INVESTOR DIGEST

Equity Research | 29 July 2021

Economic Data HIGHLIGHT

Latest 2021F

• 2Q21 Investment Realization: Continuing the Diverse Trend

7-DRRR (%), eop 3.50 3.05 • AKR Corporindo 1H21 Earnings Call Key Takeaways (AKRA; Rp3,530; Buy; TP:
Inflation (YoY %) 1.33 2.92 Rp4,500)
US$ 1 = Rp, period avg 14,470 14,085 • Astra Agro Lestari: 2Q21 Results (AALI; Rp8,175; Not Rated)
• Bank Tabungan Negara: 1H21 Results: Broad Improvements (BBTN; Rp1,310; Buy; TP:
Rp2,200)
Stock Market Data
(28 July 2021)
• Bank Danamon: 1H21Earnings Call Key Takeaways (BDMN; Rp2,120; Buy; TP:
Rp4,100)
JCI Index 6,088.5 -0.14% • Bank Jatim: 1H21 Results - In Line with Expectations (BJTM; Rp700; Buy; TP: Rp900)
Trading T/O ( Rp bn ) 10,452.6 • Indosat: 2Q21 Results - Mobile Outperformance & Tower Gains (ISAT; Rp5,700; Buy;
Market Cap ( Rp tn ) 7,252.5 TP: Rp7,500)
• Jasa Marga: 2Q21 Results - Expect Strong EPS Recovery Ahead (JSMR; Rp3,840; Buy;
TP: Rp6,640)
• Siloam Hospital: 2Q21 Result - Visible Signs of Non-COVID Patient Recovery (SILO;
Market Data Summary*
Rp9,000; Buy; TP: Rp9,000)
• Vale Indonesia: Expect Stronger Earnings in 2H21 (INCO; Rp5,325; Neutral; TP:
2021F 2022F
Rp5,200)

P/E (x) 17.7 15.2

P/BV (x) 2.1 2.0 ECONOMY
EV/EBITDA (x) 13.0 12.2 2Q21 Investment Realization: Continuing the Diverse Trend
Div. Yield (%) 2.7 2.9
Net Gearing (%) 25.9 21.8
 Positive investment development. The Investment Coordinating Board (BKPM)
reported that the total direct investment increased by 16.2% YoY in 2Q21 from
ROE (%) 12.4 13.3
4.3% in 1Q21. Both foreign (FDI) and domestic direct investments (DDI) posted
EPS Growth (%) 47.4 17.5
double-digit growth amid the solid recovery of domestic and global economies.
EBITDA Growth (%) 45.0 6.7
Overall, the total investment absorbed 311,922 workers, increasing by 18.6% YoY
Earnings Yield (%) 5.6 6.6
(vs. 2.9% in 1Q21) and higher than the average absorption at 285,948.

* Aggregate of 73 companies in MS research universe,
representing 65.1%of JCI’s market capitalization
 Export-oriented FDI. In USD terms, the FDI recorded another solid growth of
18.0% YoY in 2Q21 (vs. 12.5% in 1Q21), which was the fourth consecutive
increase since 3Q20. The solid FDI figure is associated with the robust global
recovery, as most of the export-oriented sectors registered notable
improvement. Investment in the primary sector surged by 95.7% from -20.2% in
the same period, driven by mining and plantation. On the secondary sector,
although its growth slowed down to 28.7% from 45.7%, several export-oriented
subsectors still registered substantial increase, such as leather & footwear and
basic metal.
 Continuing the more diverse investment. Interestingly, Europe had a sharp
increase in FDI share in 2Q21, reaching 16.4% (vs. 7.7% in 2020). The US’s FDI also
recorded a larger share, picking up to 4.4% from 2.6% in the corresponding
period. We believe the more diversified investment was contributed by several
factors: 1) solid economic recovery in developed economies; 2) Indonesia’s
commitment to implement structural reform, reflected from the approval of the
omnibus law, and; 3) stable rupiah. Meanwhile, the proportion of investment
from China decreased to 8.0% from 16.9%.

Please see important disclosure at the back of this report Page 1 of 19

This report is intended exclusively for Information.center@mandirisek.co.id. Unauthorized distribution is prohibited.

 Equity Research | 29 July 2021

 East Indonesia had substantial FDI growth. From a regional perspective, the FDI in the eastern part of Indonesia
recorded a significant increase, in which Maluku’s and Papua’s FDIs jumped by 317% YoY and 303% YoY in 2Q21,
respectively. Specific on the former, Maluku’s surging FDI was concentrated more on the natural resource downstream
program (basic metal) in Weda Bay. Sumatra’s FDI also picked up by 6.0% from -19.7% in 1Q21, supported by investment
in mining and plantation sectors.
 DDI rebounded in 2Q21. It increased by 12.7% YoY in 2Q21 after a decline of -4.2% YoY in 1Q21. Investment in the
tertiary sector drove the recovery, as it rose to 19.0% from -8.4% in the same period due to real estate & industrial estate.
Furthermore, although investment in the secondary and primary sectors only picked up by 1.4% and 4.0%, respectively,
several subsectors still posted improvements. Specifically, investments in the basic metal and mining sectors each surged
by 151.9% and 73.4%, followed by higher investment in pharmaceutical & chemical, reaching 30.5% YoY amid efforts to
combat the COVID pandemic.

 Our view: investment trend to pick up further in 4Q21. The investment trend will likely ease in 3Q21 due to the COVID
second wave. Reiterating our view, we believe that managing the pandemic is a necessary condition, not only to support
economic recovery, but also to attract larger investment from both FDI and DDI. Therefore, if the country can bring down
the COVID curve and accelerate vaccination, the investment trend should rebound in 4Q21, as the economic
fundamentals remained sound before the second wave. We estimate the gross fixed capital formation to only ease to 4-
5% in 3Q21 from our initial forecast of 6%.

BOTH DDI AND FDI RECORDED DOUBLE-DIGIT GROWTH IN 2Q21 LABOR ABSORPTION INCREASED BY 18.6% YOY IN 2Q21

DDI and FDI Growth (% YoY) Labor Absorption

40.0 700,000 100.00
30.0 600,000 80.00
20.0 500,000 60.00
40.00
10.0 400,000
20.00
0.0 300,000
0.00
-10.0 200,000 -20.00
-20.0 100,000 -40.00
-30.0 0 -60.00
2Q11
4Q11
2Q12
4Q12
2Q13
4Q13
2Q14
4Q14
2Q15
4Q15
2Q16
4Q16
2Q17
4Q17
2Q18
4Q18
2Q19
4Q19
2Q20
4Q20
2Q21
4Q13

2Q14

4Q14

2Q15

4Q15

2Q16

4Q16

2Q17

4Q17

2Q18

4Q18

2Q19

4Q19

2Q20

4Q20

2Q21

DDI FDI
Labor Absorption (people) Growth (% YoY)
(% YoY) (% YoY)

Source: BKPM, CEIC Source: BKPM, CEIC

FDI IN PRIMARY SECTOR RECORDED SIGNIFICANT FDI IN MINING AND LEATHER & FOOTWEAR SURGED DUE TO
IMPROVEMENT ROBUST GLOBAL DEMAND

FDI Growth on Quarterly Basis (% YoY) FDI Growth by Sector (% YoY)

120 250 500
100
200 400
80
60 150
300
40 100
20 200
0 50
100
-20 0
-40 -50 0
-60
-100 -100
1Q18

2Q18

3Q18

4Q18

1Q19

2Q19

3Q19

4Q19

1Q20

2Q20

3Q20

4Q20

1Q21

2Q21

1Q18

2Q18

3Q18

4Q18

1Q19

2Q19

3Q19

4Q19

1Q20

2Q20

3Q20

4Q20

1Q21

2Q21

Total FDI Primary Sector Food Crops & Plantation Mining

Leather & Footwear Basic Metal
Secondary Sector Tertiary Sector
Real Estate Transporation - RHS

Source: BKPM, CEIC Source: BKPM, CEIC

Leo Rinaldy(+6221 5296 9406) leo.rinaldy@mandirisek.co.id

Imanuel Reinaldo(+6221 5296 9651) imanuel.reinaldo@mandirisek.co.id

Please see important disclosure at the back of this report Page 2 of 19

This report is intended exclusively for Information.center@mandirisek.co.id. Unauthorized distribution is prohibited.

Equity Research | 29 July 2021

Please see important disclosure at the back of this report Page 3 of 19

This report is intended exclusively for Information.center@mandirisek.co.id. Unauthorized distribution is prohibited.

 Equity Research | 29 July 2021

CORPORATE

AKR Corporindo 1H21 Earnings Call Key Takeaways (AKRA; Rp3,530; Buy; TP: Rp4,500)

 The management expects petroleum sales volume to grow as demands from mining and plantation customers are
picking up in 2H21. Meanwhile, chemical sales volume may beat the initial growth guidance at 9-11% YoY in 2021F given
strong volume growth in 1H21 and rising demand from smelters. Lastly, the management also revealed additional 50ha
of land inquiries at JIIPE from various sector in the last 2 weeks, after JIIPE received special economic zone status.

 Trading and Distribution Business

− Petroleum sales volume growth in 1H21 was driven more by power plants and general market segments while the
volume from the mining sector was relatively flattish in 6M21 due to a flood in Kalimantan early this year. However,
the management expects diesel fuel demand from the mining sector (across commodities) to pick up in 2H21 and be
higher than in 1H21 despite a tighter mobility restriction in early 3Q21.
− The tighter mobility restriction will negatively affect the JV business with BP, which focuses on retail and aviation
segments. AKR has seen the impact in Jakarta and Surabaya. However, the management expects the volume can
recover in the upcoming months, thus bringing minimum impact on overall sales volume.
− With the strong chemical sales volume growth in 1H21 and more factories allowed to operate during the stricter
social distancing, the management expects AKR to beat initial sales volume growth guidance at 9-11% YoY in 2021F.
Another growth driver will come from nickel and alumina smelters which need caustic soda and soda ash for their
operation.

