MORNING HIGHLIGHT. Equity Research Wednesday, January 27, 2016 FROM EQUITY RESEARCH MARKET NEWS

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Equity Research Wednesday, January 27, 2016 MORNING HIGHLIGHT FROM EQUITY RESEARCH SMBR: The King of Cement in Southern Sumatera (Non Rated) Despite having low production capacity, Semen Baturaja

SMBR enjoys this position as: a) it is the only cement producer which has production facilities in the region and b) access to the region remains challenging due to limited infrastructure and natural

1 Equity Research Wednesday, January 27, 2016 MORNING HIGHLIGHT FROM EQUITY RESEARCH SMBR: The King of Cement in Southern Sumatera (Non Rated) Despite having low production capacity, Semen Baturaja (SMBR) benefits from targeting a niche market in the southern part of Sumatera, including South Sumatera and Lampung. SMBR enjoys this position as: a) it is the only cement producer which has production facilities in the region and b) access to the region remains challenging due to limited infrastructure and natural obstacles, restricting the ability of new players to enter. Consequently, SMBR was able to boost its domestic sales volume by 21.8% yoy to 1.54 mn tons in 2015, far outpacing the industry growth of only 0.9% yoy. MARKET NEWS *Analysts comment inside Aims fantastic target, ADHI do diversification (ID) April, UNTR consortium to work on the power plant worth USD4.2 bn (ID) KAEF prepared to take over Phapros (BI) High speed rail grinds to halt (TJP) Higher royalties sought from state miners (TJP) Previous Reports: BBNI: Net Profit Above Expectation-Snapshot Construction: All set for a strong year-snapshot WIKA: High Speed Railway: so it begins-snapshot Cement: ASI: Promoting healthier competition on the industry- Snapshot BSDE: Upside surprises in the offing-snapshot Construction: Land acquisition process shortened-snapshot Automotive: Seasonally weak car sales volume in December Snapshot Banking: Tailwind from lower BI rate-snapshot IDX ANNOUNCEMENT Corp Action Code Action Date Time (WIB) PDES EGM 28-Jan RIMO EGM 29-Jan GSMF EGM 29-Jan KONI EGM 29-Jan-16 9 Source: KSEI Key Index Close Chg Ytd Vol (%) (%) (US$ m) Asean - 5 Indonesia 4, (1.8) 233 Thailand 1, (1.5) 865 Philippines 6,312 (1.9) (9.2) 108 Malaysia 1, (3.9) 418 Singapore 2,546 (1.4) (11.7) 688 Regional China 2,750 (6.4) (22.3) 39,508 Hong Kong 18,861 (2.5) (13.9) 9,956 Japan 16,709 (2.3) (12.2) 11,350 Korea 1,872 (1.1) (4.6) 3,364 Taiwan 7,829 (0.8) (6.1) 1,832 India 24, (6.2) 386 NASDAQ 4, (8.8) 71,848 Dow Jones 16, (7.2) 9,310 Currency and Interest Rate Rate w-w m-m ytd (%) (%) (%) Rupiah Rp/1US$ 13,886 (0.2) (1.8) (0.7) SBI rate % 6.65 (0.4) (0.5) (0.6) 10y Gov Indo bond 8.48 (0.2) (0.3) (0.3) Unit Hard Commodities Price d-d m-m ytd (%) (%) (%) Coal US$/ton (5.5) (2.7) Gold US$/toz 1,120 (0.0) Nickel US$/mt.ton 8,519 (1.8) (0.9) (3.0) Tin US$/mt.ton 13,742 (0.1) (5.7) (5.8) Unit Soft Commodities Price d-d m-m ytd (%) (%) (%) Cocoa US$/mt.ton 2,879 (1.9) (12.6) (11.9) Corn US$/mt.ton 140 (0.3) Crude Oil US$/barrel 31 (2.4) (19.4) (17.1) Palm oil MYR/mt.ton 2, Rubber US$/mt ton 108 (2.0) (9.6) (8.5) Pulp US$/tonne 793 N/A (1.3) (1.2) Coffee US$/60kgbag Sugar US$/MT 419 (0.4) 1.1 (0.7) Wheat US$/ton Source: Bloomberg Danareksa Sekuritas Equity Research

