Daily Focus. Indonesia. February 23, Growing fuel consumption

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Indonesia Daily Focus Mimi Halimin +62-21-515-1141 mimi.halimin@dwsec-id.com For subscription of our Daily Focus, please contact us at research@dwsec-id.

1 Indonesia Daily Focus Mimi Halimin For subscription of our Daily Focus, please contact us at Market Index Last Trade Chg (%) MoM YoY JCI 5, MSCI EM HANG SENG 24, KOSPI 1, FTSE 6, DJIA 18, NASDAQ 4, Valuation 2015F P/E (x) P/B (x) ROE (%) JCI Key Rates Last Trade Chg (bps) MoM YoY Policy Rate yr yr FX Last Trade Chg (%) MoM YoY USD/IDR 12, USD/KRW 1, USD/JPY USD/CNY Commodities Last Trade Chg (%) MoM YoY WTI Gold 1, Coal Palm Oil Rubber Nickel 13, Copper 5, Tin 17, JCI Index VS MSCI Emerging Markets (pt) JCI MSCI EM (pt) 1,200 5,500 Growing fuel consumption According to BP Statistical Review 2014 Indonesia in 2013, Indonesia s energy consumption grew by 5.1% in 2013, significantly higher than that a year ago (0.5% in 2012). Oil remains the dominant source of fuel at 44% of total consumption. That data shows us how Indonesia is heavily dependent on oil for energy. One of the public companies in the Indonesia s energy sector is PT Elnusa Tbk (ELSA). ELSA is a leading integrated energy services company which provides wide range of services from upstream to downstream. ELSA has three business segments which are upstream operation services, downstream operation services, and upstream support services. Oil and gas upstream operation services consist of two divisions which are geoscience services division (geophysical/seismic data services) and drilling & oilfield services division (drilling and oilfield maintenance service). ELSA booked a net profit of IDR412.4bn for FY2014 with a dramatic growth of 73.2% YoY. Unfortunately, net profit growth was not derived by the company's revenue. It was driven by the sales of its land assets and the gain from currency exchange rates, which were non-operating items. ELSA s underlying revenue inched up by 2.7% to IDR4.2tr. Decomposing its revenue contribution, upstream operation services segment (58%) and its subsidiaries in the downstream operation services (37%) were key drivers. However, we advise investors to pay more attention in ELSA due to the following reasons. 1. Pertamina is the biggest contributor for ELSA s total revenue Based on the FY14 results, Pertamina accounted for 55.6% of the company s total revenue. The percentage increased from a year earlier which stood at 47.8%. 2. Efficiency by increasing the capacity of operating equipment. In 2014, ELSA spent IDR366bn for fixed assets to increase the capacity of operating equipment in the oilfield services such as accommodation work barge, electric wireline units, coiled tubing units, and in seismic services (e.g., geophones and other operations equipment). 3. Revised state budget for oil lifting up approximately +4% YoY The parliament has agreed on the amount of oil lifting in the revised state budget 2015 amounted to 825,000 barrels per day (bpd). Up from the realization of oil lifting 2014 at 794,000bph. 4,500 3,500 05/13 02/14 11/14 1,

2 Local flashes ITMG: Low coal prices, profit edged down 2.3%. PT Indo Tambangraya Megah Tbk (ITMG) recorded a net profit of USD200.2million (IDR2.4trillion) at the end of This profit fell slightly by 2.32% compared to the same period last year amounted to USD204.9million. As quoted from the financial statement Indo Tambangraya, the decline in profit was in line with the reduction in net sales or turnover at the end of (Detik Finance) SMRA: Summarecon Agung acquire Sinergi Mutiara IDR310billion. Property company PT Summarecon Agung Tbk. (SMRA) acquires PT Sinergi Mutiara Cemerlang owned by Elite Field Investments Limited with a value IDR310.75billion. Yong King Ching, Director & Corporate Secretary SMRA, said the company's subsidiary, PT Selaras Maju Mandiri has bought 162,180 shares or 51% of PT Sinergi Mutiara Cemerlang. (Bisnis Indonesia) SMGR: Sales grow 3.1%, reach 2.1 Million Tons. PT Semen Indonesia (Persero) Tbk. recorded cement sales during January 2015 reached 2.1 million tons, up 3.1% compared to the same month last year 2.04 million tons. According to official figures mentioned, domestic sales reached 2.1 million tons, up 2.9% from the previous year 2.04 million tons. (Bisnis Indonesia) WIKA: Wijaya Karya seek 10% increase in new contracts. PT Wijaya Karya Tbk (WIKA) targeting an increase in new contracts 10% from target at the beginning of this year. This revision following the parliamentary approval related to state capital participation (PMN) into 27 BUMN worth IDR37.27trillion. WIKA Finance Director Adji Firmantoro said, with the approval, the company is getting a lot of projects. (Kontan) GWSA: Seeking new land in 2 cities, GWSA prepare IDR350billion. PT Greenwood Sejahtera Tbk (GWSA) set aside IDR350billion for land acquisition this year. Companies eyeing land in Jakarta and Surabaya. GWSA still want to focus on developing properties in Jakarta and Surabaya. "Because there is still a lot," said Linda Halim, Corporate Secretary GWSA. (Kontan) ACES: ACES expanding hardware store. PT Ace Hardware Indonesia Tbk (ACES), continues to spread its business network. This is proved by company plans to open 10 units to 15 units new outlets this year. To realize it, ACES allocate capital expenditure IDR300billion. The fund is come from internal cash. (Kontan) BBKP: Bukopin ready to start branchless banking project. Publicly listed lender Bank Bukopin is preparing the pilot project for Payment Point Online Bukopin (PPOB), an online payment system aimed at expanding access to its services and products. Under the project, Bukopin plans to employ 16,000 of its own agents, an executive said. For starters, we will conduct the pilot project at 10 PPOB points in South Jakarta and West Java. Currently, we already have 26,000 PPOB points and we expect the number to increase to 31,000 by the end of this year, Bukopin retail director Agus Hernawan. (Jakarta Post) 2