 Industrial Estate Business

− Special economic zone (SEZ) status and additional land lease from Freeport Indonesia will be a game changer for
JIIPE. The SEZ status will help JIIPE attract more potential new tenants with various incentives. Meanwhile, the
additional land lease from Freeport will create an ecosystem within JIIPE to attract more downstream tenants.
− The management revealed that the SEZ helped JIIPE receive additional 50ha of land inquiries from a multinational
CPO refinery, aluminum manufacturer, feed mill, chemical plant, nickel refinery, and agriculture construction in the
last 2 weeks.
− Agreement with TAITRA will help AKR to promote JIIPE among Taiwanese and Asia Pacific companies that plan to
reallocate or expand their businesses to Indonesia. From this agreement, JIIPE managed to book a 5ha land sales
commitment from Adimmune Corporation, a vaccine manufacturer, should the latter receive clinical test approval for
COVID-19 vaccines.
− All in, the management maintains land sales guidance at 30-35ha in 2021F but expects land sales to increase to
50ha/year in the next 2-3 years.

 Dividend and Capital Structure

− AKR will continue to de-leverage its balance sheet as the company expects its debt-to-equity (DER) ratio to reach <
1.1x. This will help AKR capture business opportunities in the future.
− The management expects AKR to deliver > 50% dividend payout ratio in the next few years and grow its dividend
payment amount as JIIPE has started contributing to earnings.

Henry Tedja, CFA (+6221 5296 9434) henry.tedja@mandirisek.co.id

Adrian Joezer (+6221 5296 9415) adrian.joezer@mandirisek.co.id

Please see important disclosure at the back of this report Page 4 of 19

This report is intended exclusively for Information.center@mandirisek.co.id. Unauthorized distribution is prohibited.

 Equity Research | 29 July 2021

Astra Agro Lestari: 2Q21 Results (AALI; Rp8,175; Not Rated)

 Net profit was in line. AALI reported a 2Q21 net profit of Rp487bn (+2,237% YoY/+200% QoQ), which came from a low
base last year and lower hedging losses QoQ; this represented 50% of the consensus forecast. AALI’s topline was strong in
1H21 at Rp10.8tn (+19% YoY), mainly driven by strong ASP (+27% YoY) in both upstream and downstream products. CPO
revenue (+5% YoY) was dragged by lower CPO sales volume (-17% YoY), as we suspect AALI has shifted to producing
more downstream products, with the refined products revenue increasing to Rp3.4tn (+43% YoY), possibly to utilize the
lower levy. Its gross and operating profit margins expanded to 20.4% and 15.2% in 2021 from 14.4% and 8.3%,
respectively. As such, operating profit was strong at Rp1.6tn (+118% YoY), far exceeding the consensus expectation,
though bottom line was dragged by Rp647bn commodity contract losses. Going into 3Q21, we expect stronger earnings
across upstream producers, boosted by the revised lower levy that directly translated to higher ASP, with CPO price
benchmark back to >MYR 4,000. Moreover, we expect an FFB production recovery before peaking in Sep/Oct, thus
providing an added boost to margin.

 Key points to highlight in 2Q21: 1) AALI processed higher FFB in 2Q21 at 2.1mn tons (+16% YoY/+14% QoQ), driven by
a strong recovery in external FFB (+50% YoY/+24% QoQ). This brings the YTD FFB processed to 3.9mn tons (+10% YoY). 2)
As such, CPO production also increased to 406k tons (+15% YoY/+16% QoQ), bringing the overall CPO production to 758k
tons (+7% YoY). 3) AALI’s downstream olein sales volume increased to 109k tons (+17% YoY/flat QoQ). 4) AALI’s CPO ASP
stood at 10.7k (+47% YoY/+10% QoQ), though the CPO benchmark price in 2Q21 averaged at MYR 4,239/ton (+86% YoY/
+8% QoQ); the relatively modest increase in AALI’s realized price was due to export levy and tax. 5) AALI recorded
Rp263bn hedging losses (vs. Rp384bn loss in 1Q21).

Rp bn 2Q21 2Q20 %yoy 1Q21 %QoQ 6M21 6M20 %yoy % of Cons Consensus
Net Sales 5,797 4,285 35% 5,035 15% 10,832 9,081 19% 52% 20,902
Gross Profit 1,282 377 240% 932 38% 2,214 1,304 70% 61% 3,635
Operating Profit 990 117 749% 658 50% 1,648 756 118% 70% 2,347
EBITDA 1,287 426 202% 962 34% 2,249 1,378 63% 57% 3,977
Pretax 756 43 1648% 355 113% 1,111 648 71% 56% 1,994
Net Profit 487 21 2237% 162 200% 649 392 66% 50% 1,293

bps change bps change bps change

Gross margin 22.1% 8.8% 1,332.07 18.5% 360 20.4% 14.4% 609 17.4%
Operating margin 17.1% 2.7% 1,436 13.1% 401 15.2% 8.3% 689 11%
EBITDA margin 22.2% 9.9% 1,226 19.1% 310 20.8% 15.2% 559 19%
Pretax margin 13.0% 1.0% 1,203 7.0% 600 10.3% 7.1% 312 10%
Net margin 8.4% 0.5% 791 3.2% 517 6.0% 4.3% 168 6%

PRODUCTION VOLUME
FFB nucleus 1,151,800 1,168,600 -1% 1,073,200 7% 2,225,000 2,277,900 -2% 47%
FFB external 914,200 608,000 50% 738,800 24% 1,653,000 1,248,000 32%
FFB processed 2,066,000 1,776,600 16% 1,812,000 14% 3,878,000 3,525,900 10%
CPO 406,600 352,700 15% 351,500 16% 758,100 706,800 7% 50%
PK 84,100 73,800 14% 73,600 14% 157,700 145,900 8%
PKO 12,200 10,900 12% 10,300 18% 22,500 22,200 1%

PRODUCTION QUALITY
FFB yield (ton/ha) 4.4 4.4 4.0 8.4 8.6
CPO Yield 1.5 1.3 1.3 2.9 2.7
PK OER 15% 15% 14% 14% 15%
PK Yield 0.4 0.4 0.4 0.8 0.8

Please see important disclosure at the back of this report Page 5 of 19

This report is intended exclusively for Information.center@mandirisek.co.id. Unauthorized distribution is prohibited.

 Equity Research | 29 July 2021

Rp bn 2Q21 2Q20 %yoy 1Q21 %QoQ 6M21 6M20 %yoy % of Cons Consensus
SALES VOLUME
CPO 322,597 403,219 -20% 299,298 8% 621,895 752,916 -17%
Olein 108,934 92,799 17% 109,345 0% 108,934 92,799 17%

ASP
CPO 10,745 7,306 47% 9,764 10% 10,273 8,110 27%

Wesley Louis Alianto (+6221 5296 9510) wesley.alianto@mandirisek.co.id

Bank Tabungan Negara: 1H21 Results: Broad Improvements (BBTN; Rp1,310; Buy; TP: Rp2,200)
 BTN grew net profit by 20% YoY to Rp920bn in 1H21 by earning lower cost of fund and maintaining steady non-interest
income base. Improving bond prices and steady core profit helped quarterly comprehensive income trend in 2Q21, but
capital strengthening via rights issue remains in FY22 pipeline. Retain BUY.
 1H21 Net Profit of Rp920bn, up 20% YoY and forming 43%/44% of our/consensus FY21 Net Profit estimates. The
strong net profit growth was driven by the meaningful decline in cost of fund and steady non-interest income trend on
YoY basis. PPOP grew 29% YoY to Rp2.57tn in 1H21 as savings in cost of fund offset gains in opex. On quarterly basis,
BBTN booked Rp295bn Net Profit in 2Q21, down 5% YoY/53% QoQ. The decline in quarterly Net Profit was mainly
driven by the jump in provisioning expenses in 2Q21 – albeit expected. On the positive side, cost of fund continued to
decline, down from 4.25% In 1Q21 to 3.77% in 2Q21, in our calculation.
 Loan grew 6% YoY/2% YTD/2% QoQ in 2Q21. On QoQ basis, loan growth was mainly driven by subsidized mortgage
segment (up Rp3.3tn/3% QoQ) and non-housing segment (up Rp4.6tn/up 2% QoQ).

 Deposits grew 32% YoY/7% YTD/1% QoQ in 2Q21. In absolute terms, TD grew the most sequentially, up by Rp4.3tn/up
2% QoQ, while Saving Deposit grew Rp1.9tn/up 5% QoQ. Meanwhile, Demand Deposit declined by Rp2.7tn or by 4%
QoQ, leading to CASA ratio decline from 38.2% in 1Q21 to 37.5% in 2Q21.
 NIM inched up to 3.18% in 1H21, vs. 3.01% in 1H20, in our calculation. Despite lower LDR and lower asset yield, BBTN
managed to capitalize on lower benchmark rates and industry liquidity to optimize cost of fund and improve NIM in
1H21. Sequentially, NIM also improved from 3.16% in 1Q21 to 3.19% in 2Q21 as cost of fund savings outweighed asset
yield decline.
 NPL down to 4.1% in 1H21, vs. 4.71% in 1H20. On QoQ basis, NPL declined from 4.25% in 1Q21 to 4.10% in 2Q21 with
broad-based improvements. NPL in Housing Loans declined from 4.06% in 1Q21 to 3.9% in 2Q21, while NPL in Non-
Housing Loans declined from 6.04% in 1Q21 to 4.49% in 2Q21. Indeed, LAR ratio picked up from 32.6% in 1Q21 to 33.5%
in 2Q21 and total restructured loans increased from Rp74.9tn in 1Q21 to Rp75.2tn in 2Q21. However, out of Rp56.7tn
restructured loans due to Covid-19, only ~Rp3.5tn portion is estimated to potentially default as of Jun-21 and to be
provisioned in 2021-2022. Management also reported that mobility restriction will delay some NPL asset sale from early
3Q21 to late 3Q21.
 Opex grew 20% YoY in 1H21, driven by increases in deposit insurance premium and one-off personnel cost increase. On
QoQ basis, opex increased 3% in 2Q21 as non-personnel expenses grew 5%. Management also plans to rationalize branch
network and reduce branch unit by 28-30 from 760 units today. This is part of BTN’s branch transformation strategy to
ensure branches to be more deposit-centric, emerging-affluent segment-focused, and sales-focused.
 CAR held up at 17.8% as of Jun-21, with Tier-1 capital ratio at 13.0%. On YTD basis, CAR declined from 19.3% in Dec-20
to 17.8% in Jun-21 due to larger loan base and wider but unrealized comprehensive losses. However, quarterly
comprehensive income/loss trend turned around in 2Q21 too. Management added BTN set for Rp5tn rights issue in
business plan for 2022 and the additional capital will strengthen Tier-1 capital to support stronger business growth
ahead.

