Analisa Saham Bahana Sekuritas 20170411
Cor por a t e fla sh
Asiamoney’s
2013
Best Domestic
Equity House
1 1 Apr il 2 0 1 7
Adi Sa r a na Ar m a da
BUY
Sect or: Land Transport at ion (Neut ral)
( unchanged)
Rat ing m om ent um * :
Gr e gor iu s Ga r y
PX: I DR242–TP: I DR330( from : I DR280)
TP/ consensus: 93% ; TP m om ent um * :
JCI : 5,628
E- m ail: gregorius@bahana.co.id
Phone: + 6221 250 5081 ext . 3604
M oving for w a r d
I m pr oving use d ca r pr ice s since 2 0 1 6 , posit iv e for r e nt a l busine ss:
Based on our m ar ket research, ASPs in t he last few m ont hs on used Toyot a
Avanza ( exhibit 5) , t he highest - selling MPV in I ndonesia, are support ive of
our view of a recovery in t he secondary- car m arket in 2017. We not e t hat
t he ASP on second- hand 2012 Toyot a Avanzas in March im proved 4.7% m m or 5.5% y- y, t o I DR134m n. Going forward, we expect t he used car price
im provem ent prevalent at t he m om ent t o be sust ained, paving t he way for a
posit ive cat alyst for ASSA’s vehicle- rent al and auct ion businesses in 2017.
St r ong r e nt a l gr ow t h lik e ly t o su st a in ut iliz a t ion of 9 3 .4 % in 2 0 1 7 F:
For 2016 ASSA booked st rong earnings of I DR62.1bn, up by 82% y- y,
beat ing our and consensus expect at ions by 18% and 13% , respect ively. The
solid earnings im provem ent was largely at t ribut able t o higher operat ing
profit of I DR256.2bn, up 20.5% y- y, on a st rong perform ance from ASSA’s
vehicle- rent al segm ent . ASSA m anaged t o increase it s ut ilizat ion rat e t o
93.4% in 2016, from 92.6% in 2015, wit h t ot al fleet up 6.7% y- y t o 19,199
unit s ( from 17,991) ( exhibit 6) , support ed by t he com pany’s abilit y t o ret ain
long- t erm cont ract s, coupled wit h an efficient fleet - m anagem ent syst em .
For 2017, we expect ASSA t o m aint ain it s rent al ut ilizat ion rat e at 93.4%
and grow it s fleet size t o 20,900 unit s ( + 8.9% y- y) , result ing in rent alsegm ent revenue of I DR1.0t n ( + 15.7% y- y) .
BidW in’s e x pa nsion lik e ly int o a not he r 3 cit ie s in 2 0 1 7 : ASSA’s carauct ion segm ent , BidWin, plans t o add new auct ion locat ions in 3 cit ies,
nam ely Pekanbar u, Lam pung and Banj arm asin. Current ly, BidWin holds
auct ion in 10 m aj or cit ies, wit h weekly event s in Jakart a and bi- m ont hly
auct ions in Surabaya, Medan and Balikpapan. BidWin m anaged t o post
st rong perform ance in 2016 wit h t he num ber of cars sold reaching 5,969
unit s ( exhibit 7) , in- line w it h our est im at es. We expect BidWin t o cont inue
it s solid perform ance and sell 7,000 cars ( + 17% y- y) in 2017. Moreover,
BidWin is current ly developing it s own e- auct ion syst em in order t o support
it s m aj or expansion plans. This would increase BidWin’s econom ies of scale,
t arget m arket as well as flexibilit y in t he auct ion process wit hout having t o
spend a sizeable am ount on capit al expendit ures.
