[Indonesia] Retailer September 25, 2023

Ace Hardware Indonesia Buy

(ACES IJ) (Maintain)

Strong August SSSG performance TP: IDR950

Upside: 20.3%

Mirae Asset Sekuritas Indonesia

Rut Yesika Simak rut.simak@miraeasset.co.id
ri

Latest operational August SSSG still above the expectation

and financial update  ACES' SSSG decreased slightly to 10.3% in August 2023 from the 14.8% recorded in July when the
company held its 'Boom Sale' promotion. Cumulatively, in 8M23, ACES' SSSG of 7% YoY is well above its
previous guidance of 5%.
 The ex-Java region managed to achieve higher growth, reaching 13% in August 2023 and 11% in the
8M23 period, compared to Jakarta and the Java (ex-Jakarta) region, which only saw growth rates of 6%
and 4%, respectively, in the 8M23 period. These achievements are still considered in line with our
previous thesis, which suggested that the ex-Java region is expected to become ACES' growth driver.
 Indicative sales of IDR609bn in August 2023 are 16% higher YoY, despite being 7% lower MoM.
Cumulatively, in 8M23, indicative sales of IDR4,841bn are 11% higher YoY. This is in line with our previous
forecast, with a run rate of 65%. Notably, sales of air purifiers experienced a remarkable surge of 202%
MoM in August 2023. This is due to the bad air quality in some big cities. We anticipate that this situation
is likely to persist until the rainy season arrives.
 Due to higher-than-expected SSSG and operating expenses, we have decided to increase our projected
figures for both accounts, resulting in a slightly lower estimate for net profit. We believe that ACES' sales
could strengthen due to increased year-end purchases. Historically, fourth-quarter sales have
consistently been the highest throughout the year, accounting for approximately 26-29% of the full-year
total over the past five years. Therefore, we anticipate that ACES could achieve bottom-line growth, with
a YoY increase of 10.9% in 2023 and 12.7% in 2024.

Recommendation Fine-tuning our forecast; Maintain Buy recommendation for ACES

 We believe that the higher-than-expected SSSG figure in 8M23 and the potential for a higher sales
contribution in the fourth quarter of this year, therefore, we fine tune our forecast and have decided to
maintain our Buy recommendation for ACES with a higher TP of IDR950, reflecting 22x/20x of its 23F/24F
P/E ratio, which is equivalent to 0.9x the standard deviation from its average over the past 5 years.
 Investment risks: 1) Lower-than-expected SSSG in 4Q23, 2) A deeper-than-expected fall in the Rupiah
exchange rate.
Key data
(D-1yr=100)
JCI ACES Share Price (9/22/23, IDR) 790 Market Cap (IDRbn) 13,549
150
Consensus NP (23F, IDRbn) 705 Shares Outstanding (mn) 17,150
130
NP Mirae Asset vs. consensus (23F, %) 4.6 Free Float (%) 39.8
110
EPS Growth (23F, %) 10.9 Beta (Adjusted, 24M) 1.0
90

70
P/E (23F, x) 18.4 52-Week Low (IDR) 392
50 Industry P/E (Current, x) 21.1 52-Week High (IDR) 815
9/22 11/22 1/23 3/23 5/23 7/23 9/23
Benchmark P/E (23F, x) 14.6

Share performance Earnings and valuation metrics

(%) 1M 6M 12M (FY Dec. 31) 2020 2021 2022 2023F 2024F
Absolute 4.6 68.8 25.4 Revenue (IDRbn) 7,413 6,543 6,763 7,591 8,334
Relative 3.3 65.0 28.2 EBIT (IDRbn) 853 774 747 821 960
Net profit (IDRbn) 733 691 664 737 831
EPS (IDR) 43 40 39 43 48
BPS (IDR) 304 323 343 363 385
P/E (x) 18.5 19.6 20.4 18.4 16.3
P/B (x) 2.6 2.4 2.3 2.2 2.1
EV/EBITDA (x) 9.9 12.3 14.0 11.9 9.8
ROA (%) 10.6 9.6 9.2 9.7 10.2
ROE (%) 14.9 12.8 11.6 12.2 13.0
Dividend yield (%) 2.3 4.1 2.6 3.0 3.4
Note: Net profit refers to net profit attributable to controlling interests
Source: Company data, Mirae Asset Sekuritas Indonesia Research
Analysts who prepared this report are registered as research analysts in Indonesia but not in any other jurisdiction, including the US. PLEASE
SEE ANALYST CERTIFICATIONS AND IMPORTANT DISCLOSURES AND DISCLAIMERS IN APPENDIX 1 AT THE END OF REPORT.
September 25, 2023 Ace Hardware Indonesia