Please see important disclosure at the back of this report Page 6 of 19

This report is intended exclusively for Information.center@mandirisek.co.id. Unauthorized distribution is prohibited.

 Equity Research | 29 July 2021

BBTN: 1H21 RESULTS SUMMARY

Income Statement FY21F % of FY21F
6M20 6M21 % YoY 2Q20 1Q21 2Q21 % YoY % QoQ FY21F % of FY21F
(Rp bn) Consensus Consensus
Net interest income 4,439 5,690 28 2,260 2,775 2,915 29 5 11,824 48
Non interest income 1,038 1,073 3 578 472 601 4 27 2,057 52
Fees and Commissions 460 492 7 229 242 249 9 3 1,047 47
Forex Income 29 (53) (283) 35 (8) (46) (229) 489 (8) 689
Others 549 635 16 314 237 397 27 67 1,017 62
Operating income 5,477 6,763 23 2,838 3,246 3,516 24 8 13,880 49 13,179 51
Provisioning expense (1,036) (1,317) 27 (605) (320) (997) 65 211 (3,215) 41
Operating expense (3,489) (4,189) 20 (1,712) (2,060) (2,129) 24 3 (7,830) 53
Personnel Expenses (1,372) (1,544) 13 (690) (769) (776) 12 1 (2,854) 54
Other Expenses (2,117) (2,644) 25 (1,022) (1,291) (1,353) 32 5 (4,976) 53
Operating profit 952 1,257 32 521 867 391 (25) (55) 2,836 44 2,648 47
PPOP 1,988 2,574 29 1,126 1,187 1,387 23 17 6,051 43
Pre-tax profit 963 1,246 29 376 863 384 2 (56) 2,797 45 2,681 46
Net profit 768 920 20 310 625 295 (5) (53) 2,153 43 2,068 44

Balance Sheet (Rp bn) Jun-20 Mar-21 Jun-21 % YoY % QoQ

Gross loan 251,837 261,340 265,907 6 2
Demand deposit 59,424 71,470 68,750 16 (4)
Saving deposit 34,160 41,191 43,048 26 5
Time deposit 132,738 182,253 186,581 41 2
Total deposit 226,322 294,914 298,379 32 1

CASA to deposits (%) 41.3 38.2 37.5

Ratio (%) 6M20 6M21 2Q20 1Q21 2Q21

CAR 19.1 17.8 19.1 17.7 17.8
Tier 1 CAR 12.5 13.0 12.5 12.3 13.0
LDR 111.3 89.1 111.3 88.6 89.1
NIM 3.01 3.18 3.04 3.16 3.19
ROE 8.0 9.4 7.4 12.8 6.0
NPL, cat.3-5 4.71 4.10 4.71 4.25 4.10
SML, cat. 2 12.9 8.6 12.9 6.1 8.6
Cost of credit 0.8 1.0 1.0 0.5 1.5
Loan loss coverage 108 121 108 116 121
Restructured Loan 20.7 28.3 20.7 28.6 28.3
Loan at risk 31.5 33.5 31.5 32.6 33.5
Cost to Income 63.7 61.9 60.3 63.4 60.5
Source: Company, Mandiri Sekuritas Research

Kresna Hutabarat (+6221 5296 9542) kresna.hutabarat@mandirisek.co.id

Silvony Gathrie (+6221 5296 9544) silvony.gathrie@mandirisek.co.id

Please see important disclosure at the back of this report Page 7 of 19

This report is intended exclusively for Information.center@mandirisek.co.id. Unauthorized distribution is prohibited.

 Equity Research | 29 July 2021

Bank Danamon: 1H21Earnings Call Key Takeaways (BDMN; Rp2,120; Buy; TP: Rp4,100)

 BDMN sees smaller earnings impact from the recent social restriction to credit cost level and restructured balance this
year compared to last year, given adequate loan loss coverage and better customer ability to adapt to the restriction.
However, loan growth will be impacted due to reduced mobility. Maintain Buy.

 Lending:
− Loan and CASA synergy trend from MUFG remained encouraging. Loan synergy was up 96% YoY to Rp8.0tn, while
CASA synergy up 5% YoY to Rp2.1tn in 1H21. Key synergy deals include partnerships with few multi-finance
companies, involvement in syndicated loans for Inalum (Indonesia state-owned company specialized in aluminum
smelting), and financing support to real estate value chains.
− Continued collaboration with MUFG network and focus on blue chip segment expansion have resulted in enterprise
banking portfolio growth of 11% YoY. Meanwhile, all other segments posted declining loan balance. As a result,
enterprise banking made up 43% of total loans in Jun-21, a material increase from 36% in Jun-20. Overall loan
balance declined by 8% YoY.
− Adira Multifinance (ADMF) loan disbursement extended its gain, increased 282% YoY/18% QoQ to Rp6.4tn in 2Q21.
2Q21’s disbursement is around 80% of pre-pandemic level of Rp8.4tn in 1Q20.

 Digital initiatives:
− In May-21, BDMN launched D-Bank PRO mobile banking with enhanced features and better user experience
compared to the previous mobile banking version. The aim is to shift branch transactions into mobile app
transactions so to allow branches to focus more on handling more complex fee based income transactions, such as
mutual funds, insurance, etc.
− As of Jun-20, around 30% of consumer time deposits came from online transactions, an increase from 24% in Jun-20
and 11% in Jun-19. The bank indicated that the rate of online time deposits is around 25bps higher than what is
offered in the branch.
− BDMN also introduced mobility devices i.e. tablet devices which enable agents to serve customers anywhere and
improve agent productivity, especially during the pandemic.

 Asset quality:
− Covid-19 related restructured loans continue to decline, down by 26% QoQ to Rp7.7tn in Jun-21. The largest
improvement came from ADMF restructured balance, which declined to Rp202bn in Jun-21 from Rp10tn in Jun-20.
− NPL rate declined to 3.0% (Rp3.8tn) in Jun-21 from 3.3% (Rp4.2tn) in Mar-21. 37% of the NPL balance was from SME,
36% from ADMF, 16% from enterprise banking, 10% from consumer while 1% from run-off portfolio.
− CoC increased to 3.9% in 1H21 from 3.6% in 1Q21 but materially declined from 4.5% in 1H20. In light of the recent
social restriction, the bank indicated that FY21 CoC to remain elevated but still below the 4% level. The bank sees
smaller impact from the recent restriction to credit cost and restructured balance, given that customers have learned
to adapt. Also, NPL coverage of 177% in Jun-21 is seen as adequate.

Silvony Gathrie (+6221 5296 9544) silvony.gathrie@mandirisek.co.id

Kresna Hutabarat (+6221 5296 9542) kresna.hutabarat@mandirisek.co.id
Boby Chandra (+6221 5296 9533) boby.chandra@mandirisek.co.id

Please see important disclosure at the back of this report Page 8 of 19

This report is intended exclusively for Information.center@mandirisek.co.id. Unauthorized distribution is prohibited.

 Equity Research | 29 July 2021

Bank Jatim: 1H21 Results - In Line with Expectations (BJTM; Rp700; Buy; TP: Rp900)

 BJTM recorded Rp803bn earnings in 1H21, up 4% YoY, supported by declining credit cost. NIM declined 73bps YoY as the
bank saw lower LDR level, declining CASA balance and lower average lending rates. NPL and restructured loans trended
up QoQ, with loan quality deterioration can be seen across segments. Maintain Buy.

 BJTM 1H21 earnings at Rp803bn, up 4% YoY and accounting for 52% of FY21 consensus & Mansek’s estimates – in line
with expectations. PPOP grew flat YoY while operating profit increased 7% YoY, helped by reduction in provision
expenses by 24% YoY. 2Q21’s earnings totaled Rp355bn, up 7% YoY but down 21% QoQ, with quarterly reduction driven
by 37% increase in operating expense.

 Loan growth at +9% YoY/+2% QoQ, deposit growth at +27% YoY/+7% QoQ. In absolute terms, the commercial
segment (25% of total loans) grew the fastest, up Rp1.3tn YoY/+13% YoY. Meanwhile, consumer segment (58% of total
loans) grew Rp1.2tn YoY/+5% YoY and SME segment (17% of total loans) grew Rp925bn YoY/+15% YoY. On the deposit
side, time deposits posted the highest growth rate at +78% YoY, followed by saving deposits at +11% YoY. Though,
demand deposits declined by 2% YoY. CASA portion to total loans declined to 55% in Jun-21 from 68% in Jun-20, while
LDR declined further to 52% from 61% over the same period. Note that this is the lowest LDR level in the past 10 years.

 NIM declined to 5.1% in 1H21 from 5.8% in 1H20 (BJTM’s calculation), in line with declining LDR level, CASA portion and
lower benchmark rate.

 Cost to income ratio increased to 48% in 1H21 from 44% last year. 2Q21’s cost to income ratio also surged to 55% from
42% in 1Q21. The bank indicated that the increase in opex was related to personnel expenses as the bank hired a number
of employees to support the lending team.

 NPL increased to 4.4% in Jun-21 from 4.2% in Mar-21. All segments demonstrated deterioration in NPL in Jun-21. The
commercial segment NPL increased to 10.4% from 10.3% in Mar-21, the SME segment’s to 8.4% from 8.2%, and the
consumer segment’s to 0.7% from 0.6%. Cost of credit declined to 1.0% in 1H21 from 1.5% in 1H21, while 2Q21’s credit
cost also declined to 0.8% from 1.2% in 1Q21. Loan loss coverage declined to 87% in Jun-21 from 89% in Mar-21.

 Restructured loans update. As of Jun-21, the bank has restructured Rp2.6tn of loans, an increase from Rp1.8tn in Mar-21.
Restructured loans in Jun-21 are equivalent to 6.0% of outstanding loans. The largest portion of the restructured loans
came from the commercial segment (19.3% of total outstanding loans), followed by SME (5.4%) and the consumer
segment (0.5%).

 Maintain Buy with TP of Rp900. BJTM currently trades at 1.0x for 2021F P/BV.