Re com m e n da t ion : Re a ffir m BUY ca ll w it h a highe r TP of I D R3 3 0
At t his st age of t he cycle, we cont inue t o like ASSA given t he recent
im provem ent in secondary- car m arket prices, which we believe will drive t he
com pany’s rent al segm ent growt h over t he m edium t erm . Hence, we expect
ASSA’s sharp YTD m ar ket out perform ance t o cont inue ( exhibit 4) ,
part icularly as t he out look for t he car- rent al and auct ion businesses rem ain
int act , in our view. We raise our 2017- 18F earnings ( exhibit 9) by 17- 20%
due t o lower int erest cost on t he debt at 9.2% ( from 9.75% ) , leading us t o
lift our 12- m ont h TP t o I DR330 ( from I DR280) , based on an unchanged
2017F PER of 12x. Wit h 36% upside pot ent ial t o our new TP, we reaffirm
our BUY rat ing. Risks t o our call would be lower- t han- expect ed secondary
m arket prices, a slower fleet expansion and lower ut ilizat ion rat es.
Ex hibit 1 . Com pa n y inform a t ion
Market cap ( I DRbn/ USDm n)
:
3M avg.daily t .o.( I DRbn/ USDm n) :
Bloom berg code
:
822.2/ 61.9
1.0/ 0.1
ASSA I J
Source: Bloom berg
Ex hibit 2 . Sha r eh olde r s in form at ion
Adi Dinam ika I nvest indo ( % )
:
Daya Adicipt a Must ika ( % )
:
Ot hers ( % )
:
Free float ( % )
:
24.94
19.17
18.45
37.44
Source: Bloom berg
Ex hibit 3 . Ke y fore ca st s an d va lu at ion s
2015
2016 2017F 2018F
Ye a r t o 3 1 D e c
Revenue ( I DRbn)
1,393 1,570 1,796 2,032
EBI T ( I DRbn)
213
256
283
369
Net profit ( I DRbn)
34
62
93
145
Bahana/ cns. ( % )
89
115
EPS ( I DR)
10
18
27
43
EPS growt h ( % )
( 20.5)
81.8
50.3
55.7
EV/ EBI TDA ( x)
4.7
4.2
4.2
3.7
PER ( x)
24.1
13.2
8.8
5.7
FCFPS ( I DR)
( 90)
( 5)
( 51)
( 32)
FCF yield ( % )
( 37)
( 2)
( 21)
( 13)
BVPS ( I DR)
251
266
282
308
PBV ( x)
1.0
0.9
0.9
0.8
DPS ( I DR)
5
4
11
17
Yield ( % )
2.1
1.7
4.5
7.0
ROAA ( % )
1.2
2.1
2.8
3.9
ROAE ( % )
4.0
6.9
9.7
13.9
EBI T m argin ( % )
15.3
16.3
15.7
18.1
Net gearing ( % )
205.6 197.9 208.2 206.7
Source: Bloom berg, Bahana forecast s
Not e: Pricing as of close on 11 April 2017
Ex hibit 4 . Rela t ive sh a re price pe r for m a n ce
(% )
100
92.9
80
100
80
60
60
34.8
40
40
25.4
20
17.8
16.1
20
0
0
( 6.8)
( 20)
yt d
1M
( 20)
3M
6M
9M
12M
Source: Bloom berg, Bahana
Disclosure: Bahana Securit ies does and seeks t o do business wit h com panies covered in it s research report s. I nvest ors should consider t his report as only a single fact or in
m aking t heir invest m ent decision.
