21 February 2017 IDX: 5,359 (+0.2%) Disclosure: Bahana Securities does and seeks to do business with companies covered in its research reports. Investors should consider this report as only a single factor in making their investment decision. Beacon Indonesia Morning Brief Market turnover: IDR4.1tn (-29.0%) Foreign Net SELL: IDR160.9bn (-77.9%) Tax amnesty - Repatriated funds: IDR141.0tn (IDR141.0tn) Declared funds - domestic: ID3,228.0tn (IDR3,224.0tn) Declared funds - overseas: IDR1,016.0tn (IDR1,015.0tn) Penalty funds: IDR104.0tn (IDR104.0tn) TODAY’S NEWS POLITICS Deputy Speaker of the House: “212 Volume II” demonstration not parliamentary intervention 2017 Jakarta governor race: Political parties support ahead of 2nd round ECONOMICS Govt: Strategies to increase government revenue Subsidized rice to be distributed in February Jokowi asks minister to set up unhusked-rice price buying mechanism post severe price drop Sri Mulyani: Beware of European crisis impact on Indonesia FIXED INCOME Gov’t sharia bond auction: IDR6.0tn indicative target to reach INDUSTRY Staples: Kraft withdraws its offer for Unilever Netherland Automotive: Honda and Yamaha found guilty of cartel practice Air transportation: Terminal 3 Int’l Soekarno-Hatta to operate in April; Higher int’l passengers Sea transportation: Pelindo II aims to operate ports in 3 countries Oil & gas: Pertamina to lease overseas refinery; Govt to maintain oil output of 800,000 bopd Coal: China bans coal imports from North Korea Metal mining: Govt ready to face PTFI at international arbitration CORPORATE SMGR 4Q16 results: Higher net profit on the back of fixed asset revaluation BTPN 4Q16 net profit: Below our estimate PTPP 4Q16 results: Net profit in line with our expectation Broadcasting Commission: 2-day ban for SCMA's Indosiar D’academy program TOWR: Tiger Global Investment plans to sell 4.9% stake through private placement ASII allocates IDR6tn capex for property and infrastructure business BNGA reported higher net profit (BAU) +119% y-y on NIM expansion and lower provisioning ANJT finalizes sale of 10.9% stake in Agro Muko UNSP: Shareholder approves reverse stock split INDICES Asia Last Chg% ytd % y-y % Hang Seng (HK) 24,146.1 0.5 9.8 25.2 IDX (Indonesia) 5,359.3 0.2 1.2 14.1 KLCI (Mal.) 1,712.6 0.3 4.3 2.3 KOSPI (Korea) 2,084.4 0.2 2.9 8.8 Nikkei (Japan) 19,251.1 0.1 0.7 20.6 PCOMP (Phil.) 7,281.2 0.5 6.4 7.2 SENSEX (India) 28,661.6 0.7 7.6 20.9 SET (Thailand) 1,578.5 0.0 2.3 19.6 SHCOMP (China) 3,240.0 1.2 4.4 13.3 SHENZHEN (China) 1,962.5 0.9 (0.3) 6.1 STI (Singapore) 3,096.7 (0.4) 7.5 16.6 TWSE (Taiwan) 1,547.0 0.2 1.9 19.8 VNI (Vietnam) 710.6 0.4 6.9 28.3 Europe, USA and Ems CAC 40 (France) 4,865.0 (0.1) 0.1 15.2 DAX (Germany) 11,827.6 0.6 3.0 26.0 Dow Jones (USA) 20,624.0 0.0 4.4 25.8 FTSE 100 (UK) 7,299.9 (0.0) 2.2 22.7 IBOV (Brazil) 68,532.9 1.2 13.8 65.0 MEXBOL (Mexico) 47,083.8 (0.2) 3.2 8.5 NGSEINDX (Nigeria) 25,249.5 0.3 (6.0) 3.3 Nasdaq (USA) 5,839.0 0.0 8.5 29.6 RTSI (Russia) 1,150.4 (0.2) (0.2) 58.5 S&P 500 (USA) 2,351.0 0.0 5.0 22.6 XU100 (Turkey) 88,587.7 (0.3) 13.4 21.3 Source: Bloomberg ETF, ADR & COMMODITIES Last Chg% ytd % y-y % EEM US (USD) 38.4 0.0 9.7 27.0 EIDO US (USD) 24.6 0.0 1.8 11.0 TLK US (IDR) 3,864.0 0.0 (2.3) 20.5 Como Index (USD) 192.1 0.0 (0.2) 20.4 Coal (USD/Mtn) 84.6 5.0 (10.7) 65.6 Corn (USD/Mtn) 375.5 0.0 4.6 (6.7) Coffee (USd/lbs) 147.8 0.0 7.8 27.7 Copper (USD/lbs) 5,960.0 (0.7) 7.7 29.0 Cotton (USD/lbs) 73.5 0.0 4.0 22.4 CPO Rott (MYR/Mtn) 2,827.0 (1.1) (4.5) 21.8 Gold (USD/oz.) 1,238.5 (0.1) 7.9 1.0 Iron ore (CNY/Mtn) 705.0 0.9 27.1 135.0 Milk (USD/cwt) 16.9 0.0 (3.0) 22.1 Nickel (USD/Mtn) 11,157.5 0.8 10.3 28.5 Oil Brent (USD/bbl) 56.2 0.7 (1.1) 70.2 Rice (USD/cwt) 9.3 0.0 (0.2) (15.3) Rubber (USD/kg) 223.3 (1.8) 11.5 104.5 Silver (USD/oz) 18.1 0.3 13.3 17.6 Soybean oil (USD/lbs) 33.2 0.0 (4.4) 4.8 Steel (USD/Mtn) 610.0 0.0 (3.6) 52.9 Sugar (USD/lbs) 20.3 0.0 4.0 62.1 Tins (USD/Mtn) 19,840.0 0.1 (7.2) 24.0 Wheat (USD/Mtn) 455.5 0.0 8.1 (4.5) Source: Bloomberg ECONOMIC INDICATORS MARKET DATA 15A 16A 17F 16F 17F 18F Cur acc bal (%GDP) (2.1) (2.0) (2.1) Op.prof.gwt.