BJTM 1H21 RESULTS

% of
Income Statement % of FY21
6M20 6M21 % YoY 2Q20 1Q21 2Q21 % YoY % QoQ FY21F FY21F
(Rp bn) FY21F Consensus
Consensus
Net interest income 2,007 2,198 10 991 1,082 1,115 13 3 4,421 50
Non-interest income 271 262 (3) 129 126 135 5 7 576 45
Operating income 2,278 2,460 8 1,120 1,208 1,250 12 3 4,997 49 4,980 49
Provision expense (287) (217) (24) (167) (128) (88) (47) (31) (455) 48
Operating expense (1,004) (1,189) 18 (526) (501) (688) 31 37 (2,592) 46
Operating profit 987 1,054 7 427 579 474 11 (18) 1,949 54 1,952 54
PPOP 1,274 1,271 (0) 595 708 563 (5) (20) 2,404 53
Pre-tax profit 981 1,035 6 418 575 461 10 (20) 1,971 53 1,929 54
Net profit 770 803 4 331 448 355 7 (21) 1,557 52 1,531 52

Balance Sheet (Rp bn) Jun-20 Mar-21 Jun-21 % YoY % QoQ

Gross loan 39,181 41,731 42,597 9 2
Demand deposit 23,470 22,552 22,961 (2) 2
Saving deposit 20,068 20,477 22,205 11 8

Please see important disclosure at the back of this report Page 9 of 19

This report is intended exclusively for Information.center@mandirisek.co.id. Unauthorized distribution is prohibited.

 Equity Research | 29 July 2021

Balance Sheet (Rp bn) Jun-20 Mar-21 Jun-21 % YoY % QoQ

Time deposit 20,471 33,060 36,357 78 10
Total deposit 64,008 76,088 81,523 27 7

CASA to deposits (%) 68.0 56.6 55.4

Ratio (%) 6M20 6M21 2Q20 1Q21 2Q21

CAR 21.1 21.1 21.1 23.1 21.1
LDR 61.2 52.3 61.2 54.8 52.3
NIM 5.79* 5.06* 6.07 5.05 n/a
ROE 16.6 15.8 14.1 17.8 13.8
NPL, cat.3-5 4.27 4.42 4.27 4.20 4.42
Cost of credit 1.5 1.0 1.7 1.2 0.8
Loan loss coverage 73.0 87.1 73.0 88.7 87.1
Cost to Income 44.1 48.3 47.0 41.5 55.0
*BJTM calculation
Source: Company, Mandiri Sekuritas Research

Silvony Gathrie (+6221 5296 9544) silvony.gathrie@mandirisek.co.id

Kresna Hutabarat (+6221 5296 9542) kresna.hutabarat@mandirisek.co.id

Indosat: 2Q21 Results - Mobile Outperformance & Tower Gains (ISAT; Rp5,700; Buy; TP: Rp7,500)

 Indosat maintained strong revenue growth trends in 2Q21, likely outperforming mobile peers. EBITDA margin held up at
mid-40s and tower sale gains boosted net income in 2Q21. Core net income stood at Rp271bn in 6M21 – a major
improvement from core net loss of Rp653bn in 6M20. Retain BUY.

 2Q21 Revenues of Rp7.64tn (+10.2% YoY, +4.0% QoQ). Cellular revenues grew 10.2% YoY/5.2% QoQ in 2Q21, likely
ahead of peers. Meanwhile, non-mobile revenues increased 10.4% YoY in 2Q21 as MIDI and Fixed revenue grew 9.9% and
15.0% YoY, respectively, in the same period. On 6-month basis, Indosat booked Rp15.0tn Revenues in 6M21, up 11.4%
YoY and forming 48.8%/49.7% of our/consensus FY21 revenue estimates.

 2Q21 EBITDA of Rp3.39tn (+11.0% YoY, -0.2% QoQ). Cash opex increased 9.6% YoY in 2Q21, slower than revenue
growth. Cost of services increased 11.3% YoY in 2Q21, followed with the 10.0% YoY Personnel growth in the same period.
Meanwhile, Marketing and G&A expenses declined 1.7% YoY and 2.3% YoY in 2Q21, respectively. As a result, EBITDA
margin slightly increased 31bps YoY to 44.3% in 2Q21. On 6-month basis, Indosat booked Rp6.78tn EBITDA in 6M21, up
24.8% YoY and forming 54.1%/52.2% of our/consensus FY21 EBITDA estimates.

 Meanwhile, D&A expenses increased 1.8% YoY/1.7% QoQ in 2Q21. Operating Profit reached Rp848bn in 2Q21, up
52.5% YoY, while operating margin increased 308bps YoY to 11.1% in the same period. On 6-month basis, Indosat
booked Rp1.75tn Operating Profit in 6M21, vs. Rp469bn in 6M20, and forming 95.2%/81.3% of our/consensus FY21
Operating Profit estimates.

 2Q21 PATAMI of Rp5.43tn vs. Rp265bn/Rp172bn in 2Q20/1Q21. Non-operating income stood at Rp4.52tn in 2Q21 vs.
Rp308bn non-operating expenses in 2Q20. The strong non-interest income trend can be attributed to Rp6.17tn tower
sale gain in 2Q21. Meanwhile, interest expenses increased 12.4% YoY in 2Q21 as the total debt increased Rp3.72tn on YTD
basis, mostly due to higher finance lease liabilities. On 6-month basis, Indosat booked Rp5.60tn PATAMI in 6M21, vs.
Rp341bn Net Loss in 6M20. On normalized basis, we estimate Rp271bn normalized PATAMI in 6M21 vs. normalized net
loss of Rp653bn in 6M20.

Please see important disclosure at the back of this report Page 10 of 19

This report is intended exclusively for Information.center@mandirisek.co.id. Unauthorized distribution is prohibited.

 Equity Research | 29 July 2021

 Maintain BUY. Indosat sustained operational and financial turnaround in 1H21 as the company benefitted from stronger
4G LTE network and implemented operational discipline. Core profitability showed improvement in 1H21 and the strong
tower sale gain should strengthen balance sheet and future investment capacity. Earnings forecast upgrade by consensus
following strong 1H21 performance is very likely.

ISAT: 2Q21 RESULTS

% of FY21F % of FY21F
in Rp bn 2Q20 1Q21 2Q21 YoY QoQ 6M20 6M21 YoY
Mansek Cons.
Fixed 130 134 150 15.0% 12.1% 274 284 3.4%
Cellular 5,769 6,045 6,358 10.2% 5.2% 11,141 12,403 11.3%
MIDI 1,029 1,166 1,130 9.9% -3.1% 2,036 2,297 12.8%
Revenue 6,929 7,345 7,638 10.2% 4.0% 13,452 14,984 11.4% 48.8% 49.7%

Cost of services 2,898 3,115 3,226 11.3% 3.6% 5,764 6,342 10.0%
Personnel 539 452 593 10.0% 31.3% 1,432 1,045 -27.1%
Marketing 292 235 287 -1.7% 22.1% 542 522 -3.5%
G&A 149 151 146 -2.3% -3.7% 283 297 4.9%
Operating expenses 3,879 3,953 4,252 9.6% 7.6% 8,022 8,206 2.3%

EBITDA 3,050 3,392 3,386 11.0% -0.2% 5,430 6,778 24.8% 54.1% 52.2%
% margin 44.0% 46.2% 44.3% 31 bps -185 bps 40.4% 45.2% 487 bps

D&A 2,494 2,495 2,538 1.8% 1.7% 4,961 5,033 1.4%

Operating profit 556 896 848 52.5% -5.4% 469 1,745 N.A. 95.2% 81.3%
% margin 8.0% 12.2% 11.1% 308 bps -110 bps 3.5% 11.6% N.A.

Gain (Loss) on forex 26 (8) (0) N.A. -94.0% (51) (9) -82.9%
Gain on derivatives (72) 28 (8) -88.9% N.A. 23 20 -11.4%
Interest income 49 7 33 -32.4% N.A. 118 40 -66.4%
Interest expense (714) (661) (803) 12.4% 21.5% (1,436) (1,463) 1.9%
Extraordinary items 35 35 35 0.0% 0.0% 71 71 0.0%
Others 368 2 5,262 N.A. N.A. 546 5,264 N.A.
Non-operating items (308) (597) 4,519 N.A. N.A. (730) 3,922 N.A.

Pretax profit 248 300 5,367 N.A. N.A. (261) 5,667 N.A.

Taxes (27) 97 (71) N.A. N.A. 56 26 -54.3%

% effective tax rate -10.9% 32.2% -1.3% N.A. N.A. -21.6% 0.5% N.A.

Minority interest (11) (31) (12) 12.2% -60.5% (23) (43) N.A.

Net profit 265 172 5,426 N.A. N.A. (341) 5,598 N.A. 166.0% N.A.
% margin 3.8% 2.3% 71.0% N.A. N.A. -2.5% 37.4% N.A.
Source: Company Data, Mandiri Sekuritas Research estimates

Kresna Hutabarat (+6221 5296 9542) kresna.hutabarat@mandirisek.co.id

Henry Tedja, CFA (+6221 5296 9434) henry.tedja@mandirisek.co.id

Please see important disclosure at the back of this report Page 11 of 19

This report is intended exclusively for Information.center@mandirisek.co.id. Unauthorized distribution is prohibited.

 Equity Research | 29 July 2021

Jasa Marga: 2Q21 Results - Expect Strong EPS Recovery Ahead (JSMR; Rp3,840; Buy; TP: Rp6,640)

 JSMR booked 6M21 earnings at Rp855.6bn (+709% YoY), largely supported by a higher-than-expected divestment gain
from the MLJ Toll Road due to accounting treatment of PSAK 65. The tighter mobility restriction in Jul-2021 may pose a
downside risk in 3Q21 traffic, however, faster vaccine rollout and better COVID-19 handling are key catalysts to provide
solid EPS growth.

 2Q21 earnings largely supported by divestment gain. 2Q21 net profit came at Rp693.8bn (+328.7% QoQ; 2Q20 net
loss: Rp482.2bn), with 6M21 earnings at Rp855.6bn (+709.2% YoY), accounting for 79%/77% of MANSEK/consensus
estimates. The Marga Lingkar Jakarta (MLJ) Toll Road divestment gain of Rp788.7 was notably booked with the new
accounting treatment of PSAK 65, and the amount was higher than the actual gain, as the treatment values the full
ownership of the toll roads, regardless of the stake divestment. 6M21 core profit came at Rp285.0bn (+125.0% YoY). After
the tighter mobility restriction in Jul-2021, we see that the risk of another tight restriction is somewhat limited on the
back of the vaccine rollout acceleration, thus providing a structural EPS growth momentum for the company.

