575

October 4, 2018

Summarecon Agung (SMRA IJ)

BUY [Prior:HOLD]

Road to Recovery Share Price

12m Price Target
IDR 575
IDR 830 (+44%)
Previous Price Target IDR 900

Oversold; U/G to BUY from HOLD Company Description

A leading township developer, property lessor and
SMRA’s 6M18 results indicate that its earnings may bottom this year,
manager. It has three mature townships and is
though its recovery may be slower than expected from an imminent rise expanding to other cities in Indonesia.
in cost of funds. We lower EPS by 26-43% for FY18F-20F and TP to IDR830,
still based on a 70% discount to RNAV. This discount is close to -1SD of its
5-year mean. Nevertheless, upgrade to BUY as its 37% YTD share-price Statistics
Real Estate

decline has brought valuations significantly below its assets’ replacement 52w high/low (IDR) 1,205/575
cost. We also anticipate re-rating catalysts from acceleration of presales. 3m avg turnover (USDm) 0.6
Risks to our view include a sharp increase in interest rates. Free float (%) 67.7
Issued shares (m) 14,427
Market capitalisation IDR8.3T
Right focus on low-mid segment
USD550M
To capture a larger demand pool for properties in Greater Jakarta, SMRA Major shareholders:
has consistently lowered ASPs for its landed houses, by a total of 67% in PT Semarop Agung 25.4%
the past five years to IDR1b. This is in line with our study on price and PT Sinarmegah Jayasentosa 6.6%
na na
demand trends for housing in Greater Jakarta, where the curves are
steep, suggesting the fast rates at which demand diminishes for
Indonesia

Price Performance
properties priced above IDR1.1b. 1,800 170

1,600 150
EV only 42% of assets’ replacement cost 1,400 130
Our replacement-cost analysis of SMRA’s 2,277 ha of land bank and 1,200 110
investment properties in five major cities also suggests that their
1,000 90
replacement value of IDR40t (USD2.6b) today is quadruple that of their
800 70
historical book value of IDR10t (USD0.7b). SMRA does not revalue its
property assets to avoid capital-gains taxes. Its land bank’s enterprise 600 50

value today is 58% lower than replacement cost. 400 30

Oct-16 Feb-17 Jun-17 Oct-17 Feb-18 Jun-18 Oct-18

Summarecon Agung - (LHS, IDR)

Cut EPS by 26-43% Summarecon Agung / Jakarta Composite Index - (RHS, %)

With limited revenue growth from low property presales in 2016-2017, -1M -3M -12M
we foresee a rise in its cost of funds. We also lower FY19-20E presales Absolute (%) (9) (30) (50)
estimates from delays in the launch of its greenfield project in Bogor, Relative to index (%) (7) (31) (49)
West Java. Nevertheless, we forecast a bottoming of earnings in FY18 Source: FactSet

and a gradual recovery in FY19E.

FYE Dec (IDR b) FY16A FY17A FY18E FY19E FY20E

Revenue 5,398 5,641 5,987 6,134 6,343
EBITDA 2,558 2,730 2,716 2,875 2,999
Core net profit 312 361 364 428 482
Core EPS (IDR) 22 25 25 30 33
Core EPS growth (%) (62.5) 15.7 0.9 17.6 12.5
Net DPS (IDR) 5 5 5 5 6
Core P/E (x) 61.3 37.8 22.8 19.4 17.2
P/BV (x) 3.1 2.1 1.2 1.2 1.1
Net dividend yield (%) 0.4 0.5 0.9 0.9 1.1
ROAE (%) 5.1 5.7 5.5 6.1 6.6
ROAA (%) 1.6 1.7 1.6 1.8 1.9
EV/EBITDA (x) 2.9 2.9 3.0 2.9 3.1
Net gearing (%) (incl perps) 65.5 73.6 69.0 64.1 67.0
Consensus net profit - - 393 419 474
MKE vs. Consensus (%) - - (7.3) 2.3 1.6

Aurellia Setiabudi
Aurellia.Setiabudi@maybank-ke.co.id
(62) 21 8066 8691

THIS REPORT HAS BEEN PREPARED BY PT MAYBANK KIM ENG SECURITIES

SEE PAGE 15 FOR IMPORTANT DISCLOSURES AND ANALYST CERTIFICATIONS
 Summarecon Agung

1. Right shift to supply more low-mid-end

properties
1.1 Our study suggests a much smaller market in mid-upper
segment
We plot price and demand curves for housing in Greater Jakarta. The
curves are steep, which suggests demand diminishes faster for properties
costing above IDR1,100m each. This is roughly the threshold of low-mid-
income groups.

There are 5.7m households in the low-to-mid-income brackets which can

afford homes under IDR800m in Greater Jakarta. We estimate potential
demand for 3.3m units in this segment, representing 97% of Jakarta’s and
Greater Jakarta’s potential housing demand.

Greater Jakarta is important to SMRA; it only recently started to diversify

outside Greater Jakarta. We estimate that nearly 70% of SMRA’s presales
in the next three years will still be contributed by its Greater Jakarta
developments: Kelapa Gading, Serpong and Bekasi.

Figure 1: Demand curve for residential properties in Greater Figure 2: SMRA’s annual presales contributions from Greater
Jakarta Jakarta
(IDRm per unit) Price and demand curve Greater Jakarta
2,500
100%
2,250
90%
2,000
80%
1,750
70%
1,500
60%
1,250
50%
1,000
40%
750
30%
500
20%
250
10%
0
0.0 0.5 1.0 1.5 2.0 2.5 3.0 3.5 4.0 4.5 5.0 0%
(Million units) 06 07 08 09 10 11 12 13 14 15 16 17 18F 19F 20F

Source: Euromonitor, Maybank KE Source: Company data, Maybank KE

October 4, 2018 2
 Summarecon Agung

1.2 Consistently lowering ASPs of its landed houses

To spur presales, SMRA has been consistently lowering ASPs for its landed
houses, by two-thirds since their peak in 2013. As corroborated by our
study, its lower ASPs have been successful in lifting sales volumes which
have risen by nearly 250% YoY to more than 1,000 units, as of 8M18.

Fig 3 demonstrates a dramatic shift in SMRA’s landed-housing products.

The company used to position its properties at the upper segment, in
2013. Now, it offers low-mid-end housing. The lowest ASP for its landed
houses YTD is IDR350m, nearly only 10% of its ASPs in 2013.

For apartments, SMRA sold a record 3,640 units in 2014 when it dropped
ASPs by 74% YoY to IDR700m. However, unlike landed houses, ASPs for
apartments have been climbing since they are mainly located at the
centre of the township, which has resulted in lower sales volumes.

We are positive on SMRA’s ongoing efforts to supply low-end landed

housing. We believe that with its strong brand equity as one of Indonesia’s
premier township developers, this focus will deliver future growth.

Figure 3: ASPs and units sold for landed houses… Figure 4: …and apartments
Total units sold for House (RHS) ASP for House Total units sold for Apartment (RHS) ASP for Apartment
(IDRm) (Units) (IDRm) (Units)
3,500 1,800 3,000 4,500

1,600 4,000
3,000 2,500
1,400 3,500
2,500
1,200 2,000 3,000
2,000 1,000 2,500
1,500
1,500 800 2,000

600 1,000 1,500

1,000
400 1,000
500 500
200 500

0 - 0 -
06 07 08 09 10 11 12 13 14 15 16 17 8M178M18 06 07 08 09 10 11 12 13 14 15 16 17 8M178M18

Source: Company data Source: Company data

October 4, 2018 3
 Summarecon Agung

1.3 Presales to accelerate from 3Q18

8M18 presales of IDR1,874b were up 2% YoY, accelerating from IDR1,151b

in 6M18. This was mainly driven by one new low-end landed-housing
project launched in Aug 2018, called Srimaya Residence.