(%) 4.8 18.9 12.6 Fiscal bal (%GDP) (2.6) (2.5) (2.5) EPS growth (%) 16.3 15.8 23.5 GDP growth (%y-y) 4.8 5.0 5.3 P/E (x) 20.0 16.7 14.8 Private spending (%) 5.0 5.0 5.3 PEG (x) 1.6 0.8 1.1 Investment (%y-y) 5.0 4.5 6.6 EV/EBITDA (x) 12.7 11.0 9.9 Total exports (%y-y) (2.0) -1.7 (1.6) P/BV (x) 7.8 7.0 6.2 Total imports (%y-y) (5.8) -2.3 (1.8) P/BV exc. 4.5 4.1 3.7 Inflation (%y-y) 3.4 3.0 3.8 Div. Yield (%) 2.0 2.3 2.6 IDR/USD 13,788 13,473 13,500 Net gearing (%) 21.6 19.6 20.9 7D rev repo (% p.a.) - 4.75 4.25 ROAE (%) 27.4 27.4 27.0 Brent Oil (Usd/bbl) 37.0 56.8 55.0 ROAA (%) 11.8 12.3 12.5 FX reserve (USDb) 105.9 116.0 112.0 ROIC (%) 26.8 26.0 24.0 Source: Bahana estimates Source: Bahana estimates CURRENCIES & RATES Last Prev. ytd % y-y % AUD/1USD 0.769 0.766 (6.2) (7.0) EUR/1USD 1.061 1.062 (0.9) 4.9 IDR/1USD 13,354 13,333 0.9 1.1 JPY/1USD 113.10 112.84 3.4 (0.4) SGD/1USD 1.418 1.419 2.0 (0.9) JIBOR (%) 4.34 4.31 0.1 (0.8) 7D rev repo (%) 4.75 4.75 - - TD – 1 month (%) 6.12 6.12 2.0 15.3 CDS (bps) 135.45 136.53 16.6 76.7 Source: Bloomberg When a report covers six or more subject companies please access important disclosures for Daiwa Capital Markets Hong Kong Limited at http://www.daiwacm.com/hk/research_disclaimer.html or contact your investment representative or Daiwa Capital Markets Hong Kong Limited at Level 26, One Pacific Place, 88 Queensway, Hong Kong.
Transcript
21 February 2017
IDX: 5,359 (+0.2%)
Disclosure: Bahana Securities does and seeks to do business with companies covered in its research reports. Investors should consider this report as only a single factor
in making their investment decision.
Beacon Indonesia Morning Brief
Market turnover: IDR4.1tn (-29.0%) Foreign Net SELL: IDR160.9bn (-77.9%)
When a report covers six or more subject companies please access important disclosures for Daiwa Capital Markets Hong Kong Limited at
http://www.daiwacm.com/hk/research_disclaimer.html or contact your investment representative or Daiwa Capital Markets Hong Kong Limited at Level 26, One Pacific Place, 88
14-year PBS012 (reopening), 8.875% yield. The settlement date will be on 23 February. (Ministry of Finance)
INDUSTRY
Staples: Kraft withdraws its offer for Unilever Netherland
After Unilever Netherland BV declined Kraft Heinz’s offer worth USD143bn (USD50/share), translating to 25x
2017F PER or 3.5x PEG, Kraft has decided to withdraw its acquisition proposal. (Bisnis Indonesia). Bahana
comment: Note that this acquisition proposal has a similar valuation with Unilever Indonesia (UNVR IJ-BUY-
IDR42,100-TP:IDR45,000), which currently trades at 3.5x PEG, based on our 2017 forecast.
Automotive: Honda and Yamaha found guilty of cartel practice
Two large motorcycle manufacturers, Astra International’s (ASII IJ-BUY-IDR7,950-TP:IDR10,000) Astra
Honda Motor and Yamaha Indonesia Motor Manufacturing, were proven by the antitrust committee to have
participated in a cartel by setting prices and sales volumes of scooter-type motorcycles. (Investor Daily)
Air transportation: Terminal 3 Int’l Soekarno-Hatta to operate in April; Higher int’l passengers
Angkasa Pura II (AP II), the state-owned airports operator, targets the operation of Terminal 3 International
Soekarno-Hatta airport to commence in April. Garuda Indonesia (GIAA IJ-BUY-IDR356-TP:IDR400) will be the
first airline to fly its international flights through the new terminal. Separately, Budi Karya Sumadi,
Transportation Minister, targets for the contribution of international passengers to rise to 30% in 2019, from
the current 23% of 89m total passengers. (Investor Daily, IQPlus)
Sea transportation: Pelindo II aims to operate ports in 3 countries
Pelabuhan Indonesia II (Pelindo II), the state-owned seaports operator, plans to develop and become a
seaport operator in 3 countries, namely Myanmar, East Timor and Egypt. In addition, the company is ready to
start working on 8 strategic projects in 2017. (Bisnis Indonesia)
Oil & gas: Pertamina to lease overseas refinery; Govt to maintain oil output of 800,000 bopd
Pertamina, the state-owned oil company, plans to lease an overseas refinery again to process a total of 7mn
barrels of crude into various fuel products this year. In separate news, the government is in the process of
preparing a short-term program that maintains the country’s oil output at more than 800,000 bopd over a
five-year period. According to the Energy Ministry (ESDM), to achieve the oil production target, the Ministry is
formulating a short-term program that requires close cooperation amongst upstream oil & gas authority SKK
Migas and the oil & gas contractors. (Petromindo.com)
Coal: China bans coal imports from North Korea
China has just stopped coal imports from North Korea until the end of 2017, slicing the country’s exports by
about half to 20mn tons, amid growing tensions on the Korean Peninsula following Pyongyang’s most recent
missile test. (Bloomberg). Bahana comment: This should provide positive sentiment on Indonesian coal
exports as the North Korea’s reduced amount of 20mn tons represents around 9% of Indonesia’s total coal
export.
