ISFHAN

Equity Research | Indonesia

14 August 2019

Morning Call

Market PULSE Research Team

(+62 21) 2970 9430

Key Indonesia Indices

Close Chg % Chg

JCI 6,211 -71 -0.6

Agricultural 1,412 38 3.0

Mining 1,602 -26 -0.4

Basic Industry 812 -22 -2.3

Misc Industry 1,195 -15 -0.9

Consumer 2,329 -29 -1.3

Property 480 -3 -0.1

Infrastructure 1,198 1 -0.4

Finance 1,266 -17 -0.3

Trade & Svc 794 -7 0.1

Manufacturing 1,472 -24 -1.5

Latest Previous Vol (b) 10.6 9.8

Value (IDR t) 6.6 0.1

Top % gainers Close % Chg

ERAA 2,180 4.8

INCO 3,340 3.1

ANTM 1,065 2.9

Top % losers Close % Chg

TKIM 9,300 -4.6

INKP 6,725 -4.6

ITMG 14,000 -4.4

Most active Close % Chg

BBCA 30,075 -0.4

TLKM 4,250 -0.2

BBRI 4,280 -0.5

Market Data Latest % Chg

IDR/USD 14,235 0.6

Dow Jones Index 26,280 1.4

S&P 500 2,926 1.5

Oil Price (USD/bbl) 57 -0.9

Gold Price (USD/oz) 1,502 0.0

Coal Price (USD/mt) 67 -0.2 CPO Price(MYR/mt) 2,172 1.4

Economic Statistics Latest *Previous

GDP growth YoY (%) 5.05 5.07

CPI inflation (%) 3.32 3.28

7-day Reverse Repo rate (%) 5.75 6.00

*Previous month for CPI & 7-day Reverse Repo rate, quarter for GDP

OCBC Sekuritas

Key Ideas

Agri: Foreign exchange from the implementation of B20 is below the target

Stocks to Watch

LRNA IJ: Co to add fleet in the second half

LINK IJ: Co teams up with Astra Infra to strengthen infrastructure in Banten

FOOD IJ: Co eyes Rp 137 billion in sales this year

JSKY IJ: Co will conduct a stock split

Daily Chart Views

JCI Index – Slightly rise: Potential technical rebound as last

closing price still above near term support (R: 6,250 | S: 6,175)

ASII – Spec buy: Potential technical rebound supported by the

forming of Hammer pattern and increase in volume ( R:6,850 | S:6,400 – Entry:6,500-6,600)

UNTR – Spec buy: Potential technical rebound though forming

Black candle pattern but decrease in volume ( R:22,600 | S:20,600 – Entry:20,900-21,000)

HMSP – Spec buy: Potential technical rebound supported by

the forming of Tweezer Bottom pattern ( R:2,930 | S:2,770 – Entry:2,790-2,810)

UNVR – Buy on Weakness: Continue to fall supported by the

forming of Bearish Belt Hold pattern and increase in volume ( R:45,050| S:43,200 – Entry:43,500-43,775)

AKRA – Spec buy: Potential technical rebound though forming

Black candle pattern but decrease in volume ( R:3,890 | S:3,690 – Entry:3,710-3,730)

Sources: PTOS,IDNfinancials, Bloomberg and other sources

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Market Snapshot

Global Market: In Japan, the Nikkei 225 jumped 1.14% in early trade as shares of index heavyweight and robot maker Fanuc surged 2.81%. The Topix index also advanced 0.96%.Over in South Korea, the Kospi gained 1.37% as chipmaker SK Hynix’s stock surged 4.16%. Australia’s S&P/ASX 200 also rose 0.44%.Overall, the MSCI Asia ex-Japan index added 0.59%.Investors will be watching for the reaction from the People’s Bank of China when it announces its official midpoint reference rate for the yuan around 9:15 a.m. HK/SIN. It had last fixed the midpoint at 7.0326 per dollar on Tuesday — stronger than analysts’ expectations — and the fourth consecutive session where the central bank set the figure weaker than the psychologically important 7-yuan-per-dollar level.Meanwhile, tensions in Hong Kong remained high after the city’s airport saw disruptions for a second day on Tuesday as a result of protests.Chinese industrial production data is also set to be released at 10:00 a.m. HK/SIN today, as investors watch for the economic impact of the ongoing trade war between Beijing and Washington.

