Investor Digest: Highlight

INVESTOR DIGEST
Equity Research | 30 July 2021
Economic Data HIGHLIGHT

Latest 2021F
• Jul-21 CPI Preview: Likely a Small Inflation
7-DRRR (%), eop 3.50 3.05 • Construction: The Builders’ Corner – July 2021
Inflation (YoY %) 1.33 2.92 • Astra International: Inline 1H21 Results – Strong Commodity Prices to Support
US$ 1 = Rp, period avg 14,441 14,085 Earnings (ASII; Rp4,650; Buy; TP: Rp6,300)
• Bank Neo Commerce: Management Call Key Takeaways (BBYB; Rp675; Not Rated)
• Gudang Garam: 2Q21 Results - Quick Take (GGRM; Rp34,825; Buy; TP: Rp46,550)
Stock Market Data
(29 July 2021) • HM. Sampoerna: 2Q21 Results - Broadly In-Line (HMSP; Rp1,085; Buy; TP: Rp1,750)
• Indocement 2Q21: Revenue Seasonally In-Line, but Eroded by Costs (INTP; Rp9,200;
JCI Index 6,120.7 0.53% Buy; TP: Rp14,500)
Trading T/O ( Rp bn ) 11,987.0
• Japfa Comfeed: 2Q21 Results: Solid Earnings Delivery (JPFA; Rp1,630; Buy; TP:
Market Cap ( Rp tn ) 7,290.9
Rp2,700)
• Kalbe Farma 2Q21 Result: On Track with Expectation and Guidance (KLBF; Rp1,295;
Buy; TP: Rp1,900)
Market Data Summary* • Mayora Indah 2Q21 Result: Full-Swing Impact from Rising Input Prices (MYOR;
Rp2,270; Buy; TP: Rp2,600)
2021F 2022F
• Puradelta Lestari 2Q21: Slow Quarter, Below Estimates (DMAS; Rp196; Buy; TP:
Rp300)
P/E (x) 17.8 15.2
• Siloam Hospital: Quick KTA from SILO 2Q21 Earnings Call (SILO; Rp8,375; Buy; TP:
P/BV (x) 2.1 2.0
Rp9,000)
EV/EBITDA (x) 13.0 12.2
Div. Yield (%) 2.7 2.9
• Surya Citra Media: 2Q21 Results - Strong Revenue and Earnings Recovery (SCMA;
Net Gearing (%) 25.9 21.8 Rp2,240; Neutral; TP: Rp2,400)
ROE (%) 12.4 13.3 • United Tractors: Rosy Earnings Outlook (UNTR; Rp19,750; Buy; TP: Rp28,500)
EPS Growth (%) 47.4 17.5
EBITDA Growth (%) 45.0 6.7
ECONOMY
Earnings Yield (%) 5.6 6.6
Jul-21 CPI Preview: Likely a Small Inflation

* Aggregate of 73 companies in MS research universe,
representing 65.1%of JCI’s market capitalization  Expecting a marginal inflation. We forecast the CPI to only pick up by 0.01%
MoM in Jul-2021, bringing the annual figure to 1.45% YoY from 1.33% in Jun-
2021. Healthcare and education prices are projected to be the main source of
inflation, while food prices are expected to record a deflation. Furthermore, core
inflation is estimated to ease to 1.37% from 1.49% in the same period due to
declining gold price.
 Inside the CPI basket. Healthcare prices may have contributed 0.02 ppt to the
total Jul-2021 inflation, as the COVID second wave has triggered higher demand
for medicine and medical equipment. We also see potential marginal inflation
from education prices, owing to the new academic year. On the other hand, food
prices may have deflated, contributing -0.02 ppt, partly driven by lower chicken
price (-0.10 ppt). Moreover, transportation prices are likely to decrease amid the
tighter mobility restriction (PPKM level 4), especially for airfare.
 Inflation could be lower than anticipated. All in all, we believe the FY 2021
inflation will be below our initial forecast of 2.9%. Besides the latest data
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development, the likely lower-than-expected inflation was also due to the modest demand recovery entering 3Q21 as a
result from the necessary PPKM level 4 to contain the COVID second wave. Specifically, we estimate the FY2021 GDP
growth to range 3.7–4.0%, lower than our earlier forecast at 4.4% (see Macroscope: Emergency PPKM: Our Preliminary
Assessment on Macro - https://www.mandirisekuritas.co.id/r/7lB9?c=rsch). Considering the moderate demand, we also think
producers will not fully pass through the higher production cost (reflected from higher wholesale inflation) to consumers.
INFLATION SUMMARY
Jun-21 Jul-21
MS Forecast Market Consensus

Headline inflation (%, YoY) 1.33 1.45 1.46
Headline inflation (%, MoM) -0.16 0.01 0.02
Core inflation (%, YoY) 1.49 1.37 1.37
Sources: CEIC, Bloomberg, Mandiri Sekuritas estimate
FOOD PRICE IS LIKELY DEFLATED IN JUL-2021

Jul-21
Commodity Contribution
% MoM
(ppt)
Rice -0.34 (0.01)
Broiler chicken meat -8.00 (0.10)
Beef 0.88 0.00
Broiler chicken egg -2.55 (0.02)
Red onion 4.31 0.01
Garlic 0.10 0.00
Red chili 14.40 0.05
Chili pepper (Rawit) 20.00 0.03
Cooking oil 0.43 0.00
Sugar -0.35 (0.00)
Total Foodstufs (0.03)
Others 0.01
Total Food Group (0.02)
Source: National Strategic Food Information Center (PIHPS), Mandiri Sekuritas estimate (as of 27-Jul-2021)
Leo Rinaldy(+6221 5296 9406) leo.rinaldy@mandirisek.co.id

Imanuel Reinaldo(+6221 5296 9651) imanuel.reinaldo@mandirisek.co.id
SECTOR
Construction: The Builders’ Corner – July 2021
 Despite a 19% YoY contracts growth in 1H21, the big 4 SOE contractors’ new order book of Rp28.8tn was considerably
muted, as low as the 2013-14’s achievement before infrastructure boom. The Ministry of Public Works and Housing
awarded projects merely in Jul-2021 on the back of the strict restriction (PPKM), in our view. The government’s
commitment to developing infrastructure is reflected in 2021/22, with capital state injection of Rp80.4tn for infra-related
companies.
 1H21 new contracts were still muted. The big 4 SOE contractors’ new order book in Jun-2021 was considerably
subdued at Rp7.0tn, largely dragged down by WSKT due to its limited balance sheet capacity, which restrained its
working capital needs. 1H21 new contracts grew by 18.9% YoY from the low-base last year; nevertheless, the 1H21

achievement of Rp28.8tn was considerably low, analogous to 2013-14’s achievement. We also see potential downward
revisions in the FY21 new-contracts target, considering only 24% target realization in 6M21 (see Figure 1).
 The Ministry of Public Works and Housing’s tender updates. In Jul-2021, the Ministry of PUPR awarded a Rp508bn
contract to PTPP to rejuvenate Pura Besakih–Bali, followed by Rp763bn to ADHI and Rp226bn to WSKT. In the pipeline,
there is a potential Rp17.9tn of tenders for 39 projects, with a minimum contract size of Rp150bn. We also highlight dam
projects in the upcoming tender, with contracts worth Rp5.5tn.
 Noteworthy capital state injection in infrastructure space. WSKT will receive Rp7.9tn/Rp3.0tn capital state injection in
2021/22 to strengthen its capital structure, while ADHI will get Rp2.0tn in 2022 to develop its existing projects i.e Solo-DIY
Toll Road and drinking water system Karian-Serpong. Hutama Karya (non-listed) will substantially receive Rp25tn/Rp32tn
equity injection from the government in 2021/22 to complete Trans Sumatra’s 1,064-km priority segments. This displays
the government’s commitment to accelerating infrastructure development in Indonesia.
 Divestment wrap-up YTD. The recent conditional sales and purchase agreement (CSPA) signing for 55% stake
divestment in the Cibitung–Cilincing (CTP) Toll Road marked the fourth toll road divestment by WSKT prior to 1) 40%
stake in JSB Toll Road through equity-based mutual fund and share swap; 2) 30% stake in MKTT Toll Road, and; 3) 35%
stake in CSJ Toll Road through share swap. Thus, to sum up, we expect WSKT to book Rp3.0tn divestment gains and
receive Rp5.3tn cash proceeds.
NEW-CONTRACTS ACHIEVEMENTS IN 6M21 (IN RP BN)

New contracts FY21 % of FY21
Jun-21 Jun-20 6M21 6M20 y-y
(Rp bn) Target Target
WIKA 2,594 272 10,500 3,416 +207.4% 40,127 26.2%
PTPP 1,845 2,380 8,500 8,980 -5.3% 30,196 28.1%
WSKT 400 4,030 3,100 8,130 -61.9% 26,000 11.9%
ADHI 2,200 500 6,700 3,700 +81.1% 22,655 29.6%
Total 7,039 7,182 28,800 24,226 +18.9% 118,978 24.2%
Source: Company, FY21 target is based on the management guidance
ASSET RECYCLING OF BIG 4 SOE CONTRACTS IN 6M21

Toll road concession PBV Proceeds
Toll road Stakes Notes
owner valuation (IDRtn)
Equity-based mutual fund (RDPT). Valuation
Semarang Batang (JSB) WSKT 20% 2.0 1.5
based on the latest book Aug-2020
Share swap with Sarana Multi Infrastruktur
Semarang Batang (JSB) WSKT 20% 2.0 0.5 (SMI). Valuation based on the latest book of
Dec-2020
Divest to Kings Ring. Valuation based on the
Medan - Kualanamu - Tebing - Tinggi (MKTT) WSKT 30% 2.4 0.8
latest book of Dec-2020
Divest to Kings Ring. Valuation based on the
Medan - Kualanamu - Tebing - Tinggi (MKTT) PTPP 15% 2.4 0.4
latest book of Dec-2020
Share swap with Sarana Multi Infrastruktur
Cinere - Serpong (CSJ) WSKT 35% 1.2 - (SMI). Valuation is based on the latest book of
Dec-2020
Divest to Akses Pelabuhan Indonesia (API – a
Cibitung – Cilincing (CTP) WSKT 55% 2.4 2.5 subsidiary of Pelindo II). Valuation is based on
the latest book of May-2021.
Source: Company
CAPITAL STATE INJECTION FOR INFRA-RELATED COMPANIES IN 2021-22

Company (in IDRtn) 2021 2022
Waskita Karya (WSKT) 7.9 3.0
Adhi Karya (ADHI) - 2.0

Company (in IDRtn) 2021 2022

Hutama Karya (HK; non-listed) 25.0 31.4
Kereta Api Indonesia (KAI; non-listed) 7.0 4.1
Total 39.9 40.5
Source: various media
Adrian Joezer (+6221 5296 9415) adrian.joezer@mandirisek.co.id