Metal mining: Govt ready to face PTFI at international arbitration
According to the Minister of Energy and Mineral Resources (ESDM), Ignasius Jonan, the government is ready
to face PT Freeport Indonesia, should Freeport decide to go to the court to challenge recently introduced
mining rules. Recently, Freeport is threatening to exploit its employees through massive layoffs. The company
has agreed to convert its Contract of Work (COW) status to Special Mining Permit (IUPK), but demanded
certain conditions notably fiscal and legal terms that are similar to those set in the COW regime as part of an
investment stability agreement. One main condition demanded by PTFI is that its new IUPK acknowledged a
nailed-down tax principle as set in the COW. The government, however, has said that an IUPK must follow
prevailing regulations including terms of tax, not a nailed-down principle. (Petromindo.com)
PT Bahana Securities – Equity Research – Bahana Beacon - The Daily 4
CORPORATE
SMGR 4Q16 results: Higher net profit on the back of fixed asset revaluation Semen Indonesia (SMGR IJ-HOLD-IDR9,200-TP8,940) booked 4Q16 earnings of IDR1.5tn (+50% q-q, +14%
y-y), bringing its 2016 net profit to IDR4.5tn (flat y-y). This accounted for 113% and 111% of our and
consensus estimates respectively. However, worth noting that the earnings was boosted by (1) IDR518bn net
tax benefit from asset revaluation and (2) gain on recognition from acquisition of ready-mix concrete
subsidiaries. Stripping these factors out, SMGR’s 2016 earnings would reach approximately IDR3.9tn, in line
with our estimate. 4Q16 revenue came in at IDR7tn (+7% q-q, -10% y-y), bringing its 2016 revenue to
IDR26.1tn (-3% y-y), in line with our and consensus estimates. EBIT margin declined from 22% in 2015 to
20% in 2016 mainly due to lower ASP and volume. (Company, Bahana estimates)
Tambang Batubara Bukit Asam PTBA IJ BUY 14,130 27.3 11,100 10,675 4.0 Bank Danamon BDMN IJ BUY 4,000 (19.8) 4,990 4,800 4.0 Media Nusantara Citra MNCN IJ BUY 2,200 41.0 1,560 1,505 3.7 Garuda Indonesia* GIAA IJ BUY 400 12.4 356 344 3.5 XL Axiata EXCL IJ BUY 3,000 (7.1) 3,230 3,130 3.2 Surya Citra Media SCMA IJ BUY 3,000 3.8 2,890 2,810 2.8 Eagle High Plantations BWPT IJ BUY 630 72.1 366 356 2.8 Blue Bird BIRD IJ HOLD 2,900 (16.9) 3,490 3,400 2.6 Express Transindo Utama TAXI IJ REDUCE 165 (2.9) 170 166 2.4 United Tractor UNTR IJ BUY 26,500 8.5 24,425 23,875 2.3 Panorama Sentrawisata PANR IJ BUY 925 30.3 710 695 2.2 Sri Rejeki Isman SRIL IJ BUY 300 4.2 288 282 2.1 Adaro* ADRO IJ BUY 2,010 18.6 1,695 1,660 2.1 Global Mediacom BMTR IJ REDUCE 550 (1.8) 560 550 1.8 Bank Mandiri BMRI IJ HOLD 12,000 6.4 11,275 11,075 1.8 Indofood Sukses Makmur INDF IJ BUY 9,800 20.6 8,125 8,000 1.6 Sampoerna Agro SGRO IJ BUY 2,175 6.1 2,050 2,020 1.5 Lippo Karawaci LPKR IJ HOLD 800 3.2 775 765 1.3 Lippo Cikarang LPCK IJ BUY 8,300 71.1 4,850 4,790 1.3 Indo Tambangraya Megah* ITMG IJ BUY 19,460 25.8 15,475 15,300 1.1 Jasa Marga JSMR IJ BUY 5,287 11.3 4,750 4,700 1.1 Adi Sarana Armada ASSA IJ BUY 280 32.1 212 210 1.0 Surya Semesta Internusa SSIA IJ BUY 750 33.9 560 555 0.9 Waskita Beton WSBP IJ BUY 740 29.8 570 565 0.9