Strong SSSG performance and sales overview in August 2023

August SSSG still above expectation

ACES' SSSG decreased slightly to 10.3% in August 2023 from the 14.8% recorded in July when
the company held its 'Boom Sale' promotion. Cumulatively, in 8M23, ACES' SSSG of 7% YoY is
well above its previous guidance of 5%.

We see the ex-Java region managed to achieve higher growth, reaching 13% in August 2023
and 11% in the 8M23 period, compared to Jakarta and the Java (ex-Jakarta) region, which only
saw growth rates of 6% and 4%, respectively, in the 8M23 period. These achievements are still
considered in line with our previous thesis, which suggested that the ex-Java region is
expected to become ACES' growth driver.

Indicative sales of IDR609bn in August 2023 are 16% higher YoY, despite being 7% lower
MoM. Cumulatively, in 8M23, indicative sales of IDR4,841bn are 11% higher YoY. This is in line
with our previous forecast, with a run rate of 65%.

Figure 1. ACES’ 8M SSSG Figure 2. ACES’ monthly SSSG by region

(%) Jakarta Java Ex-Jakarta Ex-Java Total Sales (R) Jakarta (L)
(%) Java Ex-Jakarta (L) Ex-Java (IDRbn)
20
120 1,100
15

10 11
80 900
7
5 6
4
0 40 700

-5
0 500
-10

-15 -40 300

-20

-25 -80 100

8M18 8M19 8M20 8M21 8M22 8M23 8/18 8/19 8/20 8/21 8/22 8/23

Source: Company data, Mirae Asset Sekuritas Indonesia Research Source: Company data, Mirae Asset Sekuritas Indonesia Research

Figure 3. ACES’ Jakarta monthly SSSG Figure 4. ACES’ Java (ex-Jakarta) monthly SSSG

(%) Jakarta (%) Java Ex-Jakarta

120 120

90 90

60 60

30 30

0 0

-30 -30

-60 -60

-90 -90
8/18 2/19 8/19 2/20 8/20 2/21 8/21 2/22 8/22 2/23 8/23 8/18 2/19 8/19 2/20 8/20 2/21 8/21 2/22 8/22 2/23 8/23

Source: Company data, Mirae Asset Sekuritas Indonesia Research Source: Company data, Mirae Asset Sekuritas Indonesia Research

Mirae Asset Sekuritas Indonesia Research 2

September 25, 2023 Ace Hardware Indonesia

Figure 5. ACES’ ex. Java monthly SSSG Figure 6. ACES’ monthly SSSG

(%) Ex-Java (%) Total

60 90

60
30

30
0
0

-30
-30

-60 -60
8/18 2/19 8/19 2/20 8/20 2/21 8/21 2/22 8/22 2/23 8/23 8/18 2/19 8/19 2/20 8/20 2/21 8/21 2/22 8/22 2/23 8/23

Source: Company data, Mirae Asset Sekuritas Indonesia Research Source: Company data, Mirae Asset Sekuritas Indonesia Research

Sales of air purifiers surged by 202% MoM in August 2023 following worsening air quality in
several major cities such as Jabodetabek, Palembang, Bandung, Surabaya, Jambi, and
Denpasar (as of September 21,2023).

As a reference, good air quality typically falls within the US Air Quality Index (AQI) range of 0
to 50. According to the US EPA National Ambient Air Quality Standards (NAAQS), any
measurement exceeding 12.0 μg/m3 (US AQI 50) can pose health risks to humans. However,
as of September 21, 2023, the AQI in these cities falls within the range of 63-161. We anticipate
this situation is likely to persist until the rainy season arrives.