This new project offered the lowest pricing among SMRA’s landed projects
which target the low-income group. Previous projects targeted the middle
to upper-middle classes.

SMRA introduced a new landed residential cluster in Karawang to property

agents in early Sep 2018. This is scheduled for launch in 4Q18. This cluster
will similarly target the low-income group with prices starting from
IDR487m. Other clusters for launch in 4Q18 will include its new townships
in Makassar, South Sulawesi and Serpong.

Due to its slow 6M18, our FY18 presales target of IDR3,741b is lower than
management’s target of IDR4,000b, up 12% YoY.

Figure 5: Quarterly presales

% to
(IDR b) 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 % YoY % QoQ 8M17 8M18 % YoY FY18 Co
target
House 160 399 187 901 247 470 18% 90% 676 1,104 63%
Apartment 103 145 70 171 90 129 -11% 43% 297 302 2%
Land plots 133 52 16 231 51 20 -61% -61% 185 256 0%
Shophouses 28 359 249 266 65 72 -80% 11% 602 204 -66%
Office 29 39 24 - 6 2 -95% -67% 85 8 0%
Total 452 994 545 1,569 459 693 -30% 51% 1,845 1,874 2% 47%
Source: Company data

Figure 6: Annual presales… Figure 7: …by contribution from each property type
(IDR b) Total Presales YoY growth Office Landplot Shophouses Apartment House
5,000 100%
100%
4,500
80% 90%
4,000
80%
3,500 60%
70%
3,000 60%
40%
2,500 50%
20%
2,000 40%
1,500 0% 30%
1,000 20%
-20%
500 10%
0 -40% 0%
06 07 08 09 10 11 12 13 14 15 16 17 18F 19F 20F 06 07 08 09 10 11 12 13 14 15 16 17 18F 19F 20F

Source: Company data, Maybank KE Source: Company data, Maybank KE

October 4, 2018 4
 Summarecon Agung

2. Still owns one of the most prime land banks

SMRA remains one of the leading township developers in Indonesia with its
strong brand equity and premier locations. Its strong recurring income also
provides support for earnings.

2.1 Valuable land bank assets

Since 2015, SMRA has expanded to four new locations: Makassar (South
Sulawesi), Bogor (West Java), Karawang (West Java) and Bali. It now
covers seven locations. It owns 2,277 ha of land, which should be
sufficient for more than 20 years of development. We estimate that its
land bank’s replacement cost today is six times that of its book value.

Figure 8: Land bank

Replacement costs are MKE estimates
Total land Book value Replacement Total Book Total
Location % Stake Status bank per sqm cost per sqm Value Replacement
(hectares) (IDR m) (IDR m) (IDR b) cost (IDR b)
Full control
Kelapa Gading 100% Developing 8 2.1 20.0 165 1,600
Serpong 100% Developing 307 0.3 3.5 1,044 10,745
Bekasi 100% Developing 124 0.4 4.0 459 4,960
Bandung 100% Developing 329 0.5 2.5 1,579 8,225
Karawang 100% Developing 34 1.2 2.0 401 680
Makassar 100% Developing 168 0.2 1.5 370 2,520
Bali 100% Greenfield 20 2.3 2.3 468 468
Other Properties 100% Greenfield 202 0.1 1.0 283 1,939

Joint operations/venture
Serpong 70% Developing 138 0.3 3.0 290 2,898
Serpong 55% Developing 42 0.3 3.0 69 693
Bekasi 51% Greenfield 275 0.2 0.2 252 281
Bogor 51% Greenfield 425 0.2 0.2 412 434
Makassar 51% Greenfield 205 0.2 0.2 230 209
Total 2,277 0.3 1.6 6,022 35,651
Source: Company data, Maybank KE

October 4, 2018 5
 Summarecon Agung

2.2 Solid contributions from investment properties

Investment properties include shopping malls, hotels, office buildings and
convention centres. They are expected to contribute 36% to revenue in
FY18E and close to 40% by FY20E, up from 30% in 2013-15. The increase in
recent years reflects lower property sales revenue. Today, SMRA owns and
operates c.271,000 sqm NLA of shopping malls, c.1,200 hotel rooms and
c.10,000 sqm NLA of office space. Future expansion is expected from a
shopping mall in its new township in Bandung, a condotel in Bali and
hotels in Serpong and Bandung.

Figure 9: Recurring income … Figure 10: …and contributions to total revenue

(IDR bn) Recurring revenue Recurring revenue

50%
2,500 45%
40%
2,000
35%
30%
1,500
25%

1,000 20%
15%
500 10%
5%
- 0%
2014 2015 2016 2017 2018F 2019F 2020F 2014 2015 2016 2017 2018F 2019F 2020F
Source: Company data, Maybank KE Source: Company data, Maybank KE

October 4, 2018 6
Summarecon Agung

3. Changes in assumptions
SMRA is looking to refinance a IDR900b bond maturing this year and
another IDR1,100b in 2019 in Oct 2018. With increasing rates, we expect
higher cost of funds. And with limited revenue growth from low property
presales in 2016-17, we foresee high interest expense weighing on its
profitability until FY20E. However, we forecast EBIT/interest cover to
remain at a comfortable level of above 2.0x.

Going by delays in the launch of a greenfield development in its Makassar

township to end-FY18 from 3Q18, we now expect delays in the launch of
another greenfield location in its Bogor township, to FY20E from FY19E.

Following 6M18 results published recently, we lower revenue for both its
property-development and recurring-income businesses. Also, with higher
cost of funds and lower presales, we cut EPS by 26-43%.

Figure 11: Changes in our assumptions

2018F 2019F 2020F
(IDR b)
Old New +/- % Old New +/- % Old New +/- %
PRE-SALES
Value
Land 334 334 0% 351 351 0% 369 369 0%
Residential 2,215 2,215 0% 2,618 2,393 -9% 2,753 2,737 -1%
Apartment 557 557 0% 580 580 0% 602 602 0%
Shophouses 635 635 0% 655 655 0% 675 675 0%
Office - - 0% 150 150 0% 150 150 0%
Total 3,741 3,741 0% 4,354 4,129 -5% 4,549 4,533 0%

REVENUE
Land 334 318 0% 351 334 0% 351 351 0%
Residential 2,084 1,832 -12% 1,822 2,012 10% 1,910 2,304 21%
Apartment 1,389 1,490 7% 1,490 925 -38% 925 561 -39%
Commercial 207 207 0% 572 565 -1% 725 725 0%
Property sales 4,014 3,847 -4% 4,235 3,836 -9% 3,911 3,940 1%
Recurring income 1,785 1,729 -3% 1,942 1,875 -3% 2,109 1,967 -7%
Others 406 411 1% 457 423 -7% 489 436 -11%
Total Revenues 6,205 5,987 -4% 6,612 6,134 -7% 6,509 6,343 -3%
EBIT 1,569 1,455 -7% 1,703 1,563 -8% 1,663 1,637 -2%
Net Profit 497 364 -27% 579 428 -26% 844 482 -43%
EPS 34 25 -26% 40 30 -26% 59 33 -43%
New New +/- ppt New New +/- ppt New New +/- ppt
Gross margin 46% 45% (0.77) 46% 47% 1.23 48% 48% 0.51
EBIT margin 25% 24% (0.70) 26% 25% (0.52) 26% 26% 0.27
Net margin 8% 6% (1.92) 9% 7% (2.02) 13% 8% (5.38)
Source: Maybank KE