Link Net LINK IJ HOLD 5,300 7.3 4,940 4,900 0.8 Kawasan Industri Jababeka KIJA IJ BUY 450 51.0 298 296 0.7 Astra International ASII IJ BUY 10,000 25.8 7,950 7,900 0.6 Holcim SMCB IJ HOLD 970 9.6 885 880 0.6 Mayora Indah MYOR IJ BUY 2,200 16.4 1,890 1,880 0.5 MNC Sky Vision MSKY IJ REDUCE 700 (31.7) 1,025 1,020 0.5 Gajah Tunggal GJTL IJ BUY 1,500 45.6 1,030 1,025 0.5 Tower Bersama Infrastructure TBIG IJ REDUCE 5,100 (1.9) 5,200 5,175 0.5 Semen Baturaja SMBR IJ REDUCE 315 (86.0) 2,250 2,240 0.4 Bank Rakyat Indonesia BBRI IJ HOLD 13,000 10.6 11,750 11,700 0.4 Ramayana Lestari Sentosa RALS IJ BUY 1,440 9.9 1,310 1,305 0.4 Indosat ISAT IJ BUY 8,500 28.3 6,625 6,600 0.4 Pelayaran Tempuran Emas TMAS IJ BUY 2,590 78.6 1,450 1,445 0.3 Nippon Indosari Corpindo ROTI IJ HOLD 1,600 4.9 1,525 1,520 0.3 Indonesian Stock Exchange JCI 5,359 5,351 0.2 Matahari Department Store LPPF IJ BUY 19,100 33.8 14,275 14,275 0.0 Matahari Putra Prima MPPA IJ BUY 2,250 78.6 1,260 1,260 0.0 Tiphone Mobile Indonesia TELE IJ BUY 1,000 5.3 950 950 0.0 Indofood CBP Sukses Makmur ICBP IJ BUY 10,500 25.4 8,375 8,375 0.0 Sido Muncul SIDO IJ BUY 640 13.3 565 565 0.0 Tempo Scan Pacific TSPC IJ REDUCE 1,700 (7.6) 1,840 1,840 0.0 Siloam International Hospital SILO IJ BUY 13,100 (3.0) 13,500 13,500 0.0 Bekasi Fajar Industrial Estate BEST IJ REDUCE 220 (28.6) 308 308 0.0 Wijaya Karya Beton WTON IJ BUY 1,100 32.5 830 830 0.0 Vale Indonesia INCO IJ BUY 4,000 43.4 2,790 2,790 0.0
Timah Persero TINS IJ BUY 1,460 39.7 1,045 1,045 0.0 Astra Agro Lestari AALI IJ BUY 20,250 33.0 15,225 15,225 0.0 Salim Ivomas Pratama SIMP IJ HOLD 530 2.9 515 515 0.0 Tunas Baru Lampung TBLA IJ BUY 1,475 23.4 1,195 1,195 0.0 Malindo Feedmill MAIN IJ BUY 2,000 55.0 1,290 1,290 0.0 Bumi Serpong Damai BSDE IJ BUY 2,350 24.3 1,890 1,890 0.0 Pakuwon Jati PWON IJ HOLD 650 15.0 565 565 0.0 Ciputra Development CTRA IJ BUY 1,800 31.4 1,370 1,370 0.0 Alam Sutera Realty ASRI IJ REDUCE 300 (21.9) 384 384 0.0 Ciputra Property CTRP IJ BUY 850 23.2 690 690 0.0 Telekomunikasi Indonesia TLKM IJ BUY 5,000 29.2 3,870 3,870 0.0 Sarana Menara Nusantara TOWR IJ BUY 5,600 60.0 3,500 3,500 0.0 Bank Central Asia BBCA IJ BUY 17,800 15.2 15,450 15,475 (0.2) Merdeka Copper Gold MDKA IJ BUY 2,304 16.1 1,985 1,990 (0.3) HM Sampoerna HMSP IJ BUY 4,600 19.8 3,840 3,850 (0.3) Waskita Karya WSKT IJ BUY 3,200 25.5 2,550 2,560 (0.4) Bank Negara Indonesia BBNI IJ BUY 7,500 19.5 6,275 6,300 (0.4) Wijaya Karya WIKA IJ BUY 3,267 30.7 2,500 2,510 (0.4) Catur Sentosa Adiprana CSAP IJ BUY 640 28.5 498 500 (0.4) Bank Jabar BJBR IJ REDUCE 1,200 (48.1) 2,310 2,320 (0.4) Gudang Garam GGRM IJ BUY 81,000 33.9 60,500 60,800 (0.5) Pembangunan Perumahan PTPP IJ BUY 4,630 29.0 3,590 3,610 (0.6) ACE Hardware ACES IJ HOLD 850 9.7 775 780 (0.6) Kalbe Farma KLBF IJ BUY 1,880 28.8 1,460 1,470 (0.7) Krakatau Steel* KRAS IJ BUY 1,020 42.7 715 720 (0.7) Anabatic Technologies ATIC IJ BUY 750 7.9 695 700 (0.7) Summarecon Agung SMRA IJ BUY 2,150 56.4 1,375 1,385 (0.7) Indocement INTP IJ HOLD 15,600 0.6 15,500 15,625 (0.8) Semen Gresik SMGR IJ HOLD 8,940 (2.8) 9,200 9,275 (0.8) Bank Bukopin BBKP IJ BUY 1,000 65.3 605 610 (0.8) Intiland Development DILD IJ BUY 680 42.3 478 482 (0.8) Japfa Comfeed Indonesia JPFA IJ BUY 2,400 26.3 1,900 1,920 (1.0) Unilever Indonesia UNVR IJ BUY 45,000 6.9 42,100 42,600 (1.2) Mitra Keluarga Karyasehat MIKA IJ HOLD 2,550 7.1 2,380 2,410 (1.2) Aneka Tambang ANTM IJ REDUCE 830 5.7 785 795 (1.3) Soechi Lines SOCI IJ BUY 630 112.8 296 300 (1.3) Bank Tabungan Negara BBTN IJ BUY 2,100 (1.9) 2,140 2,170 (1.4) Charoen Pokhpand Indonesia CPIN IJ HOLD 3,300 (3.8) 3,430 3,480 (1.4) Bank Tabungan Pensiunan Nasional BTPN IJ BUY 3,300 26.9 2,600 2,640 (1.5) Puradelta Lestari DMAS IJ BUY 280 13 248 252 (1.6) J Resources PSAB IJ BUY 340 38.2 246 250 (1.6) London Sumatra Indonesia LSIP IJ BUY 2,085 36.7 1,525 1,555 (1.9) Indomobil Sukses Makmur IMAS IJ BUY 2,000 57.5 1,270 1,295 (1.9) Mitra Adiperkasa MAPI IJ BUY 6,600 17.9 5,600 5,725 (2.2) PP Property PPRO IJ REDUCE 600 79.6 334 342 (2.3) Erajaya Swasembada ERAA IJ BUY 