Technical analysis Recommendation Resistance 5.427 Support 5.383 Close 5.

Indicator GC = Golden-cross DC = Dead-cross UP = Up DN = Down NM = Normal Stoch UP MACD UP PSAR UP Volume DN AC = Accumulation Dis = Distribution OB = Overbought OS = Oversold Daily Chart On last

3 Technical analysis Recommendation Resistance Support Close Buy on Weakness Investor Sentiment Investors will still focus on economic news from Euro zone and America while the construction sector is expected to become the focus of investors on today. Indicator GC = Golden-cross DC = Dead-cross UP = Up DN = Down NM = Normal Stoch UP MACD UP PSAR UP Volume DN AC = Accumulation Dis = Distribution OB = Overbought OS = Oversold Daily Chart On last Friday trading session, the index still continues rising even record daily highs and closing before closed at the opening level until form gravestone doji. The indicator still goes up even stochastic has already golden cross. Intraday Chart The index opened immediately strengthened during the first 2 hours before slowly began to weaken and closed at the psychological level of 5,400. Indicator MACD began to decline even stochastic deathcross. We predict the index to decline in trading today. Chart 1. Daily chart Chart 2. Intraday chart Source: HOTS, Source: HOTS, 3

4 Chart 3. JCI Vs. USD/IDR (pt) JCI Composite Index (L) 5,500 USD/IDR (R) 5,400 5,300 5,200 5,100 5,000 4,900 4,800 4,700 4,600 11/24 12/8 12/22 1/5 1/19 2/2 2/16 (IDR) 13,100 12,900 12,700 12,500 12,300 12,100 11,900 11,700 11,500 11,300 Chart 4. JCI performance (absolute vs. relative) (%, %p) Note: Relative to MSCI EM Index Absolute D 1W 1M 1Y Relative 13.6 Chart 5. Foreigner s net purchase (EM) Chart 6. Energy price (USDmn) 1,400 1,200 1, , Note: The latest figure for India & Indonesia are February, 18 th ; Korea February 17 th ; Taiwan February 13 th ; 1 Day 5 Days Korea Taiwan Indonesia ThailandPhilippines India (USD/b) Brent (L) CPO(R) (USD) 90 2, ,400 2, , , , ,900 11/14 12/14 12/14 1/15 1/15 2/15 2/15 Chart 7. Non-ferrous metal price (D-3M=100) Copper Nickel Tin /14 12/14 1/15 Chart 8. Precious metal price Silver Gold Platinum /14 12/14 1/15 2/15 4