Table 1. Air quality index chart

US AQI level PM2.5 μg/m3 Health recommendation (for 24 hours exposure)
Good (0-50) 0-12.0 Air quality is satisfactory and poses little or no risk.
Moderate (51-100) 12.1-35.4 Sensitive individuals should avoid outdoor activity as they may experience respiratory symptoms.
Unhealthy for sensitive groups (101-150) 35.5-55.4 General public and sensitive individuals in particular are at risk to experience irritation and
respiratory problems.
Unhealthy (151-200) 55.5-150.4 Increased likelihood of adverse effects and aggravation to the heart and lungs among general
public.
Very unhealthy (201-300) 105.5-250.4 The general public will be noticeably affected. Sensitive groups should restrict outdoor activities.
Hazardous (301+) 250.5+ The general public at high risk of experiencing strong irritations and adverse health effects. Should
avoid outdoor activities.
Source: IQAir, Mirae Asset Sekuritas Indonesia Research

Figure 7. The concerning air conditions have led to an increase in air purifier purchases

Source: IQAir.com, Mirae Asset Sekuritas Indonesia Research

Mirae Asset Sekuritas Indonesia Research 3

September 25, 2023 Ace Hardware Indonesia

Figure 8. The air pollution condition in large cities is still concerning (as of September 21,
2023)

Cileungsir, West Java 161

South Tangerang, Banten 157

Jakarta, Jakarta 157

Palembang, South Sumatra 128

Bandung, West Java 124

Surabaya, East Java 65

Jambi, Jambi 65

Denpasar, Bali 63

(AQI level) 0 20 40 60 80 100 120 140 160 180

Source: IQAir.com, Mirae Asset Sekuritas Indonesia Research

Latest operational and financial updates

Boom Sale as the turning point to potentially better performance
Going forward, despite the end of the 'Boom Sale' period, which encompassed approximately
500 SKUs, we maintain a positive outlook for the company due to several extensive campaigns
such as 'Weekend Deals,' 'Flash Sales,' 'Special Online Offers,' and 'Cashbacks.' These
campaigns have the potential to sustain the company's growth momentum in the future.

Historically, we see that 4Q sales have consistently been the highest throughout the year in
the past five years, accounting for approximately 26-29% of the FY total achievements.
Therefore, we expect ACES' 'End of Year Discount' campaign to contribute significantly to its
revenue growth this year.

Figure 9. The appearance of ACES stores during Boom Sale Figure 10. Offering up to a 70% discount during Boom Sale

Source: Company data, Mirae Asset Sekuritas Indonesia Research Source: Company data, Mirae Asset Sekuritas Indonesia Research

Furthermore, following the openings of new stores in Tarakan, Batok Aceh, LW Denpasar,
Panakkukang, Gianyar Bali, Singkawang, and Bontang, ACES inaugurated yet another new
store in Cilacap, Central Java on August 16, 2023, spanning an impressive 2,000 sqm.

Additionally, in September 2023, ACES introduced the 'Weekend Deals' program, offering up
to a 65% discount on specially selected items every week.

Mirae Asset Sekuritas Indonesia Research 4

September 25, 2023 Ace Hardware Indonesia

Figure 11. New concept store in Living World Alam Sutera Figure 12. Opening ACES’ new store in Cilacap

Source: Company data, Mirae Asset Sekuritas Indonesia Research Source: Company data, Mirae Asset Sekuritas Indonesia Research

Latest financial updates

Despite a 13.5% QoQ increase in revenue to IDR1,933bn, ACES' net profit for 2Q23 of
IDR144bn is 9.0% lower QoQ due to a 20.9% increase in operating expenses, primarily driven
by a significant rise in salary and bonus expenses, as well as freight-out costs following the
recovery of the supply chain from China after reopening.

However, 2Q23 revenue and net profit are still 15.0% and 62.1% higher YoY, respectively, due
to a low base performance last year. Cumulatively in 1H23, net profit surged 24.8% YoY to
IDR302bn following a 9.9% YoY increase in revenue to IDR3,635bn.

