Ex h ibit 6 . I n d on e sia su g a r dom e st ic con su m pt ion & pr odu ct ion , 2 0 0 4 - 2 0 1 5
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Ex h ibit 9 . Re v e n u e con t r ibu t ion pe r se gm e n t , 2 0 1 4 - 2 0 1 8 F
Ex h ibit 1 0 . Su ga r ca n e p la n t a t ion , m ill & r e f in e ry loca t ion , 2 0 1 6
Ex h ibit 1 1 . TBLA’s su m - of - t h e - pa r t s v a lu a t ion
5,4124,587
4,132
5,185
6,168
884
600 2,200
2,996
3,297
42
144
277
1, 000 2, 000 3, 000 4, 000 5, 000 6, 000 7, 000 8, 000 9, 000 10,000
2014 2015 2016F 2017F 2018F
Palm oil product s Sugar product s Ot hers ( I DRbn)
Sour ce: Com pany, Bahana
Su ga r m ill a n d su ga r
r e f in e r y pr odu ct s sh ou ld
t oge t h e r con t r ib u t e 3 7 % of
2 0 1 7 F r e v e n u e
Sour ce: Com pany
Th e 1 2 0 k t on s su ga r m ill is
st r a t e gica lly loca t e d w it h in
t h e com pa n y ’s
su ga r ca n e
pla n t a t ion a r e a
M e t h od
Va lu e
D iv ision
Palm and sugar m ill business
2017F PE of 9. 0x
6, 095
Sugar r efiner y business
2017F PE of 1. 0x
214
Tot al value ( I DRbn)
6, 309
Shar es out st anding ( m n)
5, 342
Va lu e / Sh a r e ( I D R)
1 ,1 8 0
Sour ce: Bahana for ecast s
Ex h ibit 1 2 . TBLA 2 Q1 6 r e su lt s su m m a r y
q - q y - y 2 Q1 6 / y - y 1 H 1 6 / 1 H 1 6 /
( I D Rb n ) 2 Q1 5 1 Q1 6 2 Q1 6 ( % ) ( % ) 2 Q1 6 F 1 H 1 6 ( % ) 2 0 1 6 F Con s
Sa le s 1 ,3 7 5 . 8 1 ,0 2 6 . 9 1 ,8 8 5 . 3 8 3 . 6 3 7 . 0 1 1 8 2 ,9 1 2 . 2 7 .0 5 1 n a
Gr oss p r ofit 2 8 9 .1 2 4 1 .6 5 2 3 .7 1 1 6 .8 8 1 . 1 765.3 2 7 . 5
Oper at ing expenses ( 113.1 ) ( 130.3 ) ( 132.7 ) 1.8 17.3 ( 263.0 ) 17.4
Op e r a t in g p r ofit 3 7 6 .0 1 1 1 .3 5 0 2 .3 3 5 1 .4 3 3 . 6 2 7 4 5 0 2 .3 3 3 . 6 7 4 n a
Net int er est incom e/ ( expenses) ( 55.4) ( 56.9) ( 70.0) 23.1 26.3 ( 126.8 ) 24.8
FX gain ( loss) ( 48.1) 26.1 7.7 ( 70.4) ( 116.1 ) 33.8 ( 135.8 )
Ot her incom e ( ex pense) ( 189.1 ) 6.5 ( 104.5 ) na ( 44.7) 13.3 ( 25.5)
Pr e t a x p r ofit 8 3 . 4 8 7 . 1 3 3 5 .5 2 8 5 .3 3 0 2 .4 4 2 2 .6 1 1 3 .7
Taxat ion ( 26.8) ( 21.9) ( 90.6) 314.6 238.1 ( 112.4 ) 125.5
Minor it y I nt er est ( 0.7) ( 0.1) ( 0.3) 405.9 ( 64.4) ( 0.3) ( 72.3)
N e t p r ofit 5 5 . 9 6 5 . 2 2 4 4 .6 2 7 5 .4 3 3 8 .0 2 8 4 3 0 9 .8 1 1 1 .1 1 2 3 n a
BS & Ra t io a n a ly sis 2 Q1 5 1 Q1 6 2 Q1 6 1 H 1 6 2 0 1 5 A 2 0 1 6 F* 2 0 1 7 F*
Gr oss m ar gin ( % ) 21.0 23.5 27.8 26.3 22.0 22.5 23.2
Oper at ing m ar gin ( % ) 27.3 10.8 26.6 17.2 11.3 11.9 12.5
Pr et ax m ar gin ( % ) 6.1 8.5 17.8 14.5 4.9 6.1 7.8
Net m ar gin ( % ) 4.1 6.3 13.0 10.6 3.7 4.4 5.6
I nvent or y Days 82 144 76 96 99 78 72
Receivable Days 44 81 40 52 54 46.31 42.46
Payable Days 27 61 50 64 29 15 14
Tot al cash 389 226 326 326 296 228 425
Tot al debt 3,708 5,077 5,198 5,198 4,690 4,028 4,163
Net gear ing ( % ) 132.0 165.8 153.7 153.7 153.8 123.8 111.0
Sour ce: Com pany , Bloom ber g * using old for ecast num ber s
Ex h ibit 1 3 . Ea r n in g s r e v ision s
Old
N e w
Ch a nge ( % )
( I D Rbn )
2 0 1 6 F
2 0 1 7 F
2 0 1 8 F
2 0 1 6 F
2 0 1 7 F
2 0 1 8 F
2 0 1 6 F
2 0 1 7 F
2 0 1 8 F
Re v e n u e
6 ,0 2 2
6 ,7 1 8
7 ,1 7 6
6 ,6 0 9
8 ,1 8 1
9 ,4 6 5
9.8
21.8
31.9
Gr oss pr ofit
1 ,3 5 7
1 ,8 7 6
2 ,1 9 3
1 ,4 5 2
2 ,1 8 7
2 ,4 1 1
7.0
16.6