Edbert Surya (+6221 5296 9623) edbert.surya@mandirisek.co.id
CORPORATE
Astra International: Inline 1H21 Results – Strong Commodity Prices to Support Earnings (ASII; Rp4,650; Buy; TP:
Rp6,300)
 ASII’s 1H21 net profit was in line with forecast. Strong earnings recovery from 4W in 2Q21 suggested potential upside risk
to our earnings forecast from margin expansions once the pandemic subsided. Record-high commodity prices (for coal
and CPO) will cushion earnings risk from Automotive in 2H21 from the recently implemented PPKM.
 1H21 earnings were in line. ASII reported 2Q21 net profit of Rp5.1tn (-22% YoY/+37% QoQ), bringing the 1H21 net profit
to Rp.8.8tn (+61% YoY, excl. gain from BNLI divestment), representing 48%/50% of our/consensus forecasts. Strong
earnings recovery was evident in all business units, especially Automotive (+357% YoY, 37% of NP), given the low base
earnings, as its 4W unit booked net loss in 2Q20 due to low factory utilization. The recovery in Automotive was also
supported by the recovery in 4W sales, thanks to the luxury tax (PPnBM) incentives for cars since March. Meanwhile,
record-high commodity prices (for coal and CPO) also boosted earnings from UNTR (+12% YoY, 30% of NP) and AALI
(+61% YoY, 6% of NP). ASII’s operating margin slightly improved YoY to 10% (from 9% in 1H20) due to better overall
business, but still below the pre-pandemic level. We believe elevated commodity prices will continue to support ASII’s
operating margin in 2H21. Nevertheless, the current mobility restriction (PPKM) should slow down the recovery
momentum on the Automotive unit in 3Q21 despite the extension of PPnBM relaxation.
 Key points to highlight in 2Q21: 1) Net profit from Automotive continued its recovery momentum at Rp1.8tn (vs.
Rp.1.2tn net loss in 2Q20/+31% QoQ), driven by strong recovery from 4W (+71% QoQ) and 2W (+14% QoQ). The 4W net
profit has returned to the 2019 avg. quarterly profit. Automotive distribution’s OPM improved to 1.07% due to lower
discounts in 2Q21 (vs. 2Q20: -10.2%; 1Q21: +0.51%), while gross margin remained flat at 11%. 2) Similarly, ASII’s total
equity income continued to improve in 2Q21, with stronger recovery from AHM (+22% QoQ) than ADM (-4% QoQ). 3)
UNTR’s strong net profit (+20% YoY/+45% QoQ) could be attributed to the strong rebound in Komatsu and the high-
margin coal mining, following elevated coal prices. 4) Net profit from financing also improved to Rp1.150bn (+66%
YoY/+19% QoQ), following recovery in both car and motorcycle financing.
 Maintain Buy with Rp6,300 TP. We still like ASII for its recovery momentum in its Automotive units, driven by margin
expansion from the higher utilization, while record-high commodity prices will cushion the earnings risk from the recent
PPKM. Strong earnings recovery from 4W in 2Q21 suggested potential upside risk to our earnings forecast from margin
expansions once the pandemic subsided. ASII has an attractive valuation at 10.3x/9.4x 2021F/2022F PE.
RESULTS SUMMARY
% of % of
RpBn 2Q21 2Q20 %YoY 1Q21 %QoQ 6M21 6M20 %YoY FY21F
ours cons
Revenue 55,695 35,793 56% 51,700 8% 107,395 89,795 20% 208,015 52% 52%
Gross Profit 12,238 8,087 51% 10,598 15% 22,836 20,174 13% 43,899 52% 52%
Operating Profit 6,402 2,078 208% 4,526 41% 10,928 7,810 40% 22,074 50% 52%
Pretax Profit 8,214 7,719 6% 5,777 42% 13,991 14,986 -7% 27,948 50% 50%
Net Profit 5,103 6,568 -22% 3,728 37% 8,831 11,378 -22% 18,223 48% 50%

% of % of
RpBn 2Q21 2Q20 %YoY 1Q21 %QoQ 6M21 6M20 %YoY FY21F
ours cons
Net Profit (ex gain from BNLI’s
5,103 687 643% 3,728 37% 8,831 5,497 61% 18,223 48% 50%
divestment)
Gross Margin (%) 22% 23% 20% 21% 22%

Operating Margin (%) 11% 6% 9% 10% 9%
Pretax Margin (%) 15% 22% 11% 13% 17%
Net Margin (%) 9.2% 18.3% 7% 8% 13%
Revenue breakdown
Automotive 22,278 9,105 145% 20,680 8% 42,958 32,326 33% 78,811 55%
Financial services 5,609 5,375 4% 6,204 -10% 11,813 10,775 10% 21,410 55%
Heavy equipment and mining 19,493 14,863 31% 18,095 8% 37,588 33,224 13% 76,376 49%
Agribusiness 5,570 4,119 35% 5,170 8% 10,740 8,980 20% 20,902 51%
Others 2,745 1,790 53% 1,551 77% 4,296 4,490 -4% 10,516 41%
Total 55,695 35,253 58% 51,700 8% 107,395 89,795 20% 208,015 52%
Net profit breakdown

Automotive 1,851 (1,209) -253% 1,417 31% 3,267 715 357% 5,339 61%
Financial services 1,150 694 66% 969 19% 2,119 2,089 1% 5,601 38%
Heavy equipment and mining 1,568 1,306 20% 1,081 45% 2,649 2,364 12% 6,362 42%
Agribusiness 418 41 914% 112 274% 530 330 61% 1,293 41%
Others 153 (144) -206% 112 37% 265 - #DIV/0! (373) -71%
Total 5,140 687 648% 3,691 39% 8,831 5,497 61% 18,223 48%
Source: Company, Mandiri Sekuritas estimates
Ariyanto Kurniawan (+6221 5296 9682) ariyanto.kurniawan@mandirisek.co.id

Wesley Louis Alianto (+6221 5296 9510) wesley.alianto@mandirisek.co.id
Bank Neo Commerce: Management Call Key Takeaways (BBYB; Rp675; Not Rated)
 Bank Neo Commerce (previously Bank Yudha Bhakti) was founded in 1989 as a pension bank that provides services for
state military and police. In 2019, it formed a partnership with PT Akulaku Silvrr Indonesia, and in 2020, it transformed its
business operation into digital bank. We recently talked with Bank Neo Commerce’s CEO, Tjandra Gunawan, discussing
about the bank’s core business and long term aspiration. BBYB is a non-rated company.
 Large addressable market
− Over 271mn of population and 202mn internet users with 60% of unbanked/underbanked individuals and
70% of unbanked SME business, Indonesia provides plenty of addressable market for digital banks. The
need for digitalization has accelerated during the pandemic, as more transactions need to be conducted
online.
− Indonesia’s Financial Service Authority (OJK) demonstrates its support through 1) developing a digital
financial ecosystem 2) accelerate digitalization efforts by facilitating the licensing of digital-based financial
products and services 3) simplify the licensing process
 Bank Neo Commerce at a glance
− Bank Neo Commerce (previously Bank Yudha Bhakti) was founded in 1989 as a pension bank that provides
services for state military and police. In 2019, it formed a partnership with Akulaku, a fintench company for
the SME segment. In Sep-20, it transformed its business into digital bank and officially changed its name to

Bank Neo Commerce or BNC. The transformation remarked its upgrade into the BUKU II category following
an increase in capital. As of Mar-21, BNC’s total equity stood at Rp1.1tn while total asset stood at Rp5.7tn.
− As of Mar-21, PT Akulaku Silvrr Indonesia held 25% of BNC’s shares, PT Gozco Capital held 20%, PT Asabri
17%, Yellow Brick Enterprise Ltd 11%, public 21% and others 6%. According to BNC’s information
disclosure, PT Akulaku Silvrr Indonesia is currently in the process of becoming BNC’s controlling
shareholder. The bank will conduct EGM on Sep-21 to seek for shareholders approval.
 Business model
− BNC’s business model is designed to be applicable for B2B (open banking) and B2C (direct banking). B2C
services are provided through branches, mobile banking and internet banking platforms. The bank
currently operates with 22 branches, but it plans to close down 10 branches this year. Meanwhile, B2B
services are provided through open API for third party apps and services. The bank has partnered up with
a number of companies where some of them are part of Alibaba’s ecosystem. The bank is currently
working to establish offline product offerings through partnership with offline convenient stores.
− There are 4 core services in BNC’s open banking space: 1) payment/debit (simple payment and transaction
process) 2) investment (flexible savings/deposit products) 3) credit (diversified credit product to enable
Buy Now Pay Later solutions) 4) life services (complete day-to-day life services embedded in the app’s and
partner’s apps).
− The bank aspires to provide banking services to 22mn individuals by the end of 2025.
 About Neo+
− Introduced in Mar-21, Neo+ is BNC’s first mobile banking app. It currently offers two types of deposit
products: 1) Neo NOW savings account 2) Neo WOW time deposit. Interest rates ranging from 6.0%-8.0%
pa and tenor as short as 7 days. No fee incurred for online transfer, while minimum savings is set at Rp1mn
(US$ 70). BNC stated that Neo+ has been downloaded by 5mn users, with more than 50% active users.
− The bank strives to increase financial literacy by providing low ticket size savings account so that more
people are able to use and get familiar with BNC’s apps.
 Product Pipeline
− BNC has several products to be introduced in 2H21 as well as in 2022. Please refer to figure 3 for products
in the pipeline. The bank is expecting to receive approval for phase 1 products to be launched in 3Q21,
which include online account opening, QRIS payment, in-app commerce, online lending, direct debit
payment, etc.
− The bank aspires to enhance transaction ecosystem build-up in 2023, enabling all kind of users (buyers,
lenders, fintech, and other businesses) to be connected and supported by BNC’s financial ecosystem.
 Capital raising plan
− BNC has finalized its rights issue (PUT IV) amounting to Rp250bn. The bank indicated it is currently in the process to
raise another Rp2tn of funding. The right issue plan is to comply with the minimum capital requirement of Rp2tn by
the end of this year and Rp3tn by the end of next year. The bank aims to close the year with Rp3tn in equity. BNC
indicated the rights issue process (PUT V) will likely be finalized by the end of Sep-21/early Oct-21.
− Within the next two to three years, the bank aims to have up to Rp7tn of equity. It will conduct another
round of rights issue activity likely early next year.