820 33.3 615 630 (2.4) Total Bangun Persada TOTL IJ BUY 1,125 38.0 815 835 (2.4) Perusahaan Gas Negara* PGAS IJ BUY 2,890 7.4 2,690 2,760 (2.5) Adhi Karya ADHI IJ BUY 3,500 60.6 2,180 2,240 (2.7) Bank Jatim BJTM IJ HOLD 475 (14.4) 555 575 (3.5) Kino Indonesia KINO IJ HOLD 3,100 4.0 2,980 3,100 (3.9) Kimia Farma KAEF IJ REDUCE 1,650 (14.1) 1,920 2,000 (4.0) Medco Energy* MEDC IJ BUY 1,540 (41.9) 2,650 2,770 (4.3) AKR Corporindo AKRA IJ BUY 8,380 36.8 6,125 6,425 (4.7) Wintermar Offshore Marine WINS IJ BUY 200 (31.5) 292 310 (5.8) Visi Media Asia VIVA IJ REDUCE 230 (23.3) 300 320 (6.3)
BANKS OW 1,172,751 959.3 302,986 330,588 362,137 99,795 116,726 133,657 78,846 92,038 105,183 (3.8) 16.7 (80.0) 16.4 13.6 11.8 na na na 2.4 2.1 1.8 1.7 1.8 2.1 na na na 16.6 16.5 16.5 2.4 2.5 2.6 na na
Bank Central Asia BBCA IJ Equity BBCA IJ BUY 15,450 17,800 24,655 51 380,920 227.0 56,466 60,311 66,037 25,124 27,915 32,078 20,079 22,309 25,636 11.4 11.1 14.9 19.0 17.1 14.9 na na na 3.6 3.1 2.6 1.1 1.2 1.3 na na na 20.6 19.5 19.1 3.3 3.3 3.4 na na
Bank Rakyat Indonesia BBRI IJ Equity BBRI IJ HOLD 11,750 13,000 24,669 43 289,863 238.0 80,091 88,055 97,049 30,579 33,648 37,363 25,404 27,816 30,733 0.0 9.5 10.5 11.4 10.4 9.4 na na na 2.2 1.9 1.7 2.6 2.9 3.2 na na na 20.9 19.8 19.0 2.8 2.7 2.7 na na
Bank Mandiri BMRI IJ Equity BMRI IJ HOLD 11,275 12,000 23,333 40 263,083 210.2 71,122 79,224 88,206 15,969 22,958 27,589 11,842 17,267 20,778 na 45.8 20.3 22.2 15.2 12.7 na na na 1.8 1.6 1.5 0.9 1.1 1.4 na na na 8.9 11.1 12.1 1.3 1.7 1.9 na na
Bank Negara Indonesia BBNI IJ Equity BBNI IJ BUY 6,275 7,500 18,649 40 117,020 116.9 40,847 45,009 48,606 13,250 15,530 18,070 10,876 12,724 14,782 20.0 17.0 16.2 10.8 9.2 7.9 na na na 1.4 1.3 1.1 1.9 1.9 2.2 na na na 13.9 14.5 14.8 2.0 2.1 2.2 na na
Bank Danamon BDMN IJ Equity BDMN IJ BUY 4,990 4,000 9,585 32 47,827 7.9 19,010 19,597 20,245 4,606 5,241 5,886 2,912 3,312 3,718 21.7 13.8 12.2 16.4 14.4 12.9 na na na 1.3 1.2 1.2 1.8 2.1 2.3 na na na 8.3 8.9 9.3 1.6 1.8 1.9 na na
Bank Tabungan Pensiunan NasionalBTPN IJ Equity BTPN IJ BUY 2,600 3,300 5,840 50 15,185 0.1 8,847 9,193 9,784 2,576 2,820 3,110 1,851 2,023 2,228 8.8 9.3 10.1 8.2 7.5 6.8 na na na 1.0 0.9 0.8 - - - na na na 12.8 12.3 12.0 2.2 2.1 2.1 na na
Bank Tabungan Negara BBTN IJ Equity BBTN IJ BUY 2,140 2,100 10,590 40 22,663 30.9 8,898 10,018 11,327 2,920 3,350 3,701 2,196 2,518 2,781 18.6 14.7 10.4 10.3 9.0 8.1 na na na 1.4 1.3 1.1 1.7 1.7 1.8 na na na 14.9 15.0 14.6 1.2 1.2 1.1 na na
Bank Jabar BJBR IJ Equity BJBR IJ REDUCE 2,310 1,200 9,696 25 22,398 84.5 9,147 9,811 10,634 2,045 2,255 2,529 1,609 1,773 1,987 16.8 10.2 12.1 13.9 12.6 11.3 na na na 2.6 2.4 2.2 4.0 4.4 4.9 na na na 19.8 19.8 20.1 1.7 1.6 1.6 na na
Bank Jatim BJTM IJ Equity BJTM IJ HOLD 555 475 14,945 20 8,295 41.8 3,890 4,134 4,383 1,347 1,430 1,533 1,022 1,085 1,162 15.6 6.2 7.1 8.1 7.6 7.1 na na na 1.2 1.2 1.1 8.1 8.9 9.8 na na na 15.8 15.8 15.9 2.3 2.4 2.4 na na
Bank Bukopin BBKP IJ Equity BBKP IJ BUY 605 1,000 9,087 41 5,497 2.1 4,668 5,237 5,865 1,378 1,579 1,798 1,056 1,210 1,378 9.9 14.7 13.9 5.2 4.5 4.0 na na na 0.7 0.6 0.5 3.8 4.4 5.0 na na na 13.4 13.8 14.0 1.0 1.1 1.1 na na
PT Bahana Securities – Equity Research – Bahana Beacon - The Daily 10
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Neither Daiwa Securities Group Inc. nor any of its affiliates is licensed to undertake any business within the Republic of Indonesia. Any display of any trade name or logo of the Daiwa Securities Group Inc. on this publication shall not be deemed to be an undertaking of any business within the Republic of Indonesia.