9.9
Gr oss profit m argin ( % )
22.5
27.9
30.6
22.0
26.7
25.5
Ope r a t in g pr ofit
7 1 7
1 ,1 6 2
1 ,3 7 8
7 8 2
1 ,3 3 4
1 ,4 2 7
9.1
14.8
3.5
Oper at ing m ar gin ( % )
11.9
17.3
12.4
11.8
16.3
15.1
N e t profit
4 3 7
6 3 6
8 9 1
5 0 0
8 9 1
9 4 7
14.5
40.1
6.3
Net m argin ( % )
7.3
9.5
12.4
7.6
10.9
10.0
EPS ( I D R)
8 2
1 1 9
1 6 7
9 4
1 6 7
1 7 7
14.2
40.2
6.1
Sour ce: BahanaEx h ibit 1 4 . Pe e r s com pa r ison , 2 0 1 6 F- 2 0 1 7 F
Ma r k e t ca p
( USDb n )
2 0 1 6 F
2 0 1 7 F
2 0 1 6 F
2 0 1 7 F
2 0 1 6 F
2 0 1 7 F
2 0 1 6 F
2 0 1 7 F
2 0 1 6 F
2 0 1 7 F
I n d o n e sia
5 .2
1 6 .5
1 3 .0
1 .4
1 .3
9 .0
7 .3
1 .6
2 .4
8 .6
1 0 .2
ASTRA AGRO LESTARI TBK PT
2.3
19.8
16.3
1.9
1.8
10.8
8.9
1.6
2.4
10.7
11.6
SALI M I VOMAS PRATAMA TBK PT
0.6
18.0
13.4
0.6
0.6
6.6
5.8
1.7
2.0
3.0
4.1
AUSTI NDO NUSANTARA JAYA PT
0.5
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
DHARMA SATYA NUSANTARA PT
0.4
14.4
11.1
1.9
1.6
10.3
8.6
1.4
1.6
12.5
14.6
SAMPOERNA AGRO TBK PT
0.3
15.0
11.8
1.1
1.0
8.5
6.8
1.1
1.9
7.8
9.5
TUNAS BARU LAMPUNG TBK PT
0.3
8.1
4.6
1.3
1.1
9.4
6.3
3.7
9.3
16.4
25.6
PP LONDON SUMATRA I NDONES PT
0.8
19.8
14.7
1.4
1.3
9.9
7.7
2.0
2.2
7.0
9.0
Ma la y sia
2 7 .3
2 8 .5
2 3 .2
2 .7
2 .4
1 6 .8
1 4 .8
2 .4
2 .6
1 0 .0
1 0 .6
SI ME DARBY BERHAD
12.3
31.2
22.7
1.6
1.5
15.9
13.9
2.6
3.1
5.3
6.7
I OI CORP BHD
6.8
26.2
24.7
5.3
4.2
19.2
16.8
2.2
2.4
18.9
17.4
KUALA LUMPUR KEPONG BHD
6.2
23.9
21.9
2.5
2.4
14.8
14.0
2.7
2.6
11.0
12.0
GENTI NG PLANTATI ONS BHD
2.1
33.9
25.0
1.9
1.8
20.8
16.5
0.7
0.9
5.5
7.1
W e ig h t e d Av e r a g e
3 2 .5
2 6 .6
2 1 .6
2 .5
2 .2
1 5 .6
1 3 .6
2 .2
2 .6
9 .8
1 0 .5
PER ( x )
PBV ( x )
EV/ EBI T DA ( x )
Div . y ie ld ( % )
ROE ( % )
Gr egor ius Gar y ( gr egor ius@bahana.co.id) + 6221 250 5081 ext . 3604
Tu n a s Ba r u La m pu n g
Ye a r t o 3 1 D e ce m be r
2 0 1 4
2 0 1 5
2 0 1 6 F
2 0 1 7 F
2 0 1 8 F
PROFI T & LOSS ( I D Rbn )
Sa le s
6 ,3 3 8
5 ,3 3 1
6 ,6 0 9
8 ,1 8 1
9 ,4 6 5
Gr oss pr ofit
1 ,2 9 3
1 ,1 7 0
1 ,4 5 2
2 ,1 8 7
2 ,4 1 1
EBI TD A
1 ,0 6 5
5 9 8
9 9 9
1 ,6 1 9
1 ,7 6 5
Depr eciat ion
270
( 6)
217
285
339
EBI T
7 9 5
6 0 4
7 8 2
1 ,3 3 4
1 ,4 2 7
Net int er est inc./ ( ex pense)
( 201)
( 219)
( 236)
( 278)
( 310)
For ex gain/ ( losses)
( 105)
( 165)
34
-
-
Ot her incom e/ ( ex pense)
73
43
50
62
72
Pr e - t a x pr ofit
5 6 2
2 6 3
6 3 0
1 ,1 1 9
1 ,1 8 8
Tax es
( 126)
( 62)
( 126)
( 224)
( 238)
Minor it y int er est
( 3)
( 4)
( 4)
( 4)
( 4)
N e t profit
4 3 3
1 9 7
5 0 0
8 9 1
9 4 7
BALAN CE SH EET ( I D Rbn )
Cash and equiv alent s
520
296
799
662
460
Tr ade receiv ables
711
797
575
858
981
I nvent or ies
956
1,146
937
1,264
1,418
Fix ed asset s
2,843
4,442
5,337
6,144
6,765
Ot her asset s
2,288
2,601
2,551
3,074
3,640
Tot a l a sse t s
7 ,3 2 8
9 ,2 9 3
1 0 ,2 0 8
1 2 ,0 1 2
1 3 ,2 7 5
I nt erest bear ing liabilit ies
3,194
4,690
4,887
5,687
6,287
Tr ade pay ables
292
330
297
371
415
Ot her liabilit ies
1,388
1,386
1,778
2,186
2,521
Tot a l lia bilit ie s
4 ,8 7 5
6 ,4 0 6
6 ,9 6 2
8 ,2 4 4
9 ,2 2 2
Minor it y int er est
1 8
2 1
2 6
3 3
3 8
Sha r e h olde r s' e qu it y
2 ,4 3 6
2 ,8 6 6
3 ,2 1 9
3 ,7 3 6
4 ,0 1 4
CASH FLOW ( I D Rbn )
EBI T
795
604
782
1,334
1,427
Depr eciat ion
270
( 6)
217
285
339