BBYB FY20 RESULTS SUMMARY

Income Statement (Rp bn) FY19 FY20 % YoY 4Q19 3Q20 4Q20 % YoY % QoQ
Net interest income 213 166 (22) 55 30 40 (27) 35
Non-interest income 194 88 (54) 155 17 43 (73) 154
Fees and Commissions 26 24 (8) 5 8 9 86 13
Forex Income - - N/A - - - N/A N/A
Others 168 64 (62) 150 9 34 (78) 278
Operating income 407 254 (38) 210 46 83 (61) 78
Provision expense (164) (24) (85) (143) (18) (7) (95) (61)
Operating expense (224) (213) (5) (57) (43) (64) 11 48
Personnel Expenses (113) (104) (8) (22) (29) (34) 52 18
Other Expenses (110) (109) (1) (35) (14) (30) (15) 108
Operating profit 20 17 (13) 10 (14) 12 26 N/A
PPOP 184 41 (77) 153 3 19 (88) 499
Pre-tax profit 18 16 (11) (0) (15) 11 N/A N/A
Net profit 16 16 (1) 3 (15) 12 248 N/A
Balance Sheet (Rp bn) Dec-19 Sep-20 Dec-20 % YoY % QoQ
Gross loan 3,829 2,970 3,665 (4) 23
Demand deposit 193 200 369 92 85
Saving deposit 184 157 149 (19) (5)
Time deposit 3,690 2,714 3,425 (7) 26
Total deposit 4,066 3,071 3,943 (3) 28
CASA to deposits (%) 9 12 13
Ratio (%) FY19 FY20 4Q19 3Q20 4Q20

CAR 29 33 29 37 33
Tier 1 CAR 28 32 28 36 32
LDR 94 93 94 97 93
NIM 4.9 4.1 4.8 3.4 4.0
ROAE 2.0 1.6 6.8 1.7 5.7
NPL, cat.3-5 4.3 4.0 4.3 4.7 4.0
Special mention loans 8.2 4.2 8.2 4.4 4.2
Cost of credit 4.3 0.7 14.9 2.4 0.8
Loan loss coverage 102 69 102 91 69
Restructured Loans 5.2 11.9 5.2 12.1 11.9
Loan at risk 12.5 17.7 12.5 18.9 17.7
Cost to Income 55 84 27 93 77
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
Boby Chandra (+6221 5296 9533) boby.chandra@mandirisek.co.id
Gudang Garam: 2Q21 Results - Quick Take (GGRM; Rp34,825; Buy; TP: Rp46,550)
 Despite strong volume outperformance, GGRM’s 2Q21 earnings missed our and consensus estimates with a much deeper
margin contraction relative to HMSP as the latter’s higher SKT mix and favorable product mix trend helped cushion the
weak industry pricing power in light of the pandemic.
 2Q21 earnings: below. GGRM reported 2Q21 PATMI of Rp564bn, a steep decline of -59.0% YoY and -67.7% QoQ, as
volume outperformance was far outweighed by muted excise pass-throughs in 2Q21 while the full-quarter impact of new
excise tariffs started materializing. 1H21 came in at Rp2,311bn, down -39.5% YoY, forming just 36% of our FY21 and 33%

of consensus’. Relative to HMSP, GGRM’s much deeper earnings and margin contraction were driven by its lower mix of
SKT (zero excise increase in 2021) and likely less favorable product mix trend (HMSP booked a strong sequential volume
turnaround in Sampoerna A).
 Strong volume outperformance... Revenue increased 3.7% QoQ to Rp30,840bn in 2Q21, translating into an acceleration
YoY print to 16.8% in 2Q21 from 9.1% in 1Q21. The strong outperformance in SKM high-tar industry volume growth
(+17% YoY in 2Q21), as highlighted in HMSP’s volume disclosures, demonstrated the resiliency of SKM High-Tar relative to
SKM Low-Tar against mobility restrictions. In 1H21, GGRM’s revenue of Rp60,587bn (+12.9% YoY) came in-line at
50%/49% of MANSEK/Consensus FY21.
 …outweighed by excise pressures. GGRM’s low SKT mix and marginal price movements nonetheless outweighed its
strong revenue outperformance, with blended gross margin declining 5.0ppt YoY and 1.0ppt QoQ to 13.1% in 2Q21 as
new excise tariffs started to be fully booked in one full quarter. This translated into 4.8ppt/0.5ppt YoY/QoQ decline in
2Q21 EBIT margin to 7.1%, despite 0.7ppt lower SG&A costs-to-sales YoY. As such, GGRM booked --63.7% YoY and -68.0%
QoQ decline in 2Q21 EBIT to Rp678bn with 1H21 EBIT declining 45.3% YoY to Rp2,795bn, achieving just 35%/31% of
MANSEK/Consensus FY21.
 Valuation: We currently have a Buy call and Rp46,550 PT on GGRM, derived using a DCF-method assuming 10.1% WACC
and 3.0% terminal growth. We will incorporate 2Q21 results into our model after the release of the long-form financials.
GGRM’S 2Q21 RESULTS
GGRM (Rp bn) 1H21 YoY 2Q21 YoY QoQ % of Mansek % of Consensus
Revenue 60,587 12.9% 30,840 16.8% 3.7% 50% 49%

Gross profit 6,543 -24.5% 2,634 -29.2% -32.6% 38% 39%
EBIT 2,795 -45.3% 678 -63.7% -68.0% 35% 31%
Net profit 2,311 -39.5% 564 -59.0% -67.7% 36% 33%
Margins
Gross 13.1% -5.0% 13.1% -5.0% -1.0%
EBIT 7.1% -4.8% 7.1% -4.8% -0.5%
Source: Company, Factset, Mandiri Sekuritas estimates
HM. Sampoerna: 2Q21 Results - Broadly In-Line (HMSP; Rp1,085; Buy; TP: Rp1,750)
 2Q21 earnings decline was largely with our and street estimates as HMSP’s negligible excise pass-throughs was
cushioned by above-estimate sales volume and sequentially favorable product mix. While industry volume headwinds
have moderated, a hiccup in Jul-Aug is expected. Forecasts are unchanged.
 2Q21 revenues: in-line. 2Q21 revenues came in-line at Rp24.1trn, +14.4% YoY and +2.2% QoQ, as muted price
movements (revenue/stick +0.9% QoQ) neutralized volume beat in 2Q21, which rose 11.5%/1.2% YoY/QoQ. 1H21
revenues +6.5% YoY to Rp47.6trn, achieving 49% of our and consensus’ FY21. Domestic SKM revenues came in-line at
Rp16.2trn in 2Q21, +15.8% YoY and +3.1% QoQ, while SKT (+10.2% YoY) and machine-rolled SPM (+10.7% YoY)
marginally missed. Hand-rolled SPM increased 2.8x QoQ on a low-base factor.
 2Q21 EBIT: in-line. 2Q21 EBIT declined -3.8% YoY and -43.5% QoQ to Rp1.8trn, bringing 1H21 EBIT to Rp4.9trn (-14.9%
YoY), at 50%/48% of MANSEK/Consensus FY21. EBIT margin declined by 1.4ppt YoY and 6.0ppt to 7.4% in 2Q21. This is
compared with the 2.6ppt/5.6ppt YoY/QoQ declines in 2Q21 gross margin to a new low of 15.8% as excise pass-throughs
have been negligible given the difficult pricing environment. 2Q21 SG&A costs were flat YoY, with -20.7% YoY in G&A
offsetting +7.6% YoY in selling costs on +60.0% YoY in A&P.

 2Q21 earnings: broadly in-line. 2Q21 reported PATMI came at Rp1.5trn, down -1.1% YoY and -40.2% QoQ, which is
widely expected given the muted price increases and full-quarter impact of new 2021 excise tariffs. With this, 1H21
declined -15.4% YoY to Rp4.1trn, in-line with our (50% to FY21) and consensus (48%) estimates. Non-operating gains and
losses, along with effective income tax rates, were broadly aligned.
 Additional 2Q21 volume disclosures:

− Industry data showed rising shares of SKM High-Tar (+0.8ppt QoQ to 45.3%) and SPT (+0.2ppt QoQ to 0.3%) at the
expense of SKM Low-Tar (-0.6ppt QoQ to 30.7%) and SKT (-0.2ppt QoQ to 19.6%) while SPM share was flat QoQ at
4.2%. As such, SKM High-Tar and SKT volume growth continued to outperform at +17.0% YoY and +15.3% YoY in
2Q21 vs. industry growth of 12.4% YoY.
− HMSP’s SKM/SKT/SPM volume grew 9.6%/12.9%/10.5% YoY in 2Q21, with SPT volume now reaching 0.2bn sticks or
0.9% in terms of mix. While Sampoerna A’s volume had already been disclosed last week (+26.6% YoY), today’s
disclosures revealed clearer trend on how HMSP has gained more shares in premium segments, at the expense of
value brands that suffered from the steep rises in retail prices floor and widening price gap with the second-tier
brands. In 2Q21, Sampoerna U continued to decline at the -50% YoY decline rate along with an estimated -12.6% YoY
drop in Marlboro Filter Black.
 Forecasts unchanged. We have a Buy call with Rp1,750 PT, derived from a DCF-method assuming 9.7% WACC and 3.0%
terminal growth. Valuation is undemanding on a 1-year horizon, yet catalysts are lacking. Volume headwinds appear to
be moderating, but uncertainties now revolve on 2022 excise policy.
HMSP 2Q21 RESULTS

P&L (Rp bn) 1H21 1H20 YoY 2Q21 2Q20 YoY 1Q21 QoQ % of Mansek % of Cons.
Revenue 47,628 44,733 6.5% 24,070 21,044 14.4% 23,558 2.2% 49% 49%
COGS (38,793) (34,994) 10.9% (20,272) (17,172) 18.1% 18,521 9.5%
Gross profit 8,835 9,740 -9.3% 3,798 3,872 -1.9% 5,037 -24.6% 52% 48%
Selling costs (2,999) (2,833) 5.8% (1,575) (1,463) 7.6% (1,423) 10.7%
G&A costs (895) (1,099) -18.6% (439) (554) -20.7% (456) -3.7%
Total SG&A (3,893) (3,933) -1.0% (2,014) (2,017) -0.1% (1,879) 7.2%
EBIT 4,942 5,807 -14.9% 1,783 1,855 -3.8% 3,158 -43.5% 50% 48%
Interest income 255 522 -51.1% 124 205 -39.6% 131 -5.8%
Interest costs (24) (23) 6.6% (13) (11) 20.6% (11) 20.3%
Others 102 40 157.8% 68 (12) N/A 34 104.0%
Pretax profit 5,275 6,346 -16.9% 1,963 2,036 -3.6% 3,312 -40.8% 50% 47%
Tax (1,141) (1,460) -21.8% (415) (472) -12.0% (726) -42.9%
Net profit 4,134 4,886 -15.4% 1,548 1,565 -1.1% 2,586 -40.2% 50% 48%
Margins
Gross 18.6% 21.8% -3.2% 15.8% 18.4% -2.6% 21.4% -5.6%
EBIT 10.4% 13.0% -2.6% 7.4% 8.8% -1.4% 13.4% -6.0%
Net profit 8.7% 10.9% -2.2% 6.4% 7.4% -1.0% 11.0% -4.5%
Revenue breakdown
Exports 74 143 -48.2% 39 45 -13.5% 35 9.8%
Domestic 47,554 44,590 6.6% 24,031 21,000 14.4% 23,523 2.2%
SKM 31,850 30,500 4.4% 16,169 13,965 15.8% 15,681 3.1%
SKT 10,562 9,511 11.1% 5,238 4,753 10.2% 5,324 -1.6%
SPM 4,692 4,309 8.9% 2,369 2,140 10.7% 2,324 1.9%
SPT 139 - N/A 102 - N/A 37 179.3%
Others 311 270 15.1% 153 142 7.8% 158 -2.9%