Please see t he im port ant disclaim er inform at ion on t he back of t his r eport
*Based on consensus’ recent changes ↑ (up), ↓ (down), ↔ (unchanged)
T
1 1 Apr il 2 0 1 7
Ex hibit 5 . Ave r a ge 2 0 1 2 Toyot a Ava nz a se conda r y m a r k e t ASPs
( I DRm n)
ASPs on use d Toy ot a Ava nza
suppor t
our
vie w
of
a
r e cove r y in t he se conda r y
ca r m a r k e t in 2 0 1 7
140
135
130
125
120
115
110
105
100
95
90
Source: Com pany, Bahana
Ex hibit 6 . ASSA’s fle e t siz e a nd ut iliz a t ion r a t e , Ja nua r y 2 0 1 5 - M a r ch 2 0 1 7
( unit s)
(% )
20,000
96.0
95.0
19,000
94.0
I m pr ovin g
ut iliz a t ion
to
9 3 .4 % in 2 0 1 6 fr om 9 2 .6 %
in 2 0 1 5 ; w e e x pe ct ASSA t o
e x pa nd it s fle e t siz e by 8 .9 %
y- y t o 2 0 .9 k unit s in 2 0 1 7 F
w it h a 9 3 .4 % ut iliz a t ion r a t e
18,000
93.0
17,000
92.0
16,000
91.0
15,000
90.0
Series1
Series2
Source: Com pany, Bahana
Ex hibit 7 . N um be r of BidW in’s offe r e d a nd sold ca r s, June 2 0 1 4 – M a r ch 2 0 1 7
( unit s)
BidW in
r e cor de d
st r on g
pe r for m a nce
w it h
t he
a uct ion of c.3 0 k ca r s since
it s de but in June 2 0 1 4
2,500
2,000
1,500
1,000
500
0
Offer ed car s
Sold cars
Source: Com pany, Bahana
PT. Ba h a n a Se k u r it a s – Equ it y Re se a r ch – ASSA I J Cor por a t e Fla sh
1 1 Apr il 2 0 1 7
Ex hibit 8 . ASSA pa st - 3 - ye a r for w a r d PER ba nd, 2 0 1 4 - yt d
(x)
18
ASSA sha r e s cur r e n t ly t r a de
ne a r
t he ir
pa st - 3 - ye a r a ve r a ge for w a r d PER of
1 1 .6 x
16
14
12
10
8
6
Source: Bloom berg, Bahana forecast s
Ex hibit 9 . Ea r nings r e vision s
Old
( I D Rbn )
2016
Re v e n u e
New
2017F
2018F
2016
Ch a nge ( % )
2017F
2018F
2016
2017F
2018F
1 ,5 7 0
1 ,7 5 2
2 ,0 8 3
1 ,7 9 6
2 ,0 3 2
2.5
( 2.4)
Gr oss pr ofit
456
538
685
518
634
( 3.7)
( 7.4)
Gross profit m argin ( % )
29.0
30.7
32.9
28.8
31.2
Ope r a t in g pr ofit
256
300
381
283
369
( 5.8)
( 3.2)
Operat ing m argin ( % )
16.3
17.1
18.3
15.7
18.1
N e t profit
62
80
121
93
145
16.7
20.2
Net m argin ( % )
4.0
4.6
5.8
5.2
7.2
EPS ( I D R)
18
24
36
27
43
16.7
20.2
Source: Com pany, Bahana forecast s
Ex hibit 1 0 . Re giona l pe e r s
I ndone sia La nd Tr a nspor ta tion
Tick e r
Com pa ny
Ma r k e t ca p
PER ( x )
PBV ( x )
EV/ EBI TD A ( x )
D iv . y ie ld ( % )
RO E ( % )
EPS gr ow th ( % )
( U SD m n)
2017F
2018F
2017F
2018F
2017F
2018F
2017F
2018F
2017F
2018F
2017F
731
1 1 .1
9 .8
1 .7
1 .5
4 .7
4 .1
1 .1
1 .8
1 5 .4
1 5 .2
1 4 .5
1 0 .8
8 .8
5 .7
0 .9
0 .8
4 .2
3 .7
4 .5
7 .0
9 .7
1 3 .9
5 0 .3
5 5 .7
BI RD I J
Blu e Bird Tb k PT
ASSA I J
Ad i Sa ra n a Arma d a Tb k PT
62
TAXI I J
Exp re ss Tra n sin d o Ut a ma Tb k
26
I ndone sia a v e r a ge
3 8 .0
1 1 .7
4 0 .1
1 0 .4
0 .4
0 .4
1 .6
3 .5
1 .4
4 .6
3 .6
4 .1
0 .5
1 .4
0 .4
2 .2
1 .1
1 4 .5
1 .0
1 4 .6
na
1 6 .8
2018F
(5 .2 )
1 3 .7
Re giona l La nd Tr a nspor ta tion
Tick e r
Com pa ny
Ma r k e t ca p
PER ( x )
PBV ( x )
EV/ EBI TD A ( x )