Work ing capit al
( 308)
( 0)
629
( 619)
( 305)
Ot her oper at ing it em s
( 214)
( 517)
166
( 150)
( 231)
Ope r a t in g ca sh flow
5 4 3
8 0
1 ,7 9 4
8 5 0
1 ,2 3 0
Net capit al ex pendit ur e
( 999)
( 713)
( 1,345)
( 1,420)
( 1,370)
Fr e e ca sh flow
( 4 5 5 )
( 6 3 2 )
4 5 0
( 5 6 9 )
( 1 4 0 )
Equit y r aised/ ( bought )
289
( 5)
-
-
-
Net borr ow ings
105
360
195
801
600
Ot her financing
( 67)
161
( 142)
( 369)
( 663)
N e t ca sh flow
( 1 2 8 )
( 1 1 6 )
5 0 3
( 1 3 6 )
( 2 0 3 )
Cash flow at beginning
648
520
296
799
662
Ca sh flow a t e n d
5 2 0
2 9 6
7 9 9
6 6 2
4 6 0
RATI OS
ROAE ( % )
20.5
7.4
16.4
25.6
24.4
ROAA ( % )
6.4
2.4
5.1
8.0
7.5
Gr oss m argin ( % )
20.4
22.0
22.0
26.7
25.5
EBI TDA m argin ( % )
16.0
15.4
15.1
20.2
19.1
EBI T m argin ( % )
12.5
11.3
11.8
16.3
15.1
Net m argin ( % )
6.8
3.7
7.6
10.9
10.0
Pay out r at io ( % )
70.3
28.3
75.0
75.0
75.0
Cur rent r at io ( x )
1.1
1.1
0.7
0.8
0.8
I nt erest cover age ( x )
2.6
3.8
2.7
3.2
4.7
Net gear ing ( % )
109.8
153.3
127.0
134.5
145.2
Debt s t o asset s ( % )
43.6
50.5
47.9
47.3
47.4
Debt or t ur nov er ( day s)
32
58
32
38
38
Cr edit or t ur nov er ( day s)
17
27
21
23
21
I nvent ory t ur nover ( days)
63
94
66
77
73
M AJOR ASSUM PTI ON S
FFB product ion ( k t ons)
719
542
462
527
577
Gr ow t h ( % )
( 3)
( 25)
( 15)
14
9
CPO product ion ( k t ons)
214
296
213
261
299
Gr ow t h ( % )
1
38
( 28)
22
14
ASP CPO ( USD/ t on)
9,000
7,500
8,000
8,923
9,538
Sugar plant at ion ( ha)
1,133
3,913
7,326
11,326
14,424
Av g. ex chg. r at e ( I DR/ USD)
11,875
13,393
13,400
13,000
13,000
Sour ce: Com pany, Bahana est im at es
W e e x pe ct 2 0 1 7 F r e v e n u e a t
I D R8 ,1 8 1 bn , + 2 3 .8 % y - y ,
on a cce le r a t e d con t r ib u t ion
f r om su ga r se gm e n t
I n cr e a sin g de bt le v e ls …
… t o f in a n ce e x pa n sion of
it s
pa lm
a n d su ga r ca n e
pla n t a t ion s
I m pr ov e d
m a r gin s
a s a
r e su lt of r e cov e r y in CPO
pr ice s
I m p or t a n t D isclosu r e s a n d D iscla im er
This publicat ion is pr epar ed by PT.Bahana Secur it ies and r ev iewed by Daiwa Secur it ies Gr oup I nc. an d/ or it s affiliat es, and dist r ibut ed out side I ndonesia by Daiwa Secur it ies Gr oup I nc. an d/ or it s affiliat es, ex cept t o t he ext ent expr essly pr ov ided her ein. Cer t ain copies of t h is pu blicat ion m ay be dist r ibut ed in side and out side of I ndonesia by PT. Bahana Secur it ies in accor dan ce w it h r elevant law s and r egulat ions. This publicat ion and t he cont ent s her eof ar e int ended for infor m at ion pur poses on ly, an d m ay be subj ect t o change w it h out fur t her not ice. Any use, disclosur e, dist r ibut ion, dissem inat ion, copy ing, pr int in g or r eliance on t h is pu blicat ion for an y ot her pur pose w it h out our pr ior consent or appr oval is st r ict ly pr oh ibit ed. Any r ev iew does not con st it ut e a fu ll ver ificat ion of t he publicat ion and m er ely pr ov ides a m in im u m check. Neit her Daiwa Secur it ies Gr oup I n c. n or any of it s r espect ive par ent , holdin g, subsidiar ies or affiliat es, nor an y of it s r espect iv e dir ect or s, officer s, ser vant s an d em ployees, r epr esent nor war r ant t he accur