Best Domestic
posit ive cat alyst for ASSA’s vehicle- rent al and auct ion businesses in 2017.
St r ong r e nt a l gr ow t h lik e ly t o su st a in ut iliz a t ion of 9 3 .4 % in 2 0 1 7 F:
For 2016 ASSA booked st rong earnings of I DR62.1bn, up by 82% y- y,
beat ing our and consensus expect at ions by 18% and 13% , respect ively. The
solid earnings im provem ent was largely at t ribut able t o higher operat ing
profit of I DR256.2bn, up 20.5% y- y, on a st rong perform ance from ASSA’s
nam ely Pekanbar u, Lam pung and Banj arm asin. Current ly, BidWin holds
auct ion in 10 m aj or cit ies, wit h weekly event s in Jakart a and bi- m ont hly
auct ions in Surabaya, Medan and Balikpapan. BidWin m anaged t o post
st rong perform ance in 2016 wit h t he num ber of cars sold reaching 5,969
unit s ( ex hibit 7) , in- line w it h our est im at es. We expect BidWin t o cont inue
it s solid perform ance and sell 7,000 cars ( + 17% y- y) in 2017. Moreover,
BidWin is current ly developing it s own e- auct ion syst em in order t o support
it s m aj or expansion plans. This would increase BidWin’s econom ies of scale,
t arget m arket as well as flexibilit y in t he auct ion process wit hout having t o
spend a sizeable am ount on capit al expendit ures.
Re com m e n da t ion : Re a ffir m BUY ca ll w it h a highe r TP of I D R3 3 0
At t his st age of t he cycle, we cont inue t o like ASSA given t he recent
im provem ent in secondary- car m arket prices, which we believe will drive t he
com pany’s rent al segm ent growt h over t he m edium t erm . Hence, we expect
ASSA’s sharp YTD m ar ket out perform ance t o cont inue ( exhibit 4) ,
part icularly as t he out look for t he car- rent al and auct ion businesses rem ain
int act , in our view. We raise our 2017- 18F earnings ( exhibit 9) by 17- 20%
due t o lower int erest cost on t he debt at 9.2% ( from 9.75% ) , leading us t o
lift our 12- m ont h TP t o I DR330 ( from I DR280) , based on an unchanged
2017F PER of 12x. Wit h 36% upside pot ent ial t o our new TP, we reaffirm
our BUY rat ing. Risks t o our call would be lower- t han- expect ed secondary
m arket prices, a slower fleet expansion and lower ut ilizat ion rat es.
1 1 Apr il 2 0 1 7
Ex hibit 5 . Av e r a ge 2 0 1 2 Toy ot a Av a nz a se conda r y m a r k e t ASPs
Ex hibit 6 . ASSA’s fle e t siz e a nd ut iliz a t ion r a t e , Ja nua r y 2 0 1 5 - M a r ch 2 0 1 7
Ex hibit 7 . N um be r of BidW in’s offe r e d a nd sold ca r s, June 2 0 1 4 – M a r ch 2 0 1 7
9095 100 105 110 115 120 125 130 135 140 ( I DRm n)
Sour ce: Com pany, Bahana
ASPs on use d Toy ot a Av a nz a
suppor t
our v ie w of a
r e cov e r y in t he se conda r y
ca r m a r k e t in 2 0 1 7
90.0 91.0 92.0 93.0 94.0 95.0 96.0
15,000 16,000 17,000 18,000 19,000 20,000
Series1 Series2
( unit s) ( % )
Sour ce: Com pany, Bahana
I m pr ov in g
ut iliz a t ion
t o
9 3 .4 % in 2 0 1 6 fr om 9 2 .6 %
in 2 0 1 5 ; w e e x pe ct ASSA t o
e x pa nd it s fle e t siz e by 8 .9 %