October 4, 2018 7
Summarecon Agung

Figure 12: Quarterly results

6M18/ 6M18/
2018F 2018
(IDR b) 6M17 6M18 YoY 2018F 2018 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 YoY QoQ
MKE Cons
MKE Cons
Revenue 2,685 2,667 -1% 5,987 6,013 45% 44% 1,230 1,455 1,309 1,647 1,199 1,468 1% 22%
Gross Profit 1,155 1,243 8% 2,708 2,835 46% 44% 574 581 569 844 538 705 21% 31%
EBIT 540 632 17% 1,455 1,423 43% 44% 300 240 294 504 290 342 43% 18%
Pretax Income 260 325 25% 849 823 38% 39% 170 90 172 366 141 184 104% 30%
Net Income 49 78 59% 364 392 21% 20% 72 (23) 70 243 42 36 N/A -14%
-
Gross margin 43% 47% 45% 48% 47% 40% 43% 51% 45% 48%
EBIT margin 20% 24% 24% 24% 24% 16% 22% 31% 24% 23%
Net margin 2% 3% 6% 7% 6% -2% 5% 15% 4% 2%
Source: Company data, Factset, Maybank KE

Figure 13: Quarterly EBIT and EBIT margins Figure 14: Quarterly net income and rolling net margins
(IDR b) EBIT 12m Rolling EBIT margin (IDR b) Net Income 12m Rolling net margin
800 40% 600 35%

700 35% 500 30%

600 30%
400 25%
500 25%
300 20%
400 20%

300 15% 200 15%

200 10% 100 10%

100 5%
- 5%
- 0% 1Q13 1Q14 1Q15 1Q16 1Q17 1Q18
1Q13 1Q14 1Q15 1Q16 1Q17 1Q18 (100) 0%
Source: Company data Source: Company data

October 4, 2018 8
Summarecon Agung

4. Current EV is lower than assets’

replacement costs
SMRA is trading at a 63% premium to its assets’ total book value as of 3
October 2018 and a 58% discount to our estimated replacement cost for its
land bank.

Figure 15: Replacement-cost analysis

Unit
Total gross landbank hectares 2,277
Average replacement cost per sqm IDRm/sqm 1.6
Replacement cost for land bank IDRb 35,651
Book Value of property investment IDRb 4,260
Total replacement cost IDRb 39,911
Replacement cost per share 2,766

Average book value per sqm IDRm/sqm 0.3

Book value for land bank IDRb 6,022
Book Value of property investment IDRb 4,260
Total book value 10,282
Book value per share 713

Current market cap @IDR600/share IDRb 8,656

Total Debt FY18F IDRb 7,991
Total Cash FY18F IDRb 1,897
Minority interest FY18F IDRb 2,028
Enterprise Value IDRb 16,778
EV per share IDR 1,163
Premium to book value % 63%
Discount to replacement cost % -58%
Source: Factset, Company data, Maybank KE

5. Valuation
With lower EPS and presales, our RNAV for SMRA is down by 5% to IDR2,784
per share from IDR2,934 previously. We see an earnings bottom in FY18E
and expect a gradual recovery from FY19E.

Upgrade to BUY with a new TP of IDR830 from IDR900 after our earnings
revisions. Our TP remains based on a 70% discount to RNAV, close to -1SD
of its 5-year mean.

October 4, 2018 9
 Summarecon Agung

Figure 16: RNAV

Land Bank BV of Land MV of Land Net Value of NPV Value of
(2022F) Bank (2022F) Bank (2022F) Land (2022F) (2018-2022) Land + NPV Ownership Net Value
ha IDR b IDR b IDR b IDR b IDR b % IDR b
PROPERTY SALES
Kelapa Gading 1 10 150 140 485 625 100.0% 625
Serpong 300 689 17,970 17,281 1,903 19,185 100.0% 19,185
Serpong JO with JBC 150 450 4,500 4,050 - 4,050 70.0% 2,835
Serpong JV The Springs 12 37 865 828 260 1,088 55.0% 599
Bekasi 133 464 5,303 4,839 711 5,550 100.0% 5,550
Bekasi JV with DSA 264 581 2,640 2,059 - 2,059 51.0% 1,050
Bandung 346 1,522 10,380 8,858 871 9,728 100.0% 9,728
Karawang 17 170 510 340 341 681 100.0% 681
Bogor 413 702 6,195 5,493 371 5,863 51.0% 2,990
M akassar JV with SM C 147 603 1,470 867 350 1,217 51.0% 621
M akassar 187 935 1,870 935 - 935 100.0% 935
Bali 21 477 630 153 - 153 100.0% 153
Others 228 114 1,140 1,026 - 1,026 100.0% 1,026
Sub total 2,218 6,754 53,623 46,869 5,292 52,161 45,978

Annual NOI Cap Rate BV NPV Net MV Ownership Net Value

IDR b % IDR b IDR b IDR b % IDR b
INVESTMENT PROPERTY
Retail M alls 702 10.0% 3,966 7,025 3,059 100.0% 3,059
Hotel 184 8.0% 1,133 2,301 1,168 100.0% 1,168
Office 17 8.0% 227 208 (18) 100.0% (18)
Sub total 903 5,665 9,533 4,208 4,208

TOTAL 50,186
Customer Advance (2018F) IDR b (3,928)
Net Debt (2018F) IDR b (6,094)
RNAV IDR b 40,164
# of Shares #m 14,427
RNAV per share IDR 2,784
Target price IDR 830
Discount to RNAV -70%
Source: Maybank KE

Figure 17: 1-year forward P/BV band Figure 18: Discount to 1-year forward RNAV band
PBV Mean Discount to RNAV Average Disc
SD - 1 SD + 1 SD + 1 SD - 1
SD - 2 SD + 2 SD + 2 SD - 2
6.0 80% SD -2

5.0 70%
SD + 2 SD -1

4.0 SD +1 60%
Mean

3.0 Mean 50%

SD -1 SD +1
2.0 40%
SD -2 SD +2
1.0 30%

0.0 20%
2014 2015 2016 2017 2018 2014 2015 2016 2017 2018

Source: Factset, Maybank KE Source: Factset, Maybank KE

October 4, 2018 10
Summarecon Agung

Value Proposition Price Drivers

 Leading township developer with three mature townships Historical share price trend
strategically located in Greater Jakarta area. Successful 2,000
2 3 4 200
township masterplan is replicated at other locations. 1,800 180
 SMRA is also a leading retail mall landlord and operator. All 1,600
1
160
5
its malls are located within its townships, complementing 1,400 140
and enhancing the overall development. 1,200 120
 Astute land acquisition. Secured three parcels at relatively 1,000 100
low cost in tier-1 cities providing avenues for future 800 80
growth. Land bank ensures 20 years of development. 600 60