acy or com plet eness of t he in for m at ion cont ained her ein or as t o t he ex ist ence of ot her fact s wh ich m ight be sign ificant , and w ill not accept an y r esponsibilit y or liabilit y what soever for an y use of or r eliance upon t h is publicat ion or any of t he cont ent s her eof. Neit her t his publicat ion, nor any cont ent h er eof, con st it ut e, or ar e t o be con st r ued as, an offer or solicit at ion of an offer t o bu y or sell any of t he secur it ies or invest m ent s m ent ioned her ein in any count r y or j ur isdict ion nor , un less expr essly pr ov ided, any r ecom m endat ion or invest m ent opin ion or adv ice. Any v iew , r ecom m en dat ion, opin ion or adv ice expr essed in t h is publicat ion const it ut es t he v iew s of t he analyst ( s) nam ed her ein and does not necessar ily r eflect t hose of Daiwa Secur it ies Gr oup I n c. an d/ or it s affiliat es nor any of it s r espect ive dir ect or s, officer s, ser vant s and em ployees except w her e t he publicat ion st at es ot her w ise. Th is r esear ch r epor t is not t o be r elied u pon by any per son in m ak ing any in vest m ent decision or ot her w ise adv isin g w it h r espect t o, or dealing in, t he secur it ies m ent ioned, as it does not t ake int o account t he specific inv est m ent obj ect ives, financial sit uat ion and par t icu lar n eeds of an y per son.
Neit her Daiwa Secur it ies Gr ou p I n c. n or an y of it s affiliat es is licensed t o under t ake any business w it hin t he Republic of I ndonesia. Any display of an y t r ade nam e or logo of t he Daiwa Secu r it ies Gr oup I nc. on t h is publicat ion shall not be deem ed t o be an under t ak ing of an y business w it h in t he Repu blic of I ndonesia.
Daiwa Secur it ies Gr oup I n c., it s subsidiar ies or affiliat es, or it s or t heir r espect ive dir ect or s, officer s and em ployees fr om t im e t o t im e m ay have t r ades as pr in cipals, or have posit ions in , or have ot her int er est s in t he secu r it ies of t he com pany un der r esear ch including m ar ket m ak in g act iv it ies, der ivat ives in r espect of such secur it ies or m ay have also per for m ed in vest m ent bank ing and ot her ser v ices for t h e issuer of such secur it ies. The follow ing ar e addit ional disclosur es.
Owner sh ip of Secur it ies
For “ Owner sh ip of Secur it ies” in for m at ion, please v isit BlueMat r ix disclosur e lin k at ht t ps: / / daiwa3. bluem at r ix. com / sellside/ Disclosur es.act ion.
I nvest m ent Ban k ing Relat ionsh ip
For “ I nvest m ent Ban k ing Relat ionship” , please v isit BlueMat r ix disclosur e lin k at ht t ps: / / daiwa3 .bluem at r ix.com / sellside/ Disclosur es.act ion.
Ja p a n
Daiwa Secur it ies Co. Lt d. and Daiwa Secur it ies Gr ou p I nc.
Daiwa Secur it ies Co. Lt d. is a subsidiar y of Daiw a Secur it ies Gr oup I nc.
I nvest m ent Ban k ing Relat ionsh ip
Wit hin t he preceding 12 m ont hs, The subsidiar ies and/ or affiliat es of Daiwa Secur it ies Group I nc. * has lead- m anaged public offer ings and/ or secondar y offer ings ( excluding st raight bonds) of t he secur it ies of t he following com panies: China Reinsur ance Gr oup Corporat ion ( 1508 HK) .