y - y t o 2 0 .9 k unit s in 2 0 1 7 F
w it h a 9 3 .4 % ut iliz a t ion r a t e
0 500 1,000 1,500 2,000 2,500
Offer ed car s Sold cars ( unit s)
Sour ce: Com pany, Bahana
BidW in
r e cor de d
st r on g
pe r for m a nce
w it h t he
a uct ion of c.3 0 k ca r s since
it s de but in June 2 0 1 4
Ex hibit 8 . ASSA pa st - 3 - y e a r for w a r d PER ba nd, 2 0 1 4 - y t d
Ex hibit 9 . Ea r nings r e v ision s
Source: Com pany, Bahana forecast s
Ex hibit 1 0 . Re giona l pe e r s
Tick e r Com pa ny Ma r k e t ca p
( U SD m n) 2 0 1 7 F 2 0 1 8 F 2 0 1 7 F 2 0 1 8 F 2 0 1 7 F 2 0 1 8 F 2 0 1 7 F 2 0 1 8 F 2 0 1 7 F 2 0 1 8 F 2 0 1 7 F 2 0 1 8 F
BI RD I J Blu e Bird Tb k PT 7 3 1 1 1 .1 9 .8 1 .7 1 .5 4 .7 4 .1 1 .1 1 .8 1 5 .4 1 5 .2 1 4 .5 1 0 .8
ASSA I J Ad i Sa ra n a Arma d a Tb k PT 6 2 8 .8 5 .7 0 .9 0 .8 4 .2 3 .7 4 .5 7 .0 9 .7 1 3 .9 5 0 .3 5 5 .7
TAXI I J Exp re ss Tra n sin d o Ut a ma Tb k 2 6 3 8 .0 4 0 .1 0 .4 0 .4 3 .5 3 .6 0 .5 0 .4 1 .1 1 .0 n a (5 .2 )
I ndone sia a v e r a ge 1 1 .7 1 0 .4 1 .6 1 .4 4 .6 4 .1 1 .4 2 .2 1 4 .5 1 4 .6 1 6 .8 1 3 .7
Tick e r Com pa ny Ma r k e t ca p
( U SD m n) 2 0 1 7 F 2 0 1 8 F 2 0 1 7 F 2 0 1 8 F 2 0 1 7 F 2 0 1 8 F 2 0 1 7 F 2 0 1 8 F 2 0 1 7 F 2 0 1 8 F 2 0 1 7 F 2 0 1 8 F
CAB AU Ca b ch a rg e Au st ra lia Lt d 2 6 1 1 0 .4 1 4 .8 1 .1 1 .1 8 .5 8 .9 2 4 .6 4 .5 (4 .9 ) 1 0 .8 (2 9 .3 ) (2 9 .9 )
0 0 2 3 5 7 CH Sich u a n Fu lin Tra n sp o rt a t io n G 5 8 1 2 3 .9 2 0 .3 4 .1 3 .6 n a n a 1 .2 1 .2 1 8 .0 1 7 .8 2 5 .9 1 7 .8
CD SP Co mfo rt De lGro Co rp Lt d 4 ,0 0 8 1 6 .6 1 6 .0 2 .2 2 .1 6 .9 6 .7 4 .2 4 .6 1 3 .4 1 3 .4 4 .0 3 .8
Re giona l a v e r a ge 1 7 .2 1 6 .5 2 .4 2 .2 6 .1 6 .0 4 .9 4 .2 1 3 .0 1 3 .8 4 .8 3 .7
Re giona l La nd Tr a nspor ta tion
PER ( x ) PBV ( x ) EV/ EBI TD A ( x ) D iv . y ie ld ( % ) RO E ( % ) EPS gr ow th ( % ) EPS gr ow th ( % ) PER ( x ) PBV ( x ) EV/ EBI TD A ( x ) D iv . y ie ld ( % ) RO E ( % )
I ndone sia La nd Tr a nspor ta tion
Sour ce: Bloom ber g, Bahana for ecast s for I ndonesian- list ed st ocks; pr ices as of close on 11 Apr il 20 17
6 8 10 12 14 16 18 ( x )
Sour ce: Bloom ber g, Bahana for ecast s
ASSA sha r e s cur r e n t ly t r a de
ne a r
t he ir
pa st 3 y e a r
-a v e r -a ge
for w a r d
PER of
1 1 .6 x
Old
N e w
Ch a nge ( % )
( I D Rbn )
2 0 1 6
2 0 1 7 F
2 0 1 8 F
2 0 1 6
2 0 1 7 F
2 0 1 8 F
2 0 1 6
2 0 1 7 F
2 0 1 8 F
Re v e n u e
1 ,5 7 0
1 ,7 5 2
2 ,0 8 3
1 ,7 9 6
2 ,0 3 2
2.5
( 2.4)
Gr oss pr ofit
4 5 6
5 3 8
6 8 5
5 1 8
6 3 4
( 3.7)
( 7.4)
Gr oss profit m argin ( % )
29.0
30.7
32.9
28.8
31.2
Ope r a t in g pr ofit
2 5 6
3 0 0
3 8 1
2 8 3
3 6 9
( 5.8)
( 3.2)
Oper at ing m ar gin ( % )
16.3
17.1
18.3
15.7
18.1
N e t profit
6 2
8 0
1 2 1
9 3
1 4 5
16.7
20.2
Net m argin ( % )
4.0
4.6
5.8
5.2
7.2
H e ad Office Su r aba ya Bra n ch
Graha Niaga, 19t h Floor Wism a BI I , Ground Floor
Jl. Jend. Sudirm an Kav. 58 Jl. Pem uda 60- 70
Jakart a 12190 Surabaya 60271
I ndonesia I ndonesia
Tel. 62 21 250 5081 Tel. 62 31 535 2788