 2Q21 revenues stood at Rp2.9tn (+4.7% QoQ; +78.7% YoY). The strong YoY revenue growth was due to a low base
2Q20, as a tight mobility restriction was implemented in Apr-2020. The 6M21 revenues came at Rp5.7tn (+29.5% YoY),
accounting for 44% of MANSEK/ consensus estimates, considerably below, as the tighter mobility restriction in Jul-2021
may pose a downside risk in traffic. The acceleration on vaccine rollout is essential to improve the overall mobility; thus,
we expect a strong revenue recovery for JSMR in 4Q21 and 2022F, with a lower risk of another tight restriction.

 Total debt and net gearing slightly declined. 2Q21 interest expense was relatively flat at Rp1.1tn (1Q21: Rp1.2tn), with
6M21 interest expense of Rp2.3tn (MANSEK FY21: Rp4.9tn), as we expect several toll roads to start the commercial
operations in 2H21. Total debts lowered to Rp63.1tn from Rp65.9tn in Mar-2021, with a stable net gearing at 230% (Mar-
2021: 240%).

 We have a Buy rating. JSMR attractively trades at 1.3x PBV 2022. We will provide more updates after the 2Q21 results
briefing, scheduled on 30 July 2021 at 14:00 local time.

JSMR 2Q21 RESULTS

% of % of
YE Dec (IDRbn) 6M21 6M20 %yoy 2Q21 1Q21 %qoq 2Q20 %yoy FY21F FY21C
ours cons.
Revenue 5,655.4 4,366.2 29.5% 2,892.8 2,762.6 4.7% 1,618.8 78.7% 12,971 44% 12,929 44%
Operating profit 2,513.3 1,874.5 34.1% 1,086.2 1,427.1 -23.9% 346.7 213.3% 6,144 41% 5,696 44%
Net interest inc/ (exp) (2,093.4) (1,380.9) 51.6% (999.5) (1,093.9) -8.6% (732.8) 36.4% (4,981) 42% - n.m
Pretax profit 1,083.2 153.4 606.0% 796.2 286.9 177.5% (635.9) n.a 744 145% 1,376 79%
Net profit 855.6 105.7 709.2% 693.8 161.8 328.7% (482.2) n.a 1,087 79% 1,106 77%

Operating margin (%) 44.4% 42.9% 37.5% 51.7% 21.4% 47.4% 44.1%
Pre-tax margin (%) 19.2% 3.5% 27.5% 10.4% -39.3% 5.7% 10.6%
Net profit margin (%) 15.1% 2.4% 24.0% 5.9% -29.8% 8.4% 8.6%
Source: Company, Bloomberg, Mandiri Sekuritas estimates

Edbert Surya (+6221 5296 9623) edbert.surya@mandirisek.co.id

Adrian Joezer (+6221 5296 9415) adrian.joezer@mandirisek.co.id

Please see important disclosure at the back of this report Page 12 of 19

This report is intended exclusively for Information.center@mandirisek.co.id. Unauthorized distribution is prohibited.

 Equity Research | 29 July 2021

Siloam Hospital: 2Q21 Result - Visible Signs of Non-COVID Patient Recovery (SILO; Rp9,000; Buy; TP: Rp9,000)

 1H21 result beat consensus and our 2021F prognosis numbers (after accounting for the second wave in Jun-Jul 2021).
2Q21 revenue was supported by non-COVID patient’s volume recovery as SILO treated fewer COVID patients and
conducted fewer testing QoQ. This was also visible in average revenue/patient and margin normalization, yet SILO still
booked higher QoQ earnings. We maintain our Buy rating on SILO. The company will host an earnings call at 10 am JKT
today.

 Net revenue and operational data. SILO reported Rp1.9tn net revenue in 2Q21 (flat QoQ/+78% YoY), despite -5% QoQ
average revenue/outpatient and -6% QoQ average revenue/inpatient day. Interestingly, in 2Q21, outpatient volume had
+9% QoQ at 591k and inpatient volume +13% QoQ at 46k, but SILO treated fewer COVID inpatients (-13% QoQ) and
conducted fewer COVID testing (-16% QoQ)—understandably, due to low COVID cases nationwide. In our view, this is a
vivid sign of better recovery of non-COVID traffic, which we see have reached c. 67% of pre-COVID level as of 2Q21 vs. c.
53% of pre-COVID level in 1Q21. Note that 2Q21 revenue was better than historical norms, wherein a single-digit QoQ
decline was common in 2Q. Meanwhile, 1H21 revenue reached Rp3.8tn (+52% YoY).

 EBITDA. SILO booked EBITDA of Rp536bn in 2Q21, -5% QoQ and c. 5x 2Q20 level. EBITDA margin had -1.2 ppt QoQ to
28.2%, which we suspect was due to a lower mix of COVID patients (normally commands higher profitability due to
higher revenue intensity). This brings the 1H21 EBITDA to Rp1.1tn, +161% YoY, which beats consensus/our 2021F
prognosis numbers (after accounting for COVID second wave in Jun-Jul 2021) by accounting for 65%/63% of FY21F.

 Net profit. SILO booked c. Rp52bn allowance and write-off of trade receivables impairment in 2Q21, lower than what
they booked in 1Q21 (Rp67bn) despite being higher than historical norms. This showed the management’s effort in
giving provision for COVID payment from the Ministry of Health. We also see a lower effective tax rate in 2Q21, which
could be due to better performance of the loss-making hospitals. All in all, despite lower QoQ revenue and EBITDA, SILO
booked +3% QoQ growth in net profit at Rp148bn in 2Q21. 1H21 net profit of Rp292bn also beat consensus and our
prognosis numbers by forming >80% of FY21F.

 Turnaround of loss-making hospitals. SILO had 18 loss-making hospitals in 2019, which contributed EBITDA loss of
Rp161bn. In 2020, these hospitals had Rp47bn positive EBITDA due to a combination of COVID-19 treatment and a series
of the company’s initiatives. In 1H21, these hospitals generated positive EBITDA of Rp150bn, and 9 out of the 18 hospitals
are now profitable.

SILO 2Q21 RESULT SUMMARY

% Post 2nd wave
SILO, Rp bn 1H20 1H21 %yoy 2Q20 3Q20 4Q20 1Q21 2Q21 %qoq %yoy %MANSEK %Cons.
Prognosis 2021F
Revenue (net) 2,513 3,812 51.7 1,070 1,516 1,769 1,912 1,899 (0.7) 77.5 45.7 48.6 40.9
Gross profit 956 1,788 87.0 327 620 754 908 881 (3.0) 168.9 61.0 58.4
Operating profit 51 638 1,146.3 (82) 191 250 333 305 (8.5) n/a 82.1 80.8
EBITDA 421 1,100 161.3 104 376 472 564 536 (4.8) 415.0 72.9 64.5 62.6
Net interest (82) (25) (69.5) (39) (39) 41 (12) (13) 16.4 (66.0) 33.5
Pre-tax income (77) 469 n/a (147) 129 259 242 227 (6.3) n/a 78.0 76.1
Net profit (130) 292 n/a (146) 81 165 144 148 2.6 n/a 129.7 80.8 82.2

Growth trend, %yoy

Revenue (25.6) 51.7 (35.8) (17.6) (1.8) 32.5 77.5
EBITDA (1.4) 161.3 (48.3) 36.3 236.9 77.9 415.0
Net profit n/a n/a n/a 113.9 n/a 788.5 n/a

(in %)
Gross margin 38.1 46.9 30.6 40.9 42.6 47.5 46.4
Opex to revenue 36.0 30.2 38.2 28.3 28.5 30.1 30.3
Operating 2.0 16.7 (7.6) 12.6 14.1 17.4 16.1

Please see important disclosure at the back of this report Page 13 of 19

This report is intended exclusively for Information.center@mandirisek.co.id. Unauthorized distribution is prohibited.

 Equity Research | 29 July 2021

% Post 2nd wave

SILO, Rp bn 1H20 1H21 %yoy 2Q20 3Q20 4Q20 1Q21 2Q21 %qoq %yoy %MANSEK %Cons.
Prognosis 2021F
margin
EBITDA margin 16.8 28.9 9.7 24.8 26.7 29.5 28.2
Net margin (5.2) 7.6 (13.7) 5.4 9.3 7.5 7.8
Source: Mandiri Sekuritas estimates, Company, Bloomberg

Inggrid Gondoprastowo, CFA (+6221 5296 9450) inggridgondoprastowo@mandirisek.co.id

Adrian Joezer (+6221 5296 9415) adrian.joezer@mandirisek.co.id

Vale Indonesia: Expect Stronger Earnings in 2H21 (INCO; Rp5,325; Neutral; TP: Rp5,200)

 INCO’s 1H21 net profit was still in line with our forecast. We view the new JV with TISCO and Xinhai to build a FeNi plant
as value accretive, and it will help INCO monetize its vast nickel reserves. We reiterate our Neutral call but with a higher TP
of Rp5,200/share to factor in the new JV.

 1H21 net profit was in line. Vale Indonesia (INCO) reported a 2Q21 net profit of USD 25.1mn (+5% YoY/-26% QoQ),
bringing the 1H21 net profit to USD 58.8mn (+11% YoY)), accounting for 46% of our/consensus forecasts. We believe this
is in line with our forecast, as we expect stronger earnings in 2H21, mainly driven by higher nickel price. Revenue in 6M21
grew to USD 414.9mn (+15% YoY), mainly driven by strong ASP at USD 13,520/ton (+38% YoY) and offsetting the decline
in sales volume to 30.7k tons (-14% YoY). We estimate INCO’s total cost (COGS+opex) increased to USD 10.8k/ton (+19%
YoY) amid rising fuel costs and lower production. Nevertheless, INCO managed to book strong operating margin at 20.2%
in 1H21 vs. 10.3% in 1H20, driven by higher ASP despite rising production costs. Taking a clue from nickel price in June
and July, we expect stronger earnings in 3Q, mainly driven by higher ASP (around 8% higher ASP in 3Q), which should
more than offset the impact of rising production cost, mostly from higher fuel costs.