5 Table. Key valuation metrics Company Name BANKING Ticker Price Market Cap Price Performance (%) P/E(X)* P/B(X)* ROE(%)* (IDR) (IDRbn) 1D 1W 1M 1Y FY13 FY14 FY13 FY14 FY13 FY14 Bank Central Asia Tbk PT BBCA 14, , Bank Mandiri Persero Tbk PT BMRI 12, , Bank Rakyat Indonesia Persero Tbk PT BBRI 12, , Bank Negara Indonesia Persero Tbk PT BBNI 6, , Bank Danamon Indonesia Tbk PT BDMN 4,650 44, Bank Tabungan Pensiunan Nasional Tbk PT BTPN 4,315 25, PROPERTY Surya Semesta Internusa Tbk PT SSIA 1,250 5, Ciputra Property Tbk PT CTRP 755 4, N/A N/A Pakuwon Jati Tbk PT PWON , Alam Sutera Realty Tbk PT ASRI , Bumi Serpong Damai PT BSDE 2,120 38, CONSTRUCTION Total Bangun Persada Tbk PT TOTL 1,105 3, Adhi Karya Persero Tbk PT ADHI 3,490 6, Wijaya Karya Persero Tbk PT WIKA 3,635 22, Pembangunan Perumahan Persero Tbk PT PTPP 3,965 19, Waskita Karya Persero Tbk PT WSKT 1,825 17, RETAIL & CONSUMER Indofood Sukses Makmur Tbk PT INDF 7,350 64, Kalbe Farma Tbk PT KLBF 1,790 83, Mitra Adiperkasa Tbk PT MAPI 5,300 8, Unilever Indonesia Tbk PT UNVR 35, , Indofood CBP Sukses Makmur Tbk PT ICBP 14,200 82, Ramayana Lestari Sentosa Tbk PT RALS 740 5, Mayora Indah Tbk PT MYOR 24,500 21, Ace Hardware Indonesia Tbk PT ACES , Gudang Garam Tbk PT GGRM 55, , Nippon Indosari Corpindo Tbk PT ROTI 1,205 6, AUTOMOTIVE Astra International Tbk PT ASII 7, , Indomobil Sukses Internasional Tbk PT IMAS 3,850 10, Astra Otoparts Tbk PT AUTO 3,795 18, TELECOMMUNICATION Telekomunikasi Indonesia Persero Tbk PT TLKM 2, , XL Axiata Tbk PT EXCL 4,825 41, N/A Indosat Tbk PT ISAT 3,895 21, INFRASTRUCTURE Jasa Marga Persero Tbk PT JSMR 7,200 48, Tower Bersama Infrastructure Tbk PT TBIG 8,650 41, MINING Aneka Tambang Persero Tbk PT ANTM 1,030 9, N/A Timah Persero Tbk PT TINS 1,010 7, Tambang Batubara Bukit Asam Persero Tbk PTBA 10,600 24, CEMENT Indocement Tunggal Prakarsa Tbk PT INTP 23,650 87, Holcim Indonesia Tbk PT SMCB 1,970 15, Semen Indonesia Persero Tbk PT SMGR 14,750 87, *Note: Valuation metrics based on Bloomberg consensus estimates 5

6 Sector performance Top 10 market cap performance Name Index Chg (%) Ticker Price Market Cap (IDRbn) Chg (%) Agricultural 2, SDRA IJ , Mining 1, GJTL IJ , Basic-Industry BTPN IJ , Miscellaneous Industry 1, MAYA IJ , Consumer Goods 2, MLPL IJ 860 8, Property & Construction PNBN IJ , Infrastructure 1, BJBR IJ 945 9, Finance ASRI IJ , Trade JPFA IJ 825 8, Composite 5, PWON IJ , Source: Bloomberg Top 5 leading movers Top 5 lagging movers Name Chg (%) Close Name Chg (%) Close BBRI IJ ,725 ASII IJ ,850 BMRI IJ ,075 UNVR IJ ,325 BTPN IJ 6.3 4,315 KLBF IJ ,790 LPPF IJ ,450 INDF IJ ,350 PNBN IJ 4.0 1,030 EXCL IJ ,825 Source: Bloomberg Economic Calendar Time Currency Detail Forecast Previous 4:00am EUR German Ifo Business Climate :00am USD Existing Home Sales 5.03M 5.04M 6:50pm JPY SPPI y/y 3.6% 3.6% All Day CNY Bank Holiday Note: Time is based on Indonesian local time Source: Forex Factory Disclaimers This report is prepared strictly for private circulation only to clients of PT Daewoo Securities Indonesia (DWS). It is purposed only to person having professional experience in matters relating to investments. The information contained in this report has been taken from sources which we deem reliable. No warranty (express or implied) is made to the accuracy or completeness of the information. All opinions and estimates included in this report constitute our judgments as of this date, without regards to its fairness, and are subject to change without notice. However, none of DWS 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 DWS, 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 DWS, 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. This document is not an offer to sell or a solicitation to buy any securities. This firms and its affiliates and their officers and employees may have a position, make markets, act as principal or engage in transaction in securities or related investments of any company mentioned herein, may perform services for or solicit business from any company mentioned herein, and may have acted upon or used any of the recommendations herein before they have been provided to you. PT Daewoo Securities Indonesia

Daily Focus. Indonesia. February 05, Short term pain long term gain

Daily Focus. Indonesia. February 05, Short term pain long term gain Indonesia Daily Focus Betrand Raynaldi +62-21-515-1141 betrand.raynaldi @dwsec-id.com For subscription of our Daily Focus, please contact us at research@dwsec-id.com Market Index Last Trade Chg (%) MoM