ACES' 1H23 sales revenue is considered in line with our estimate, with a run rate of 49.1%
(from our previous forecast), with Java Island (ex-Jakarta) contributing the most at 46%,
followed by Ex-Java and Jakarta at 34% and 20%, respectively. In terms of product categories,
Home Improvement remains the largest contributor at 54%, followed by Lifestyle and Toys at
40% and 7%, respectively.

Table 2. ACES’s 2Q23 earnings results (IDRbn)

2Q22 1Q23 2Q23 YoY (%) QoQ (%) 1H22 1H23 YoY (%)

Revenue 1,681 1,702 1,933 15.0 13.5 3,308 3,635 9.9

Cost of goods sold -872 -877 -999 14.6 14.0 -1,713 -1,876 9.5

Gross profit 810 826 933 15.3 13.1 1,595 1,759 10.3

Opex -724 -642 -777 7.3 20.9 -1,349 -1,419 5.2

EBIT 86 183 157 82.4 -14.5 245 340 38.4

Other income (expenses) 35 21 27 -23.2 30.0 79 48 -40.0

Pre-tax income 107 193 172 60.6 -10.9 296 366 23.8

Income tax expenses -17 -33 -28 62.3 -14.9 -49 -61 24.5

Net profit 89 158 144 62.1 -9.0 242 302 24.8

Gross profit margin (%) 48.1 48.5 48.3 0.1 pts -0.2 pts 48.2 48.4 0.2 pts

EBIT margin (%) 5.1 10.8 8.1 3.0 pts -2.7 pts 7.4 9.3 1.9 pts

Net profit margin (%) 5.3 9.3 7.5 2.2 pts -1.8 pts 7.3 8.3 1.0 pts
Source: Company data, Mirae Asset Sekuritas Indonesia Research

Mirae Asset Sekuritas Indonesia Research 5

September 25, 2023 Ace Hardware Indonesia

Fine-tuning the forecast

Due to higher-than-expected SSSG and operating expenses, we have decided to increase our
projected figures for both accounts, resulting in a slightly lower estimate for net profit.
However, we believe that ACES' sales could strengthen due to increased year-end purchases.
Historically, fourth-quarter sales have consistently been the highest throughout the year,
accounting for approximately 26-29% of the full-year total over the past five years. Therefore,
we anticipate that ACES could achieve stronger bottom-line growth, with a YoY increase of
10.9% in 2023 and 12.7% in 2024.

Table 3. Changes in forecasts (IDRbn)

Previous forecasts Current forecasts Change (%)
FY23F FY24F FY23F FY24F FY23F FY24F
Revenue 7,406 8,264 7,591 8,334 2.5 0.8
Gross profit 3,497 3,965 3,623 3,994 3.6 0.7
EBIT 885 988 821 960 -7.2 -2.8
Net profit 759 848 737 831 -2.9 -2.0

Gross profit margin (%) 47.2 48.0 47.7 47.9 0.5 pts -0.1 pts
EBIT margin (%) 11.9 12.0 10.8 11.5 -1.1 pts -0.4 pts
Net profit margin (%) 10.2 10.3 9.7 10.0 -0.5 pts -0.3 pts
Source: Mirae Asset Sekuritas Indonesia Research estimates

Mirae Asset Sekuritas Indonesia Research 6

September 25, 2023 Ace Hardware Indonesia

Valuation and recommendation

Maintaining a Buy Recommendation

Despite a lower net profit figure in our current forecast compared to the previous one, we
believe that the higher-than-expected SSSG figure in 8M23 and the potential for a higher sales
contribution in the fourth quarter of this year can be some of the positive re-rating catalysts
for the company. Therefore, we have decided to maintain our Buy recommendation for ACES
with a higher TP of IDR950, reflecting 22x/20x of its 23F/24F P/E ratio, which is equivalent to
0.9x the standard deviation from its average over the past 5 years.

Investment risks: 1) Lower-than-expected SSSG in 4Q23, 2) A deeper-than-expected fall in the

Rupiah exchange rate.