Shares of Apple suppliers in Asia will be also be under scrutiny today, with the Cupertino-based tech giant seeing its stock surge more than 4% on Tuesday.Overnight stateside, the Dow Jones Industrial Average finished the day 372.54 points higher at 26,279.91, while the S&P 500 added 1.48% to close at 2,926.32. The Nasdaq Composite ended its trading day 1.95% higher at 8,016.36. The United States Trade Representative announced Tuesday certain products including clothing and cellphones are being removed from the tariff list based on “health, safety, national security and other factors” and will not face additional tariffs of 10%. Other tariffs will be delayed to Dec. 15 from Sep. 1 for certain goods, it said.

The U.S. dollar index, which tracks the greenback against a basket of its peers, was at 97.784 after surging from levels below 97.5 yesterday.The Japanese yen, often seen as a safe-haven currency, traded at 106.52 against the dollar after weakening sharply from levels below 105.5 in the previous session. The Australian dollar changed hands at $0.6795 after jumping from levels below $0.676 yesterday.Oil prices declined in the morning of Asian trading hours, with international benchmark Brent crude futures sliding 0.51% to $60.99 per barrel. U.S. crude futures fell 0.63% to $56.74 per barrel.Source:CNBC

News Headlines

Foreign exchange from the implementation of B20 is below the target

Coordinating Minister for the Economics Affairs, Darmin Nasution said the foreign exchange came from the implementation of 20% biodiesel blend (B20) policy would be at US$ 3.4 billion. That is below the target set at US$ 5.5 billion.President Jokowi once said that the potential for foreign exchange from the implementation of B20 is US$ 5.5 billion per year. The foreign exchange originated from the savings from diesel fuel import after B20 implementation."Until the end of the year, it will be US$ 3.4 billion," Darmin said in the Presidential Office, Jakarta, Monday (12/08/2019).Darmin said that the realization in the period of January-July this year was US$ 1.6 billion. To achieve the target, said Darmin, it depends on the movement of diesel fuel prices. Source:IDNfinancial

Lorena to add fleet in the second half

PT Eka Sari Lorena Transport Tbk (LRNA) plans to add a fleet in the second half of this year. This was carried out to maximize the company's airport transportation business.This year, Lorena is preparing capital expenditure of Rp 10 billion to Rp 12 billion, which will be partly used to increase the airport transportation fleet. Lorena will add 24 units of airport transportation fleet in the second semester.At the end of semester I, Lorena managed to score a profit of Rp 386.9 million. This was supported by the company's revenue which grew 25.75% to Rp 60.75 billion.For information, the company is targeting revenue growth of 20% compared to 2018. Source:IDNfinancial

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Link Net teams up with Astra Infra to strengthen infrastructure in Banten

PT Link Net Tbk (LINK) is collaborating with Astra Infra's subsidiary, PT Marga Mandalasakti, to place a communication infrastructure that connects Jakarta-Serang-Merak.Link Net CEO, Marlo Budiman said that the company will continue to aggressively expand the network through strategic cooperation with several partners or operators."Our collaboration with PT Marga Mandalasakti will provide benefits that can be enjoyed by individual and corporate customers, namely with a large bandwidth capacity, and the existence of a Redundant System that provides reliable network quality," Marlo said as quoted from Bisnis.Through this partnership, Link and Marga Mandalasakti will work together to place an underground telecommunications infrastructure that extends from West Tangerang to Merak with a total distance of 76 km respectively.The expansion of LINK's Java Intercity Fiber Backbone network will increase the company's total service reach to 45 cities on Java. This year, LINK will expand services to the cities of Serang and Cilegon with the potential for home passed more than 40,000 for the residential segment plus the potential of the corporate segment. Source:IDNfinancial&Bisnis