D iv . y ie ld ( % )
( U SD m n)
2017F
2018F
2017F
2018F
2017F
2018F
2017F
2018F
RO E ( % )
2017F
EPS gr ow th ( % )
2018F
2017F
2018F
CAB AU
Ca b ch a rg e Au st ra lia Lt d
261
1 0 .4
1 4 .8
1 .1
1 .1
8 .5
8 .9
2 4 .6
4 .5
(4 .9 )
1 0 .8
(2 9 .3 )
(2 9 .9 )
0 0 2 3 5 7 CH
Sich u a n Fu lin Tra n sp o rt a t io n G
581
2 3 .9
2 0 .3
4 .1
3 .6
na
na
1 .2
1 .2
1 8 .0
1 7 .8
2 5 .9
1 7 .8
CD SP
Co mfo rt De lGro Co rp Lt d
4 ,0 0 8
1 6 .6
1 6 .0
2 .2
2 .1
6 .9
6 .7
4 .2
4 .6
1 3 .4
1 3 .4
4 .0
Re giona l a v e r a ge
1 7 .2
1 6 .5
2 .4
2 .2
6 .1
6 .0
Source: Bloom berg, Bahana forecast s for I ndonesian- list ed st ocks; prices as of close on 11 April 2017
PT. Ba h a n a Se k u r it a s – Equ it y Re se a r ch – ASSA I J Cor por a t e Fla sh
4 .9
4 .2
1 3 .0
1 3 .8
4 .8
3 .8
3 .7
1 1 Apr il 2 0 1 7
Adi Sa r a na Ar m a da
Ye a r t o 3 1 D e ce m be r
PROFI T & LOSS ( I D Rbn )
Sa le s
Gr oss pr ofit
EBI TDA
Depreciat ion
EBI T
Net int erest inc./ ( expense)
Forex gain/ ( losses)
Ot her incom e/ ( expense)
Pr e - t a x pr ofit
Taxes
Minorit y int erest
N e t profit
2014
2015
2016
2017F
2018F
1 ,1 4 0
349
471
287
184
( 139)
0
11
56
13
0
43
1 ,3 9 3
415
548
336
213
( 171)
( 0)
15
57
23
0
34
1 ,5 7 0
456
625
369
256
( 184)
0
17
89
27
0
62
1 ,7 9 6
518
678
395
283
( 175)
17
125
31
0
93
2 ,0 3 2
634
806
437
369
( 192)
17
194
48
0
145
BALAN CE SH EET ( I D Rbn )
Cash and equivalent s
Trade receivables
I nvent ories
Fixed asset s
Ot her asset s
Tot a l a sse t s
I nt erest bearing liabilit ies
Trade payables
Ot her liabilit ies
Tot a l lia bilit ie s
M in or it y int e r e st
Sha r e h olde r s' e qu it y
22
131
26
2,193
136
2 ,5 0 7
1,456
57
157
1 ,6 6 9
0
838
28
168
20
2,538
140
2 ,8 9 3
1,784
44
210
2 ,0 3 8
0
854
40
193
31
2,631
134
3 ,0 3 0
1,828
39
259
2 ,1 2 6
0
904
30
221
31
2,904
147
3 ,3 3 4
2,028
45
300
2 ,3 7 4
0
960
34
250
32
3,182
196
3 ,6 9 2
2,198
49
397
2 ,6 4 5
0
1 ,0 4 7
CASH FLOW ( I D Rbn )
EBI T
Depreciat ion
Working capit al
Ot her operat ing it em s
Ope r a t in g ca sh flow
Net capit al expendit ure
Fr e e ca sh flow
Equit y raised/ ( bought )
Net borrowings
Ot her financing
N e t ca sh flow
Cash flow at beginning
Ca sh flow a t e n d
184
287
( 6)
( 145)
321
( 591)
( 270)
295
( 29)
(4)
26
22
213
336
( 50)
( 162)
336
( 641)
( 305)
329
( 18)
6
22
28
256
369
( 14)
( 182)
430
( 448)
(18)
44
( 13)
12
28
40
283
395
( 15)
( 184)
480
( 653)
( 173)
200
( 37)
(10)
40
30
369
437
( 19)
( 215)
573
( 682)
( 109)
170
( 58)
3
30
34
5.1
1.7
30.6
41.3
16.2
3.8
71.1
0.4
0.8
171.1
58.1
41.3
25.7
11.6
4.0
1.2
29.8
39.4
15.3
2.5
49.7
0.4
0.8
205.6
61.7
43.4
16.3
7.3
6.9
2.1
29.0
39.8
16.3
4.0
21.9
0.5
0.7
197.9
60.3
44.3
12.6
10.1
9.7
2.8
28.8
37.7
15.7
5.2
39.8
0.5
0.6
208.2
60.8
44.3
12.6
8.9
13.9
3.9
31.2
39.7
18.1
7.2
39.8
0.5
0.5
206.7
59.5
44.3
12.6
8.1
14,873
92.1
1,793
96.9
17,991
92.6
2,337
92.2
19,199
93.4
2,284
88.1
20,900
93.4
3,000
88.9
22,601
93.4
3,000
89.8
RATI OS