2 Equity Research Wednesday, January 27, 2016 PT Danareksa Sekuritas Jl. Medan Merdeka Selatan No. 14 Jakarta Indonesia Tel (62 21) Fax (62 21) Equity Research Team A. Indrajatri Suwono, CFA (62-21) Strategy, Banking Anindya Saraswati (62-21) Property, Retail Armando Marulitua (62-21) Pharmaceutical Stefanus Darmagiri (62-21) Coal, Heavy Equipment, Metal Mining Natalia Sutanto (62-21) ext.3508 Consumer, Tobacco Puti Adani (62-21) Research Associate Antonia Febe Hartono (62-21) ext.3504 Research Associate Sales team Ermawati A. Erman (62 21) ext Novrita E. Putrianti (62 21) ext Ehrliech Suhartono (62 21) ext Yunita L. Nababan (62 21) ext Martin Joshua (62 21) ext Laksmita Armandani (62 21) ext Muhammad Hardiansyah (62 21) ext Tuty Sutopo (62 21) ext Upik Yuzarni (62 21) ext Kevin Giarto (62 21) ext Danareksa Sekuritas Equity Research

3 Apr-15 May-15 Jun-15 Jul-15 Aug-15 Sep-15 Oct-15 Nov-15 Dec-15 Jan-16 Wednesday, 27 January 2016 NOT RATED SMBR IJ/ SMBR.JK Last Price, Rp 285 No. of shares (bn) 9.8 Market Cap, Rp bn 2,804 (US$ mn) 202 3M T/O, US$mn 0.19 Relative to JCI (Rp) (%) SMBR (LHS) Relative to JCI (RHS) CEMENT/NOT RATED Semen Baturaja The King of Cement in Southern Sumatera Despite having low production capacity, Semen Baturaja (SMBR) benefits from targeting a niche market in the southern part of Sumatera, including South Sumatera and Lampung. SMBR enjoys this position as: a) it is the only cement producer which has production facilities in the region and b) access to the region remains challenging due to limited infrastructure and natural obstacles, restricting the ability of new players to enter. Consequently, SMBR was able to boost its domestic sales volume by 21.8% yoy to 1.54 mn tons in 2015, far outpacing the industry growth of only 0.9% yoy. The Cement King in Southern Sumatera With a track record of more than 40 years in the cement industry, Semen Baturaja (SMBR) is one of the oldest cement players in Indonesia after Semen Gresik and Semen Padang. With current installed capacity of 2 mn tons/year, SMBR s cement plants are located at three different locations: Baturaja and Palembang in South Sumatera and Panjang in Lampung. As its production capacity is very small, SMBR targets a niche market in southern Sumatra with South Sumatra and Lampung as its main markets. Sales to those two provinces contribute more than 95% of its total sales volume. Market Recommendation Buy 1 Hold Sell 0 3 Stellar 2015 performance despite lethargic domestic demand As the only cement player with production facilities in South Sumatera, SMBR is well placed to benefit from infrastructure and private projects in this region given that its rivals are impeded by the region s still limited infrastructure as well as the challenging natural conditions. As a result, the company was able to book stellar sales volume growth of 21.8% yoy to 1.5 mn tons in 2015 despite weakening domestic cement demand growth of only 0.9% yoy. Important projects for SMBR included the Oki Pulp and Paper factory, the Bayung Lincir Power Plant (Sumsel 8), and the Pupuk Sriwijaya IIB plant. These projects helped propel SMBR s sales of bulk cement by 53.2% yoy, while its bagged cement sales grew a more modest 11.1% yoy. Expect the momentum to be maintained SMBR s management targets sales volume of 1.75 mn tons in 2016 (+13.8% yoy), driven by rapid infrastructure development in the southern part of Sumatera. Such projects will include: a) toll-road sections of the Trans-Sumatera Highway, including: Palembang- Simpang Indralaya, Bakauheni-Terbanggi Besar, Terbanggi Besar-Pematang Panjang, Pematang Panggang-Kayu Agung, and Palembang-Tanjung Api-Api; b) the LRT project in Palembang; and c) PLTU Bangko Tengah with capacity of 2x620 MW. To support its operations, the management plans to establish a subsidiary which focuses on the distribution and penetration of markets in the Jambi and Bengkulu region. Antonia Febe Hartono (62-21) ext3504 Antonia.hartono@danareksa.com Stefanus Darmagiri (62-21) ext3530 stefanus.darmagiri@danareksa.com anareksa research reports are also vailable at Reuters Multex and First all Direct and Bloomberg. Margins may be squeezed over the short term Despite having current installed cement capacity of 2 mn tons/year, SMBR s clinkers production capacity was only 1.25 mn tons with average production of 1.1 mn tons per year. To fulfill the shortfall in clinkers, SMBR has to purchase clinkers from external parties. As the company expects its sales volume to increase by 13.8% yoy to 1.75 mn tons in 2016 from 1.54mn tons in 2015, and given the cost differential between purchasing and producing clinkers at Rp100,000/ton, there will be a compression in the company s profitability margins over the short term. Catching up with its competitors To keep its competitors at bay and to maintain its dominance in South Sumatra, SMBR will increase annual capacity at Baturaja to 1.85 mn tons. The investment for this plant is estimated to reach Rp3.3 tn, with the source of the funds coming from the proceeds of the IPO, internal cash and external loans. The new plant is expected to commence its operational activities in 1H17.