 Key points to highlight in 2Q21: 1) Nickel-in-matte deliveries stood at 15.8k tons (-16% YoY/+7% QoQ) in 2Q21, in line
with the lower production at 15.0k tons (-20% YoY/-1% QoQ) due to an operational problem on INCO’s furnace. The 1H21
production of 30.2k tons (-17% YoY) was 47% of our FY21F target. 2) Total costs (COGS+opex) rose to USD 11.0k/ton
(+25% YoY/+5% QoQ) as a result of increasing coal and fuel costs (22% of COGS) and lower production. 3) ASP slightly
declined to USD 13.1k/ton (+41% YoY/-5% QoQ), in line with the lower market price.

 The best proxy to growing nickel sulfate demand for batteries. We reiterate our Neutral call on INCO but with a
higher NPV-based TP of Rp5,200/share (8.3% WACC, USD 15.0k/ton LT nickel price, and 0% terminal growth) after we
factor in the new JV with TISCO and Xinhai to build a 73.0k-tpa ferronickel (FeNi) plant at Xinhai Industrial Park Morowali,
with INCO holding a 49% stake in the JV. INCO also offers one of the best proxies to the growing demand for nickel sulfate
for batteries through its JV with Sumitomo. Our Neutral call on INCO is due to the lack of near-term production growth.

FINANCIAL SUMMARY
YE Dec (US$ Mn) 2019A 2020A 2021F 2022F 2023F
EBITDA 235 266 328 370 333
Net Profit 57 83 127 164 140
Fully-diluted EPS 0.6 0.8 1.3 1.6 1.4
Fully-diluted EPS growth (%) (5.1) 44.3 53.4 28.9 (14.7)
P/E Ratio (x) 66.5 45.5 29.4 22.8 26.7
EV/EBITDA (x) 15.2 12.7 9.8 8.2 8.6
P/B Ratio (x) 2.0 1.9 1.7 1.6 1.5
Dividend Yield (%) 0.0 0.0 0.0 0.0 0.0
ROAE (%) 3.0 4.2 6.1 7.3 5.9
Source: Company (2019-2020), Mandiri Sekuritas (2021-2023)

Please see important disclosure at the back of this report Page 14 of 19

This report is intended exclusively for Information.center@mandirisek.co.id. Unauthorized distribution is prohibited.

 Equity Research | 29 July 2021

RESULTS SUMMARY
in US$mn 2Q21 2Q20 %YoY 1Q21 %QoQ 6M21 6M20 %YoY FY21F % ours % to cons.
Revenue 208.4 185.7 12% 206.6 1% 414.9 360.4 15% 864 48% 48%
COGS (174.3) (165.6) 5% (154.8) 13% (329.1) (319.8) 3% (670) 49% 49%
Gross profit 34.1 20.1 70% 51.7 -34% 85.8 40.6 111% 194 44% 43%
Operating profit 33.1 18.4 80% 50.7 -35% 83.8 37.2 125% 182 46% 45%
EBITDA 71.6 58.9 22% 89.5 -20% 161.2 108.4 49% 328 49% 51%
Earnings before tax 32.0 20.9 53% 47.7 -33% 79.8 44.0 81% 165 48% 50%
Net profit 25.1 24.0 5% 33.7 -26% 58.8 52.9 11% 127 46% 46%

Gross margin 16.3% 10.8% 25.1% 20.7% 11.3% 22.4%

Operating margin 15.9% 9.9% 24.5% 20.2% 10.3% 21.1%
Net margin 12.0% 12.9% 16.3% 14.2% 14.7% 14.7%
Effective tax rate 21.6% -14.6% 29.4% 26.3% -20.5% 23.0%

ASP 13,152 9,300 41% 13,912 -5% 13,520 9,815 38% 13,499
Sales volume 15,845 18,887 -16% 14,847 7% 30,692 35,600 -14% 64,000
COGS + opex/ton 11,064 8,861 25% 10,500 5% 10,791 9,077 19% 10,651
Source: Company, Mandiri Sekuritas estimates

VALUATION
NPV calculations
Existing operations (USD mn) 3.264
JV with Tisco and Shandong (USD mn) - 49% stake 428
Equity value (USD mn) 3.692
Equity value (IDR bn) 52.344
Outstanding shares (in bn) 9,9
Price/share 5.200

Discount rate
Risk free 2,8%
Risk premium 6,0%
Beta 1,2
Cost of Equity 10,0%
Cost of debt 7,0%
After tax cost of debt 5,3%
Debt to equity 35,0%
WACC 8,3%

Terminal Growth 0%
LT nickel price (USD/ton) 15.000
Source: Mandiri Sekuritas estimates

Ariyanto Kurniawan (+6221 5296 9682) ariyanto.kurniawan@mandirisek.co.id

Wesley Louis Alianto (+6221 5296 9510) wesley.alianto@mandirisek.co.id

Please see important disclosure at the back of this report Page 15 of 19

This report is intended exclusively for Information.center@mandirisek.co.id. Unauthorized distribution is prohibited.

 Equity Research | 29 July 2021

Indices and Fund Flows Currencies and Bonds Major Commodities

YTD Chg YTD YTD

Indices Last Chg (%) Currency Last Chg (%) Last Chg (%)
(%) Chg (%) Chg (%)

JCI 6,088.5 -0.1 +1.8 Rp/US$ 14,470 -0.25 -2.9 Crude Oil, WTI (US$/bl) 72.39 +1.0 +49.2
Dow Jones 34,930.9 -0.4 +14.1 US$/EUR 1.185 +0.24 +3.1 Copper (US$/mt) 9,686 -0.7 +24.7
Nikkei 27,581.7 -1.4 +0.5 YEN/US$ 109.91 +0.12 -6.1 Nickel (US$/mt) 19,543 +1.0 +17.6
Hang Seng 25,473.9 +1.5 -6.5 SGD/US$ 1.357 -0.28 -2.5 Gold (US$/oz) 1,807 +0.5 -4.8
STI 3,141.8 +0.1 +10.5 Tin 3-month (US$/mt) 34,400 +0.1 +69.2
Ishares indo 20.1 -0.1 -14.3 CPO futures (Ringgit/ton) 4,308 -2.6 +19.7
Coal (US$/ton) 150.1 +0.2 +86.5
Foreign YTD
YTD Gov. Bond Chg
Fund Flows Last Chg Last Chg Rubber forward (US¢/kg) 188.0 +1.1 -15.5
Chg Yield (bps)
(US$mn) (bps)
Soybean oil
Equity Flow -22.7 +1,295 5Yr 5.21 -5 +0 66.55 +0.4 +53.6
(US$/100gallons)
Bonds Flow +174.1 +391 10Yr 6.31 -0 +42 Baltic Dry Index 3,166.0 -1.0 +131.8

Adrian Joezer (+6221 5296 9415) adrian.joezer@mandirisek.co.id

Inggrid Gondoprastowo, CFA (+6221 5296 9450) inggridgondoprastowo@mandirisek.co.id
Riyanto Hartanto (+6221 5296 9488) riyanto@mandirisek.co.id
Lakshmi Rowter (+6221 5296 9549) lakshmi.rowter@mandirisek.co.id
Edbert Surya (+6221 5296 9623) edbert.surya@mandirisek.co.id
Tjandra Lienandjaja (+6221 5296 9617) tjandra.lienandjaja@mandirisek.co.id
Ryan Aristo Naro (+6221 5296 9580) ryan.aristo@mandirisek.co.id

Kresna Hutabarat (+6221 5296 9542) kresna.hutabarat@mandirisek.co.id

Silvony Gathrie (+6221 5296 9544) silvony.gathrie@mandirisek.co.id
Boby Chandra (+6221 5296 9533) boby.chandra@mandirisek.co.id

Robin Sutanto (+6221 5296 9572) robin.sutanto@mandirisek.co.id

Ariyanto Kurniawan (+6221 5296 9682) ariyanto.kurniawan@mandirisek.co.id

Wesley Louis Alianto (+6221 5296 9510) wesley.alianto@mandirisek.co.id

Kresna Hutabarat (+6221 5296 9542) kresna.hutabarat@mandirisek.co.id

Henry Tedja, CFA (+6221 5296 9434) henry.tedja@mandirisek.co.id

Leo Rinaldy(+6221 5296 9406) leo.rinaldy@mandirisek.co.id

Imanuel Reinaldo(+6221 5296 9651) imanuel.reinaldo@mandirisek.co.id

Please see important disclosure at the back of this report Page 16 of 19

This report is intended exclusively for Information.center@mandirisek.co.id. Unauthorized distribution is prohibited.