P&L (Rp bn) 1H21 1H20 YoY 2Q21 2Q20 YoY 1Q21 QoQ % of Mansek % of Cons.
Overall sales volume (bn sticks) 40.0 38.5 4.0% 20.1 18.0 11.5% 19.9 1.2%
SKM 26.3 26.6 -1.1% 13.3 12.1 9.6% 13.1 1.4%
SKT 10.0 8.8 13.9% 5.0 4.4 12.9% 5.1 -1.9%
SPM 3.4 3.1 10.1% 1.7 1.6 10.5% 1.7 1.8%
SPT 0.3 - N/A 0.2 - N/A 0.1 177.9%
ASP (Rp/stick) 1,190 1,162 2.4% 1,196 1,166 2.6% 1,185 0.9%
SKM 1,210 1,146 5.6% 1,219 1,154 5.7% 1,200 1.7%
SKT 1,056 1,083 -2.5% 1,056 1,082 -2.4% 1,053 0.3%
SPM 1,370 1,386 -1.2% 1,377 1,375 0.1% 1,375 0.2%
SKM 535 N/A N/A 542 N/A N/A 539 0.5%
Source: Bloomberg, Company, Mandiri Sekuritas estimates
Indocement 2Q21: Revenue Seasonally In-Line, but Eroded by Costs (INTP; Rp9,200; Buy; TP: Rp14,500)
 INTP’s 2Q21 revenue was broadly in-line at accounting for seasonality, however saw erosion from higher power and raw
materials costs. Continued improvements in transport efficiencies helped dampen rising overall costs, while EBITDA
margin saw strong yoy increase due to PSAK 73. Maintain Buy on INTP. Further operational details to follow up after the
company’s earnings call.
 2Q21 revenue broadly in-line. INTP booked IDR 3.2tn in 2Q21 revenue, +15% yoy, -6% qoq. Cement only revenues grew
+13% yoy but fell -7% qoq, while non-cement revenues (ready-mix concrete and aggregates) grew +40% yoy, +2% qoq.
Accumulated, 1H21 revenue of IDR 6.7tn was a respectable +8% yoy growth, and accounting for typical seasonality, was
broadly in-line at 44% of our and consensus’ full-year expectations.
 Erosion from higher cost of production. On the flipside, higher costs eroded the revenue growth mainly due to fuel and
power costs rising +34% yoy, -3% qoq and raw materials costs increasing +6% yoy albeit falling -21% qoq; the qoq
declines were due to lower sales volumes in 2Q21. Accumulated, 1H21 fuel and power and raw materials costs increased
+14% yoy and +6% yoy respectively. Some respite came from increased efficiencies in shipping costs saw continued
improvement of -1% yoy, -3% qoq from the company’s motions to increase intra-plant shipping and its Konawe shipping
terminal. Resultantly, the increase in cash costs increased by a lesser magnitude of +10% yoy, -2% qoq. On 1H21 basis,
INTP’s EBITDA of IDR 1.2tn was a +25% yoy increase, partially helped by accounting rule changes in the form of PSAK 73
reducing lease expense items and increasing depreciation expense. The 1H21 EBITDA achievement formed 37% of our
and consensus’ FY estimates.
 PATMI below expectations due to seasonality. INTP saw 2Q21 PATMI of IDR 235bn, +238% yoy, -33% qoq. Its 2Q21
effective tax rate had remained stable at 20% as offsets from its deferred tax benefits which helped offset is FY20 tax
expense no longer applied; the current effective tax rate is in-line with management’s guidance of 19% for FY21.
Accumulated, 1H21 PATMI of IDR 587bn was a strong +25% yoy growth due to base effect, however formed just 32% of
consensus’ full-year expectation and 29% of ours, slightly below.
 We have a Buy on INTP. Further details related to the company’s 2Q21 operations, including sales volume, to follow after
the earnings call next week.

INTP 2Q21 RESULTS

FY21 Consensus FY21 MANSEK
INTP quarterly earnings 2Q20 1Q21 2Q21 YoY QoQ 6M20 6M21 YoY
Expectations Expectations
Sales (Rpbn) 2,812 3,438 3,229 15% -6% 6,175 6,667 8% 15,144 44% 15,090 44%
Cost of good sold 1,997 2,338 2,234 12% -4% 4,295 4,573 6%
Gross Profit 815 1,100 995 22% -10% 1,880 2,094 11% 5,263 40% 5,445 38%
Operating Expense 694 735 750 8% 2% 1,465 1,486 1%
Operating Profit 121 364 244 102% -33% 415 609 47% 1,986 31% 2,138 28%
EBITDA 367 700 548 49% -22% 996 1,247 25% 3,345 37% 3,349 37%
Pretax Profit 92 439 292 218% -34% 550 731 33% 2,252 32% 2,453 30%
Tax (22) (88) (56) 156% -36% (80) (144) 81%
Net Profit 70 351 235 238% -33% 470 587 25% 1,810 32% 2,003 29%
Gross Margin 29.0% 32.0% 30.8% 1.8% -1.2% 30.4% 31.4% 1.0% 34.8% 36.1%
Operating Margin 4.3% 10.6% 7.6% 3.3% -3.0% 6.7% 9.1% 2.4% 13.1% 14.2%
Pretax Margin 3.3% 12.8% 9.0% 5.8% -3.7% 8.9% 11.0% 2.1% 14.9% 16.3%
Tax Rate -24.0% -20.0% -19.3% 4.7% 0.7% -14.5% -19.7% -5.2%
Net Margin 2.5% 10.2% 7.3% 4.8% -2.9% 7.6% 8.8% 1.2% 12.0% 13.3%
EBITDA Margin 13.1% 20.4% 17.0% 3.9% -3.4% 16.1% 18.7% 2.6% 22.1% 22.2%
Source: Company, Mandiri Sekuritas
Robin Sutanto (+6221 5296 9572) robin.sutanto@mandirisek.co.id
Japfa Comfeed: 2Q21 Results: Solid Earnings Delivery (JPFA; Rp1,630; Buy; TP: Rp2,700)
 The effective culling program led to robust 2Q21 earnings, with DoC’s EBIT margin reaching a historical high at 90%,
compensating the drop in feed’s margin on the back of high raw material prices. Faster vaccination, better COVID-19
handling, and continuous culling are notable events to monitor in 2H21, following the tighter mobility restriction in Jul-
2021.
 2Q21 results: solid earnings delivery. 2Q21 net profit came at Rp684.1bn (2Q20 net loss: Rp107.4bn; -20.3% QoQ), with
1H21 earnings of Rp1.5tn (1H20 earnings: Rp155.1bn), accounting for 56%/77% of MANSEK/consensus estimates. 2Q21
DoC segment posted the highest EBIT margin of 90% (1Q20: 80%; 4Q20: 52%), compensating the drop in feed’s EBIT
margin by 7.5% QoQ.
 2Q21 revenues came at Rp11.3tn (+34.6% YoY; +5.3% QoQ), with 1H21 revenues at Rp22.1tn (+22.3% YoY), accounting
for 49%/51% of MANSEK/consensus estimates. Faster vaccination and better COVID-19 handling are key factors for 2H21
earnings recovery, following the tighter mobility restriction in Jul-2021. Key things to highlight in 2Q21 are as follows:
− Feed’s EBIT margin dropped to 15.2% (1Q21: 22.7%) on the back of surging soybean price by 7.6% QoQ and
+31.9% compared to 4Q20, translating to 29% YoY/31% QoQ decline in operating revenues. We think the 2Q21 feed
margin has mostly captured the impact of rising soybean price and high corn price since 4Q20. Furthermore, we
expect the company to gradually adjust its ASP.
− DoC’s EBIT margin reached 89.6%, marking an all-time high margin within the segment, mainly due to the higher
effectiveness of the culling program since Aug-2020, in our view. Although only contributing 6% of total revenues in
2Q21, the DoC segment is the highest EBIT-booking among JPFA’s 2Q21 segments at Rp596.6bn (49% of total EBIT).
− Commercial farming revenues grew by 43.2% YoY; 3.9% QoQ on the back of the government’s continuous
culling program. Meanwhile, the QoQ margin declined to 4.1% (1Q20: 6.5%; 4Q20: 29.3%) due to higher feed and
DOC prices, as both are raw materials for broilers. This led to a 33% QoQ EBIT decline to Rp183.5bn (2Q20 operating
loss: Rp164.0bn).

 We have a Buy rating with PT of Rp2,700. Our target price is derived by using 3-stage DCF valuation method. JPFA
currently trades at 6.9x PE 2021 and 11.4x PE 2022.
JPFA’S 2Q21 RESULT SUMMARY

YE Dec (Rpbn) 2Q21 1Q21 %qoq 2Q20 %yoy 6M21 6M20 %yoy % of Mansek % of Cons
Net sales 11,339 10,769 5.3% 8,423 34.6% 22,108 18,075 22.3% 49% 51%
Gross profit 2,408 2,792 -13.8% 1,437 67.6% 5,199 3,266 59.2% 50% 57%
Operating profit 1,213 1,475 -17.8% 190 536.8% 2,688 817 228.9% 59% 65%
Pretax profit 973 1,180 -17.6% -155 -727.5% 2,154 374 476.3% 56% 74%
Net profit 684 859 -20.3% -107 -736.7% 1,543 155 894.6% 56% 77%
Margins
Gross margin 21.2% 25.9% -4.7% 17.1% 4.2% 23.5% 18.1%
Operating margin 10.7% 13.7% -3.0% 2.3% 8.4% 12.2% 4.5%
Pretax margin 8.6% 11.0% -2.4% -1.8% 10.4% 9.7% 2.1%
Net margin 6.0% 8.0% -1.9% -1.3% 7.3% 7.0% 0.9%
Segmental performance 2Q21 1Q21 %qoq 2Q20 %yoy 6M21 6M20 %yoy
Net revenue breakdown
Feed 3,171 3,062 3.6% 2,175 45.8% 6,233 5,287 17.9%
DOC 659 735 -10.4% 502 31.3% 1,394 1,155 20.7%
Commercial farm 4,441 4,274 3.9% 3,101 43.2% 8,715 6,063 43.7%
Aquaculture 923 870 6.2% 734 25.8% 1,793 1,585 13.2%
Cattle 1,577 1,310 20.4% 1,148 37.4% 2,887 2,493 15.8%
Consumer products 515 485 6.2% 733 -29.7% 1,000 1,421 -29.6%
Trading others 3,171 3,062 3.6% 2,175 45.8% 6,233 5,287 17.9%
EBIT breakdown
Feed 483 695 -30.5% 683 -29.4% 1,177 1,490 -21.0%
DOC 597 627 -4.8% (244) n.a 1,223 (194) n.a
Commercial farm 184 276 -33.5% (164) n.a 459 (301) n.a
Aquaculture 51 55 -7.6% 43 18.2% 105 109 -3.3%
Cattle 78 58 34.9% 72 7.9% 136 n.a n.a
Consumer products 99 75 31.6% 13 671.0% 174 42 311.0%
Trading others 483 695 -30.5% 683 -29.4% 1,177 1,490 -21.0%
EBIT margin
Feed 15.2% 22.7% -7.5% 31.4% -16.2% 18.9% 28.2% -9.3%
DOC 90.6% 85.2% 5.3% -48.6% 139.2% 87.8% -16.8% 104.5%
Commercial farm 4.1% 6.5% -2.3% -5.3% 9.4% 5.3% -5.0% 10.2%
Aquaculture 5.5% 6.3% -0.8% 5.8% -0.4% 5.9% 6.9% -1.0%
Cattle 5.0% 4.4% 0.5% 6.3% -1.4% 4.7% 0.0% 4.7%
Consumer products 19.2% 15.5% 3.7% 1.8% 17.4% 17.4% 3.0% 14.4%
Trading others 15.2% 22.7% -7.5% 31.4% -16.2% 18.9% 28.2% -9.3%
Source: Company, Bloomberg, Mandiri Sekuritas
Edbert Surya (+6221 5296 9623) edbert.surya@mandirisek.co.id