4 27 January 2016 Semen Baturaja Trading at a discount to its peers SMBR currently trades at 7.3x 2016F PE, or far lower than the industry s 13.7x - a hefty 46% discount. We believe this discount reflects several factors. Firstly is the company s much smaller market capitalization compared to its peers. As this results in lower trading value, investors apply a liquidity discount. Secondly is the dilution of SMBR s market share in the domestic cement market from previous capacity constraints. And thirdly is the risk associated with only serving a niche market in the southern part of Sumatera. Exhibit 1. Sales contribution for SMBR 100% 80% 28% 31% 33% 29% 32% 36% 37% 33% 29% 24% 60% 40% 20% 61% 59% 64% 66% 58% 58% 59% 61% 70% 74% 0% Source: ASI South Sumatera Lampung Bangka Bengkulu Jambi Riau Exhibit 2. Sales of SMBR '000 ton 2,000 1,500 1, Source: ASI South Sumatera Lampung Bangka Bengkulu Jambi Riau Sales growth (RHS) % 25% 20% 15% 10% 5% 0% -5% 2

5 27 January 2016 Semen Baturaja Exhibit 3. Progress of the first section of the Trans-Sumatera Highway Section Length Investment (km) (Rp bn) Progress Medan-Binjai 17 2,295 Construction progress 2.0% Land acquisition progress to reach 69.7% Palembang-Simpang 22 2,313 Construction progress 3.0% Indralaya Land acquisition progress to reach 60.5% Pekanbaru-Dumai ,000 Land acquisition progress reached Bakauheni- Terbanggi Besar Terbanggi Besar- Pematang Panggang Pematang Panggang-Kayu Agung Palembang-Tanjung Api-Api Kisaran-Tebing Tinggi Source: Multiple publication 21.5km ,389 Construction progress 0.5% Land acquisition progress to reach 16.4% and expected to be completed by May ,646 Construction is expected to be started in March 2016 Started land acquisition progress, expected to be completed by December ,256 On feasibility study, expected to be completed by February On feasibility study, expected to be completed by February ,686 On feasibility study, expected to be completed by February 2016 Completion target Exhibit 4. SMBR market share in South Sumatera and Lampung 17% 14% 2014 South Sumatera % 9% 16% 1% 56% 31% 2014 Lampung 22% % 9% 25% 22% 4% 0% 21% 1% Baturaja Cemindo Gemilang Indocement 17% 1% 0% Bosowa Holcim Jui Shin Indonesia 35% Baturaja Jui Shin Indonesia Indocement 40% Cemindo Gemilang Holcim Padang Source: ASI Exhibit 5. PE band comparison ) x( ( Exhibit 6. Average transaction value of cement players Rp mn 160, ,000 80, Jun 13 Dec 13 Jun 14 Dec 14 Jun 15 Dec 15 Industry SMBR 40,000 Source: ASI Source: Bloomberg, 26 January SMGR INTP SMCB SMBR 3