Sentra Food eyes Rp 137 billion in sales this year

PT Sentra Food Indonesia Tbk (FOOD) is targeting sales this year of Rp 137 billion. The figure was revised by the company from the previous of Rp 150 billion. This is due to delay in licensing new products."New product licensing that are expected to be completed at the beginning of the second semester of 2019, it seems that we will only be able to obtain them in the third quarter or fourth quarter of this year. So there will be delays in entering the markets that will affect sales," said the President Director Sentra Food Indonesia August Sani Nugroho as quoted from Bisnis.com.At the end of the first semester of this year, Sentra Food posted sales of Rp 61.08 billion, down 2.92% on an annual basis. The plan, the company will introduce several new products in the third and fourth quarters through its subsidiary, PT Kemang Food Industries. Source:IDNfinancial

Sky Energy will conduct a stock split

Shareholders of PT Sky Energy Indonesia Tbk (JSKY) have agreed to conduct a stock split with a ratio of 1: 2 from Rp 100 per share to Rp 50 per share. The results of the stock split will be traded starting from 16 August 2019 in the regular and negotiated markets.As quoted from the disclosure of company information, the corporate action was decided in the company's Extraordinary General Meeting of Shareholders (EGM) on 25 July 2019, in Bogor. Source:IDNfinancial

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Technical Analysis | Indonesia

Daily Chart Views Liga Maradona ● (62) 21-2970 9431 ● liga.maradona@ocbcsekuritas.com

Wednesday

14 August 2019

Summary for today:

JCI Slightly

rise Potential technical rebound as last closing price still above near term support

ASII Spec

buy Potential technical rebound supported by the forming of Hammer pattern and increase in volume

UNTR Spec

buy Potential technical rebound though forming Black candle pattern but decrease in volume

HMSP Spec

buy Potential technical rebound supported by the forming of Tweezer Bottom pattern

UNVR BOW Continue to fall supported by the forming of Bearish Belt Hold pattern and increase in volume

AKRA Spec

buy Potential technical rebound though forming Black candle pattern but decrease in volume

Jakarta Composite Index (JCI) Gc = Golden-cross Pos = Positive

Dc = Dead-cross Neg = Negative Up = Up Ob = Overbought

Dn = Down Os = Oversold Nt = Neutral

Source: Bloomberg

Recomendation Slightly rise

Resistance 6,250

Support 6,175

Close 6,210

Indicator MACD Dn

W%R Nt

Histogram Neg

Mov Avg Nt

OCBC Sekuritas

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Astra International (ASII)

Gc = Golden-cross Pos = Positive Dc = Dead-cross Neg = Negative

Up = Up Ob = Overbought Dn = Down Os = Oversold

Nt = Neutral

Source: Bloomberg

United Tractor (UNTR)

Gc = Golden-cross Pos = Positive Dc = Dead-cross Neg = Negative

Up = Up Ob = Overbought Dn = Down Os = Oversold

Nt = Neutral

Source: Bloomberg

Recommendation Spec buy

Resistance 6,850

Support 6,400

Entry 6,500-6,600

Indicator MACD Dn

W%R Os

Histogram Neg

Mov Avg Dn

Recommendation Spec buy

Resistance 22,600

Support 20,600

Entry 20,900-21,000

Indicator MACD Dn

W%R Os

Histogram Neg

Mov Avg Dn

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Hanjaya Mandala Sampoerna (HMSP)

Source: Bloomberg

Unilever Indonesia (UNVR)

Source: Bloomberg

Recommendation Spec buy

Resistance 2,930

Support1 2,770

Entry 2,790-2,810

Indicator MACD Dn

W%R Os

Histogram Neg

Mov Avg Nt

Recommendation BOW

Resistance 45,050

Support 43,200

Entry 43,500-43,775

Indicator MACD Dn

W%R Nt

Histogram Pos

Mov Avg Dn

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AKR Corporindo (AKRA)