ROAE ( % )
ROAA ( % )
Gross m argin ( % )
EBI TDA m argin ( % )
EBI T m argin ( % )
Net m argin ( % )
Payout rat io ( % )
Current rat io ( x)
I nt erest coverage ( x)
Net gearing ( % )
Debt s t o asset s ( % )
Debtor t urnover ( days)
Credit or t urnover ( days)
I nvent ory t urnover ( days)
M AJOR ASSUM PTI ON S
Fleet unit ( unit s)
Ut ilizat ion rat e ( % )
Unit of disposal ( unit )
ASP used car (I DRm n)
Source: Com pany, Bahana forecast s
Gregorius Gary ( gregorius@bahana.co.id) + 6221 250 5081 ext . 3604
PT. Ba h a n a Se k u r it a s – Equ it y Re se a r ch – ASSA I J Cor por a t e Fla sh
Low e r int e r e st cost a t 9 .2 %
in 2 0 1 7 F
H ighe r de bt le ve ls …
… t o fina nce flee t e x pa nsion
H ighe r ne t m a r gin a t 5 .2 %
in 2 0 1 7 F
D isposa l of 3 ,0 0 0 ca r s pe r
ye a r in 2 0 1 7 - 1 8 F
H e ad Office
Graha Niaga, 19t h Floor
Jl. Jend. Sudirm an Kav. 58
Jakart a 12190
I ndonesia
Tel. 62 21 250 5081
Fax. 62 21 522 6049
ht t p: / / www .bahana.co.id
Su r aba ya Bra n ch
Wism a BI I , Ground Floor
Jl. Pem uda 60- 70
Surabaya 60271
I ndonesia
Tel. 62 31 535 2788
Fax. 62 31 546 1157
I m por t a n t D isclosure s a nd D iscla im er
This publicat ion is prepared by PT. Bahana Sekurit as and rev iewed by Daiwa Secur it ies Group I nc. and/ or it s affiliat es, and dist r ibut ed out side I ndonesia by
Daiwa Secur it ies Gr oup I nc. and/ or it s affiliat es, ex cept t o t he ext ent expressly pr ov ided herein. Cert ain copies of t his publicat ion m ay be dist r ibut ed inside
and out side of I ndonesia by PT. Bahana Sekur it as in accordance w it h relevant law s and regulat ions. This publicat ion and t he cont ent s hereof are int ended
for inform at ion purposes only, and m ay be subj ect t o change w it hout furt her not ice. Any use, disclosure, dist r ibut ion, dissem inat ion, copy ing, pr int ing or
reliance on t his publicat ion for any ot her purpose w it hout our pr ior consent or appr oval is st r ict ly prohibit ed. Any rev iew does not const it ut e a full ver ificat ion
of t he publicat ion and m erely pr ov ides a m inim um check. Neit her Daiwa Secur it ies Group I nc. nor any of it s respect ive parent , holding, subsidiar ies or
affiliat es, nor any of it s respect iv e direct ors, officers, servant s and em ployees, represent nor warrant t he accuracy or com plet eness of t he infor m at ion
cont ained herein or as t o t he ex ist ence of ot her fact s which m ight be significant , and w ill not accept any responsibilit y or liabilit y what soever for any use of or
reliance upon t his publicat ion or any of t he cont ent s hereof. Neit her t his publicat ion, nor any cont ent hereof, const it ut e, or are t o be const rued as, an offer or
solicit at ion of an offer t o buy or sell any of t he secur it ies or invest m ent s m ent ioned herein in any count ry or j urisdict ion nor, unless expressly prov ided, any