 Expect near-term returns to be lower than its WACC due 400 40

Oct-13 Oct-14 Oct-15 Oct-16 Oct-17
to lower pre-sales in 2015-2017. Summarecon Agung - (LHS, IDR)

Summarecon Agung / Jakarta Composite Index - (RHS, %)

ROIC and WACC
Source: Bloomberg, Maybank Kim Eng

ROIC WACC
30% 28%

25%
1. Flattish pre-sales due to strong price growth.
2. Uncertainty over property tax regulation hurt sentiment.
20% 3. Expectations of interest rate cut in early 2016.
15%
15% 4. Disappointment in 2016 presales achievements.
5. Aggressive interest rate hike by central bank.
10%
6% 6% 7%
5% 5%
5%

0%
2014 2015 2016 2017 2018F 2019F 2020F
Source: Company data, Maybank Kim Eng

Financial Metrics Swing Factors

 Strong property price growth in five years has affected Upside
affordability. SMRA tackles this by reducing the property
size. Weak economy has also affected pre-sales.  Favourable property market allowing acceleration for
 Expect future pre-sales growth to be driven by launch of new township launch schedule.
new townships in 2015-2020E. Meaningful contribution  Stimulus, such as lower taxes or mortgage requirement.
from rental (c.40%) provides buffer to its earnings.  Infrastructure development, which could boost the value
 High capex cycle for landbank and commercial properties of its assets.
ended in 2015. Expect leverage to start declining.
 RNAV is boosted by the additional landbank investment in
FY15 and plans to accelerate monetisation in new Downside
township developments.
 Fierce property price competition from its peers, which
Presales by project location could hurt pre-sales.
Bogor Makassar Karawang
 High NPL formation among buyers who take on cash
Bandung Bekasi Serpong instalment payment method (82% of total pre-sales).
(IDR b)  Diminishing affordability of buyers due to persistently
Kelapa Gading
5,000 weak economy.

4,000

3,000

2,000

1,000

0
14 15 16 17 18F 19F 20F
Source: Company data, Maybank Kim Eng

Aurellia.Setiabudi@maybank-ke.co.id

October 4, 2018 11
Summarecon Agung

FYE 31 Dec FY16A FY17A FY18E FY19E FY20E

Key Metrics
P/E (reported) (x) 74.3 47.1 22.8 19.4 17.2
Core P/E (x) 61.3 37.8 22.8 19.4 17.2
P/BV (x) 3.1 2.1 1.2 1.2 1.1
P/NTA (x) 3.1 2.1 1.2 1.2 1.1
Net dividend yield (%) 0.4 0.5 0.9 0.9 1.1
FCF yield (%) nm nm nm nm nm
EV/EBITDA (x) 2.9 2.9 3.0 2.9 3.1
EV/EBIT (x) 5.2 6.0 5.6 5.3 5.6

INCOME STATEMENT (IDR b)

Revenue 5,398.0 5,641.0 5,986.7 6,134.1 6,343.3
Gross profit 2,598.0 2,567.0 2,708.1 2,897.2 3,055.9
EBITDA 2,558.0 2,730.0 2,716.1 2,874.7 2,999.1
Depreciation (1,149.0) (1,392.0) (1,261.4) (1,311.6) (1,361.8)
Amortisation 0.0 0.0 0.0 0.0 0.0
EBIT 1,409.0 1,338.0 1,454.7 1,563.1 1,637.3
Net interest income /(exp) (533.0) (541.0) (605.3) (622.5) (611.2)
Associates & JV 0.0 0.0 0.0 0.0 0.0
Exceptionals 0.0 0.0 0.0 0.0 0.0
Other pretax income 1.0 0.0 0.0 0.0 0.0
Pretax profit 877.0 797.0 849.4 940.6 1,026.1
Income tax (272.0) (266.0) (282.3) (289.3) (299.1)
Minorities (293.0) (170.0) (202.8) (223.1) (245.4)
Discontinued operations 0.0 0.0 0.0 0.0 0.0
Reported net profit 312.0 361.0 364.3 428.2 481.5
Core net profit 312.0 361.0 364.3 428.2 481.5

BALANCE SHEET (IDR b)

Cash & Short Term Investments 2,076.0 1,482.0 1,897.4 1,970.2 1,325.8
Accounts receivable 548.0 686.0 598.7 613.4 634.3
Inventory 5,531.0 6,498.0 7,147.8 7,862.6 8,648.8
Reinsurance assets 0.0 0.0 0.0 0.0 0.0
Property, Plant & Equip (net) 451.0 422.0 412.4 392.6 362.6
Intangible assets 0.0 0.0 0.0 0.0 0.0
Investment in Associates & JVs 0.0 0.0 0.0 0.0 0.0
Other assets 12,204.0 12,575.0 13,236.7 13,705.8 15,017.8
Total assets 20,810.0 21,663.0 23,293.0 24,544.5 25,989.4
ST interest bearing debt 1,041.0 906.0 1,454.0 1,454.0 1,454.0
Accounts payable 290.0 423.0 491.8 485.5 493.1
Insurance contract liabilities 0.0 0.0 0.0 0.0 0.0
LT interest bearing debt 6,386.0 6,727.0 6,537.0 6,527.0 6,573.7
Other liabilities 4,928.0 5,253.0 5,983.0 6,696.0 7,471.0
Total Liabilities 12,645.0 13,309.0 14,465.7 15,162.1 15,991.5
Shareholders Equity 6,242.0 6,510.0 6,798.9 7,151.2 7,543.5
Minority Interest 1,923.0 1,844.0 2,028.4 2,231.2 2,454.4
Total shareholder equity 8,165.0 8,354.0 8,827.3 9,382.4 9,997.9
Total liabilities and equity 20,810.0 21,663.0 23,293.0 24,544.5 25,989.4

CASH FLOW (IDR b)

Pretax profit 877.0 797.0 849.4 940.6 1,026.1
Depreciation & amortisation 1,149.0 1,392.0 1,261.4 1,311.6 1,361.8
Adj net interest (income)/exp 0.0 0.0 0.0 0.0 0.0
Change in working capital (438.0) (796.0) (172.8) (439.2) (490.5)
Cash taxes paid (272.0) (266.0) (282.3) (289.3) (299.1)
Other operating cash flow (293.0) (170.0) (202.8) (223.1) (245.4)
Cash flow from operations 1,023.0 957.0 1,452.9 1,300.6 1,352.9
Capex (1,775.0) (1,474.0) (1,690.0) (1,551.8) (1,626.8)
Free cash flow (752.0) (517.0) (237.1) (251.2) (273.9)
Dividends paid (72.0) (72.0) (75.4) (75.9) (89.2)
Equity raised / (purchased) 0.0 0.0 0.0 0.0 0.0
Change in Debt 1,229.0 206.0 358.0 (10.0) 46.7
Other invest/financing cash flow 167.0 (212.0) 369.9 409.9 (327.9)
Effect of exch rate changes 0.0 0.0 0.0 0.0 0.0
Net cash flow 572.0 (595.0) 415.4 72.8 (644.4)