Figure 13. ACES’ forward P/E band

(x)
P/E -1 SD +1 SD -2 SD +2 SD Mean
50

40

30

20

10

0
9/18 9/19 9/20 9/21 9/22 9/23
Source: Mirae Asset Sekuritas Indonesia Research

Table 4. Peer valuation comparison (x)

Company name Current P/E Current P/B Current EV/EBITDA Fwd. P/E Fwd. EV/EBITDA
2023F 2024F 2023F 2024F
Local peers
Matahari Department Store Tbk PT 4.7 N/A 5.1 5.2 4.5 4.9 4.4
Mitra Adiperkasa Tbk PT 14.8 3.5 5.0 14.3 12.7 7.5 6.6
Map Aktif Adiperkasa PT 16.1 4.5 4.9 15.7 12.6 8.2 6.6
Erajaya Swasembada Tbk PT 7.6 1.1 4.3 7.1 5.6 6.9 5.6
Ramayana Lestari Sentosa Tbk PT 11.0 0.9 2.1 11.8 7.5 3.9 3.4
Regional peers
Home Product Center PCL 26.6 6.9 19.6 25.1 22.5 14.9 13.9
Mengtian Home Group Inc 13.2 1.7 6.3 11.9 10.6 4.3 3.9
MR DIY Group M Bhd 29.7 8.9 21.1 24.8 21.6 13.6 11.9
Betterware de Mexico SAPI de CV 16.1 8.4 4.7 21.9 16.2 5.8 5.2
Dohome PCL 124.4 3.0 25.9 50.4 28.0 25.2 19.2
Siam Global House PCL 30.5 4.0 21.6 28.3 24.9 19.0 17.2
Simple Average 26.8 4.3 10.9 19.7 15.2 10.4 8.9
Ace Hardware Indonesia 18.4 2.2 11.9 22.1 19.6 12.8 12.4
Note: Data as of September 21, 2023
Source: Bloomberg, Mirae Asset Sekuritas Indonesia Research estimates

Mirae Asset Sekuritas Indonesia Research 7

September 25, 2023 Ace Hardware Indonesia

Ace Hardware Indonesia (ACES IJ)

Comprehensive Income Statement (Summarized) Balance sheet (Summarized)

(IDRbn) 12/21 12/22 12/23F 12/24F (IDRbn) 12/21 12/22 12/23F 12/24F
Revenue 6,543 6,763 7,591 8,334 Current assets
COGS -3,331 -3,495 -3,968 -4,340 Cash & equivalents 2,544 2,133 2,672 3,182
Gross profit 3,213 3,268 3,623 3,994 Receivables 67 86 90 99
Opex -2,439 -2,521 -2,802 -3,034 Inventories 2,368 2,811 2,881 3,151
EBIT 774 747 821 960 Others 214 333 301 334
Other income / (expenses) 138 129 138 135 Total current assets 5,192 5,363 5,945 6,767
Profit before income tax 845 821 897 1,027 Non-current assets
Income tax expenses -140 -147 -153 -185 Fixed assets 460 426 512 470
Non-controlling interest 14 9 8 11 Others 1,519 1,461 1,443 1,214
Net profit 691 664 737 831 Total non-current assets 1,979 1,886 1,955 1,684
EBITDA 893 816 915 1,062 Total assets 7,171 7,249 7,899 8,451
Current liabilities
ST bank loans - - - -
Margin (%) 12/21 12/22 12/23F 12/24F Account payables 127 144 144 163
Gross profit 49.1 48.3 47.7 47.9 Other current liabilities 596 525 587 651
EBIT 11.8 11.0 10.8 11.5 Total current liabilities 723 670 731 814
EBITDA 13.6 12.1 12.1 12.7 Non-current liabilities
Net profit 10.6 9.8 9.7 10.0 Lease liabilities 571 450 607 667
LT debts 5 5 8 8
Growth (%, YoY) 12/21 12/22 12/23F 12/24F Others non-current liabilities 293 191 280 303
Revenue -11.7 3.4 12.2 9.8 Total non-current liabilities 870 645 895 978
Gross profit -12.2 1.7 10.9 10.2 Total liabilities 1,592 1,315 1,626 1,792
EBIT -9.3 -3.5 10.0 16.9 Shareholders' equity 5,547 5,890 6,222 6,595
EBITDA -21.8 -8.6 12.1 16.0 Non-controlling interests 32 44 52 63
Net profit -5.8 -3.8 10.9 12.7 Total liabilities and equity 7,171 7,249 7,899 8,451