I m por t a n t D isclosur e s a nd D iscla im er
This pu blicat ion is pr epar ed by PT.Bahana Sekur it as and r ev iewed by Daiwa Secur it ies Gr ou p 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 Sekur it as in accor dan ce w it h r elevant law s an d r egulat ions. This pu blicat ion an d 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 pa 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: Neo Solar Power Corp ( 3576 TT) , Acushnet Holdings Cor p ( GOLF US) , No Va Land I nvest m ent Gr oup Corporat ion ( NVL VN) .
* 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 Sekur it as
I nvest m ent Ban k ing Relat ionsh ip
Wit h in t he pr eceding 12 m ont h s, Bahana Sekur it as has lead- m anaged public offer ings and/ or secondar y offer in gs ( ex cluding st r aight bonds) of t he secur it ies of t he follow ing com pan ies: PT Telekom un ikasi I n donesia ( Per ser o) Tbk ( TLKM I J) ; PT Wask it a Bet on Pr ecast Tbk ( WSBP I J) .
H ong 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.
Singa por 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 .
Aust 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 ndia
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 resear ch is solely for reference and not int ended t o pr ovide t ailored invest m ent recom m endat ions. This resear ch is dist r ibut ed in Taiwan by Daiwa- Cat hay Capit al Mar ket s Co., Lt d. and it m ay only be dist r ibut ed in Taiwan t o specific cust om ers who have signed recom m endat ion cont r act s wit h Daiwa- Cat hay Capit al Market s Co., Lt d. and non- cust om ers including ( i) pr ofessional inst it ut ional invest or s, ( ii) TWSE or TPEx list ed com panies, upst ream and downst ream vendor s, and specialist s t hat offer or seek advice, and ( iii) pot ent ial cust om ers wit h an act ual need for business developm ent in accordance wit h t he Operat ional Regulat ions Governing Secur it ies Fir m s Recom m ending Trades in Securit ies t o Cust om ers. Recipient s of t his resear ch including non- cust om er recipient s of t his research shall not pr ovide it t o ot hers or engage in any act ivit ies in connect ion wit h t his resear ch which m ay involve conflict s of int erest s. Neit her Daiwa- Cat hay Capit al Mar ket s Co., Lt d. nor it s personnel who wr it es or reviews t he resear ch repor t has any conflict of int erest in t his resear ch. Since Daiwa- Cat hay Capit al Market s Co., Lt d. does not operat e brokerage t rading business in foreign m ar ket s, t his re se a r ch is “w it hout re com m e nda t ion” t o a ny fore ign se curit ie s and Daiwa- Cat hay Capit al Mar ket s Co., Lt d. does not accept or ders from cust om er s t o t r ade in such secur it ies t hat are wit hout recom m endat ion. Recipient s of t his resear ch in Taiwan m ay cont act Daiwa- Cat hay Capit al Market s Co., Lt d. in respect of any m at t er ar ising fr om or in connect ion wit h t he r esearch.