October 4, 2018 12
Summarecon Agung

FYE 31 Dec FY16A FY17A FY18E FY19E FY20E

Key Ratios
Growth ratios (%)
Revenue growth (4.0) 4.5 6.1 2.5 3.4
EBITDA growth (6.6) 6.7 (0.5) 5.8 4.3
EBIT growth (20.3) (5.0) 8.7 7.5 4.7
Pretax growth (35.4) (9.1) 6.6 10.7 9.1
Reported net profit growth (62.5) 15.7 0.9 17.6 12.5
Core net profit growth (62.5) 15.7 0.9 17.6 12.5

Profitability ratios (%)

EBITDA margin 47.4 48.4 45.4 46.9 47.3
EBIT margin 26.1 23.7 24.3 25.5 25.8
Pretax profit margin 16.2 14.1 14.2 15.3 16.2
Payout ratio 23.1 19.9 20.7 17.7 18.5

DuPont analysis
Net profit margin (%) 5.8 6.4 6.1 7.0 7.6
Revenue/Assets (x) 0.3 0.3 0.3 0.2 0.2
Assets/Equity (x) 3.3 3.3 3.4 3.4 3.4
ROAE (%) 5.1 5.7 5.5 6.1 6.6
ROAA (%) 1.6 1.7 1.6 1.8 1.9

Leverage & Expense Analysis

Asset/Liability (x) 1.6 1.6 1.6 1.6 1.6
Net gearing (%) (incl perps) 65.5 73.6 69.0 64.1 67.0
Net gearing (%) (excl. perps) 65.5 73.6 69.0 64.1 67.0
Net interest cover (x) 2.6 2.5 2.4 2.5 2.7
Debt/EBITDA (x) 2.9 2.8 2.9 2.8 2.7
Capex/revenue (%) 32.9 26.1 28.2 25.3 25.6
Net debt/ (net cash) 5,351.0 6,151.0 6,093.6 6,010.8 6,701.9
Source: Company; Maybank

October 4, 2018 13
Summarecon Agung

Research Offices
REGIONAL MALAYSIA HONG KONG / CHINA THAILAND
Sadiq CURRIMBHOY WONG Chew Hann, CA Head of Research Mitchell KIM Head of Research Maria LAPIZ Head of Institutional Research
Regional Head, Research & Economics (603) 2297 8686 wchewh@maybank-ib.com (852) 2268 0634 mitchellkim@kimeng.com.hk Dir (66) 2257 0250 | (66) 2658 6300 ext 1399
(65) 6231 5836 • Strategy • Internet & Telcos Maria.L@maybank-ke.co.th
sadiq@maybank-ke.com.sg • Strategy • Consumer • Materials • Services
Desmond CH’NG, ACA Christopher WONG Ornmongkol TANTITANATORN
WONG Chew Hann, CA (603) 2297 8680 (852) 2268 0652 (66) 2658 6300 ext 1395
Regional Head of Institutional Research desmond.chng@maybank-ib.com christopherwong@kimeng.com.hk ornmongkol.t@maybank-ke.co.th
(603) 2297 8686 • Banking & Finance • HK & China Properties • Power & Utilities • Infrastructure
wchewh@maybank-ib.com Surachai PRAMUALCHAROENKIT
LIAW Thong Jung Jacqueline KO, CFA
(603) 2297 8688 tjliaw@maybank-ib.com (852) 2268 0633 jacquelineko@kimeng.com.hk Head of Retail Research
ONG Seng Yeow
• Oil & Gas Services- Regional • Consumer Staples & Durables (66) 2658 5000 ext 1470
Regional Head of Retail Research Surachai.p@maybank-ke.co.th
(65) 6231 5839 ONG Chee Ting, CA Ricky NG, CFA • Auto • Conmat • Contractor • Steel
ongsengyeow@maybank-ke.com.sg (603) 2297 8678 ct.ong@maybank-ib.com (852) 2268 0689 rickyng@kimeng.com.hk Ekachai TARAPORNTIP Deputy Head
• Plantations - Regional • Regional Renewables
66) 2658 5000 ext 1530
ECONOMICS • HK & China Properties Ekachai.t@maybank-ke.co.th
Mohshin AZIZ
Suhaimi ILIAS Sonija LI, CFA, FRM Sutthichai KUMWORACHAI Deputy Head
(603) 2297 8692 mohshin.aziz@maybank-ib.com
Chief Economist (852) 2268 0641 sonijali@kimeng.com.hk (66) 2658 5000 ext 1400
• Aviation - Regional • Petrochem
Malaysia | Philippines | China • Gaming sutthichai.k@maybank-ke.co.th
(603) 2297 8682 • Energy • Petrochem
YIN Shao Yang, CPA Stefan CHANG, CFA
suhaimi_ilias@maybank-ib.com (603) 2297 8916 samuel.y@maybank-ib.com Suttatip PEERASUB
(852) 2268 0675 stefanchang@kimeng.com.hk (66) 2658 5000 ext 1430
• Gaming – Regional • Media • Technology – Regional
CHUA Hak Bin suttatip.p@maybank-ke.co.th
Regional Thematic Macroeconomist TAN Chi Wei, CFA • Media • Commerce
(65) 6231 5830 Tony REN, CFA
(603) 2297 8690 chiwei.t@maybank-ib.com (852) 2268 0640 tonyren@kimeng.com.hk Termporn TANTIVIVAT
chuahb@maybank-ke.com.sg • Power • Telcos (66) 2658 5000 ext 1520
• Healthcare & Pharmaceutical
termporn.t@maybank-ke.co.th
LEE Ju Ye WONG Wei Sum, CFA Wendy LI • Property
Singapore (603) 2297 8679 weisum@maybank-ib.com (852) 2268 0647 wendyli@kimeng.com.hk
(65) 6231 5844 Jaroonpan WATTANAWONG
• Property • Consumer & Auto (66) 2658 5000 ext 1404
leejuye@maybank-ke.com.sg
jaroonpan.w@maybank-ke.co.th
LEE Yen Ling INDIA • Transportation • Small cap
Dr Zamros DZULKAFLI (603) 2297 8691 lee.yl@maybank-ib.com