Cash Flows (Summarized) Forecasts/Valuations (Summarized)

(IDRbn) 12/21 12/22 12/23F 12/24F 12/21 12/22 12/23F 12/24F
Cash Flows from Op. Activities 616 15 906 895 P/E (x) 19.6 20.4 18.4 16.3
Net profit 691 664 737 831 P/B (x) 2.4 2.3 2.2 2.1
Depreciation & amortization 119 70 94 102 EV/EBITDA (x) 12.3 14.0 11.9 9.8
Change in working capital 44 -634 18 -229 EPS (IDR) 40 39 43 48
Others -239 -85 57 192 BPS (IDR) 323 343 363 385
Cash Flows from Inv. Activities 52 5 -129 0 DPS (IDR) 32 21 24 27
Capex -69 -70 -205 -83 Payout ratio (%) 51.0 61.0 55.0 55.0
Others 122 76 76 83 Dividend yield (%) 4.1 2.6 3.0 3.4
Cash Flows from Fin. Activities -344 -431 -238 -385 Accounts receivable turnover (x) 62.2 88.6 84.1 84.1
Change in liabilities -10 -121 160 60 Inventory turnover (x) 1.4 1.3 1.4 1.4
Change in equity - - - - Accounts payable turnover (x) 26.3 24.2 24.3 24.3
Dividends paid -353 -405 -405 -457 ROA (%) 9.6 9.2 9.7 10.2
Others 18 96 8 11 ROE (%) 12.8 11.6 12.2 13.0
Increase (decrease) in cash 324 -410 539 510 Current ratio (x) 7.2 8.0 8.1 8.3
Beginning balance 2,220 2,544 2,133 2,672 Net gearing (x) Net cash Net cash Net cash Net cash
Ending balance 2,544 2,133 2,672 3,182 Interest coverage ratio (x) 12.2 14.8 14.5 15.4
Note: Net profit refers to net profit attributable to controlling interests
Source: Company data, Mirae Asset Sekuritas Indonesia Research estimates

Mirae Asset Sekuritas Indonesia Research 8

September 25, 2023 Ace Hardware Indonesia

Appendix 1

Important Disclosures & Disclaimers

2-Year Rating and Target Price History
Company (Code) Date Rating Target Price
(IDR) ACES Analyst's TP
Ace Hardware Indonesia (ACES IJ) 9/25/2023 Buy 950
1,800
6/14/2023 Buy 840

1,300

800

300
Sep-21 Sep-22 Sep-23

Stock Ratings Industry Ratings

Buy : Relative performance of 20% or greater Overweight : Fundamentals are favorable or improving
Trading Buy : Relative performance of 10% or greater, but with volatility Neutral : Fundamentals are steady without any material changes
Hold : Relative performance of -10% and 10% Underweight : Fundamentals are unfavorable or worsening
Sell : Relative performance of -10%

Ratings and Target Price History (Share price (─), Target price (▬), Not covered (■), Buy (▲), Trading Buy (■), Hold (●), Sell (◆))
* Our investment rating is a guide to the relative return of the stock versus the market over the next 12 months.
* Although it is not part of the official ratings at PT Mirae Asset Sekuritas Indonesia, we may call a trading opportunity in case there is a technical or short-term
material development.
* The target price was determined by the research analyst through valuation methods discussed in this report, in part based on the analyst’s estimate of future
earnings.
* The achievement of the target price may be impeded by risks related to the subject securities and companies, as well as general market and economic conditions.

Disclosures
As of the publication date, PT Mirae Asset Sekuritas Indonesia and/or its affiliates do not have any special interest with the subject company and do not own 1% or
more of the subject company’s shares outstanding.

