28.7%

29.2% 29.1% 29.1% 29.0% 29.4% 29.3% 29.6%29.9% 30.0% 29.9%29.4% 29.3%28.8% 28.8%

30.2% 30.5% 30.4%31.0%_{29.9% 29.6%}

0.0%

Av e r a ge for e ign ow n e r sh ip in t h e r e t a il se ct or

Av e r a ge loca l m u t u a l fu n d ow n e r sh ip

(12)

TELECOMMUNICATION SECTOR

Source: KSEI , Sinarm as I nvest m ent Research

Ov er sold and at t ract ive. We see st r ong accum ulat ion fr om local MF despit e t he decline in for eign ownership. Meanwhile, w e

t urn bullish on t he sect or as t elco players hav e incr eased t heir dat a pricing, which will be a r elief t o t heir m argins and give

85.4%86.0% 86.1% 85.9%

86.5% 86.5%87.0% 86.8% 86.7% 86.3% 86.0%85.8%

86.9%_{86.6% 86.6%} 84.3%84.7%

85.5% 85.0%

84.2% 85.2%

84.0% 83.8% 83.7% 83.2% 83.0%83.4%

84.3% 84.0%

83.2% 82.4%

81.5%

79.7%80.0% 79.9% 79.8% 79.8% 79.3% 79.0%

% Foreign Ownership

1.9%2.0%

5.0%

20.9% 20.0%

21.7% 21.7%22.1% 22.6%

21.9% 21.9% 21.6% 21.7% 22.0% 21.7% 22.0%22.5% 22.6% 22.7%23.2% 22.8% 22.9% 22.8% 22.8% 23.3% 23.7% 24.1%

25.0%

24.5% 24.3% 24.2% 24.4%25.0% 25.4% 25.6%

24.9% 25.1% 25.2% 24.7%_24.2%

23.5% 23.5%_23.0%23.5% 23.7%24.0% 24.8%

Av e r a ge for e ign ow n e r sh ip in t h e t e le com m u n ica t ion se ct or

Av e r a ge loca l m u t u a l fu n d ow n e r sh ip

(13)

TOBACCO SECTOR

Selling pressur e fr om foreign MF m ay serv e as a headwind t o t he sect or despit e gradual accum ulat ion fr om local PF and MF.

Howev er, w e expect st ock appr eciat ion in t he near t erm due t o bet t er consum pt ion which would t ranslat e t o cigaret t e

volum e recovery.

BANKING SECTOR

Toba cco Se ct or

Source: KSEI , Sinarm as I nvest m ent Research

69.5%72.1% 71.7% 72.1% 72.4%_{69.1% 69.3% 68.6% 68.0% 68.0% 68.2% 68.5%}

62.9%64.5% 64.5% 63.6% 63.4%61.8% 62.0%63.0% 64.1%

66.6% 66.5% 66.0% 65.6%64.5%

55.4% 55.2% 54.4% 54.9% 54.7%56.1% 55.9% 56.0% 55.1%_{53.7% 53.1% 54.0% 53.4% 53.4%} 51.6%

% Foreign Ownership

1.9%

11.2% 10.1% 10.1%

9.7% 9.5% 10.5% 10.8% 10.5%11.2%

11.7% 11.5% 11.5% 16.5%

16.0% 16.3% 16.9%

17.9%18.3% 18.2%17.6% 16.7%

14.6% 14.4% 13.1% 12.8%

14.0% 15.8% 15.8% 15.8%

15.4% 15.2% 14.4% 14.2%

13.5% 13.7% 14.8%

15.8% 15.9%16.4% 16.5% 18.3%

8.8% 9.0% 10.1%

11.7% 14.4%

13.8% 13.8% 13.8% 14.1%14.2% 14.1%13.7% 21.3% 21.2%

20.8%21.5% 21.5% 21.7% 21.6% 21.7%_{20.4% 20.4%} 20.0%20.5% 20.4% 20.7%

21.3% 21.5%21.9% 21.8%21.5% 21.6% 21.5% 21.4%21.8% 20.6%

Av e r a ge for e ign ow n e r sh ip in t h e t oba cco se ct or

Av e r a ge loca l m u t u a l fu n d ow n e r sh ip

(14)

INDEX MEMBERS

Se ct or

M e m be r s

Banking

BBRI , BBNI , BMRI , BBCA, BBTN

Cem ent

I NTP, SMGR

Consum er St aples

UNVR, I NDF, I CBP, MYOR, KLBF, ROTI

Coal

ADRO, PTBA, I TMG, HRUM, UNTR, DOI D

Const ruct ion

PTPP, ADHI , WI KA, WSKT

Media

SCMA, MNCN

Plant at ion

AALI , LSI P

Propert y

BSDE, SMRA, ASRI , CTRA, PWON

Ret ail

ACES, MAPI , LPPF, RALS

Telecom m unicat ion

TLKM, EXCL

Tobacco

HMSP, GGRM

(15)

DISCLAIMER

This report has been prepared by PT Sinarmas Sekuritas, an affiliate of Sinarmas Group.

This material is: (i) created based on information that we consider reliable, but we do not represent that it is accurate or complete, and it should not be relied upon as

such; (ii) for your private information, and we are not soliciting any action based upon it; (iii) not to be construed as an offer to sell or a solicitation of an offer to buy any

security.

Opinions expressed are current opinions as of original publication date appearing on this material and the information, inclu ding the opinions contained herein, is

subjected to change without notice. The analysis contained herein is based on numerous assumptions. Different assumptions cou ld result in materially different results.

The analyst(s) responsible for the preparation of this publication may interact with trading desk personnel, sales personnel and other constituencies for the purpose of

gathering, integrating and interpreting market information. Research will initiate, update and cease coverage solely at the d iscretion of Sinarmas Research department.

If and as applicable, Sinarmas Sekuritas’ investment banking relationships, investment banking and non-investment banking compensation and securities ownership, if

any, are specified in disclaimers and related disclosures in this report

.

In addition, other members of Sinarmas Group may from time to time perform investment banking

or other services (including acting as advisor, manager or lender) for, or solicit investment banking or other business from companies under our research coverage.

Further, the Sinarmas Group, and/or its officers, directors and employees, including persons, without limitation, involved in the preparation or is suance of this material

may, to the extent permitted by law and/or regulation, have long or short positions in, and buy or sell, the securities (incl uding ownership by Sinarmas Group), or

derivatives (including options) thereof, of companies under our coverage, or related securities or derivatives. In addition, the Sinarmas Group, including Sinarmas

Sekuritas, may act as market maker and principal, willing to buy and sell certain of the securities of companies under our coverage. Further, the Sinarmas Group may

buy and sell certain of the securities of companies under our coverage, as agent for its clients.

Investors should consider this report as only a single factor in making their investment decision and, as such, the report sh ould not be viewed as identifying or

suggesting all risks, direct or indirect, that may be associated with any investment decision. Recipients should not regard this report as substitute for exercise of their

own judgment. Past performance is not necessarily a guide to future performance. The value of any investments may go down as well as up and you may not get back

the full amount invested.

Sinarmas Sekuritas specifically prohibits the redistribution of this material in whole or in part without the written permission of Sinarmas Sekuritas and Sinarmas

Sekuritas accepts no liability whatsoever for the actions of third parties in this respect. If publication has been distributed by elec tronic transmission, such as e-mail, then

such transmission cannot be guaranteed to be secure or error-free as information could be intercepted, corrupted, lost, destroyed, arrive late or incomplete, or contain

viruses. The sender therefore does not accept liability for any errors or omissions in the contents of this publication, whic h may arise as a result of electronic