 Equity Research | 29 July 2021

Equity Valuation
Price Price % of Mkt Cap Net Profit PER (x) P/BV (x) EV/EBITDA (x) EPS Growth Div.Yield
Code Rating (Rp) Target PT (Rp Bn) 2021 2022 2021 2022 2021 2022 2021 2022 2021 2022 2021 2022
MANSEK universe 6,089 6,850 12.5 4,176,749 235,670 276,927 17.7 15.2 2.1 2.0 13.0 12.2 47.4% 17.5% 2.7% 2.9%
Banking 1,855,952 87,743 113,942 21.0 16.5 2.3 2.1 N.A. N.A. 39.0% 29.9% 2.0% 2.4%
BBCA Buy 29,900 38,000 27.1 737,185 30,524 34,015 24.2 21.7 3.9 3.6 N.A. N.A. 12.5% 11.4% 1.9% 2.0%
BBNI Buy 4,960 8,000 61.3 92,497 9,021 15,727 10.2 5.9 0.8 0.7 N.A. N.A. 175.0% 74.3% 0.9% 2.4%
BBRI Buy 3,730 5,200 39.4 551,523 28,840 39,497 19.1 14.0 1.9 1.8 N.A. N.A. 28.2% 37.0% 3.1% 4.3%
BBTN Buy 1,310 2,200 67.9 13,873 2,153 2,660 6.4 5.2 0.7 0.6 N.A. N.A. 34.4% 23.5% 0.2% 0.0%
BDMN Buy 2,120 4,100 93.4 20,720 3,538 4,034 5.7 5.0 0.4 0.4 N.A. N.A. 71.5% 14.0% 3.5% 6.0%
BJBR Neutral 1,235 1,700 37.7 12,151 1,744 2,023 7.0 6.0 1.0 0.9 N.A. N.A. 11.3% 16.0% 7.9% 8.1%
BJTM Buy 700 900 28.6 10,502 1,557 1,810 6.7 5.8 1.0 0.9 N.A. N.A. 10.0% 16.3% 7.2% 7.5%
BNGA Buy 945 1,300 37.6 23,749 3,309 4,229 7.2 5.6 0.6 0.5 N.A. N.A. 44.6% 27.8% 3.9% 5.6%
BNLI Neutral 1,905 2,900 52.2 87,621 1,170 2,366 53.0 40.7 2.4 3.1 N.A. N.A. 10.5% 30.4% 0.0% 0.0%
PNBN Buy 750 1,400 86.7 18,061 3,405 3,829 5.3 4.7 0.5 0.4 N.A. N.A. 12.9% 12.4% 0.0% 0.0%
BTPS Buy 2,300 4,500 95.7 17,719 1,597 2,286 11.1 7.8 2.4 1.9 N.A. N.A. 87.3% 43.1% 1.2% 2.3%
BFIN Buy 975 475 (51.3) 14,590 841 1,196 17.4 12.2 2.0 1.8 N.A. N.A. 7.7% 42.3% 1.6% 2.0%
ARTO Buy 18,200 16,000 (12.1) 252,184 -103 58 -2,437.8 4,341.0 31.4 31.2 N.A. N.A. 57.2% N/M 0.0% 0.0%
AMOR Buy 3,220 4,400 36.6 3,578 107 188 33.4 19.1 12.3 11.9 25.7 14.5 28.1% 75.1% 2.8% 5.0%
Construction & materials 145,578 4,888 7,486 29.8 19.4 1.2 1.1 12.5 10.7 N/M 53.1% 1.2% 1.3%
INTP Buy 9,550 14,500 51.8 35,156 2,003 2,586 17.6 13.6 1.4 1.3 7.6 5.9 19.8% 29.1% 1.7% 2.0%
SMGR Buy 8,200 11,020 34.4 48,638 2,825 3,387 17.2 14.4 1.4 1.3 7.8 7.0 12.1% 19.9% 2.0% 2.1%
ADHI Neutral 705 890 26.2 2,510 93 234 27.0 10.7 0.4 0.4 8.2 7.2 288.0% 151.3% 0.2% 0.7%
PTPP Neutral 850 1,050 23.5 5,270 274 348 19.2 15.2 0.5 0.5 9.0 7.9 112.9% 26.9% 0.7% 1.6%
WIKA Neutral 955 1,100 15.2 8,557 282 470 30.3 18.2 0.6 0.6 13.5 11.0 52.0% 66.5% 0.7% 1.1%
WSKT Neutral 905 1,030 13.8 12,110 -1,261 -1,909 -9.6 -6.3 1.9 2.8 66.2 42.6 82.9% -51.4% 0.0% 0.0%
WTON Neutral 228 270 18.4 1,987 95 190 20.9 10.4 0.6 0.5 6.7 5.3 -25.6% 99.8% 1.9% 1.4%
WSBP Neutral 132 140 6.1 3,480 -510 -484 -6.8 -7.2 5.4 8.3 41.1 32.7 89.3% 5.1% 0.0% -7.3%
JSMR Buy 3,840 6,640 72.9 27,870 1,087 2,663 25.6 10.5 1.4 1.2 11.6 10.0 117.0% 145.0% 0.4% 0.8%
Consumer staples 671,719 39,893 46,368 16.8 14.5 3.2 3.0 10.9 9.9 -6.4% 16.2% 4.5% 4.4%
ICBP Buy 8,500 12,250 44.1 99,126 6,674 7,670 14.9 12.9 3.0 2.7 11.2 10.2 1.3% 14.9% 3.3% 3.4%
INDF Buy 6,500 9,800 50.8 57,070 5,558 6,207 10.3 9.2 1.3 1.2 7.2 7.0 -13.9% 11.7% 6.8% 5.8%
MYOR Buy 2,270 2,600 14.5 50,755 2,190 2,466 23.2 20.6 4.0 3.6 13.3 11.9 -9.2% 12.6% 1.8% 1.6%
UNVR Buy 4,450 5,750 29.2 169,768 6,027 6,647 28.2 25.5 45.7 40.1 19.6 18.2 -15.9% 10.3% 4.2% 3.6%
GGRM Buy 34,300 46,550 35.7 65,996 6,337 7,797 10.4 8.5 1.1 1.0 7.1 6.3 -17.1% 23.0% 5.8% 5.8%
HMSP Buy 1,090 1,750 60.6 126,787 8,189 9,964 15.5 12.7 4.3 4.0 10.3 8.7 -4.6% 21.7% 6.9% 6.6%
KLBF Buy 1,315 1,900 44.5 61,641 2,842 3,180 21.7 19.4 3.3 3.0 14.4 13.0 4.1% 11.9% 2.3% 2.6%
SIDO Buy 810 980 21.0 24,300 1,011 1,136 24.0 21.4 7.2 6.9 17.9 16.3 10.9% 12.4% 3.6% 4.1%
MLBI Buy 7,725 13,250 71.5 16,277 1,063 1,299 15.3 12.5 12.5 10.6 9.8 8.2 656.9% 22.1% 0.9% 6.5%
Healthcare 68,375 1,860 1,680 36.8 40.7 4.7 4.3 15.3 16.0 30.0% -9.7% 0.9% 0.9%
MIKA Buy 2,560 3,200 25.0 36,471 1,099 1,016 33.2 35.9 6.4 5.8 22.5 24.8 30.6% -7.6% 0.9% 1.2%
SILO Buy 9,000 9,000 0.0 14,632 225 218 65.1 67.2 2.5 2.4 9.6 9.3 93.5% -3.2% 1.5% 0.5%
HEAL Buy 5,800 6,500 12.1 17,272 536 446 32.2 38.8 5.7 5.1 13.3 14.6 13.3% -16.9% 0.4% 0.5%
Consumer discretionary 290,086 24,340 28,796 11.9 10.1 1.4 1.3 8.2 7.3 29.2% 18.3% 3.0% 3.6%
ACES Buy 1,290 1,750 35.7 22,124 779 1,027 28.4 21.5 4.1 3.8 18.8 14.7 6.3% 31.8% 2.5% 2.6%
LPPF Buy 1,765 2,000 13.3 4,635 224 839 20.7 5.5 5.8 2.8 5.2 2.1 N/M 274.6% 0.0% 0.0%
MAPA Buy 1,785 3,500 96.1 5,088 385 693 13.2 7.3 1.5 1.3 6.0 3.5 18405.2% 80.2% 0.0% 0.0%
MAPI Buy 660 1,157 75.2 10,956 605 1,023 18.1 10.7 1.8 1.6 5.4 3.9 N/M 69.1% 0.0% 1.1%
RALS Neutral 630 900 42.9 4,470 -41 148 -108.0 30.1 1.2 1.2 54.8 9.3 70.2% N/M 0.0% 0.0%
ERAA Buy 655 950 45.0 10,413 894 1,000 11.7 10.4 1.7 1.6 6.4 6.1 -70.8% 11.9% 3.1% 3.4%
ASII Buy 4,710 6,300 33.8 190,678 18,223 19,950 10.5 9.6 1.2 1.1 8.3 7.8 12.7% 9.5% 3.8% 4.3%
SCMA Neutral 2,300 2,200 (4.3) 29,097 1,137 1,397 25.6 20.8 6.8 5.5 17.6 15.0 -1.0% 22.9% 1.2% 1.7%
MNCN Buy 815 1,300 59.5 10,782 2,005 2,516 5.4 4.3 0.7 0.6 3.6 2.8 14.7% 25.5% 2.8% 4.7%
PZZA Buy 610 750 23.0 1,843 130 202 14.2 9.1 1.3 1.2 5.5 4.3 N/M 55.5% -0.1% 3.5%
Commodities 353,668 28,085 29,497 12.6 12.0 1.5 1.4 5.3 4.9 137.1% 5.0% 3.2% 3.2%
UNTR Buy 19,775 28,500 44.1 73,763 9,476 9,814 7.8 7.5 1.1 1.0 2.8 2.3 57.8% 3.6% 3.9% 4.0%
ADRO* Buy 1,270 1,800 41.8 40,622 398 379 7.2 7.6 0.7 0.7 3.0 2.7 171.0% -4.7% 4.9% 4.7%
INDY* Buy 1,365 1,750 28.2 7,112 76 96 6.6 5.2 0.6 0.6 2.0 2.3 N/M 27.4% 3.8% 4.8%

Please see important disclosure at the back of this report Page 17 of 19

This report is intended exclusively for Information.center@mandirisek.co.id. Unauthorized distribution is prohibited.