(603) 2082 6818 • Building Materials • Glove • Ports • Shipping Jigar SHAH Head of Research Sorrabhol VIRAMETEEKUL
zamros.d@maybank-ib.com Head of Digital Research
(91) 22 6623 2632 jigar@maybank-ke.co.in
Ivan YAP (66) 2658 5000 ext 1550
Ramesh LANKANATHAN • Strategy • Oil & Gas • Automobile • Cement
(603) 2297 8612 ivan.yap@maybank-ib.com sorrabhol.V@maybank-ke.co.th
(603) 2297 8685 • Automotive • Semiconductor • Technology • Food, Transportation
ramesh@maybank-ib.com Neerav DALAL
(91) 22 6623 2606 neerav@maybank-ke.co.in Wijit ARAYAPISIT
Kevin WONG (66) 2658 5000 ext 1450
FX (603) 2082 6824 kevin.wong@maybank-ib.com • Software Technology • Telcos
wijit.a@maybank-ke.co.th
• REITs • Consumer Discretionary • Strategist
Saktiandi SUPAAT Vishal PERIWAL
Head, FX Research Adrian WONG (91) 22 6623 2605 vishalperiwa@maybank- Kritsapong PATAN
(65) 6320 1379 ke.co.in (66) 2658 5000 ext 1310
saktiandi@maybank.com.sg (603) 2297 8675 adrian.wkj@maybank-ib.com kritsapong.p@maybank-ke.co.th
• Constructions • Healthcare • Infrastructure
• Chartist
Christopher WONG Apisit PATTARASAKOLKIAT
(65) 6320 1347 Jade TAM INDONESIA
(603) 2297 8687 jade.tam@maybank-ib.com (66) 2658 5000 ext 1405
wongkl@maybank.com.sg Isnaputra ISKANDAR Head of Research Apisit.p@maybank-ke.co.th
• Media • Building Materials
(62) 21 8066 8680 • Chartist
Leslie TANG isnaputra.iskandar@maybank-ke.co.id
(65) 6320 1378 Mohd Hafiz Hassan
• Strategy • Metals & Mining • Cement VIETNAM
leslietang@maybank.com.sg (603) 2082 6819 mohdhafiz.ha@maybank-ib.com
• Small & Mid Caps Rahmi MARINA LE Hong Lien, ACCA
Fiona LIM (62) 21 8066 8689 Head of Institutional Research
(65) 6320 1374 TEE Sze Chiah Head of Retail Research rahmi.marina@maybank-ke.co.id (84 28) 44 555 888 x 8181
fionalim@maybank.com.sg (603) 2082 6858 szechiah.t@maybank-ib.com • Banking & Finance lien.le@maybank-kimeng.com.vn
Aurellia SETIABUDI • Strategy • Consumer • Diversified
STRATEGY Nik Ihsan Raja Abdullah, MSTA, CFTe
(603) 2297 8694 (62) 21 8066 8691 THAI Quang Trung, CFA,
nikmohdihsan.ra@maybank-ib.com aurellia.setiabudi@maybank-ke.co.id Deputy Head, Institutional Research
Sadiq CURRIMBHOY
• Property (84 28) 44 555 888 x 8180
Global Strategist
(65) 6231 5836 SINGAPORE Janni ASMAN trung.thai@maybank-kimeng.com.vn
sadiq@maybank-ke.com.sg (62) 21 8066 8687 • Real Estate • Construction • Materials
Neel SINHA Head of Research janni.asman@maybank-ke.co.id
(65) 6231 5838 neelsinha@maybank-ke.com.sg LE Nguyen Nhat Chuyen
Willie CHAN • Cigarette • Healthcare • Retail
• Strategy • Industrials (84 28) 44 555 888 x 8082
Hong Kong / Regional • SMID Caps – Regional chuyen.le@maybank-kimeng.com.vn
(852) 2268 0631 PHILIPPINES • Oil & Gas
williechan@kimeng.com.hk CHUA Su Tye Minda OLONAN Head of Research NGUYEN Thi Ngan Tuyen,
(65) 6231 5842 chuasutye@maybank-ke.com.sg (63) 2 849 8840
FIXED INCOME • REITs Head of Retail Research
minda_olonan@maybank-atrke.com (84 28) 44 555 888 x 8081
Winson Phoon, ACA • Strategy tuyen.nguyen@maybank-kimeng.com.vn
Derrick HENG, CFA
(65) 6231 5831 (65) 6231 5843 derrickheng@maybank-ke.com.sg Katherine TAN • Food & Beverage • Oil&Gas • Banking
winsonphoon@maybank-ke.com.sg • Property • REITs (Office) (63) 2 849 8843 TRUONG Quang Binh,
kat_tan@maybank-atrke.com Deputy Head, Retail Research
Se Tho Mun Yi Luis HILADO • Banks • Construction
(603) 2074 7606 (65) 6231 5848 luishilado@maybank-ke.com.sg (84 28) 44 555 888 x 8087
munyi.st@maybank-ib.com • Telcos Luis HILADO binh.truong@maybank-kimeng.com.vn
(65) 6231 5848 luishilado@maybank-ke.com.sg • Rubber Plantation • Tyres & Tubes • Oil & Gas
LAI Gene Lih • Telcos TRINH Thi Ngoc Diep
(65) 6231 5832 laigenelih@maybank-ke.com.sg
(84 28) 44 555 888 x 8208
• Technology Romel LIBO-ON
diep.trinh@maybank-kimeng.com.vn
(63) 2 849 8844
• Technology • Utilities • Construction
romel_libo-on@maybank-atrke.com
• Property NGUYEN Thi Sony Tra Mi
(84 28) 44 555 888 x 8084
mi.nguyen@maybank-kimeng.com.vn
• Port Operation • Pharmaceutical
• Food & Beverage
NGUYEN Thanh Lam
(84 28) 44 555 888 x 8086
thanhlam.nguyen@maybank-kimeng.com.vn
• Technical Analysis