Kalbe Farma 2Q21 Result: On Track with Expectation and Guidance (KLBF; Rp1,295; Buy; TP: Rp1,900)
 KLBF’s overall 2Q21 result was in line with consensus expectation. Gross margin decline can be cushioned by lower opex-
to-sales and higher other income in 2Q21. The segmental performance will be published later in the long-form.
 KLBF booked strong topline growth of +9% YoY to Rp6.4tn in 2Q21. The 1H21 sales of Rp12.4tn (+7% YoY) were on
track to achieve consensus FY21E by forming 50% of forecast and slightly higher than the company’s guidance of 5-6%
YoY for FY21. Details on each segment to follow.
 Gross margin declined by -2.1 ppt YoY to 43.3% in 2Q21, which we suspect was due to sales mix (i.e., higher
unbranded generic drugs contribution, especially following a BPJS tender at the end of 2020 and entrance into affordable
nutrition segment) and commodity price pressure (such as for skim milk).
 Opex to sales had -1.5 ppt YoY in 2Q21, which helped operating profit. The 2Q21 operating profit had +5% YoY,
reaching Rp943bn, and the cumulative 1H21 had +7% YoY, reaching Rp1.8tn, therefore still in line, as it still accounted for
49% FY21E of consensus.
 Higher net other income of Rp30bn boosted earnings in 2Q21, though further detail is not available for now. 2Q21
earnings were at +9% YoY, reaching Rp781bn and bringing the 1H21 run-rate to Rp1.5tn (+8% YoY). This was still in line
with consensus expectation (51% FY21E) and slightly higher than the company’s 5-6% YoY EPS target in FY21.
KLBF 2Q21/1H21 RESULT SUMMARY

KLBF, Rp bn 1H20 1H21 %yoy 2Q20 3Q20 4Q20 1Q21 2Q21 %qoq %yoy %Cons.
Revenues 11,605 12,370 6.6 5,809 5,491 6,017 6,015 6,355 5.6 9.4 50.1
Gross profit 5,253 5,397 2.8 2,635 2,519 2,475 2,647 2,750 3.9 4.4 49.5
Operating profit 1,715 1,840 7.3 896 843 997 897 943 5.2 5.3 48.9
Net interest 39 34 (12.5) 19 8 15 15 19 21.4 0.3
Pre-tax income 1,809 1,928 6.6 921 879 940 926 1,002 8.3 8.7 50.0
Net profit 1,388 1,497 7.9 718 640 706 716 781 9.0 8.7 51.2
Growth trend, %yoy

Revenues 3.8 6.6 -0.1 -2.8 3.6 3.8 9.4
Operating profit 5.6 7.3 4.5 -3.1 22.1 9.5 5.3
Net profit 10.3 7.9 8.3 -2.7 19.4 7.1 8.7
Margin, %
Gross margin 45.3 43.6 45.4 45.9 41.1 44.0 43.3
Opex to revenue 30.5 28.8 29.9 30.5 24.6 29.1 28.4
Operating margin 14.8 14.9 15.4 15.4 16.6 14.9 14.8
Net margin 12.0 12.1 12.4 11.7 11.7 11.9 12.3
Source: Mandiri Sekuritas, Company, Bloomberg
Inggrid Gondoprastowo, CFA (+6221 5296 9450) inggridgondoprastowo@mandirisek.co.id

Mayora Indah 2Q21 Result: Full-Swing Impact from Rising Input Prices (MYOR; Rp2,270; Buy; TP: Rp2,600)
 MYOR’s 2Q21 result was lower than consensus expectation, as the material price increase severely hit gross margin.
However, the overall result was still on track to achieve the company’s latest guidance of +10% YoY sales/+7% YoY
operating profit/+4% YoY earnings in FY21F. The operational details are still waiting for the long-form. Mandiri Sekuritas
will host MYOR’s 2Q21 earnings call on 3-Aug, at 10 am.
 Sales came at Rp5.8tn in 2Q21, +2% YoY/-21% QoQ. This brought the 1H21 sales figure to Rp13.2tn, +19% YoY, still
considered in line with consensus by forming 48% of the FY21E. Though segmental performance details have yet to be

published, we suspect weaker beverage division compared to last year due to lockdown in the Philippines—a major
export destination for MYOR.
 2Q21 gross margin came at 24.4%. Gross margin dropped by -5.8 ppt YoY/-5.3 ppt QoQ in 2Q21 and was at the lowest
level since 2018. We suspect gross margin in 2Q21 was pressured by commodity price surge (such as for CPO-related
products, sugar, flour) and product mix.
 2Q21 operating profit declined by -49% YoY to Rp250bn, as lower opex YoY could not fully alleviate gross margin
impact. The 1H21 operating profit of Rp1.2tn, +2% YoY, missed consensus by only forming 36% of the FY21E.
 Net profit in 2Q21 reached Rp108bn vs. Rp7bn last year, mainly due to lesser forex loss YoY despite soft operational
performance during the quarter. Therefore, the 1H21 earnings of Rp931bn (-1% YoY) only missed consensus by a small
margin. However, from the core profit perspective, it decreased by -63% YoY to Rp134bn in 2Q21.
MYOR 2Q21/1H21 RESULT SUMMARY

Rp bn 6M21 6M20 % YoY 2Q21 2Q20 % YoY 1Q21 % QoQ % of CONS
Net sales 13,154 11,082 18.7% 5,818 5,703 2.0% 7,335 -20.7% 47.5%
COGS 9,561 7,703 24.1% 4,400 3,980 10.5% 5,161 -14.7%
Gross profit 3,593 3,379 6.3% 1,418 1,722 -17.7% 2,175 -34.8% 43.5%
Selling expense 1,959 1,814 8.0% 974 1,073 -9.2% 986 -1.2%
G&A expense 388 349 11.0% 195 163 19.3% 193 0.8%
Operating profit 1,246 1,216 2.4% 250 486 -48.7% 996 -74.9% 35.6%
Pretax profit 1,241 1,229 1.0% 153 (37) -517.6% 1,089 -86.0% 38.2%
Net profit 931 938 -0.8% 108 7 1420.9% 823 -86.9% 37.9%
Core profit 836 840 -0.5% 134 362 -63.1% 702 -80.9%
Gross margin 27.3% 30.5% -3.2% 24.4% 30.2% -5.8% 29.6% -5.3%
Operating margin 9.5% 11.0% -1.5% 4.3% 8.5% -4.2% 13.6% -9.3%
Pre-tax margin 9.4% 11.1% -1.7% 2.6% -0.6% 3.3% 14.8% -12.2%
Net margin 7.1% 8.5% -1.4% 1.9% 0.1% 1.7% 11.2% -9.4%
Source: Mandiri Sekuritas, Company, Bloomberg

Puradelta Lestari 2Q21: Slow Quarter, Below Estimates (DMAS; Rp196; Buy; TP: Rp300)
 DMAS booked dismal 2Q21 revenues with minor recognition from residential and commercial sales, without industrial
sales. 1H21 revenue of IDR 534bn, +130%, was below expectations at 28% of FY forecasts. Management also provided
that its planned land conversion to increase its industrial segment had finally concluded, although its enquiries has
stagnated at a low level. We maintain Buy on DMAS.
 2Q21 revenue of IDR 46bn, -91% qoq, -68% yoy. DMAS’ saw a slow quarter in 2Q21 as revenue recognition came only
from smaller past sales in the residential and commercial segments. The industrial segment did not see any revenues due
to the timing issues as most of the handovers is scheduled for 2H21. Total 2Q21 revenue was just IDR 46bn, -91% qoq, -
68% yoy. 1H21 revenue of IDR 580bn was a strong +130% yoy increase, however continued to be driven by the strong
1Q21 performance when three industrial handovers took place. 1H21 revenue recognition formed just 28% of our and
consensus’ full-year forecasts, below estimates. Management expects a significantly stronger 2H21 recognition schedule
on expected handover timing.

 Optical GPM increase, dismal EBIT. Optical margin increase occurred in 2Q21 at a blended 62% due to the recognition
mix as the residential and commercial segments are typically higher margin segments compared to industrial sales.
However, operating profit amounted to just IDR 1bn due to festive season payment coinciding with the low revenue
recognition. 1H21 operating profit of IDR 269bn continued to be driven by the strong 1Q21 and formed just 29% of our
FY forecast and 26% of consensus’, below estimates.
 PATMI below expecations. Non-operating line items included estate management fees which grew +71% yoy as
tenancy improves in the industrial estate. Meanwhile, non-cash interest expenses on customer advances as per PSAK 72
fell -41% yoy due to lower revenue backlog. 1H21 PATMI of IDR 289bn, +266% yoy, formed 29%/26% of our and
consensus’ respective FY estimates, below estimates. At the core profit level, DMAS achieved IDR 319bn in 1H21, 32% of
our FY forecast.
 Land conversion of 273ha, inquiries still stagnant at 50ha. DMAS has provided that 273ha of residential and
commercial land were converted into industrial land in 2Q21 to overcome its depleting industrial land. This was per
management’s earlier guidance, albeit with some delay. Its enquiries meanwhile have remained stagnant at 50ha, mainly
driven by data centre companies, and remains significantly below its peak 100-150ha enquiries levels in 2019-2020.
 We have a Buy on DMAS as it remains the best investment proxy among peers.
DMAS 2Q21 RESULTS VS ESTIMATES

IDRbn 1Q21 2Q21 1Q20 2Q20 QoQ % YoY% 6M20 6M21 YoY% 2021F 2021C % of target % of cons
Revenue 534 46 108 145 -91% -68% 253 580 130% 2,105 2,063 28% 28%
Gross profit 306 29 73 96 -74% -70% 169 335 98% 1,162 1,223 29% 27%
Operating profit 268 1 34 44 -75% -98% 78 269 246% 937 1,038 29% 26%
Net profit 271 18 53 26 -74% -30% 79 289 266% 988 1,099 29% 26%
Core profit 285 3 61 13 -74% -77% 133 319 141% 987 32%
Gross margin 57% 62% 68% 66% 67% 58% 55% 59%
Operating
50% 2% 32% 30% 31% 46% 45% 50%
margin
Net margin 51% 39% 50% 18% 31% 50% 47% 53%
Breakdown
Revenue 534 46 108 145 -91% -68% 253 580 130%
Residence 92 9 16 3 -90% 192% 20 101 414%
Industrial 436 (0) 46 136 -100% -100% 182 436 139%
Commercial 1 32 39 (0) 3580% NM 39 33 -16%
Rental 2 2 3 2 -1% -6% 5 4 -20%
Hotel 3 3 3 3 -5% -18% 7 6 -13%
Gross Margins 57.4% 62.0% 67.9% 66.1% 66.9% 57.7%