6 27 January 2016 Semen Baturaja Exhibit 7. Income statement (Rp bn) M15 Revenue 1,050 1,098 1,169 1,215 1,033 Cost of good sold (622) (608) (706) (842) (683) Gross profit Operating expense (135) (136) (158) (168) (119) Operating profit Other income (charges) Profit before tax Tax (81) (97) (88) (66) (63) Net profit Exhibit 8. Balance sheet (Rp bn) M15 Cash and equivalent ,883 2,054 1,657 Restricted cash Account receivable Inventories Other current asset Total current asset ,107 2,336 2,407 Fixed asset, net Restricted cash Others Total asset 983 1,199 2,711 2,928 3,119 Trade payable Short term bank loan Others Total current liabilities Long term debt Others Total long term liabilities Shareholder equity ,433 2,683 2,867 Total liabilities and equity 983 1,199 2,711 2,928 3,119 4

7 27 January 2016 Semen Baturaja Exhibit 9. Statement of cash flow (Rp bn) M15 Net income Depreciation & amortization Changes in working capital 39 (610) (218) (105) 26 Operating cash flow 338 (261) Fixed assets (47) (215) (139) (57) (648) Others (3) (7) Investing cash flow (47) (215) (139) (60) (655) Bank loans - (25) (17) (14) - Proceed from IPO , Dividend (50) (50) (60) (78) (82) Others 3 (3) 41 (14) (19) Financing cash flow (47) 501 1,342 (106) (101) Changes in cash , (397) Beginning balance ,907 2,054 Ending balance ,907 2,054 1,657 Allocated to: Short term restricted cash Long term restricted cash Cash and cash equivalent ,883 2,054 1,657 Exhibit 10. Statement of cash flow (Rp bn) M15 Gross margin Operating margin Net margin ROA ROE Debt ratio Net gearing ratio Net Cash Net Cash Net Cash Net Cash Net Cash 5