 Equity Research | 29 July 2021

Price Price % of Mkt Cap Net Profit PER (x) P/BV (x) EV/EBITDA (x) EPS Growth Div.Yield
Code Rating (Rp) Target PT (Rp Bn) 2021 2022 2021 2022 2021 2022 2021 2022 2021 2022 2021 2022
ITMG* Buy 16,750 22,000 31.3 18,367 212 184 6.1 7.1 1.5 1.4 3.1 3.4 438.3% -13.6% 13.9% 12.0%
PTBA Buy 2,210 3,250 47.0 25,465 3,648 3,797 6.9 6.7 1.3 1.3 7.5 6.8 52.8% 4.1% 10.7% 11.2%
ANTM Buy 2,520 3,300 30.9 60,558 2,264 2,270 26.7 26.7 2.5 2.4 14.6 14.0 97.0% 0.3% 1.3% 1.3%
INCO* Neutral 5,325 5,200 (2.3) 52,911 127 164 29.4 22.8 1.7 1.6 9.8 8.2 53.4% 28.9% 0.0% 0.0%
TINS Sell 1,585 1,200 (24.3) 11,805 312 312 37.8 37.8 2.2 2.1 12.9 12.5 N/M -0.1% 0.9% 0.9%
MDKA* Buy 2,880 3,300 14.6 63,065 60 115 74.0 38.5 7.5 6.3 22.0 15.1 66.1% 92.0% 0.0% 0.0%
Property & Industrial Estate 96,456 8,127 8,705 11.9 11.1 0.7 0.7 8.1 7.9 105.3% 7.1% 2.1% 2.0%
ASRI Buy 156 250 60.3 3,065 485 524 6.3 5.9 0.3 0.3 7.2 6.6 N/M 8.0% 1.3% 1.3%
BSDE Buy 925 1,630 76.2 19,584 956 1,638 20.5 12.0 0.6 0.6 11.0 7.6 27.8% 71.2% 0.0% 0.0%
CTRA Buy 855 1,360 59.1 15,869 1,096 1,111 14.5 14.3 1.0 0.9 8.7 8.8 -17.0% 1.4% 1.3% 1.1%
SMRA Buy 740 960 29.7 10,676 604 682 17.7 15.7 1.3 1.2 10.0 9.6 43.8% 12.9% 0.7% 0.7%
JRPT Buy 458 750 63.8 6,298 917 891 6.9 7.1 0.8 0.7 5.9 5.8 -0.9% -2.8% 4.4% 4.4%
PWON Buy 424 680 60.4 20,420 2,046 2,320 10.0 8.8 1.2 1.1 7.6 6.7 101.5% 13.4% 1.4% 1.4%
LPKR Neutral 143 210 46.9 10,095 913 215 11.1 47.0 0.3 0.3 6.2 9.2 N/M -76.5% 0.7% 0.7%
DMAS Buy 192 300 56.3 9,254 988 1,158 9.4 8.0 1.6 1.6 8.9 7.3 11.7% 17.2% 10.9% 10.9%
BEST Neutral 124 130 4.8 1,196 122 167 9.8 7.2 0.3 0.2 8.7 7.8 14.2% 37.4% 0.8% 1.2%
Telecom 529,563 30,737 31,524 17.2 16.8 3.1 2.9 6.4 5.9 32.1% 2.6% 3.3% 3.3%
EXCL Buy 2,400 3,300 37.5 25,559 1,596 2,066 16.0 12.4 1.2 1.1 4.1 3.9 329.5% 29.5% 0.8% 1.4%
TLKM Buy 3,190 4,200 31.7 316,008 20,506 23,496 15.4 13.4 2.9 2.7 5.6 5.1 7.8% 14.6% 4.8% 4.8%
ISAT Buy 5,700 7,500 31.6 30,973 3,372 439 9.2 70.5 2.0 2.0 4.4 4.1 N/M -87.0% 0.0% 0.0%
LINK Buy 4,190 4,500 7.4 11,889 925 942 13.4 13.1 2.1 1.9 6.0 5.7 0.1% 1.8% 2.3% 2.4%
TBIG Buy 3,170 2,500 (21.1) 68,570 1,467 1,512 46.8 45.4 10.7 9.4 18.6 17.6 29.9% 3.1% 0.9% 0.9%
TOWR Buy 1,525 1,500 (1.6) 76,563 2,872 3,068 26.7 25.0 6.5 5.6 13.5 12.8 12.5% 6.8% 1.6% 1.6%
Transportation 2,740 6 217 480.1 12.6 0.5 0.5 7.0 4.8 N/M N/M 0.0% 1.6%
BIRD Buy 1,095 1,530 39.7 2,740 6 217 480.1 12.6 0.5 0.5 7.0 4.8 N/M 3703.9% 0.0% 1.6%
Poultry 124,315 7,683 5,626 16.2 22.1 3.0 2.8 9.7 11.9 62.8% -26.8% 1.8% 2.6%
CPIN Buy 6,325 7,500 18.6 103,717 4,610 3,757 22.5 27.6 4.0 3.8 14.5 16.7 20.0% -18.5% 1.9% 2.2%
JPFA Buy 1,620 2,700 66.7 18,997 2,778 1,672 6.8 11.4 1.4 1.3 4.5 6.1 203.0% -39.8% 1.4% 4.4%
MAIN Buy 715 1,125 57.3 1,601 296 198 5.4 8.1 0.7 0.6 4.4 4.5 N/M -33.1% 0.0% 2.5%
Oil and Gas 38,297 2,307 3,087 16.6 12.4 0.9 0.9 5.8 5.2 N/M 33.8% 1.5% 3.2%
AKRA Buy 3,530 4,500 27.5 13,934 1,142 1,415 12.2 9.8 1.5 1.4 8.4 7.5 24.3% 23.9% 4.1% 5.1%
PGAS* Buy 1,005 1,600 59.2 24,363 82 118 20.9 14.6 0.7 0.7 5.4 4.7 N/M 43.5% 0.0% 2.1%
Note:
- *) net profit in USD mn
- U/R means Under Review
- n/a means Not Available
- N/M means Not Meaningful
- N.A means Not Applicable

Please see important disclosure at the back of this report Page 18 of 19

This report is intended exclusively for Information.center@mandirisek.co.id. Unauthorized distribution is prohibited.

 Mandiri Sekuritas A subsidiary of PT Bank Mandiri (Persero) Tbk
Menara Mandiri Tower I, 25th floor, Jl. Jend. Sudirman Kav. 54 – 55, Jakarta 12190, Indonesia
General: +62 21 526 3445, Fax : +62 21 527 5374 (Equity Sales)

RESEARCH
Adrian Joezer Head of Equity Research, Strategy, Consumer adrian.joezer@mandirisek.co.id +6221 5296 9415
Tjandra Lienandjaja Deputy Head of Equity Research tjandra.lienandjaja@mandirisek.co.id +6221 5296 9617
Ariyanto Kurniawan Automotive, Coal, Metal Mining, Chemical ariyanto.kurniawan@mandirisek.co.id +6221 5296 9682
Kresna Hutabarat Banking, Telecom kresna.hutabarat@mandirisek.co.id +6221 5296 9542
Robin Sutanto Property, Building Material robin.sutanto@mandirisek.co.id +6221 5296 9572
Edbert Surya Construction, Transportation edbert.surya@mandirisek.co.id +6221 5296 9623
Silvony Gathrie Banking silvony.gathrie@mandirisek.co.id +6221 5296 9544
Inggrid Gondoprastowo, CFA Healthcare, Consumer, Retail inggridgondoprastowo@mandirisek.co.id +6221 5296 9450
Henry Tedja, CFA Media, Oil & Gas henry.tedja@mandirisek.co.id +6221 5296 9434
Wesley Louis Alianto Research Assistant wesley.alianto@mandirisek.co.id +6221 5296 9510
Boby Kristanto Chandra Research Assistant boby.chandra@mandirisek.co.id +6221 5296 9673
Ryan Aristo Naro Research Assistant ryan.aristo@mandirisek.co.id +6221 5296 9580
Leo Putera Rinaldy Chief Economist leo.rinaldy@mandirisek.co.id +6221 5296 9406
Imanuel Reinaldo Economist imanuel.reinaldo@mandirisek.co.id +6221 5296 9651

INSTITUTIONAL SALES
Andrew Handaya Institutional Sales andrew.handaya@mandirisek.co.id +6221 527 5375
Feliciana Ramonda Institutional Sales feliciana.ramonda@mandirisek.co.id +6221 527 5375
Henry Pranoto Institutional Sales henry.pranoto@mandirisek.co.id +6221 527 5375
Kevin Giarto Institutional Sales kevin.giarto@mandirisek.co.id +6221 527 5375
Sharon Anastasia Tjahjadi Institutional Sales sharon.tjahjadi@mandirisek.co.id +6221 527 5375
Talitha Medha Anindya Institutional Sales talitha.anindya@mandirisek.co.id +6221 527 5375
Angga Aditya Assaf Institutional Sales angga.assaf@mandirisek.co.id +6221 527 5375
Ilona Carissa Institutional Sales Ilona.simanungkalit@mandirisek.co.id +6221 527 5375
Kusnadi Widjaja Equity Dealing kusnadi.widjaja@mandirisek.co.id +6221 527 5375
Edwin Pradana Setiadi Equity Dealing edwin.setiadi@mandirisek.co.id +6221 527 5375
Jane Theodoven Sukardi Equity Dealing jane.sukardi@mandirisek.co.id +6221 527 5375
Michael Taarea Equity Dealing michael.taarea@mandirisek.co.id +6221 527 5375

RETAIL SALES
Andreas M. Gunawidjaja Head Retail Equities andreas@mandirisek.co.id 6221 5296 9693
Boy Triyono Jakarta boy.triyono@mandirisek.co.id 6221 5296 5678
Care Center Online Jakarta care_center@mandirisek.co.id 14032
Ruwie Medan ruwie@mandirisek.co.id 6261 8050 1825
Linawati Surabaya linawati@mandirisek.co.id 6231 535 7218
Maulidia Osviana Lampung maulidia.osviana@mandirisek.co.id 62721 476 135
Aidil Idham Palembang aidil.idham@mandirisek.co.id 62711 319 900
Yudhistira Putra Pradana Bandung yudhistira.pradana@mandirisek.co.id 6222 426 5088
Yuri Ariadi Pontianak yuri.ariadi@mandirisek.co.id 62561 582 293
Yogiswara Perdana Yogyakarta yogiswara.perdana@mandirisek.co.id 62274 560 596
Achmad Rasyid Bali achmad.rasyid@mandirisek.co.id 62361 475 3066
www.most.co.id care_center@mandirisek.co.id 14032

INVESTMENT RATINGS: Indicators of expected total return (price appreciation plus dividend yield) within the 12-month period from the date of the last
published report, are: Buy (15% or higher), Neutral (-15% to15%) and Sell (-15% or lower).

DISCLAIMER: This report is issued by PT. Mandiri Sekuritas, a member of the Indonesia Stock Exchanges (IDX) and Mandiri Sekuritas is registered and
supervised by the Financial Services Authority (OJK). Although the contents of this document may represent the opinion of PT. Mandiri Sekuritas, deriving its
judgement from materials and sources believed to be reliable, PT. Mandiri Sekuritas or any other company in the Mandiri Group cannot guarantee its
accuracy and completeness. PT. Mandiri Sekuritas or any other company in the Mandiri Group may be involved in transactions contrary to any opinion herein
to make markets, or have positions in the securities recommended herein. PT. Mandiri Sekuritas or any other company in the Mandiri Group may seek or will
seek investment banking or other business relationships with the companies in this report. For further information please contact our number
62-21-5263445 or fax 62-21-5275374.

ANALYSTS CERTIFICATION: Each contributor to this report hereby certifies that all the views expressed accurately reflect his or her views about the
companies, securities and all pertinent variables. It is also certified that the views and recommendations contained in this report are not and will not be
influenced by any part or all of his or her compensation.

This report is intended exclusively for Information.center@mandirisek.co.id. Unauthorized distribution is prohibited.