Daiwa Securities Group Inc., its subsidiaries or affiliates, or its or their respective directors, officers and employees from time to time may have trades as principals, or have positions in, or have other interests in the securities of the company under research including market making activities, derivatives in respect of such securities or may have also performed investment banking and other services for the issuer of such securities. The following are additional disclosures.
Ownership of Securities
For “Ownership of Securities” information, please visit BlueMatrix disclosure link at https://daiwa3.bluematrix.com/sellside/Disclosures.action.
Investment Banking Relationship
For “Investment Banking Relationship”, please visit BlueMatrix disclosure link at https://daiwa3.bluematrix.com/sellside/Disclosures.action.
Japan
Daiwa Securities Co. Ltd. and Daiwa Securities Group Inc.
Daiwa Securities Co. Ltd. is a subsidiary of Daiwa Securities Group Inc.
Investment Banking Relationship
Within the preceding 12 months, The subsidiaries and/or affiliates of Daiwa Securities Group Inc. * has lead-managed public offerings and/or secondary offerings (excluding straight bonds) of the securities of the following companies: Neo Solar Power Corp (3576 TT), Acushnet Holdings Corp (GOLF US), No Va Land Investment Group Corporation (NVL VN).
*Subsidiaries of Daiwa Securities Group Inc. for the purposes of this section shall mean any one or more of:
• Daiwa Capital Markets Hong Kong Limited (大和資本市場香港有限公司)
• Daiwa Capital Markets Singapore Limited
• Daiwa Capital Markets Australia Limited
• Daiwa Capital Markets India Private Limited
• Daiwa-Cathay Capital Markets Co., Ltd.
• Daiwa Securities Capital Markets Korea Co., Ltd
Disclosure of Interest of Bahana Securities
Investment Banking Relationship
Within the preceding 12 months, Bahana Securities has lead-managed public offerings and/or secondary offerings (excluding straight bonds) of the securities of the following companies: PT Telekomunikasi Indonesia (Persero) Tbk (TLKM IJ); PT Waskita Beton Precast Tbk (WSBP IJ).
Hong Kong
This research is distributed in Hong Kong by Daiwa Capital Markets Hong Kong Limited (大和資本市場香港有限公司) (“DHK”) which is regulated by the Hong Kong Securities and Futures Commission. Recipients of this research in Hong Kong may contact DHK in respect of any matter arising from or in connection with this research.
Relevant Relationship (DHK)
DHK may from time to time have an individual employed by or associated with it serves as an officer of any of the companies under its research coverage.
Singapore This research is distributed in Singapore by Daiwa Capital Markets Singapore Limited and it may only be distributed in Singapore to accredited investors, expert investors and institutional investors as defined in the Financial Advisers Regulations and the Securities and Futures Act (Chapter 289), as amended from time to time. By virtue of distribution to these category of investors, Daiwa Capital Markets Singapore Limited and its representatives are not required to comply with Section 36 of the Financial Advisers Act (Chapter 110) (Section 36 relates to disclosure of Daiwa Capital Markets Singapore Limited’s interest and/or its representative’s interest in securities). Recipients of this research in Singapore may contact Daiwa Capital Markets Singapore Limited in respect of any matter arising from or in connection with the research.
Australia This research is distributed in Australia by Daiwa Capital Markets Australia Limited and it may only be distributed in Australia to wholesale investors within the meaning of the Corporations Act. Recipients of this research in Australia may contact Daiwa Capital Markets Stockbroking Limited in respect of any matter arising from or in connection with the research.
India
This research is distributed in India to Institutional Clients only by Daiwa Capital Markets India Private Limited (Daiwa India) which is an intermediary registered with Securities & Exchange Board of India as a Stock Broker, Merchant Bank and Research Analyst. Daiwa India, its Research Analyst and their family members and its associates do not have any financial interest save as disclosed or other undisclosed material conflict of interest in the securities or derivatives of any companies under coverage. Daiwa India and its associates, may have received compensation for any products other than Investment Banking (as disclosed)or brokerage services from the subject company in this report or from any third party during the past 12 months. Daiwa India and its associates may have debt holdings in the subject company. For information on ownership of equity, please visit BlueMatrix disclosure Link at https://daiwa3.bluematrix.com/sellside/Disclosures.action. There is no material disciplinary action against Daiwa India by any regulatory authority impacting equity research analysis activities as of the date of this report. Associates of Daiwa India, registered with Indian regulators, include Daiwa Capital Markets Singapore Limited and Daiwa Portfolio Advisory (India) Private Limited.