recom m endat ion or invest m ent opinion or adv ice. Any v iew , recom m endat ion, opinion or adv ice expressed in t his publicat ion const it ut es t he v iew s of t he
analyst ( s) nam ed herein and does not necessar ily reflect t hose of Daiwa Securit ies Gr oup I nc. and/ or it s affiliat es nor any of it s respect ive direct ors, officers,
servant s and em ployees except w here t he publicat ion st at es ot herw ise. This research report is not t o be relied upon by any person in m ak ing any invest m ent
decision or ot her w ise adv ising w it h respect t o, or dealing in, t he securit ies m ent ioned, as it does not t ake int o account t he specific inv est m ent obj ect ives,
financial sit uat ion and part icular needs of any person.
Neit her Daiwa Secur it ies Group I nc. nor any of it s affiliat es is licensed t o undert ake any business w it hin t he Republic of I ndonesia. Any display of any t rade
nam e or logo of t he Daiwa Securit ies Group I nc. on t his publicat ion shall not be deem ed t o be an undert ak ing of any business w it hin t he Republic of
I ndonesia.
Daiwa Securit ies Gr oup I nc., it s subsidiar ies or affiliat es, or it s or t heir respect ive direct ors, officers and em ployees from t im e t o t im e m ay have t rades as
principals, or have posit ions in, or have ot her int erest s in t he securit ies of t he com pany under research including m arket m ak ing act iv it ies, derivat ives in
respect of such secur it ies or m ay have also perform ed invest m ent bank ing and ot her serv ices for t he issuer of such secur it ies. The follow ing are addit ional
disclosures.
Ownership of Secur it ies
For “ Ownership of Secur it ies” infor m at ion, please v isit BlueMat r ix disclosure link at ht t ps: / / daiwa3. bluem at rix. com / sellside/ Disclosures.act ion.
I nvest m ent Bank ing Relat ionship
For “ I nvest m ent Bank ing Relat ionship” , please v isit BlueMat r ix disclosure link at ht t ps: / / daiwa3.bluem at rix.com / sellside/ Disclosures.act ion.
Ja pa n
Daiwa Secur it ies Co. Lt d. and Daiwa Secur it ies Group I nc.
Daiwa Secur it ies Co. Lt d. is a subsidiar y of Daiw a Secur it ies Group I nc.
I nvest m ent Bank ing Relat ionship
Wit hin t he preceding 12 m ont hs, The subsidiaries and/ or affiliat es of Daiwa Securit ies Group I nc. * has lead- m anaged public offerings and/ or secondary offerings
(excluding st raight bonds) of t he securit ies of t he following com panies: Neo Solar Power Corp ( 3576 TT), Acushnet Holdings Corp ( GOLF US), No Va Land
I nvest m ent Group Corporat ion ( NVL VN).
* Subsidiar ies of Daiwa Secur it ies Group I nc. for t he purposes of t his sect ion shall m ean any one or m ore of:
• Daiwa Capit al Mar ket s Hong Kong Lim it ed ( 大和資本市場香港有限公司)
• Daiwa Capit al Mar ket s Singapore Lim it ed
• Daiwa Capit al Mar ket s Aust ralia Lim it ed
• Daiwa Capit al Mar ket s I ndia Pr ivat e Lim it ed
• Daiwa- Cat hay Capit al Market s Co. , Lt d.