Residence 54.0% 57.4% 68.2% 62.5% 67.3% 54.3%
Industrial 57.9% 100.0% 58.2% 65.9% 64.0% 57.9%
Commercial 83.6% 62.3% 78.2% 47.4% 78.2% 62.9%
Rental 31.4% 31.3% 52.6% 36.6% 45.8% 31.3%
Hotel 94.2% 93.5% 91.6% 93.5% 92.6% 93.9%
Source: Company, Bloomberg, Mandiri Sekuritas estimates
Robin Sutanto (+6221 5296 9572) robin.sutanto@mandirisek.co.id

Siloam Hospital: Quick KTA from SILO 2Q21 Earnings Call (SILO; Rp8,375; Buy; TP: Rp9,000)
 EBITDA guidance 20-25%yoy growth in 3Q21. No guidance for FY21 or for revenue. EBITDA margin is expected to be
stable at c. 25%.
 Co confirmed robust result in 2Q21 was due to the comeback of base case (non covid) thanks to continuous effort and
program in each hospitals to proactively encourage patients to return to hospitals. Inpatient days 1H21 was -14% of 1H19
(pre-covid). Surgeries 1H21 was -10% of 1H19. Outpatient 1H21 was -13% of 1H19. In Jun-21 alone, base case already
return to pre-covid level. Base case temporarily declined toward end of Jun-21 to date due to PPKM.
 1H21 private revenue (out-of-pocket, corporate, insurance) was 73% of revenue. BPJS 12% revenue. MOH 15% revenue.
 Expect covid revenue stream to sustain in the medium term, albeit at fluctuating magnitude. Coexisting covid and base
case. 1H21 corporate & insurance clients +82%yoy and 5 biggest clients revenue +62%yoy. These clients will drive base
case going fwd. SILO also has Siloam Corporate Elite (new product launched during covid time) - special services for
corporate clients in exchg for faster access to care, access to mgmt, shorter wait time.
 Revenue from insurance in 2Q21 was 90%+ compared to best quarter pre covid (1Q21 75%). Corporate revenue beyond
the best pre covid. BPJS contribution declined to 15-17% now vs 25-27% pre covid.
 Medical tourism. Saw upside from base case due to travel ban, esp in oncology (cancer) and heart fields. Hope to retain
these patients.
 Price restructuring from procedure packaging program (uniforming prices throughout the chain) contributed Rp25-30bn
earnings impact in 2Q21. There’ll be annual impact from this initiatives. Over next 3-5 yr 400-500bps ebitda margin
increment from this program.
 Way to turnaround the loss-making hospitals: 1) getting good clinical talent and program in place; 2) developing
corporate relationship across these hospitals; 3) manage costs; 4) tailwinds from Covid cases. Out of the 18 loss-making
hospitals in the “ramping-up” segment , SILO will make reorganization in 3Q21 as some no longer require special
attention. This will also bring down effective tax rate to 30% in 2021 and 25% in 1-2 year.
 AR provision of Rp120bn in 1H21, nothing written off and no bad debt only co’s prudent accounting policy. 90% of the
provision is for covid outstanding payment from Kemenkes. AR days for covid payment from Kemenkes c 4-6 months, but
has improved in the past weeks. Provision will be reversed in later part of 2021.

Surya Citra Media: 2Q21 Results - Strong Revenue and Earnings Recovery (SCMA; Rp2,240; Neutral; TP: Rp2,400)
 SCMA just released the newspaper version of its 2Q21 results, showing strong revenue/earnings growth at 46.0%
YoY/36.8% YoY. Programming cost and opex increased higher than revenue growth but was still manageable, in our
view. All in, we highlight potential upside risks on SCMA from earnings forecast upgrade and valuation unlock in Vidio.
 2Q21 Revenues of Rp1.54tn (+46.0% YoY, +9.9% QoQ) beat our estimate by 7.1%. On 6-month basis, SCM booked
Rp2.95tn Revenues in 6M21, up 24.8% YoY and forming 53.2%/53.6% of our/consensus FY21 Revenue estimates.
 2Q21 Operating Profit of Rp465bn (+18.4% YoY, +2.5% QoQ) beat our estimate by 12.8%. Programming and
broadcasting expenses increased 77.9% YoY in 2Q21, significantly higher than revenue growth but still manageable.
Meanwhile operating expenses increased 37.8% YoY in 2Q21. As a result, operating margin declined 702bps to 30.1% in
2Q21. On 6-month basis, SCM booked Rp919bn Operating Profit in 6M21, up 13.7% YoY and forming 64.8%/58.3% of
our/consensus FY21 Operating Profit estimates.

 2Q21 PATAMI of Rp396bn (+36.8% YoY, +19.4% QoQ) beat our estimate by 15.9%. SCM booked Rp34bn of non-
operating income in 2Q21 vs. Rp26bn non-operating expenses in 2Q20. This can be attributed to Rp45bn of net other
income in 2Q21 vs. Rp32bn of other expenses in 2Q20. Interest expenses declined 19.6% QoQ in 2Q21 as the company
has repaid Rp549bn bank loans on YTD basis. On 6-month basis, SCM booked Rp727bn PATAMI in 6M21, up 21.0% YoY
and forming 64.0%/60.4% of our/consensus FY21 PATAMI estimates.
 Rating remains unchanged. Despite strong results in 2Q21, we expect SCMA as well as other media peers to see
revenue and earnings growth slowdown in 2H21. This can be attributed to the stricter social distancing in early 3Q21
which could have hampered the profitability of FMCG companies and weakened consumers’ purchasing power.
However, we highlight potential upside risks from earnings forecast upgrade and valuation unlock in Vidio. Currently
SCMA is trading at 24.9x/20.3x PER’21F/’22F vs. its long-term average at 16.9x.
SCMA: 2Q21 RESULTS

% of % of
vs
in Rp bn 2Q20 1Q21 2Q21 2Q21F YoY QoQ 6M20 6M21 YoY FY21 FY21
Mansek's
Cons. Mansek
Revenues 1,057 1,404 1,543 1,441 46.0% 9.9% 7.1% 2,361 2,947 24.8% 53.6% 53.2%
Program and broadcasting

407 649 724 701 77.9% 11.6% 3.3% 988 1,373 39.0%
expenses
Gross Profit 650 755 819 740 26.1% 8.5% 10.7% 1,373 1,574 14.6%
% Margin 61.5% 53.8% 53.1% 51.4% -840 bps -69 bps 172 bps 58.2% 53.4% -475 bps
Operating expenses 257 301 354 328 37.8% 17.7% 8.0% 565 655 15.9%
Operating profit 393 454 465 412 18.4% 2.5% 12.8% 808 919 13.7% 58.3% 64.8%
% Margin 37.2% 32.3% 30.1% 28.6% -702 bps -220 bps 153 bps 34.2% 31.2% -305 bps
Interest income 9 4 3 5 -59.7% -18.2% -30.2% 15 8 -49.8%

Interest expense (0) (18) (14) (12) n.a. -19.6% 19.0% (1) (32) n.a.
Share of profit (loss) of
(2) 10 (0) 8 -82.2% n.a. n.a. 4 9 n.a.
associated companies
Others (32) 2 45 - n.a. n.a. n.a. (8) 47 n.a.
Total other income (losses) (26) (2) 34 1 n.a. n.a. n.a. 11 32 n.a.
Pretax profit 367 452 499 413 36.2% 10.5% 20.8% 819 951 16.1%
Tax expense (92) (103) (101) (87) 9.6% -2.1% 15.9% (216) (203) -6.0%
% Tax rate 25.0% 22.7% 20.1% 21.0% -489 bps -260 bps -85 bps 26.4% 21.4% -503 bps
PAT 275 349 399 326 45.1% 14.2% 22.1% 603 748 24.1%
% margin 26.0% 24.9% 25.8% 22.7% -17 bps 97 bps 318 bps 25.5% 25.4% -16 bps
Minority interest (15) 18 3 (15) n.a. -83.7% n.a. 2 20 986.6%
PATAMI 289 332 396 341 36.8% 19.4% 15.9% 601 727 21.0% 60.4% 64.0%
% margin 27.4% 23.6% 25.6% 23.7% -173 bps 203 bps 196 bps 25.4% 24.7% -77 bps
Source: Company Data, Mandiri Sekuritas Research
Henry Tedja, CFA (+6221 5296 9434) henry.tedja@mandirisek.co.id


United Tractors: Rosy Earnings Outlook (UNTR; Rp19,750; Buy; TP: Rp28,500)
 UNTR’s 1H21 earnings were in line with our forecast. Record-high coal prices will support demand for equipment, with
management guidance of 2,500 units for this year, which we believe is still far from the record high of 8,500 in 2011. The
valuation remains attractive at 7.8x/7.5x 2021F PE despite rosy earnings outlook. Maintain Buy, with Rp28,500 TP.
 1H21 net profit was in line. United Tractors (UNTR) reported a 2Q21 net profit of Rp2.6tn (+45% YoY/+42% QoQ). This
brings a 1H21 net profit of Rp4.5tn (+11% YoY), accounting for 48%/50% of our/consensus forecasts. Revenue in 1H21
increased to Rp37.3tn (+12% YoY), driven by strong growth from construction machinery/Komatsu (+29% YoY) and coal
mining (+23% YoY) amid strong coal price of USD 150/ton (+86% YTD). Meanwhile, Pama was flattish (+3% YoY), dragged
by weak revenue in 1Q21 due to lower overburden. We expect stronger earnings in 2H21, given record high coal prices
that support 1) higher equipment sales from the mining sector; and 2) higher margins on its coal mining unit. On another
front, Pama will also benefit from the government’s plan to increase production in 2H21 to achieve higher national
production, to 625mn tons from 550mn tons in 2020.
 Key points to highlight in 2Q21: 1) Pama’s revenue grew strongly (+4% YoY/+22% QoQ) in 2Q21 due to higher
overburden (+5% YoY) and higher fees. 2) Revenues from construction machinery were strong (+16 YoY/+16% QoQ) due
to higher sales volume (+18% YoY). Record-high coal prices will increase demand for big machines, estimated at 16% of
total sales, with potential upgrade on the current guidance of 2,500 units (+67% YoY) for this year. Revenues from parts-
and-services also rebounded strongly (+24% YoY) in 2Q21 due to more optimism on coal price outlook. 3) Revenues from
coal mining (+5% YoY/-11% QoQ) were mainly due to higher sales volume (+5% YoY). 2Q coal sales were generally lower
due to logistic issues and will gradually recover in 3Q. 4) Revenues from gold mining (+8% YoY/-6% QoQ) were mainly
due to higher ASP (+10% YoY) despite lower sales (-10% YoY).
 Maintain Buy, with TP of Rp28,500. We still like UNTR for its strong earnings outlook for this year, mainly driven by
record-high coal prices, which will support demand for Komatsu equipment, increase Pama’s coal production outlook
with lesser fee discounts, and improve margins on its coal mining unit. We think Komatsu sales were still far from the
historical peak at 8,500 units in 2011, despite record-high coal price at USD 150/ton vs. USD 120/ton in 2011. We believe
UNTR’s valuation remains attractive at 7.8x/7.5x 2021F PE, which is still historically low, despite strong earnings outlook.
RESULT SUMMARY
FYE Dec (Rp bn) 2Q21 1Q20 yoy 1Q21 qoq 6M21 6M20 yoy FY21F YTD % of cons
Revenues
Construction
5,041 4,349 16% 4,349 16% 9,390 7,270 29% 18,875 50%
machinery
Mining contracting 8,474 8,170 4% 6,969 22% 15,443 15,057 3% 31,338 49%
Mining 3,541 3,366 5% 3,958 -11% 7,499 6,078 23% 10,517 71%
Contractors 256 475 -46% 380 -33% 636 746 -15% 5,412 12%
Gold 2,100 1,953 8% 2,242 -6% 4,342 4,039 8% 9,634 45%
Total revenue 19,412 18,313 6% 17,898 8% 37,310 33,190 12% 75,776 49% 53%
Cost of Revenue 14,925 14,056 6% 14,361 4% 29,286 25,931 13% 58,392 50% 54%
Gross Profit 4,487 4,257 5% 3,537 27% 8,024 7,259 11% 17,384 46% 48%
Operating expense 993 1059 -6% 994 0% 1,988 1,955 2% 4,774 42% 43%
Operating Income 3,494 3,198 9% 2,542 37% 6,036 5,304 14% 12,610 48% 50%
Pretax income 3,711 2,586 43% 2,484 49% 6,195 4,995 24% 12,634 49% 54%
Net Profit 2,649 1,823 45% 1,867 42% 4,516 4,061 11% 9,476 48% 51%
Gross margin 23% 23% 20% 22% 22% 23%