ws Dc = Dead-cross Neg = Negative

Up = Up Ob = Overbought Dn = Down Os = Oversold Nt = Neutral

Source: Bloomberg

Recomendation Spec buy

Resistance 3,890

Support 3,690

Entry 3,710-3,730

Indicator MACD Dn

W%R Nt

Histogram Neg

Mov Avg Dn

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S 2 S 1 R 1 R 2

Sho rt-

T erm

M id-

T erm

Lo ng-

T erm

JCI 5,070 7,228 6,251 6,193 6,244 6,308 6,360 Bearish Bearish Bullish

H o ldings

INDF 100 66 7,525 7,300 7,475 7,550 7,700 Bullish Bullish Bearish

ASII 255 273 6,750 6,544 6,738 6,863 7,044 Bearish Bearish Bearish

B anks

BBCA 565 745 30,200 29,713 30,075 30,475 30,763 Bearish Bullish Bullish

BBNI 223 148 7,925 7,594 7,838 8,038 8,244 Bearish Bearish Bullish

BBRI 609 530 4,300 4,198 4,295 4,385 4,478 Bearish Bullish Bullish

BBTN 38 24 2,300 2,208 2,285 2,345 2,428 Bearish Bullish Bearish

BDM N 28 49 5,000 4,756 4,948 5,053 5,216 Bullish Bearish Bearish

BJBR 15 15 1,520 1,468 1,510 1,540 1,588 Bearish Bearish Bearish

BM RI 381 345 7,400 7,163 7,375 7,525 7,713 Bearish Bullish Bullish

C o nstruct io ns

ADHI 10 5 1,385 1,328 1,375 1,420 1,478 Bearish Bearish Bullish

PTPP 50 11 1,835 1,773 1,835 1,900 1,963 Bearish Bearish Bullish

WIKA 52 20 2,200 2,103 2,195 2,325 2,423 Bearish Bullish Bullish

WSKT 71 24 1,775 1,706 1,758 1,798 1,846 Bearish Bullish Bullish

C o al M ining

ADRO 61 34 1,070 1,005 1,060 1,110 1,165 Bearish Bearish Bearish

INDY 8 7 1,365 1,284 1,358 1,408 1,484 Bearish Bearish Bearish

ITM G 21 17 14,650 14,181 14,638 15,313 15,781 Bearish Bearish Bearish

PTBA 53 29 2,480 2,360 2,460 2,570 2,680 Bearish Bearish Bearish

C o nsumers

GGRM 100 140 72,600 71,150 72,300 74,175 75,150 Bearish Bearish Bearish

HM SP 147 338 2,910 2,705 2,870 2,940 3,095 Bearish Bearish Bearish

ICBP 84 131 11,275 10,975 11,200 11,425 11,675 Bullish Bullish Bullish

KLBF 46 69 1,465 1,390 1,440 1,475 1,520 Bullish Bearish Bearish

UNVR 107 343 44,975 44,119 44,688 45,288 45,569 Bullish Bearish Bullish

P lantat io ns

AALI 17 20 10,625 10,188 10,450 10,725 10,988 Bullish Bearish Bearish

LSIP 21 8 1,170 1,089 1,148 1,203 1,259 Bullish Bearish Bearish

P o ultry

CPIN 60 80 4,850 4,738 4,835 4,915 4,998 Bearish Bearish Bearish

JPFA 38 18 1,570 1,499 1,568 1,603 1,669 Bearish Bearish Bearish

Infrastructure

INTP 45 81 21,925 21,425 21,700 22,025 22,325 Bearish Bullish Bullish

SM GR 76 76 12,800 12,481 12,688 12,913 13,181 Bullish Bearish Bullish

UNTR 124 81 21,700 20,731 21,638 23,188 24,081 Bearish Bullish Bearish

AKRA 29 15 3,860 3,745 3,820 3,880 3,965 Bearish Bearish Bearish

JSM R 25 42 5,850 5,538 5,675 5,875 6,038 Bullish Bullish Bullish

M etal M ining

ANTM 261 25 1,035 984 1,028 1,078 1,124 Bullish Bearish Bullish

INCO 86 32 3,240 3,028 3,185 3,355 3,468 Bullish Bearish Bearish

TINS 29 7 975 930 970 1,010 1,050 Bearish Bearish Bullish

Oil and Gas

ELSA 6 2 342 326 335 347 360 Bearish Bearish Bullish

M EDC 10 14 790 756 788 813 846 Bearish Bearish Bearish

PGAS 61 48 1,980 1,933 1,975 2,000 2,043 Bearish Bearish Bearish

P ro perty

ASRI 3 6 314 304 311 317 326 Bearish Bullish Bullish

BKSL 25 8 136 129 136 139 145 Bearish Bullish Bullish

BSDE 17 25 1,320 1,256 1,318 1,383 1,446 Bearish Bullish Bullish

CTRA 41 22 1,185 1,126 1,178 1,233 1,276 Bearish Bullish Bullish

LPKR 35 19 262 250 259 269 280 Bearish Bullish Bullish

SM RA 29 18 1,235 1,164 1,218 1,278 1,324 Bearish Bullish Bullish

R etail

LPPF 27 9 3,250 3,095 3,250 3,310 3,465 Bearish Bearish Bearish

M API 9 16 990 933 975 1,015 1,053 Bullish Bearish Bullish

RALS 9 9 1,305 1,238 1,290 1,330 1,378 Bearish Bearish Bullish