8 Equity Research Wednesday, January 27, 2016 MARKET NEWS Aims fantastic target, ADHI do diversification (ID) Adhi Karya (ADHI) set targets of Rp25.1tn for new contract this year, an increase of 80% from 2015 realization amounted to Rp13.97 tn. Furthermore, ADHI intends to reduce the contribution of the construction business from 90% to 75.1% and to diversify by aiming higher contribution from engineering procurement and construction (EPC) of 6.9%, property 8.6%, precast concrete 9.4%. In December, ADHI has awarded new contract for Palembang Musi IV bridge worth Rp478.4bn and Central Sebatik housing worth Rp148.8bn. April, UNTR consortium to work on the power plant worth USD4.2 bn (ID) United Tractors (UNTR) together with Sumitomo Corporation and Kansai Electric Power Co. Inc. targets to start construction of 2,000 MW power plant in Central Java in April 2016 at the latest after signing the MoU on December 21, UNTR expects financial closure can be done in late 1Q16 or early 2Q16. The project is worth about 500 bn yen, equivalent to USD4.2 bn or Rp58.78 tn. This plant is expected to require as much as 7 million tons of coal per year. The project is expected to complete in KAEF prepared to take over Phapros (BI) SOE Ministry seriously prepare holding in the pharmaceutical sector. One of the plans involves the acquisition Phapros by Kimia Farma (KAEF). Phapros is a subsidiary of the Rajawali Nusantara Indonesia (RNI). This plan is part of the formation of the parent pharmaceutical company involving 4 companies, including Indofarma (INAF) and Biofarma. SOE Ministry will form a holding virtual pharmaceutical company, which consists of KAEF, INAF, Biofarma, and Phapros. Afterward, KAEF will acquire Phapros. High speed rail grinds to halt (TJP) Jakarta-Bandung high speed rail construction may put into halt as the Transportation Ministry confirmed that it had not issued the building permit as the PT Kereta Cepat Indonesia China (KCIC) had not submitted the required document. The ministry had not issued the concession agreement either as it is still negotiating some issues on risk of default and the concession duration. Among the requirement from the ministry was that KCIC to restore everything to its initial condition if the railway was not built for whatever reasons.the ministry was also still waiting for the hydrology study, among other documents, required for the building permit issuance. So far, KCIC has received track route permits, a railway transportation firm permit, an environmental impact analysis, and toll road land use permit, from various ministry including the Public Housing and Public Works Ministry. Higher royalties sought from state miners (TJP) The SOE ministry is looking to book higher royalty incomes from state-run miners this year. The Ministry wants mining royalties paid to increase by about 16% to Rp1.45 tn, as they believe while the govt-owned miners were struggling due to the slumping commodity prices, they were upbeat the company would meet the target thanks to the numbers of downstream projects. There are three mining firms under the mining, strategic industry and media division of SOE ministry; Aneka Tambang (ANTM), Bukit Asam (PTBA), and Timah (TINS). Danareksa Sekuritas Equity Research