PT Bahana Securities – Equity Research – Bahana Beacon - The Daily 11
Taiwan This research is solely for reference and not intended to provide tailored investment recommendations. This research is distributed in Taiwan by Daiwa-Cathay Capital Markets Co., Ltd. and it may only be distributed in Taiwan to specific customers who have signed recommendation contracts with Daiwa-Cathay Capital Markets Co., Ltd. and non-customers including (i) professional institutional investors, (ii) TWSE or TPEx listed companies, upstream and downstream vendors, and specialists that offer or seek advice, and (iii) potential customers with an actual need for business development in accordance with the Operational Regulations Governing Securities Firms Recommending Trades in Securities to Customers. Recipients of this research including non-customer recipients of this research shall not provide it to others or engage in any activities in connection with this research which may involve conflicts of interests. Neither Daiwa-Cathay Capital Markets Co., Ltd. nor its personnel who writes or reviews the research report has any conflict of interest in this research. Since Daiwa-Cathay Capital Markets Co., Ltd. does not operate brokerage trading business in foreign markets, this research is “without recommendation” to any foreign securities and Daiwa-Cathay Capital Markets Co., Ltd. does not accept orders from customers to trade in such securities that are without recommendation. Recipients of this research in Taiwan may contact Daiwa-Cathay Capital Markets Co., Ltd. in respect of any matter arising from or in connection with the research.
Philippines
This research is distributed in the Philippines by DBP-Daiwa Capital Markets Philippines, Inc. which is regulated by the Philippines Securities and Exchange
Commission and the Philippines Stock Exchange, Inc. Recipients of this research in the Philippines may contact DBP-Daiwa Capital Markets Philippines, Inc.
in respect of any matter arising from or in connection with the research. DBP-Daiwa Capital Markets Philippines, Inc. recommends that investors
independently assess, with a professional advisor, the specific financial risks as well as the legal, regulatory, tax, accounting, and other consequences of a
proposed transaction. DBP-Daiwa Capital Markets Philippines, Inc. may have positions or may be materially interested in the securities in any of the markets
mentioned in the publication or may have performed other services for the issuers of such securities.
For relevant securities and trading rules please visit SEC and PSE link at http://www.sec.gov.ph and http://www.pse.com.ph/ respectively.
United Kingdom
This research report is produced by Daiwa Securities Co. Ltd. and/or its affiliates and is distributed in the European Union, Iceland, Liechtenstein, Norway and Switzerland. Daiwa Capital Markets Europe Limited is authorised and regulated by The Financial Conduct Authority (“FCA”) and is a member of the London Stock Exchange and Eurex. This publication is intended for investors who are not Retail Clients in the United Kingdom within the meaning of the Rules of the FCA and should not therefore be distributed to such Retail Clients in the United Kingdom. Should you enter into investment business with Daiwa Capital Markets Europe’s affiliates outside the United Kingdom, we are obliged to advise that the protection afforded by the United Kingdom regulatory system may not apply; in particular, the benefits of the Financial Services Compensation Scheme may not be available.
Daiwa Capital Markets Europe Limited has in place organisational arrangements for the prevention and avoidance of conflicts of interest. Our conflict management policy is available at http://www.uk.daiwacm.com/about-us/corporate-governance-regulatory.
Germany
This document is distributed in Germany by Daiwa Capital Markets Europe Limited, Niederlassung Frankfurt which is regulated by BaFin (Bundesanstalt fuer Finanzdienstleistungsaufsicht) for the conduct of business in Germany.
Bahrain
This research material is distributed by Daiwa Capital Markets Europe Limited, Bahrain Branch, regulated by The Central Bank of Bahrain and holds Investment Business Firm – Category 2 license and having its official place of business at the Bahrain World Trade Centre, South Tower, 7th floor, P.O. Box 30069, Manama, Kingdom of Bahrain. Tel No. +973 17534452 Fax No. +973 535113
This material is provided as a reference for making investment decisions and is not intended to be a solicitation for investment. Investment decisions should be made at your own discretion and risk. Accordingly, no representation or warranty, express or implied, is made as to and no reliance should be placed on the fairness, accuracy, completeness or correctness of the information and opinions contained in this document, Content herein is based on information available at the time the research material was prepared and may be amended or otherwise changed in the future without notice. All information is intended for the private use of the person to whom it is provided without any liability whatsoever on the part of Daiwa Capital Markets Europe Limited, Bahrain Branch, any associated company or the employees thereof. If you are in doubt about the suitability of the product or the research material itself, please consult your own financial adviser. Daiwa Capital Markets Europe Limited, Bahrain Branch retains all rights related to the content of this material, which may not be redistributed or otherwise transmitted without prior consent.
United States
This report is distributed in the U.S. by Daiwa Capital Markets America Inc. (DCMA). It may not be accurate or complete and should not be relied upon
as such. It reflects the preparer’s views at the time of its preparation, but may not reflect events occurring after its preparation; nor does it reflect
PT.Bahana Securities’ or DCMA’s views at any time. Neither PT.Bahana Securities, DCMA nor the preparer has any obligation to update this report
or to continue to prepare research on this subject. This report is not an offer to sell or the solicitation of any offer to buy securities. Unless this report
says otherwise, any recommendation it makes is risky and appropriate only for sophisticated speculative investors able to incur significant losses.