October 4, 2018 14
Summarecon Agung

APPENDIX I: TERMS FOR PROVISION OF REPORT, DISCLAIMERS AND DISCLOSURES

DISCLAIMERS
This research report is prepared for general circulation and for information purposes only and under no circumstances should it be considered or intended as an offer to sell or a solicitation
of an offer to buy the securities referred to herein. Investors should note that values of such securities, if any, may fluctuate and that each security’s price or value may rise or fall. Opinions
or recommendations contained herein are in form of technical ratings and fundamental ratings. Technical ratings may differ from fundamental ratings as technical valuations apply different
methodologies and are purely based on price and volume-related information extracted from the relevant jurisdiction’s stock exchange in the equity analysis. Accordingly, investors’ returns
may be less than the original sum invested. Past performance is not necessarily a guide to future performance. This report is not intended to provide personal investment advice and does
not take into account the specific investment objectives, the financial situation and the particular needs of persons who may receive or read this report. Investors should therefore seek
financial, legal and other advice regarding the appropriateness of investing in any securities or the investment strategies discussed or recommended in this report.
The information contained herein has been obtained from sources believed to be reliable but such sources have not been independently verified by Maybank Investment Bank Berhad, its
subsidiary and affiliates (collectively, “MKE”) and consequently no representation is made as to the accuracy or completeness of this report by MKE and it should not be relied upon as such.
Accordingly, MKE and its officers, directors, associates, connected parties and/or employees (collectively, “Representatives” ) shall not be liable for any direct, indirect or consequential
losses or damages that may arise from the use or reliance of this report. Any information, opinions or recommendations contained herein are subject to change at any time, without prior
notice.
This report may contain forward looking statements which are often but not always identified by the use of words such as “anticipate”, “believe”, “estimate”, “intend”, “plan”, “expect”,
“forecast”, “predict” and “project” and statements that an event or result “may”, “will”, “can”, “should”, “could” or “might” occur or be achieved and other similar expressions. Such
forward looking statements are based on assumptions made and information currently available to us and are subject to certain risks and uncertainties that could cause the actual results to
differ materially from those expressed in any forward looking statements. Readers are cautioned not to place undue relevance on these forward-looking statements. MKE expressly disclaims
any obligation to update or revise any such forward looking statements to reflect new information, events or circumstances after the date of this publication or to reflect the occurrence of
unanticipated events.
MKE and its officers, directors and employees, including persons involved in the preparation or issuance of this report, may, to the extent permitted by law, from time to time participate or
invest in financing transactions with the issuer(s) of the securities mentioned in this report, perform services for or solicit business from such issuers, and/or have a position or holding, or
other material interest, or effect transactions, in such securities or options thereon, or other investments related thereto. In addition, it may make markets in the securities mentioned in
the material presented in this report. One or more directors, officers and/or employees of MKE may be a director of the issuers of the securities mentioned in this report to the extent
permitted by law.
This report is prepared for the use of MKE’s clients and may not be reproduced, altered in any way, transmitted to, copied or distributed to any other party in whole or in part in any form or
manner without the prior express written consent of MKE and MKE and its Representatives accepts no liability whatsoever for the actions of third parties in this respect.
This report is not directed to or intended for distribution to or use by any person or entity who is a citizen or resident of or located in any locality, state, country or other jurisdiction where
such distribution, publication, availability or use would be contrary to law or regulation. This report is for distribution only under such circumstances as may be permitted by applicable law.
The securities described herein may not be eligible for sale in all jurisdictions or to certain categories of investors. Without prejudice to the foregoing, the reader is to note that additional
disclaimers, warnings or qualifications may apply based on geographical location of the person or entity receiving this report.
Malaysia
Opinions or recommendations contained herein are in the form of technical ratings and fundamental ratings. Technical ratings may differ from fundamental ratings as technical valuations
apply different methodologies and are purely based on price and volume-related information extracted from Bursa Malaysia Securities Berhad in the equity analysis.
Singapore
This report has been produced as of the date hereof and the information herein may be subject to change. Maybank Kim Eng Research Pte. Ltd. (“Maybank KERPL”) in Singapore has no
obligation to update such information for any recipient. For distribution in Singapore, recipients of this report are to contact Maybank KERPL in Singapore in respect of any matters arising
from, or in connection with, this report. If the recipient of this report is not an accredited investor, expert investor or institutional investor (as defined under Section 4A of the Singapore
Securities and Futures Act), Maybank KERPL shall be legally liable for the contents of this report, with such liability being limited to the extent (if any) as permitted by law.
Thailand
Except as specifically permitted, no part of this presentation may be reproduced or distributed in any manner without the prior written permission of Maybank Kim Eng Securities (Thailand)
Public Company Limited. Maybank Kim Eng Securities (Thailand) Public Company Limited (“MBKET”) accepts no liability whatsoever for the actions of third parties in this respect.
Due to different characteristics, objectives and strategies of institutional and retail investors, the research reports of MBKET Institutional and Retail Research Department may differ in
either recommendation or target price, or both. MBKET Retail Research is intended for retail investors (http://kelive.maybank-ke.co.th) while Maybank Kim Eng Institutional Research is
intended only for institutional investors based outside Thailand only.
The disclosure of the survey result of the Thai Institute of Directors Association (“IOD”) regarding corporate governance is made pursuant to the policy of the Office of the Securities and
Exchange Commission. The survey of the IOD is based on the information of a company listed on the Stock Exchange of Thailand and the market for Alternative Investment disclosed to the
public and able to be accessed by a general public investor. The result, therefore, is from the perspective of a third party. It is not an evaluation of operation and is not based on inside
information. The survey result is as of the date appearing in the Corporate Governance Report of Thai Listed Companies. As a result, the survey may be changed after that date. MBKET does
not confirm nor certify the accuracy of such survey result.
The disclosure of the Anti-Corruption Progress Indicators of a listed company on the Stock Exchange of Thailand, which is assessed by Thaipat Institute, is made in order to comply with the
policy and sustainable development plan for the listed companies of the Office of the Securities and Exchange Commission. Thaipat Institute made this assessment based on the information
received from the listed company, as stipulated in the form for the assessment of Anti-corruption which refers to the Annual Registration Statement (Form 56-1), Annual Report (Form 56-2),
or other relevant documents or reports of such listed company. The assessment result is therefore made from the perspective of Thaipat Institute that is a third party. It is not an assessment
of operation and is not based on any inside information. Since this assessment is only the assessment result as of the date appearing in the assessment result, it may be changed after that
date or when there is any change to the relevant information. Nevertheless, MBKET does not confirm, verify, or certify the accuracy and completeness of the assessment result.
US
This third-party research report is distributed in the United States (“US”) to Major US Institutional Investors (as defined in Rule 15a-6 under the Securities Exchange Act of 1934, as amended)
only by Maybank Kim Eng Securities USA Inc (“Maybank KESUSA”), a broker-dealer registered in the US (registered under Section 15 of the Securities Exchange Act of 1934, as amended). All
responsibility for the distribution of this report by Maybank KESUSA in the US shall be borne by Maybank KESUSA. This report is not directed at you if MKE is prohibited or restricted by any
legislation or regulation in any jurisdiction from making it available to you. You should satisfy yourself before reading it that Maybank KESUSA is permitted to provide research material
concerning investments to you under relevant legislation and regulations. All U.S. persons receiving and/or accessing this report and wishing to effect transactions in any security mentioned
within must do so with: Maybank Kim Eng Securities USA Inc. 400 Park Avenue, 11th Floor, New York, New York 10022, 1-(212) 688-8886 and not with, the issuer of this report.

October 4, 2018 15
 Summarecon Agung

UK
This document is being distributed by Maybank Kim Eng Securities (London) Ltd (“Maybank KESL”) which is authorized and regulated, by the Financial Conduct Authority and is for
Informational Purposes only. This document is not intended for distribution to anyone defined as a Retail Client under the Financial Services and Markets Act 2000 within the UK. Any
inclusion of a third party link is for the recipients convenience only, and that the firm does not take any responsibility for its comments or accuracy, and that access to such links is at the
individuals own risk. Nothing in this report should be considered as constituting legal, accounting or tax advice, and that for accurate guidance recipients should consult with their own
independent tax advisers.
DISCLOSURES

Legal Entities Disclosures

Malaysia: This report is issued and distributed in Malaysia by Maybank Investment Bank Berhad (15938- H) which is a Participating Organization of Bursa Malaysia Berhad and a holder of
Capital Markets and Services License issued by the Securities Commission in Malaysia. Singapore: This report is distributed in Singapore by Maybank KERPL (Co. Reg No 198700034E) which is
regulated by the Monetary Authority of Singapore. Indonesia: PT Maybank Kim Eng Securities (“PTMKES”) (Reg. No. KEP-251/PM/1992) is a member of the Indonesia Stock Exchange and is
regulated by the Financial Services Authority (Indonesia). Thailand: MBKET (Reg. No.0107545000314) is a member of the Stock Exchange of Thailand and is regulated by the Ministry of
Finance and the Securities and Exchange Commission. Philippines: Maybank ATRKES (Reg. No.01-2004-00019) is a member of the Philippines Stock Exchange and is regulated by the Securities
and Exchange Commission. Vietnam: Maybank Kim Eng Securities Limited (License Number: 117/GP-UBCK) is licensed under the State Securities Commission of Vietnam. Hong Kong: KESHK
(Central Entity No AAD284) is regulated by the Securities and Futures Commission. India: Kim Eng Securities India Private Limited (“KESI”) is a participant of the National Stock Exchange of
India Limited and the Bombay Stock Exchange and is regulated by Securities and Exchange Board of India (“SEBI”) (Reg. No. INZ000010538). KESI is also registered with SEBI as Category 1
Merchant Banker (Reg. No. INM 000011708) and as Research Analyst (Reg No: INH000000057) US: Maybank KESUSA is a member of/ and is authorized and regulated by the FINRA – Broker ID
27861. UK: Maybank KESL (Reg No 2377538) is authorized and regulated by the Financial Conduct Authority.