* Subsidiar ies of Daiwa Secur it ies Gr oup I nc. for t he pur poses of t h is sect ion shall m ean any one or m or e of:
• Daiwa Capit al Mar ket s Hon g Kong Lim it ed (大和資本市場香港有限公司)
• Daiwa Capit al Mar ket s Singapor e Lim it ed • Daiwa Capit al Mar ket s Aust r alia Lim it ed • Daiwa Capit al Mar ket s I ndia Pr ivat e Lim it ed • Daiwa- Cat hay Capit al Mar ket s Co. , Lt d. • Daiwa Secur it ies Capit al Mar ket s Kor ea Co., Lt d
Disclosur e of I nt er est of Bahana Secur it ies
I nvest m ent Ban k ing Relat ionsh ip
Wit h in t he pr eceding 12 m ont hs, Bahana Secur it ies has lead- m anaged public offer ings an d/ or secondar y offer ings ( ex cluding st r aight bonds) of t he secur it ies of t he follow ing com pan ies: Anabat ic Technologies Tbk PT ( ATI C I J) ; Aneka Tam bang Per ser o Tbk PT ( ANTM I J) ; PT Telek om unikasi I ndonesia ( Per ser o) Tbk ( TLKM I J) .
H on g Kon g
This r esear ch is dist r ibut ed in Hong Kong by Daiwa Capit al Mar ket s Hong Kon g Lim it ed (大和資本市場香港有限公司) ( “ DHK” ) wh ich is r egulat ed by t he Hong
Kong Secur it ies and Fut ur es Com m ission. Recipient s of t h is r esear ch in Hong Kong m ay cont act DHK in r espect of an y m at t er ar ising fr om or in connect ion w it h t h is r esear ch.
Relevant Relat ionsh ip ( DHK)
DHK m ay fr om t im e t o t im e have an in div idual em ployed by or associat ed w it h it ser ves as an officer of an y of t he com pan ies under it s r esear ch cover age.
Sin g a p or e
This r esear ch is dist r ibut ed in Sin gapor e by Daiwa Capit al Mar ket s Singapor e Lim it ed an d it m ay on ly be dist r ibut ed in Singapor e t o accr edit ed in vest or s, exper t invest or s and inst it ut ional invest or s as defined in t he Financial Adv iser s Regu lat ions and t he Secur it ies and Fut ur es Act ( Chapt er 289) , as am ended fr om t im e t o t im e. By v ir t ue of dist r ibut ion t o t hese cat egor y of in v est or s, Daiwa Capit al Mar ket s Sin gapor e Lim it ed and it s r epr esent at ives ar e not r equ ir ed t o com ply w it h Sect ion 36 of t he Financial Adv iser s Act ( Chapt er 110 ) ( Sect ion 36 r elat es t o disclosur e of Daiwa Capit al Mar ket s Sin gapor e Lim it ed’s int er est and/ or it s r epr esent at ive’s int er est in secur it ies) . Recipient s of t h is r esear ch in Singapor e m ay cont act Daiwa Capit al Mar ket s Singapor e Lim it ed in r espect of any m at t er ar isin g fr om or in conn ect ion w it h t he r esear ch .
Au st r a lia
This r esear ch is dist r ibut ed in Aust r alia by Daiwa Capit al Mar ket s Aust r alia Lim it ed an d it m ay on ly be dist r ibut ed in Au st r alia t o wh olesale in vest or s w it h in t he m ean ing of t he Cor por at ions Act . Recipient s of t h is r esear ch in Aust r alia m ay cont act Daiwa Capit al Mar ket s St ock br ok in g Lim it ed in r espect of an y m at t er ar isin g fr om or in connect ion w it h t he r esear ch.
I n d ia
This r esear ch is dist r ibut ed in I ndia t o I nst it ut ional Client s on ly by Daiwa Capit al Mar ket s I ndia Pr ivat e Lim it ed ( Daiwa I ndia) wh ich is an int er m ediar y r egist er ed w it h Secur it ies & Exchange Boar d of I ndia as a St ock Br oker , Mer chant Bank an d Resear ch Analy st . Daiwa I n dia, it s Resear ch Analyst and t heir fam ily m em ber s and it s associat es do not have an y financial int er est save as disclosed or ot her undisclosed m at er ial con flict of int er est in t he secur it ies or der ivat ives of an y com pan ies under cover age. Daiwa I ndia and it s associat es, m ay have r eceived com pensat ion for an y pr odu ct s ot her t h an I nvest m ent Bankin g ( as disclosed) or br oker age ser v ices fr om t he subj ect com pany in t h is r epor t or fr om any t h ir d par t y dur in g t he past 12 m ont hs. Daiwa I ndia and it s associat es m ay have debt holdin gs in t he subj ect com pany. For in for m at ion on owner sh ip of equ it y, please v isit BlueMat r ix disclosur e Link at
htt ps: / / daiwa3.bluem atrix.com / sellside/ Disclosures.action.
Ther e is no m at er ial disciplinar y act ion against Daiwa I n dia by an y r egu lat or y aut h or it y im pact ing equit y r esear ch analy sis act iv it ies as of t he dat e of t h is r epor t .
Ta iw a n
This r esear ch is dist r ibut ed in Taiwan by Daiwa- Cat hay Capit al Mar ket s Co., Lt d and it m ay on ly be dist r ibut ed in Taiwan t o inst it ut ional invest or s or specific invest or s who have signed r ecom m endat ion cont r act s w it h Daiwa- Cat hay Capit al Mar ket s Co., Lt d in accor dance w it h t he Oper at ional Regulat ion s Gover ning Secur it ies Fir m s Recom m endin g Tr ades in Secur it ies t o Cust om er s. Recipient s of t h is r esear ch in Taiw an m ay cont act Daiwa- Cat hay Capit al Mar ket s Co., Lt d in r espect of any m at t er ar ising fr om or in connect ion w it h t he r esear ch.