Analyst Certification
Opinions expressed in this publication about the subject securities and companies accurately reflect the personal views of the Analysts primarily responsible
for this report. Except as otherwise specified herein, the Analysts have not received any compensation or any other benefits from the subject companies in
the past 12 months and have not been promised the same in connection with this report. No part of the compensation of the Analysts was, is, or will be
directly or indirectly related to the specific recommendations or views contained in this report but, like all employees of PT Mirae Asset Sekuritas Indonesia,
the Analysts receive compensation that is impacted by overall firm profitability, which includes revenues from, among other business units, the institutional
equities, investment banking, proprietary trading and private client division. At the time of publication of this report, the Analysts do not know or have reason
to know of any actual, material conflict of interest of the Analyst or PT Mirae Asset Sekuritas Indonesia except as otherwise stated herein.

Disclaimers
This report is published by PT Mirae Asset Sekuritas Indonesia (“Mirae Asset”), a broker-dealer registered in the Republic of Indonesia and a member of the
Indonesia Exchange. Information and opinions contained herein have been compiled from sources believed to be reliable and in good faith, but such
information has not been independently verified and Mirae Asset makes no guarantee, representation or warranty, express or implied, as to the fairness,
accuracy, completeness or correctness of the information and opinions contained herein or of any translation into English from the Bahasa Indonesia. If this
report is an English translation of a report prepared in the Indonesian language, the original Indonesian language report may have been made available to
investors in advance of this report. Mirae Asset, its affiliates and their directors, officers, employees and agents do not accept any liability for any loss arising
from the use hereof. This report is for general information purposes only and it is not and should not be construed as an offer or a solicitation of an offer to
effect transactions in any securities or other financial instruments. The intended recipients of this report are sophisticated institutional investors who have
substantial knowledge of the local business environment, its common practices, laws and accounting principles and no person whose receipt or use of this
report would violate any laws and regulations or subject Mirae Asset and its affiliates to registration or licensing requirements in any jurisdiction should
receive or make any use hereof. Information and opinions contained herein are subject to change without notice and no part of this document may be copied
or reproduced in any manner or form or redistributed or published, in whole or in part, without the prior written consent of Mirae Asset. Mirae Asset, its
affiliates and their directors, officers, employees and agents may have long or short positions in any of the subject securities at any time and may make a
purchase or sale, or offer to make a purchase or sale, of any such securities or other financial instruments from time to time in the open market or otherwise,
in each case either as principals or agents. Mirae Asset and its affiliates may have had, or may be expecting to enter into, business relationships with the
subject companies to provide investment banking, market-making or other financial services as are permitted under applicable laws and regulations. The
price and value of the investments referred to in this report and the income from them may go down as well as up, and investors may realize losses on any
investments. Past performance is not a guide to future performance. Future returns are not guaranteed, and a loss of original capital may occur.

Mirae Asset Sekuritas Indonesia Research 9

September 25, 2023 Ace Hardware Indonesia

Distribution
United Kingdom: This report is being distributed by Mirae Asset Securities (Europe) Ltd. in the United Kingdom only to (i) investment professionals falling
within Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (the “Order”), and (ii) high net worth companies and other
persons to whom it may lawfully be communicated, falling within Article 49(2)(A) to (E) of the Order (all such persons together being referred to as “Relevant
Persons”). This report is directed only at Relevant Persons. Any person who is not a Relevant Person should not act or rely on this report or any of its contents.
United States: This report is distributed in the U.S. by Mirae Asset Securities (America) Inc., a member of FINRA/SIPC, and is only intended for major
institutional investors as defined in Rule 15a-6(b)(4) under the U.S. Securities Exchange Act of 1934. All U.S. persons that receive this document by their
acceptance thereof represent and warrant that they are a major institutional investor and have not received this report under any express or implied
understanding that they will direct commission income to Mirae Asset or its affiliates. Any U.S. recipient of this document wishing to effect a transaction in
any securities discussed herein should contact and place orders with Mirae Asset Securities (America) Inc., which accepts responsibility for the contents of
this report in the U.S. The securities described in this report may not have been registered under the U.S. Securities Act of 1933, as amended, and, in such
case, may not be offered or sold in the U.S. or to U.S. persons absent registration or an applicable exemption from the registration requirements.
Hong Kong: This document has been approved for distribution in Hong Kong by Mirae Asset Securities (Hong Kong) Ltd., which is regulated by the Hong
Kong Securities and Futures Commission. The contents of this report have not been reviewed by any regulatory authority in Hong Kong. This report is for
distribution only to professional investors within the meaning of Part I of Schedule 1 to the Securities and Futures Ordinance of Hong Kong (Cap. 571, Laws
of Hong Kong) and any rules made thereunder and may not be redistributed in whole or in part in Hong Kong to any person.
All Other Jurisdictions: Customers in all other countries who wish to effect a transaction in any securities referenced in this report should contact Mirae Asset
or its affiliates only if distribution to or use by such customer of this report would not violate applicable laws and regulations and not subject Mirae Asset
and its affiliates to any registration or licensing requirement within such jurisdiction.