Operating margin 18% 17% 14% 16% 16% 17%
Net margin 14% 10% 10% 12% 12% 13%
Source: Company, Mandiri Sekuritas estimates

UNTR QUARTERLY OPERATIONAL NUMBERS

UNTR monthly data 2Q21 2Q20 YoY % 1Q21 QoQ 6M21 6M20 YoY % FY21F YTD
Pama - coal production (mn tons) 30.7 27.8 10% 27.2 13% 57.9 55.6 4% 114 51%
Pama - coal overburden (mn bcm) 219.0 208.4 5% 190.0 15% 409.0 420.8 -3% 819 50%
SR 7.1 7.5 7.0 7.1 7.6 7.2
Komatsu sales (units)

Agro 65 44.4 46% 71 -9% 136 104 30%
Construction 183 88.4 106% 210 -13% 392 258 52%
Forestry 95 19.6 384% 126 -25% 220 185 19%
Mining 333 83.6 298% 282 18% 615 307 100%
Total 673 236.0 185% 688 -2% 1,363 853 60% 2,000 68%
Coal sales volume 2.6 2.5 5% 3.7 -31% 6.3 5.6 12% 9.5 66%
Gold (toz) 81,000 90,000 -10% 95,000 -15% 176,000 184,000 -4% 360,000 49%
Source: Company
Ariyanto Kurniawan (+6221 5296 9682) ariyanto.kurniawan@mandirisek.co.id

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

Indices and Fund Flows Currencies and Bonds Major Commodities
YTD Chg YTD YTD

Indices Last Chg (%) Currency Last Chg (%) Last Chg (%)
(%) Chg (%) Chg (%)
JCI 6,120.7 +0.5 +2.4 Rp/US$ 14,441 -0.20 -2.7 Crude Oil, WTI (US$/bl) 73.62 +1.7 +51.7
Dow Jones 35,084.5 +0.4 +14.6 US$/EUR 1.189 +0.35 +2.8 Copper (US$/mt) 9,824 +1.4 +26.5
Nikkei 27,782.4 +0.7 +1.2 YEN/US$ 109.48 -0.39 -5.7 Nickel (US$/mt) 19,835 +1.5 +19.4
Hang Seng 26,315.3 +3.3 -3.4 SGD/US$ 1.353 -0.26 -2.3 Gold (US$/oz) 1,828 +1.2 -3.7
STI 3,180.6 +1.2 +11.8 Tin 3-month (US$/mt) 34,898 +1.5 +71.7
Ishares indo 20.2 +0.6 -13.8 CPO futures (Ringgit/ton) 4,427 +2.8 +23.0
Coal (US$/ton) 150.0 -0.1 +86.3
Foreign YTD
YTD Gov. Bond Chg
Fund Flows Last Chg Last Chg Rubber forward (US¢/kg) 189.8 +1.0 -14.7
Chg Yield (bps)
(US$mn) (bps)
Soybean oil
Equity Flow +3.5 +1,298 5Yr 5.18 -3 -3 66.93 +0.6 +54.5
(US$/100gallons)
Bonds Flow -82.0 +309 10Yr 6.30 -1 +42 Baltic Dry Index 3,154.0 +0.0 +130.9

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 6,121 6,850 11.9 4,195,774 235,670 276,927 17.8 15.2 2.1 2.0 13.0 12.2 47.4% 17.5% 2.7% 2.9%
Banking 1,873,115 87,743 113,942 21.2 16.6 2.3 2.1 N.A. N.A. 39.0% 29.9% 1.9% 2.4%
BBCA Buy 30,200 38,000 25.8 744,581 30,524 34,015 24.4 21.9 4.0 3.6 N.A. N.A. 12.5% 11.4% 1.9% 2.0%
BBNI Buy 4,930 8,000 62.3 91,938 9,021 15,727 10.2 5.8 0.8 0.7 N.A. N.A. 175.0% 74.3% 0.9% 2.5%
BBRI Buy 3,770 5,200 37.9 557,437 28,840 39,497 19.3 14.1 2.0 1.8 N.A. N.A. 28.2% 37.0% 3.1% 4.3%
BBTN Buy 1,350 2,200 63.0 14,297 2,153 2,660 6.6 5.4 0.7 0.6 N.A. N.A. 34.4% 23.5% 0.1% 0.0%
BDMN Buy 2,170 4,100 88.9 21,208 3,538 4,034 5.9 5.2 0.5 0.4 N.A. N.A. 71.5% 14.0% 3.4% 5.8%
BJBR Neutral 1,225 1,700 38.8 12,053 1,744 2,023 6.9 6.0 1.0 0.9 N.A. N.A. 11.3% 16.0% 8.0% 8.2%
BJTM Buy 690 900 30.4 10,352 1,557 1,810 6.6 5.7 1.0 0.9 N.A. N.A. 10.0% 16.3% 7.3% 7.6%
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 1,915 2,900 51.4 88,081 1,170 2,366 53.3 40.9 2.4 3.1 N.A. N.A. 10.5% 30.4% 0.0% 0.0%
PNBN Buy 755 1,400 85.4 18,182 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 2,410 4,500 86.7 18,566 1,597 2,286 11.6 8.1 2.6 2.0 N.A. N.A. 87.3% 43.1% 1.1% 2.2%
BFIN Buy 965 475 (50.8) 14,441 841 1,196 17.2 12.1 2.0 1.8 N.A. N.A. 7.7% 42.3% 1.6% 2.0%
ARTO Buy 18,375 16,000 (12.9) 254,609 -103 58 -2,461.2 4,382.8 31.7 31.5 N.A. N.A. 57.2% N/M 0.0% 0.0%
AMOR Buy 3,260 4,400 35.0 3,622 107 188 33.8 19.3 12.5 12.1 26.0 14.7 28.1% 75.1% 2.8% 4.9%
Construction & materials 143,293 4,888 7,486 29.3 19.1 1.2 1.1 12.4 10.6 N/M 53.1% 1.2% 1.3%
INTP Buy 9,200 14,500 57.6 33,867 2,003 2,586 16.9 13.1 1.3 1.2 7.2 5.6 19.8% 29.1% 1.7% 2.1%
SMGR Buy 8,025 11,020 37.3 47,600 2,825 3,387 16.9 14.1 1.3 1.3 7.6 6.9 12.1% 19.9% 2.0% 2.1%
ADHI Neutral 700 890 27.1 2,493 93 234 26.8 10.7 0.4 0.4 8.2 7.2 288.0% 151.3% 0.2% 0.7%
PTPP Neutral 860 1,050 22.1 5,332 274 348 19.5 15.3 0.5 0.5 9.1 7.9 112.9% 26.9% 0.7% 1.5%
WIKA Neutral 970 1,100 13.4 8,691 282 470 30.8 18.5 0.6 0.6 13.6 11.1 52.0% 66.5% 0.6% 1.1%
WSKT Neutral 890 1,030 15.7 11,909 -1,261 -1,909 -9.4 -6.2 1.9 2.7 66.1 42.5 82.9% -51.4% 0.0% 0.0%
WTON Neutral 230 270 17.4 2,005 95 190 21.0 10.5 0.6 0.5 6.7 5.3 -25.6% 99.8% 1.9% 1.4%
WSBP Neutral 131 140 6.9 3,453 -510 -484 -6.8 -7.1 5.3 8.3 41.0 32.6 89.3% 5.1% 0.0% -7.4%
JSMR Buy 3,850 6,640 72.5 27,943 1,087 2,663 25.7 10.5 1.4 1.3 11.6 10.0 117.0% 145.0% 0.4% 0.8%
Consumer staples 663,432 39,893 46,368 16.6 14.3 3.2 3.0 10.7 9.8 -6.4% 16.2% 4.6% 4.4%
ICBP Buy 8,350 12,250 46.7 97,377 6,674 7,670 14.6 12.7 3.0 2.6 11.0 10.1 1.3% 14.9% 3.4% 3.4%
INDF Buy 6,375 9,800 53.7 55,972 5,558 6,207 10.1 9.0 1.3 1.2 7.1 7.0 -13.9% 11.7% 6.9% 5.9%
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 4,330 5,750 32.8 165,190 6,027 6,647 27.4 24.9 44.5 39.0 19.1 17.7 -15.9% 10.3% 4.3% 3.6%
GGRM Buy 34,825 46,550 33.7 67,006 6,337 7,797 10.6 8.6 1.1 1.0 7.2 6.3 -17.1% 23.0% 5.7% 5.7%
HMSP Buy 1,085 1,750 61.3 126,205 8,189 9,964 15.4 12.7 4.2 4.0 10.3 8.7 -4.6% 21.7% 6.9% 6.6%
KLBF Buy 1,295 1,900 46.7 60,703 2,842 3,180 21.4 19.1 3.2 2.9 14.2 12.8 4.1% 11.9% 2.3% 2.6%
SIDO Buy 800 980 22.5 24,000 1,011 1,136 23.7 21.1 7.1 6.8 17.7 16.1 10.9% 12.4% 3.7% 4.1%
MLBI Buy 7,700 13,250 72.1 16,224 1,063 1,299 15.3 12.5 12.4 10.5 9.8 8.2 656.9% 22.1% 0.9% 6.6%
Healthcare 67,935 1,860 1,680 36.5 40.4 4.6 4.3 15.2 15.9 30.0% -9.7% 1.0% 0.9%
MIKA Buy 2,590 3,200 23.6 36,898 1,099 1,016 33.6 36.3 6.5 5.9 22.7 25.1 30.6% -7.6% 0.9% 1.2%
SILO Buy 8,375 9,000 7.5 13,616 225 218 60.6 62.6 2.3 2.2 8.9 8.6 93.5% -3.2% 1.7% 0.5%
HEAL Buy 5,850 6,500 11.1 17,421 536 446 32.5 39.1 5.8 5.2 13.4 14.8 13.3% -16.9% 0.4% 0.5%
Consumer discretionary 287,050 24,340 28,796 11.8 10.0 1.4 1.2 8.2 7.2 29.2% 18.3% 3.1% 3.6%
ACES Buy 1,325 1,750 32.1 22,724 779 1,027 29.2 22.1 4.2 3.9 19.4 15.1 6.3% 31.8% 2.4% 2.6%
LPPF Buy 1,815 2,000 10.2 4,766 224 839 21.3 5.7 5.9 2.9 5.3 2.2 N/M 274.6% 0.0% 0.0%
MAPA Buy 1,750 3,500 100.0 4,988 385 693 13.0 7.2 1.5 1.2 5.9 3.4 18405.2% 80.2% 0.0% 0.0%
MAPI Buy 630 1,157 83.6 10,458 605 1,023 17.3 10.2 1.8 1.5 5.1 3.7 N/M 69.1% 0.0% 1.2%
RALS Neutral 635 900 41.7 4,506 -41 148 -108.9 30.4 1.2 1.2 55.5 9.4 70.2% N/M 0.0% 0.0%
ERAA Buy 660 950 43.9 10,493 894 1,000 11.7 10.5 1.8 1.6 6.4 6.1 -70.8% 11.9% 3.1% 3.4%
ASII Buy 4,650 6,300 35.5 188,249 18,223 19,950 10.3 9.4 1.1 1.1 8.3 7.8 12.7% 9.5% 3.9% 4.4%
SCMA Neutral 2,240 2,200 (1.8) 28,338 1,137 1,397 24.9 20.3 6.6 5.4 17.2 14.6 -1.0% 22.9% 1.2% 1.7%
MNCN Buy 810 1,300 60.5 10,716 2,005 2,516 5.3 4.3 0.7 0.6 3.6 2.8 14.7% 25.5% 2.8% 4.7%
PZZA Buy 600 750 25.0 1,813 130 202 14.0 9.0 1.3 1.2 5.4 4.3 N/M 55.5% -0.1% 3.6%
Commodities 360,857 28,085 29,497 12.8 12.2 1.5 1.4 5.4 5.1 137.1% 5.0% 3.1% 3.1%
UNTR Buy 19,750 28,500 44.3 73,670 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 1,325 1,800 35.9 42,381 398 379 7.5 7.9 0.7 0.7 3.1 2.8 171.0% -4.7% 4.7% 4.5%
INDY* Buy 1,380 1,750 26.8 7,190 76 96 6.7 5.3 0.6 0.6 2.0 2.3 N/M 27.4% 3.7% 4.8%