Ph ilip p in e s
This r esear ch is dist r ibut ed in t he Philippines by DBP- Daiwa Capit al Mar ket s Ph ilippines, I n c. wh ich is r egulat ed by t he Ph ilippines Secur it ies and Exchange Com m ission an d t he Ph ilippines St ock Ex change, I nc. Recipient s of t his r esear ch in t he Ph ilippines m ay cont act DBP- Daiw a Capit al Mar ket s Ph ilippines, I nc. in r espect of any m at t er ar ising fr om or in connect ion w it h t he r esear ch. DBP- Daiwa Capit al Mar ket s Philippines, I nc. r ecom m ends t hat invest or s
independent ly assess, w it h a pr ofessional adv isor , t he specific financial r isk s as well as t he legal, r egu lat or y, t ax, account ing, and ot her consequences of a pr oposed t r an sact ion . DBP- Daiw a Capit al Mar ket s Ph ilippines, I nc. m ay have posit ion s or m ay be m at er ially int er est ed in t he secur it ies in any of t he m ar ket s m ent ioned in t he pu blicat ion or m ay have per for m ed ot her ser v ices for t he issuer s of such secur it ies.
For r elevant secur it ies and t r ading r ules please v isit SEC an d PSE lin k at h t t p : / / w w w . sec. g ov . p h / ir r / Am en d ed I RRf in alv er sion . p d f an d
h t t p : / / w w w . p se. com . p h / r espect ively.
Un it e d Kin g d o m
This r esear ch r epor t is pr oduced by Daiwa Secur it ies Co. Lt d. and/ or it s affiliat es and is dist r ibut ed in t he Eur opean Un ion , I celan d, Liecht enst ein, Nor way and Sw it zer land. Daiwa Capit al Mar ket s Eur ope Lim it ed is aut hor ised and r egu lat ed by The Financial Conduct Aut hor it y ( “ FCA” ) and is a m em ber of t he London St ock Ex change and Eur ex. Th is publicat ion is int ended for invest or s wh o ar e not Ret ail Client s in t he Un it ed Kingdom w it h in t he m ean ing of t he Rules of t he FCA and shou ld not t her efor e be dist r ibut ed t o su ch Ret ail Client s in t he Un it ed Kingdom . Shou ld you ent er int o invest m ent bu siness w it h Daiwa Capit al Mar ket s Eur ope’s affiliat es out side t he Un it ed Kingdom , w e ar e obliged t o adv ise t hat t he pr ot ect ion affor ded by t he Un it ed Kingdom r egu lat or y syst em m ay not apply ; in par t icu lar , t he benefit s of t he Financial Ser vices Com pensat ion Schem e m ay not be available.
Daiwa Capit al Mar ket s Eur ope Lim it ed has in place or gan isat ional ar r angem ent s for t he pr event ion and av oidance of conflict s of int er est . Our conflict
m anagem ent policy is available at h t t p : / / w w w . u k . d aiw acm . com / ab ou t - u s/ cor p or at e- g ov er n an ce- r eg u lat or y.
Ge r m a n y
This docum ent is dist r ibut ed in Ger m any by Daiwa Capit al Mar ket s Eur ope Lim it ed, Nieder lassung Fr ankfur t wh ich is r egu lat ed by BaFin ( Bundesan st alt fuer Finanzdienst leist ungsau fsicht ) for t he condu ct of business in Ger m an y.
Ba h r a in
This r esear ch m at er ial is dist r ibu t ed by Daiw a Capit al Mar ket s Eur ope Lim it ed, Bahr ain Br anch, r egulat ed by The Cent r al Bank of Bahr ain and h olds I nvest m ent Business Fir m – Cat egor y 2 license and hav ing it s official place of bu siness at t he Bahr ain Wor ld Tr ade Cent r e, Sout h Tower , 7t h floor , P.O. Box 30069, Manam a, Kin gdom of Bahr ain. Tel No. + 973 175 34452 Fax No. + 973 535113
This m at er ial is pr ov ided as a r efer ence for m ak ing in vest m ent decision s and is not int ended t o be a solicit at ion for invest m ent . I nvest m ent decision s sh ou ld be m ade at your own discr et ion and r isk. Accor dingly, no r epr esent at ion or w ar r ant y, ex pr ess or im plied, is m ade as t o and no r eliance shou ld be placed on t he fair ness, accur acy, com plet en ess or cor r ect ness of t he infor m at ion and opin ions cont ained in t h is docu m ent , Cont ent her ein is based on in for m at ion available at t he t im e t he r esear ch m at er ial was pr epar ed and m ay be am ended or ot her w ise changed in t he fut ur e w it hout not ice. All in for m at ion is int ended for t he pr ivat e use of t he per son t o wh om it is pr ov ided w it hout any liabilit y what soever on t he par t of Daiwa Capit al Mar ket s Eur ope Lim it ed, Bahr ain Br anch, any associat ed com pan y or t he em ployees t her eof. I f you ar e in doubt about t he su it abilit y of t he pr odu ct or t he r esear ch m at er ial it self, please consu lt y our own financial adv iser . Daiwa Capit al Mar ket s Eur ope Lim it ed, Bahr ain Br anch r et ains all r ight s r elat ed t o t he cont ent of t h is m at er ial, wh ich m ay not be r edist r ibut ed or ot her w ise t r ansm it t ed w it h out pr ior consent .