Mirae Asset Sekuritas Indonesia Research 10

September 25, 2023 Ace Hardware Indonesia

Mirae Asset Securities International Network

Mirae Asset Securities Co., Ltd. (Seoul) Mirae Asset Securities (HK) Ltd. Mirae Asset Securities (UK) Ltd.
One-Asia Equity Sales Team Units 8501, 8507-8508, 85/F 41st Floor, Tower 42
Mirae Asset Center 1 Building International Commerce Centre 25 Old Broad Street,
26 Eulji-ro 5-gil, Jung-gu, Seoul 04539 1 Austin Road West London EC2N 1HQ
Korea Kowloon United Kingdom
Hong Kong
Tel: 82-2-3774-2124 Tel: 852-2845-6332 Tel: 44-20-7982-8000
Mirae Asset Securities (USA) Inc. Mirae Asset Wealth Management (USA) Inc. Mirae Asset Wealth Management (Brazil) CCTVM
810 Seventh Avenue, 37th Floor 555 S. Flower Street, Suite 4410, Rua Funchal, 418, 18th Floor, E-Tower Building
New York, NY 10019 Los Angeles, California 90071 Vila Olimpia
USA USA Sao Paulo - SP
04551-060
Brazil
Tel: 1-212-407-1000 Tel: 1-213-262-3807 Tel: 55-11-2789-2100
PT. Mirae Asset Sekuritas Indonesia Mirae Asset Securities (Singapore) Pte. Ltd. Mirae Asset Securities (Vietnam) LLC
District 8, Treasury Tower Building Lt. 50 6 Battery Road, #11-01 7F, Saigon Royal Building
Sudirman Central Business District Singapore 049909 91 Pasteur St.
Jl. Jend. Sudirman, Kav. 52-54 Jakarta Selatan Republic of Singapore District 1, Ben Nghe Ward, Ho Chi Minh City
12190 Vietnam
Indonesia
Tel: 62-21-5088-7000 Tel: 65-6671-9845 Tel: 84-8-3911-0633 (ext.110)
Mirae Asset Securities Mongolia UTsK LLC Mirae Asset Investment Advisory (Beijing) Co., Ltd Beijing Representative Office
#406, Blue Sky Tower, Peace Avenue 17 2401B, 24th Floor, East Tower, Twin Towers 2401A, 24th Floor, East Tower, Twin Towers
1 Khoroo, Sukhbaatar District B12 Jianguomenwai Avenue, Chaoyang District B12 Jianguomenwai Avenue, Chaoyang District
Ulaanbaatar 14240 Beijing 100022 Beijing 100022
Mongolia China China

Tel: 976-7011-0806 Tel: 86-10-6567-9699 Tel: 86-10-6567-9699 (ext. 3300)

Shanghai Representative Office
38T31, 38F, Shanghai World Financial Center
100 Century Avenue, Pudong New Area
Shanghai 200120
China
Ho Chi Minh Representative Office Mirae Asset Capital Markets (India) Private Limited
7F, Saigon Royal Building Unit No. 506, 5th Floor, Windsor Bldg., Off CST Road,
91 Pasteur St. Kalina, Santacruz (East), Mumbai – 400098
District 1, Ben Nghe Ward, Ho Chi Minh City India
Vietnam

Tel: 86-21-5013-6392 Tel: 84-8-3910-7715 Tel: 91-22-62661336

Mirae Asset Sekuritas Indonesia Research 11