Readers should consult their financial advisors to determine whether any such recommendation is consistent with their own investment objectives,
financial situation and needs. This report does not recommend to U.S. recipients the use of any of PT.Bahana Securities’ or DCMA’s non-U.S. affiliates to effect trades in any security and is not supplied with any understanding that U.S. recipients of this report will direct commission business to
such non-U.S. entities. Unless applicable law permits otherwise, non-U.S. customers wishing to effect a transaction in any securities referenced in this
material should contact a Daiwa entity in their local jurisdiction. Most countries throughout the world have their own laws regulating the types of
securities and other investment products which may be offered to their residents, as well as a process for doing so. As a result, the securities
discussed in this report may not be eligible for sales in some jurisdictions. Customers wishing to obtain further information about this report should
contact DCMA: Daiwa Capital Markets America Inc., Financial Square, 32 Old Slip, New York, New York 10005 (Tel no. 212-612-7000).
Ownership of Securities
For “Ownership of Securities” information please visit BlueMatrix disclosure Link at https://daiwa3.bluematrix.com/sellside/Disclosures.action .
Investment Banking Relationships For “Investment Banking Relationships” please visit BlueMatrix disclosure link at https://daiwa3.bluematrix.com/sellside/Disclosures.action.
DCMA Market Making
For “DCMA Market Making” please visit BlueMatrix disclosure link at https://daiwa3.bluematrix.com/sellside/Disclosures.action.
Research Analyst Conflicts
For updates on “Research Analyst Conflicts” please visit BlueMatrix disclosure link at https://daiwa3.bluematrix.com/sellside/Disclosures.action. The
principal research analysts who prepared this report have no financial interest in securities of the issuers covered in the report, are not (nor are any
members of their household) an officer, director or advisory board member of the issuer(s) covered in the report, and are not aware of any material
relevant conflict of interest involving the analyst or DCMA, and did not receive any compensation from the issuer during the past 12 months except as
noted: no exceptions.
Research Analyst Certification
For updates on “Research Analyst Certification” and “Rating System” please visit BlueMatrix disclosure link at
https://daiwa3.bluematrix.com/sellside/Disclosures.action. The views about any and all of the subject securities and issuers expressed in this
Research Report accurately reflect the personal views of the research analyst(s) primarily responsible for this report (or the views of the firm
producing the report if no individual analysts[s] is named on the report); and no part of the compensation of such analyst(s) (or no part of the
compensation of the firm if no individual analyst[s)] is named on the report) was, is, or will be directly or indirectly related to the specific
recommendations or views contained in this Research Report.
PT Bahana Securities – Equity Research – Bahana Beacon - The Daily 12
For stocks and sectors in Indonesia covered by Bahana Securities, the following rating system is in effect:
Stock ratings are based on absolute upside or downside, which is the difference between the target price and the current market price. Unless otherwise specified, these ratings are set with a 12-month horizon. It is possible that future price volatility may cause a temporary mismatch between upside/downside for a stock based on the market price and the formal rating. "Buy": the price of the security is expected to increase by 10% or more. "Hold": the price of the security is expected to range from an increase of less than 10% to a decline of less than 5%. "Reduce": the price of the security is expected to decline by 5% or more.
Sector ratings are based on fundamentals for the sector as a whole. Hence, a sector may be rated “Overweight” even though its constituent stocks are all rated “Reduce”; and a sector may be rated “Underweight” even though its constituent stocks are all rated “Buy”. “Overweight”: positive fundamentals for the sector. “Neutral”: neither positive nor negative fundamentals for the sector. “Underweight”: negative fundamentals for the sector.
Ownership of Securities For “Ownership of Securities” information, please visit BlueMatrix disclosure Link at https://daiwa3.bluematrix.com/sellside/Disclosures.action .
Investment Banking Relationships For “Investment Banking Relationship”, please visit BlueMatrix disclosure Link at https://daiwa3.bluematrix.com/sellside/Disclosures.action . Relevant Relationships (Bahana Securities) Bahana Securities may from time to time have an individual employed by or associated with it serves as an officer of any of the companies under its research coverage.
Bahana Securities market making Bahana Securities may from time to time make a market in securities covered by this research.
Additional information may be available upon request.
Japan - additional notification items pursuant to Article 37 of the Financial Instruments and Exchange Law
(This Notification is only applicable where report is distributed by Daiwa Securities Co. Ltd.)
If you decide to enter into a business arrangement with us based on the information described in materials presented along with this document, we ask you to pay close attention to the following items.
In addition to the purchase price of a financial instrument, we will collect a trading commission* for each transaction as agreed beforehand with you. Since
commissions may be included in the purchase price or may not be charged for certain transactions, we recommend that you confirm the commission for
each transaction.
In some cases, we may also charge a maximum of ¥ 2 million (including tax) per year as a standing proxy fee for our deposit of your securities, if you are
a non-resident of Japan.
For derivative and margin transactions etc., we may require collateral or margin requirements in accordance with an agreement made beforehand with
you. Ordinarily in such cases, the amount of the transaction will be in excess of the required collateral or margin requirements.
There is a risk that you will incur losses on your transactions due to changes in the market price of financial instruments based on fluctuations in interest
rates, exchange rates, stock prices, real estate prices, commodity prices, and others. In addition, depending on the content of the transaction, the loss could exceed the amount of the collateral or margin requirements.
There may be a difference between bid price etc. and ask price etc. of OTC derivatives handled by us.
Before engaging in any trading, please thoroughly confirm accounting and tax treatments regarding your trading in financial instruments with such experts
as certified public accountants.
*The amount of the trading commission cannot be stated here in advance because it will be determined between our company and you based on current
market conditions and the content of each transaction etc.
When making an actual transaction, please be sure to carefully read the materials presented to you prior to the execution of agreement, and to take responsibility for your own decisions regarding the signing of the agreement with us.
Corporate Name: Daiwa Securities Co. Ltd.
Financial instruments firm: chief of Kanto Local Finance Bureau (Kin-sho) No.108
Memberships: Japan Securities Dealers Association, Financial Futures Association of Japan