Un it e d St a t e s
This r epor t is dist r ibut ed in t he U. S. by Daiwa Capit al Mar ket s Am er ica I n c. ( DCMA) . I t m ay not be accur at e or com plet e and shou ld not be r elied upon as su ch. I t r eflect s t he pr epar er ’s v iews at t he t im e of it s pr epar at ion, but m ay n ot r eflect event s occu r r ing aft er it s pr epar at ion; nor does it r eflect PT.Bahana Secur it ies’ or DCMA’s v iews at any t im e. Neit her PT.Bahana Secur it ies, DCMA n or t he pr epar er has any obligat ion t o updat e t his r epor t or t o cont inue t o pr epar e r esear ch on t h is subj ect . Th is r epor t is n ot an offer t o sell or t he solicit at ion of any offer t o buy secur it ies. Un less t h is r epor t says ot her w ise, an y r ecom m endat ion it m akes is r isk y and appr opr iat e on ly for soph ist icat ed specu lat iv e in vest or s able t o incur sign ifican t losses. Reader s shou ld consu lt t heir finan cial adv isor s t o det er m ine whet her any such r ecom m endat ion is consist ent w it h t heir own in vest m ent obj ect ives, financial sit uat ion and needs. Th is r epor t does n ot r ecom m end t o U.S. r ecipient s t he use of any of PT.Bahana Secur it ies’ or DCMA’s non- U.S.
affiliat es t o effect t r ades in an y secur it y an d is not supplied w it h any under st anding t hat U.S. r ecipient s of t h is r epor t w ill dir ect com m ission bu siness t o such non - U.S. ent it ies. Un less applicable law per m it s ot her w ise, non - U.S. cu st om er s w ishin g t o effect a t r ansact ion in any secur it ies r efer enced in t h is m at er ial sh ou ld cont act a Daiwa ent it y in t heir local j ur isdict ion. Most count r ies t hr oughout t he wor ld h ave t heir own law s r egu lat ing t he t ypes of secur it ies and ot her in vest m ent pr oduct s wh ich m ay be offer ed t o t h eir r esident s, as well as a pr ocess for doing so. As a r esu lt , t he secur it ies discussed in t h is r epor t m ay n ot be eligible for sales in som e j ur isdict ion s. Cust om er s w ish in g t o obt ain fur t her infor m at ion about t h is r epor t sh ould cont act DCMA: Daiwa Capit al Mar k et s Am er ica I n c., Financial Squar e, 32 Old Slip, New Yor k, New Yor k 10005 ( Tel no. 212- 612- 700 0) .
Ow n e r sh ip o f Se cu r it ie s
For “ Owner sh ip of Secur it ies” in for m at ion please v isit BlueMat r ix disclosur e Lin k at ht t ps: / / daiwa3. bluem at r ix. com / sellside/ Disclosur es.act ion .
I n v e st m e n t Ba n k in g Re la t io n sh ip s
For “ I nvest m ent Ban k ing Relat ionships” please v isit BlueMat r ix disclosur e lin k at ht t ps: / / daiwa3 .bluem at r ix.com / sellside/ Disclosur es.act ion.
D CM A M a r k e t M a k in g
For “ DCMA Mar ket Mak ing” please v isit BlueMat r ix disclosur e lin k at h t t ps: / / daiwa3 .bluem at r ix. com / sellside/ Disclosur es.act ion.
Re se a r ch An a ly st Con flict s
For u pdat es on “ Resear ch Analyst Conflict s” please v isit BlueMat r ix disclosur e link at ht t ps: / / daiwa3.bluem at r ix. com / sellside/ Disclosur es.act ion. The
pr in cipal r esear ch analyst s who pr epar ed t h is r epor t have no finan cial int er est in secur it ies of t he issu er s cover ed in t he r epor t , ar e not ( nor ar e an y m em ber s of t heir household) an officer , dir ect or or adv isor y boar d m em ber of t he issuer ( s) cover ed in t he r epor t , and ar e n ot awar e of any m at er ial r elevant con flict of int er est in volv ing t he analy st or DCMA, and did n ot r eceive any com pensat ion fr om t he issuer dur ing t he past 12 m on t hs except as not ed: n o except ion s.
Re se a r ch An a ly st Ce r t ifica t io n
For u pdat es on “ Resear ch Analyst Cer t ificat ion” and “ Rat ing Sy st em ” please v isit BlueMat r ix disclosur e link at
For st ock s a n d se ct or s in I n d o n e sia cov e r e d b y Ba h a n a Se cu r it ie s, t he follow ing r at in g sy st em is in effect :
St ock r at in gs ar e based on absolut e upside or downside, wh ich is t he differ ence bet ween t he t ar get pr ice and t he cur r ent m ar ket pr ice. Un less ot her w ise specified, t hese r at ings ar e set w it h a 12- m ont h h or izon. I t is possible t hat fut ur e pr ice volat ilit y m ay cause a t em por ar y m ism at ch bet w een upside/ down side for a st ock based on t he m ar ket pr ice and t he for m al r at ing.