Philippine 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 ht t p: / / w w w.sec. gov.ph and ht t p: / / ww w. pse.com .ph / r espect ively.
Unit e d Kingd om
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 ny
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 hr 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 .
Unit e d St a t e s
This report is dist r ibut ed in t he U.S. by Daiwa Capit al Mar ket s Am er ica I nc. ( DCMA) . I t m ay not be accurat e or com plet e and should not be relied upon as such. I t reflect s t he preparer’s views at t he t im e of it s preparat ion, but m ay not reflect event s occurr ing aft er it s preparat ion; nor does it reflect PT.Bahana Sekur it as’ or DCMA’s views at any t im e. Neit her PT.Bahana Sekur it as, DCMA nor t he preparer has any obligat ion t o updat e t his report or t o cont inue t o pr epare resear ch on t his subj ect . This repor t is not an offer t o sell or t he solicit at ion of any offer t o buy secur it ies. Unless t his r eport says ot her wise, any recom m endat ion it m akes is risky and appropr iat e only for sophist icat ed speculat ive invest ors able t o incur significant losses. Readers should consult t heir financial advisor s t o det er m ine whet her any such recom m endat ion is consist ent wit h t heir own invest m ent obj ect ives, financial sit uat ion and needs. This report does not recom m end t o U.S. recipient s t he use of any of PT.Bahana Sekur it as’ or DCMA’s non- U.S. affiliat es t o effect t rades in any securit y and is not supplied wit h any underst anding t hat U.S. recipient s of t his report will dir ect com m ission business t o such non- U.S. ent it ies. Unless applicable law per m it s ot herwise, non- U.S. cust om ers wishing t o effect a t ransact ion in any secur it ies referenced in t his m at er ial should cont act a Daiwa ent it y in t heir local j ur isdict ion. Most count r ies t hroughout t he wor ld have t heir own laws regulat ing t he t ypes of secur it ies and ot her invest m ent product s which m ay be offered t o t heir resident s, as well as a pr ocess for doing so. As a result , t he secur it ies discussed in t his report m ay not be eligible for sales in som e j ur isdict ions. Cust om er s wishing t o obt ain furt her infor m at ion about t his repor t should cont act DCMA: Daiwa Capit al Market s Am er ica I nc., Financial Square, 32 Old Slip, New Yor k, New York 10005 ( Tel no. 212- 612- 7000) .
Ow ne r ship of Se cur 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 ion sh ips
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 ing
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 Ana 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 Ana ly st Ce r t ifica t ion
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 nd se ct or s in I ndone sia cov e r e d by Ba ha na Se k u r it a s, t he follow ing r at ing 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 Sekur it as)
Bahana Sekur it as 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 any of t he com pan ies under it s r esear ch cover age.
Bahana Sekur it as m ar ket m ak ing
Bahana Sekur it as 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.
Addit iona l in for m a t ion m a y be a v a ila ble upon r e que st .
Ja pa n - a ddit iona l not ifica t ion it e m s pur sua nt t o Ar t icle 3 7 of t he Fina ncia l I n st r u m e n t s a nd Ex cha nge 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