T eleco mmunicat io n

EXCL 47 36 3,360 3,155 3,270 3,400 3,515 Bullish Bullish Bullish

TLKM 429 422 4,260 4,138 4,235 4,325 4,418 Bullish Bullish Bullish

C o de

Suppo rtLast

P rice

R esistance Indicato rsM arket

C ap

D aily

T urno ver

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SHAREHOLDING DECLARATION: The analyst/analysts who wrote this report holds/hold NIL shares in the above security. DISCLAIMER FOR RESEARCH REPORT This report is solely for information and general circulation only and may not be published, circulated, reproduced or distributed in whole or in part to any other person without our written consent. This report should not be construed as an offer or solicitation for the subscription, purchase or sale of the securities mentioned herein. Whilst we have taken all reasonable care to ensure that the information contained in this publication is not untrue or misleading at the time of publication, we cannot guarantee its accuracy or completeness, and you should not act on it without first independently verifying its contents. Any opinion or estimate contained in this report is subject to change without notice. We have not given any consideration to and we have not made any investigation of the investment objectives, financial situation or particular needs of the recipient or any class of persons, and accordingly, no warranty whatsoever is given and no liability whatsoever is accepted for any loss arising whether directly or indirectly as a result of the recipient or any class of persons acting on such information or opinion or estimate. You may wish to seek advice from a financial adviser regarding the suitability of the securities mentioned herein, taking into consideration your investment objectives, financial situation or particular needs, before making a commitment to invest in the securities. PT OCBC Sekuritas and their respective connected and associated corporations together with their respective directors and officers may have or take positions in the securities mentioned in this report and may also perform or seek to perform broking and other investment or securities related services for the corporations whose securities are mentioned in this report as well as other parties generally. The information provided herein may contain projections or other forward looking statements regarding future events or future performance of countries, assets, markets or companies. Actual events or results may differ materially. Past performance figures are not necessarily indicative of future or likely performance. Privileged / confidential information may be contained in this document. If you are not the addressee indicated in this document (or responsible for delivery of this message to such person), you may not copy or deliver this message to anyone. Opinions, conclusions and other information in this document that do not relate to the official business of PT OCBC Sekuritas and their respective connected and associated corporations shall be understood as neither given nor endorsed. RATINGS AND RECOMMENDATIONS: - OCBC Sekuritas Research’s technical comments and recommendations are short-term and trading oriented. - OCBC Sekuritas Research’s fundamental views and ratings (Buy, Hold, Sell) are medium-term calls within a 12-month investment horizon. - As a guide, OCBC Sekuritas Research’s BUY rating indicates a total return in excess of 10% based on the current price; a HOLD rating indicates total returns within +10% and -5%; a SELL rating indicates total returns less than -5%.

Isfhan Helmy Head of Research

Published by PT OCBC Sekuritas Indonesia