" Buy" : t he pr ice of t he secur it y is expect ed t o in cr ease by 10 % or m or e.
" Hold" : t he pr ice of t he secur it y is expect ed t o r ange fr om an in cr ease of less t han 10 % t o a decline of less t han 5% . " Reduce" : t he pr ice of t he secur it y is expect ed t o decline by 5 % or m or e.
Sect or r at in gs ar e based on fun dam ent als for t he sect or as a whole. Hence, a sect or m ay be r at ed “ Over weight ” even t hou gh it s const it uent st ock s ar e all r at ed “ Reduce” ; and a sect or m ay be r at ed “ Under weight ” even t hou gh it s con st it uent st ocks ar e all r at ed “ Buy” .
“ Over weight ” : posit ive fundam ent als for t he sect or .
“ Neut r al” : neit her posit ive n or negat ive fun dam ent als for t he sect or . “ Under weight ” : negat ive fundam ent als for t he sect or .
Owner sh ip of Secur it ies
For “ Owner sh ip of Secur it ies” in for m at ion, please v isit BlueMat r ix disclosur e Link at ht t ps: / / daiw a3.blu em at r ix. com / sellside/ Disclosur es.act ion .
I nvest m ent Ban k ing Relat ionsh ips
For “ I nvest m ent Ban k ing Relat ionship” , please v isit BlueMat r ix disclosur e Link at ht t ps: / / daiwa3.bluem at r ix .com / sellside/ Disclosur es.act ion .
Relevant Relat ionsh ips ( Bahana Secur it ies)
Bahana Secur it ies m ay fr om t im e t o t im e have an indiv idual em ploy ed by or associat ed w it h it ser ves as an officer of an y of t he com pan ies under it s r esear ch cover age.
Bahana Secur it ies m ar ket m ak ing
Bahana Secur it ies m ay fr om t im e t o t im e m ake a m ar ket in secur it ies cover ed by t h is r esear ch.
Ad d it ion a l in for m a t io n m a y b e a v a ila b le u p on r e q u e st .
Ja p a n - a d d it ion a l n ot ifica t ion it e m s p u r su a n t t o Ar t icle 3 7 o f t h e Fin a n cia l I n st r u m e n t s a n d Ex ch a n g e La w ( This Not ificat ion is on ly applicable wher e r epor t is dist r ibut ed by Daiwa Secur it ies Co. Lt d.)
I f y ou decide t o ent er int o a bu sin ess ar r angem ent w it h us based on t he infor m at ion descr ibed in m at er ials pr esent ed along w it h t h is docum ent , we ask you t o pay close at t ent ion t o t he follow ing it em s.
• I n addit ion t o t he pur chase pr ice of a financial inst r u m ent , we w ill collect a t r adin g com m ission* for each t r ansact ion as agr eed befor ehand w it h you. Sin ce
com m ission s m ay be included in t he pur chase pr ice or m ay not be char ged for cer t ain t r ansact ions, w e r ecom m end t hat you con fir m t h e com m ission for each t r ansact ion.
• I n som e cases, we m ay also char ge a m ax im u m of ¥ 2 m illion ( inclu din g t ax) per year as a st anding pr oxy fee for our deposit of y our secur it ies, if you ar e a non- r esident of Japan.
• For der ivat ive and m ar gin t r ansact ion s et c., we m ay r equ ir e collat er al or m ar gin r equ ir em ent s in accor dance w it h an agr eem ent m ade befor ehand w it h you. Or dinar ily in su ch cases, t he am ount of t he t r ansact ion w ill be in excess of t he r equ ir ed collat er al or m ar gin r equ ir em ent s.
• Ther e is a r isk t hat you w ill incur losses on y our t r ansact ions due t o changes in t he m ar ket pr ice of fin ancial inst r u m ent s based on fluct u at ion s in int er est
r at es, exchan ge r at es, st ock pr ices, r eal est at e pr ices, com m odit y pr ices, and ot her s. I n addit ion, depending on t he cont ent of t he t r ansact ion, t he loss cou ld exceed t he am ount of t he collat er al or m ar gin r equir em ent s.
• Ther e m ay be a differ ence bet ween bid pr ice et c. an d ask pr ice et c. of OTC der ivat ives handled by u s.
• Befor e engaging in an y t r ading, please t hor ough ly con fir m account in g and t ax t r eat m ent s r egar ding y our t r ading in finan cial inst r u m ent s w it h such exper t s as cer t ified pu blic account ant s.
* The am ount of t he t r ading com m ission cannot be st at ed her e in advance because it w ill be det er m ined bet ween our com pan y an d you based on cur r ent m ar ket con dit ions and t he cont ent of each t r ansact ion et c.
When m ak ing an act ual t r ansact ion, please be sur e t o car efu lly r ead t he m at er ials pr esent ed t o y ou pr ior t o t he execut ion of agr eem ent , and t o t ake r esponsibilit y for y our own decisions r egar ding t he sign ing of t he agr eem ent w it h us.
Cor por at e Nam e: Daiwa Secur it ies Co. Lt d.
Financial in st r um ent s fir m : ch ief of Kant o Local Finance Bur eau ( Kin - sho) No.108
Mem ber sh ips: Japan Secur it ies Dealer s Associat ion, Financial Fut ur es Associat ion of Japan