9 Equity Valuation Rating Price (Rp) Price Mkt Cap Net profit, Rp bn EPS (Rp) Core EPS (Rp) EPS Growth PER (x) EV / EBITDA (x) PBV (x) Target Rp Bn Danareksa Universe 2,664, , , % 8% Auto 257,907 16,781 19, % 14% Astra International HOLD 6,125 6, ,962 16,050 18, % 13% Gajah Tunggal BUY 498 1,500 1, % 138% Selamat Sempurna BUY 4,395 5,300 6, % 6% net cash 36.0 Banks 940,227 73,678 79, % 8% BCA BUY 13,000 15, ,515 18,062 19, % 10% NA NA NA 21.4 BNI BUY 4,930 5,850 91,938 7,506 8, % 15% NA NA NA 12.1 BRI BUY 11,300 13, ,762 24,352 25, , ,048 0% 6% NA NA NA 23.0 Bank Tabungan Negara BUY 1,370 1,450 14,498 1,588 1, % 24% NA NA NA 12.4 Bank Mandiri BUY 9,525 11, ,250 20,144 21, % 6% NA NA NA 18.2 Bank Tabungan Pensiunan BUY 2,100 4,500 12,265 2,026 2, % 10% NA NA NA 15.8 Cement 130,383 9,522 9, % 0% Indocement HOLD 19,225 21,000 70,772 4,915 4,919 1,335 1,336 1,305 1,306-9% 0% net cash 16.9 Semen Indonesia BUY 10,050 12,300 59,612 4,608 4, % 1% Construction 116,350 4,375 5, % 26% Jasa Marga BUY 5,775 8,000 39,270 1,531 1, % 28% Wijaya Karya HOLD 2,790 2,900 17, % 27% Pembangunan Perumahan BUY 3,950 4,700 19, % 35% Adhi Karya BUY 2,445 2,750 8, % 40% net cash 12.1 Waskita Karya BUY 1,735 2,150 23, , % 31% net cash 14.2 Wika Beton HOLD 980 1,350 8, % 24% net cash 17.1 Consumer 418,512 13,419 14, % 6% Indofood CBP BUY 14,700 13,800 85,715 3,033 3, % 9% net cash 20.3 Indofood BUY 5,525 7,100 48,512 3,704 4, % 10% Unilever SELL 35,975 30, ,489 5,889 6, % 6% net cash 80.4 Nippon Indosari Corpindo BUY 1,250 1,680 6, % 16% Mandom BUY 17,250 21,170 3, ,618 1, , % -47% net cash 35.7 Healthcare 111,974 2,981 3, % 26% Kalbe Farma HOLD 1,370 1,355 64,219 2,040 2, % 12% net cash 20.6 Kimia Farma BUY 930 1,200 5, % 17% Siloam Hospital HOLD 9,150 10,500 10, % 44% Mitra Keluarga BUY 2,200 2,995 32, % 15% net cash 22.9 Heavy Equipment 62,509 6,331 6,015 1,385 1,316 14% -5% Hexindo Adiperkasa HOLD 1,145 3, % 18% net cash 8.0 United Tractors HOLD 16,500 18,500 61,547 6,111 5,756 1,638 1,543 1,638 1,543 14% -6% net cash 16.5 Mining 57,495 6,032 4, % -22% Adaro Energy BUY ,225 2,249 1, % -30% Timah HOLD , % 78% Vale Indonesia BUY 1,375 3,700 13, , % 23% net cash 4.1 Aneka Tambang BUY ,546 (706) (293) (74) (31) (74) (31) -5% -59% (4.2) (10.2) Bukit Asam BUY 4,275 7,800 9,850 1,970 1, % -27% net cash 21.4 Indo Tambangraya Megah HOLD 5,050 7,300 5,706 1, , , % -46% net cash 14.1 Harum Energy HOLD , (123) 10 (45) 10 (45) 471% -540% 62.6 (14.2) net cash 0.8 Plantation 43,333 5,510 5, % 8% Astra Agro Lestari BUY 16,700 27,100 26,298 2,770 2,832 1,759 1,798 1,759 1,798 4% 2% net cash 24.5 Sampoerna Agro BUY 1,800 2,600 3, % 19% PP London Sumatra HOLD 1,305 2,090 8,904 1,055 1, % 7% net cash 13.9 Salim Ivomas Pratama BUY ,729 1,221 1, % 17% Property 91,025 8,896 10, % 15% Alam Sutera BUY ,307 1,254 1, % 21% Bumi Serpong Damai BUY 1,685 2,100 32,431 2,369 2, % 10% net cash 16.6 Metropolitan Land BUY , % 11% Surya Semesta Internusa HOLD 645 1,040 3, % -11% net cash 16.9 Lippo Karawaci BUY 1,045 1,200 24,116 1,565 1, % 13% PP Properti BUY ,542 1,626 1, % 27% Summarecon BUY 1,460 2,045 21,063 1,327 1, % 21% Telco & Infrastructure 464,388 19,313 22, % 17% XL Axiata BUY 3,390 4,710 28, % 91% Indosat BUY 5,300 4,200 28, % 89% Telkom HOLD 3,225 3, ,080 15,554 16, % 6% net cash 22.1 Sarana Menara Nusantara BUY 4,495 4,600 45,862 1,585 2, % 29% Tower Bersama HOLD 5,600 8,600 26,861 1,528 2, % 43% MNC Sky Vision HOLD 1,250 1,230 8,830 (22) 375 (3) 53 (2) 1-86% -1776% (395.1) Tranportation 15,013 1,253 1, % 24% Blue Bird BUY 6,000 12,200 15,013 1,253 1, % 24% Utility 58,180 11,088 10, % -7% PGN BUY 2,400 6,650 58,180 11,088 10, ,775 5,313 3% -7% net cash 28.7 Retail 23, , % 18% Mitra Adi Perkasa BUY 3,700 4,650 6, % 71% Ramayana SELL , % 5% net cash 7.2 Ace Hardware HOLD , % 9% net cash 22.4 Net Gearing ROE