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 17,050 22,000 29.0 18,696 212 184 6.2 7.2 1.5 1.4 3.1 3.5 438.3% -13.6% 13.7% 11.8%
PTBA Buy 2,240 3,250 45.1 25,810 3,648 3,797 7.0 6.8 1.4 1.3 7.6 6.9 52.8% 4.1% 10.6% 11.0%
ANTM Buy 2,590 3,300 27.4 62,240 2,264 2,270 27.5 27.4 2.6 2.5 15.0 14.4 97.0% 0.3% 1.3% 1.3%
INCO* Neutral 5,400 5,200 (3.7) 53,656 127 164 29.8 23.1 1.8 1.6 10.0 8.4 53.4% 28.9% 0.0% 0.0%
TINS Sell 1,635 1,200 (26.6) 12,177 312 312 39.0 39.0 2.2 2.2 13.2 12.8 N/M -0.1% 0.9% 0.9%
MDKA* Buy 2,970 3,300 11.1 65,036 60 115 76.3 39.7 7.7 6.5 22.7 15.6 66.1% 92.0% 0.0% 0.0%
Property & Industrial Estate 98,166 8,127 8,705 12.1 11.3 0.8 0.7 8.2 7.9 105.3% 7.1% 2.0% 2.0%
ASRI Buy 160 250 56.3 3,144 485 524 6.5 6.0 0.3 0.3 7.2 6.6 N/M 8.0% 1.3% 1.3%
BSDE Buy 935 1,630 74.3 19,795 956 1,638 20.7 12.1 0.6 0.6 11.1 7.7 27.8% 71.2% 0.0% 0.0%
CTRA Buy 890 1,360 52.8 16,519 1,096 1,111 15.1 14.9 1.0 1.0 9.0 9.1 -17.0% 1.4% 1.3% 1.1%
SMRA Buy 755 960 27.2 10,892 604 682 18.0 16.0 1.3 1.2 10.1 9.7 43.8% 12.9% 0.7% 0.7%
JRPT Buy 456 750 64.5 6,270 917 891 6.8 7.0 0.8 0.7 5.9 5.8 -0.9% -2.8% 4.4% 4.4%
PWON Buy 426 680 59.6 20,516 2,046 2,320 10.0 8.8 1.3 1.1 7.6 6.7 101.5% 13.4% 1.4% 1.4%
LPKR Neutral 147 210 42.9 10,377 913 215 11.4 48.3 0.4 0.4 6.2 9.3 N/M -76.5% 0.7% 0.7%
DMAS Buy 196 300 53.1 9,447 988 1,158 9.6 8.2 1.6 1.6 9.1 7.5 11.7% 17.2% 10.7% 10.7%
BEST Neutral 125 130 4.0 1,206 122 167 9.9 7.2 0.3 0.3 8.8 7.8 14.2% 37.4% 0.8% 1.2%
Telecom 535,387 30,737 31,524 17.4 17.0 3.2 2.9 6.4 6.0 32.1% 2.6% 3.3% 3.3%
EXCL Buy 2,540 3,300 29.9 27,050 1,596 2,066 16.9 13.1 1.3 1.2 4.3 4.0 329.5% 29.5% 0.8% 1.3%
TLKM Buy 3,230 4,200 30.0 319,971 20,506 23,496 15.6 13.6 2.9 2.7 5.6 5.2 7.8% 14.6% 4.7% 4.8%
ISAT Buy 6,000 7,500 25.0 32,604 3,372 439 9.7 74.2 2.1 2.1 4.6 4.2 N/M -87.0% 0.0% 0.0%
LINK Buy 4,530 4,500 (0.7) 12,853 925 942 14.5 14.2 2.3 2.0 6.4 6.1 0.1% 1.8% 2.2% 2.2%
TBIG Buy 3,160 2,500 (20.9) 68,354 1,467 1,512 46.6 45.2 10.7 9.4 18.5 17.6 29.9% 3.1% 0.9% 0.9%
TOWR Buy 1,485 1,500 1.0 74,555 2,872 3,068 26.0 24.3 6.3 5.5 13.2 12.5 12.5% 6.8% 1.6% 1.6%
Transportation 2,752 6 217 482.3 12.7 0.5 0.5 7.0 4.9 N/M N/M 0.0% 1.6%
BIRD Buy 1,100 1,530 39.1 2,752 6 217 482.3 12.7 0.5 0.5 7.0 4.9 N/M 3703.9% 0.0% 1.6%
Poultry 125,252 7,683 5,626 16.3 22.3 3.0 2.8 9.8 11.9 62.8% -26.8% 1.8% 2.5%
CPIN Buy 6,375 7,500 17.6 104,537 4,610 3,757 22.7 27.8 4.0 3.8 14.6 16.8 20.0% -18.5% 1.8% 2.2%
JPFA Buy 1,630 2,700 65.6 19,114 2,778 1,672 6.9 11.4 1.4 1.4 4.6 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 38,534 2,307 3,087 16.7 12.5 0.9 0.9 5.9 5.2 N/M 33.8% 1.5% 3.1%
AKRA Buy 3,590 4,500 25.3 14,171 1,142 1,415 12.4 10.0 1.5 1.4 8.5 7.6 24.3% 23.9% 4.0% 5.0%
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

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.

Investor Digest: Highlight

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INVESTOR DIGEST

Equity Research | 30 July 2021

Economic Data HIGHLIGHT

Jul-21 CPI Preview: Likely a Small Inflation

Please see important disclosure at the back of this report Page 1 of 23

MS Forecast Market Consensus

FOOD PRICE IS LIKELY DEFLATED IN JUL-2021

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

Construction: The Builders’ Corner – July 2021

Please see important disclosure at the back of this report Page 2 of 23

NEW-CONTRACTS ACHIEVEMENTS IN 6M21 (IN RP BN)

ASSET RECYCLING OF BIG 4 SOE CONTRACTS IN 6M21

CAPITAL STATE INJECTION FOR INFRA-RELATED COMPANIES IN 2021-22

Please see important disclosure at the back of this report Page 3 of 23

Company (in IDRtn) 2021 2022

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

Please see important disclosure at the back of this report Page 4 of 23

Gross Margin (%) 22% 23% 20% 21% 22%

Net profit breakdown

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

 Large addressable market

Please see important disclosure at the back of this report Page 5 of 23

Please see important disclosure at the back of this report Page 6 of 23

BBYB FY20 RESULTS SUMMARY

CASA to deposits (%) 9 12 13

Ratio (%) FY19 FY20 4Q19 3Q20 4Q20

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

Please see important disclosure at the back of this report Page 7 of 23

GGRM’S 2Q21 RESULTS

Revenue 60,587 12.9% 30,840 16.8% 3.7% 50% 49%

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

Please see important disclosure at the back of this report Page 8 of 23

 Additional 2Q21 volume disclosures:

HMSP 2Q21 RESULTS

Please see important disclosure at the back of this report Page 9 of 23

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

Please see important disclosure at the back of this report Page 10 of 23

INTP 2Q21 RESULTS

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

Please see important disclosure at the back of this report Page 11 of 23

JPFA’S 2Q21 RESULT SUMMARY

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

Please see important disclosure at the back of this report Page 12 of 23

KLBF 2Q21/1H21 RESULT SUMMARY

Growth trend, %yoy

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

Please see important disclosure at the back of this report Page 13 of 23

MYOR 2Q21/1H21 RESULT SUMMARY

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

Please see important disclosure at the back of this report Page 14 of 23

DMAS 2Q21 RESULTS VS ESTIMATES

Gross Margins 57.4% 62.0% 67.9% 66.1% 66.9% 57.7%

Source: Company, Bloomberg, Mandiri Sekuritas estimates

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

Please see important disclosure at the back of this report Page 15 of 23

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

Please see important disclosure at the back of this report Page 16 of 23

SCMA: 2Q21 RESULTS

Program and broadcasting

Interest income 9 4 3 5 -59.7% -18.2% -30.2% 15 8 -49.8%

Minority interest (15) 18 3 (15) n.a. -83.7% n.a. 2 20 986.6%

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

Please see important disclosure at the back of this report Page 17 of 23