Disclosure of Interest
Malaysia: MKE and its Representatives may from time to time have positions or be materially interested in the securities referred to herein and may further act
as market maker or may have assumed an underwriting commitment or deal with such securities and may also perform or seek to perform investment banking
services, advisory and other services for or relating to those companies.
Singapore: As of 4 October 2018, Maybank KERPL and the covering analyst do not have any interest in any companies recommended in this research report.
Thailand: MBKET may have a business relationship with or may possibly be an issuer of derivative warrants on the securities /companies mentioned in the
research report. Therefore, Investors should exercise their own judgment before making any investment decisions. MBKET, its associates, directors, connected
parties and/or employees may from time to time have interests and/or underwriting commitments in the securities mentioned in this report.
Hong Kong: KESHK may have financial interests in relation to an issuer or a new listing applicant referred to as defined by the requirements under Paragraph
16.5(a) of the Hong Kong Code of Conduct for Persons Licensed by or Registered with the Securities and Futures Commission.
As of 4 October 2018, KESHK and the authoring analyst do not have any interest in any companies recommended in this research report.
MKE may have, within the last three years, served as manager or co-manager of a public offering of securities for, or currently may make a primary market in issues of, any or all of the
entities mentioned in this report or may be providing, or have provided within the previous 12 months, significant advice or investment services in relation to the investment concerned
or a related investment and may receive compensation for the services provided from the companies covered in this report.

OTHERS
Analyst Certification of Independence
The views expressed in this research report accurately reflect the analyst’s personal views about any and all of the subject securities or issuers; and no part of the research analyst’s
compensation was, is or will be, directly or indirectly, related to the specific recommendations or views expressed in the report.
Reminder
Structured securities are complex instruments, typically involve a high degree of risk and are intended for sale only to sophisticated investors who are capable of understanding and
assuming the risks involved. The market value of any structured security may be affected by changes in economic, financial and political factors (including, but not limited to, spot and
forward interest and exchange rates), time to maturity, market conditions and volatility and the credit quality of any issuer or reference issuer. Any investor interested in purchasing a
structured product should conduct its own analysis of the product and consult with its own professional advisers as to the risks involved in making such a purchase.
No part of this material may be copied, photocopied or duplicated in any form by any means or redistributed without the prior consent of MKE.

October 4, 2018 16
Summarecon Agung

Historical recommendations and target price: Summarecon Agung (SMRA IJ)

4 Apr 19 Jul 11 Oct 2 Jan 3 Oct

Hold : Rp1,450 Hold : Rp1,150 Sell : Rp900.0 Hold : Rp900.0 Buy : Rp830.0
1,600.0

1,400.0

1,200.0

1,000.0

800.0

600.0

400.0
Mar-17 Jun-17 Sep-17 Dec-17 Mar-18 Jun-18 Sep-18

Summarecon Agung

Definition of Ratings
Maybank Kim Eng Research uses the following rating system
BUY Return is expected to be above 10% in the next 12 months (excluding dividends)
HOLD Return is expected to be between - 10% to +10% in the next 12 months (excluding dividends)
SELL Return is expected to be below -10% in the next 12 months (excluding dividends)

Applicability of Ratings
The respective analyst maintains a coverage universe of stocks, the list of which may be adjusted according to needs. Investment ratings are only
applicable to the stocks which form part of the coverage universe. Reports on companies which are not part of the coverage do not carry investment
ratings as we do not actively follow developments in these companies.

October 4, 2018 17
Summarecon Agung
 Malaysia
Maybank Investment Bank Berhad
(A Participating Organisation of
Bursa Malaysia Securities Berhad)
33rd Floor, Menara Maybank,
100 Jalan Tun Perak,
50050 Kuala Lumpur
Tel: (603) 2059 1888;
Fax: (603) 2078 4194
Stockbroking Business:
Level 8, Tower C, Dataran Maybank,
No.1, Jalan Maarof
59000 Kuala Lumpur
Tel: (603) 2297 8888
Fax: (603) 2282 5136
 Philippines
Maybank ATR Kim Eng Securities Inc.
17/F, Tower One & Exchange Plaza
Ayala Triangle, Ayala Avenue
Makati City, Philippines 1200
Tel: (63) 2 849 8888
Fax: (63) 2 848 5738
 South Asia Sales Trading
Kevin Foy
Regional Head Sales Trading
kevinfoy@maybank-ke.com.sg
Tel: (65) 6636-3620
US Toll Free: 1-866-406-7447
Indonesia
Harianto Liong
harianto.liong@maybank-ke.co.id
Tel: (62) 21 2557 1177
New York
James Lynch
jlynch@maybank-keusa.com
Tel: (212) 688 8886
Philippines
Keith Roy
keith_roy@maybank-atrke.com
Tel: (63) 2 848-5288
October 4, 2018
 Singapore
Maybank Kim Eng Securities Pte Ltd
Maybank Kim Eng Research Pte Ltd
50 North Canal Road
Singapore 059304
Tel: (65) 6336 9090
 Hong Kong
Kim Eng Securities (HK) Ltd
28/F, Lee Garden Three,
1 Sunning Road, Causeway Bay,
Hong Kong
Tel: (852) 2268 0800
Fax: (852) 2877 0104
 Thailand
Maybank Kim Eng Securities
(Thailand) Public Company Limited
999/9 The Offices at Central World,
20th - 21st Floor,
Rama 1 Road Pathumwan,
Bangkok 10330, Thailand
Tel: (66) 2 658 6817 (sales)
Tel: (66) 2 658 6801 (research)
 North Asia Sales Trading
Andrew Lee
andrewlee@kimeng.com.hk
Tel: (852) 2268 0283
US Toll Free: 1 877 837 7635
London
Mark Howe
mhowe@maybank-ke.co.uk
Tel: (44) 207-332-0221
India
Sanjay Makhija
sanjaymakhija@maybank-ke.co.in
Tel: (91)-22-6623-2629
 London
Maybank Kim Eng Securities
(London) Ltd
PNB House
77 Queen Victoria Street
London EC4V 4AY, UK
Tel: (44) 20 7332 0221
Fax: (44) 20 7332 0302
 Indonesia
PT Maybank Kim Eng Securities
Sentral Senayan III, 22nd Floor
Jl. Asia Afrika No. 8
Gelora Bung Karno, Senayan
Jakarta 10270, Indonesia
Tel: (62) 21 2557 1188
Fax: (62) 21 2557 1189
 Vietnam
Maybank Kim Eng Securities Limited
4A-15+16 Floor Vincom Center Dong
Khoi, 72 Le Thanh Ton St. District 1
Ho Chi Minh City, Vietnam
Tel : (84) 844 555 888
Fax : (84) 8 38 271 030
www.maybank-ke.com | www.maybank-keresearch.com
 New York
Maybank Kim Eng Securities USA
Inc
400 Park Avenue, 11th Floor
New York, New York 10022,
U.S.A.
Tel: (212) 688 8886
Fax: (212) 688 3500
 India
Kim Eng Securities India Pvt Ltd
2nd Floor, The International,
16, Maharishi Karve Road,
Churchgate Station,
Mumbai City - 400 020, India
Tel: (91) 22 6623 2600
Fax: (91) 22 6623 2604
 Saudi Arabia
In association with
Anfaal Capital
Villa 47, Tujjar Jeddah
Prince Mohammed bin Abdulaziz
Street P.O. Box 126575
Jeddah 21352
Tel: (966) 2 6068686
Fax: (966) 26068787
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