10 Equity Research Wednesday, January 27, 2016 COVERAGE PERFORMANCE LEADERS Price as on Code 26-Jan Jan-2016 Chg, % w-w, % m-m, % YTD, % Rating Blue Bird BIRD 6,000 5, (7.0) (16.1) (15.5) BUY Mandom TCID 17,250 16, BUY Nippon Indosari Corpindo ROTI 1,250 1, (0.4) (1.2) BUY Indofood CBP ICBP 14,700 14, BUY Bumi Serpong Damai BSDE 1,685 1, (5.3) (3.2) (6.4) BUY Ace Hardware ACES (2.4) (2.4) HOLD Kimia Farma KAEF (0.5) BUY Bank Tabungan Negara BBTN 1,370 1, (0.7) BUY Indosat ISAT 5,300 5, (6.2) (3.6) BUY Siloam Hospital SILO 9,150 9, (7.3) (6.6) HOLD Sources: Bloomberg LAGGARDS Price as on Code 26-Jan Jan-2016 Chg, % w-w, % m-m, % YTD, % Rating Indo Tambangraya Megah ITMG 5,050 5,375 (6.0) (1.0) (10.6) (11.8) HOLD XL Axiata EXCL 3,390 3,600 (5.8) (8.9) (10.0) (7.1) BUY Vale Indonesia INCO 1,375 1,445 (4.8) (4.5) (7.1) (15.9) BUY Adaro Energy ADRO (4.4) 3.3 (4.8) (7.6) BUY Bukit Asam PTBA 4,275 4,470 (4.4) (0.6) (6.6) (5.5) BUY Wika Beton WTON 980 1,020 (3.9) (2.0) HOLD Perusahaan Gas Negara PGAS 2,400 2,490 (3.6) (3.8) (15.9) (12.6) BUY MNC Sky Vision MSKY 1,250 1,295 (3.5) (1.6) (7.1) (6.4) HOLD Mitra Adi Perkasa MAPI 3,700 3,830 (3.4) 0.4 (0.3) (2.5) BUY Indofood INDF 5,525 5,700 (3.1) (5.2) BUY Sources: Bloomberg Danareksa Sekuritas Equity Research

11 Equity Research Wednesday, January 27, 2016 Disclaimer The information contained in this report has been taken from sources which we deem reliable. However, none of P.T. Danareksa Sekuritas and/or its affiliated companies and/or their respective employees and/or agents makes any representation or warranty (express or implied) or accepts any responsibility or liability as to, or in relation to, the accuracy or completeness of the information and opinions contained in this report or as to any information contained in this report or any other such information or opinions remaining unchanged after the issue thereof. We expressly disclaim any responsibility or liability (express or implied) of P.T. Danareksa Sekuritas, its affiliated companies and their respective employees and agents whatsoever and howsoever arising (including, without limitation for any claims, proceedings, action, suits, losses, expenses, damages or costs) which may be brought against or suffered by any person as a results of acting in reliance upon the whole or any part of the contents of this report and neither P.T. Danareksa Sekuritas, its affiliated companies or their respective employees or agents accepts liability for any errors, omissions or misstatements, negligent or otherwise, in the report and any liability in respect of the report or any inaccuracy therein or omission there from which might otherwise arise is hereby expresses disclaimed. The information contained in this report is not be taken as any recommendation made by P.T. Danareksa Sekuritas or any other person to enter into any agreement with regard to any investment mentioned in this document. This report is prepared for general circulation. It does not have regards to the specific person who may receive this report. In considering any investments you should make your own independent assessment and seek your own professional financial and legal advice. Danareksa Sekuritas Equity Research

MORNING HIGHLIGHT. Equity Research Wednesday, March 16, 2016 FROM EQUITY RESEARCH MARKET NEWS. AUTO: Domestic car sales are still weak (NEUTRAL)

MORNING HIGHLIGHT. Equity Research Wednesday, March 16, 2016 FROM EQUITY RESEARCH MARKET NEWS. AUTO: Domestic car sales are still weak (NEUTRAL) Wednesday, March 16, 2016 MORNING HIGHLIGHT FROM EQUITY RESEARCH AUTO: Domestic car sales are still weak (NEUTRAL) Domestic car sales rose 3.8% mom to 88,250 units in February 2016. Looking forward, we