• Daiwa Secur it ies Capit al Market s Korea Co., Lt d
Disclosure of I nt erest of Bahana Sekurit as
I nvest m ent Bank ing Relat ionship
Wit hin t he preceding 12 m ont hs, Bahana Sekur it as has lead- m anaged public offer ings and/ or secondary offerings ( ex cluding st raight bonds) of t he securit ies
of t he follow ing com panies: PT Telekom unikasi I ndonesia ( Persero) Tbk ( TLKM I J) ; PT Wask it a Bet on Precast Tbk ( WSBP I J) .
H ong Kong
This research is dist r ibut ed in Hong Kong by Daiwa Capit al Market s Hong Kong Lim it ed ( 大和資本市場香港有限公司) ( “ DHK” ) which is r egulat ed by t he Hong
Kong Secur it ies and Fut ures Com m ission. Recipient s of t his research in Hong Kong m ay cont act DHK in respect of any m at t er ar ising from or in connect ion
w it h t his research.
Relevant Relat ionship ( DHK)
DHK m ay from t im e t o t im e have an indiv idual em ployed by or associat ed w it h it serves as an officer of any of t he com panies under it s research coverage.
Singa por e
This resear ch is dist r ibut ed in Singapore by Daiwa Capit al Mar ket s Singapore Lim it ed and it m ay only be dist r ibut ed in Singapore t o accredit ed invest ors,
expert invest ors and inst it ut ional invest ors as defined in t he Financial Adv isers Regulat ions and t he Securit ies and Fut ures Act ( Chapt er 289) , as am ended
from t im e t o t im e. By v irt ue of dist ribut ion t o t hese cat egory of inv est ors, Daiwa Capit al Market s Singapore Lim it ed and it s represent at ives are not required
t o com ply w it h Sect ion 36 of t he Financial Adv isers Act ( Chapt er 110) ( Sect ion 36 relat es t o disclosure of Daiwa Capit al Market s Singapore Lim it ed’s int erest
and/ or it s represent at ive’s int erest in secur it ies) . Recipient s of t his r esearch in Singapore m ay cont act Daiwa Capit al Mar ket s Singapore Lim it ed in respect of
any m at t er ar ising from or in connect ion w it h t he research.
Aust r a lia
This research is dist r ibut ed in Aust ralia by Daiwa Capit al Market s Aust ralia Lim it ed and it m ay only be dist r ibut ed in Aust ralia t o wholesale invest ors w it hin
t he m eaning of t he Corporat ions Act . Recipient s of t his research in Aust ralia m ay cont act Daiwa Capit al Market s St ock brok ing Lim it ed in respect of any
m at t er ar ising from or in connect ion w it h t he research.
I ndia
This research is dist r ibut ed in I ndia t o I nst it ut ional Client s only by Daiwa Capit al Mar ket s I ndia Pr ivat e Lim it ed ( Daiwa I ndia) which is an int erm ediar y
regist ered w it h Secur it ies & Exchange Board of I ndia as a St ock Broker, Merchant Bank and Research Analy st . Daiwa I ndia, it s Research Analyst and t heir
fam ily m em bers and it s associat es do not have any financial int erest save as disclosed or ot her undisclosed m at er ial conflict of int erest in t he secur it ies or
derivat ives of any com panies under coverage. Daiwa I ndia and it s associat es, m ay have received com pensat ion for any product s ot her t han I nvest m ent
Banking ( as disclosed) or br okerage serv ices fr om t he subj ect com pany in t his report or fr om any t hird part y during t he past 12 m ont hs. Daiwa I ndia and it s
associat es m ay have debt holdings in t he subj ect com pany. For inform at ion on ownership of equit y, please v isit BlueMat r ix disclosure Link at
htt ps: / / daiwa3.bluematrix.com / sellside/ Disclosures.action.
There is no m at er ial disciplinar y act ion against Daiwa I ndia by any regulat or y aut hor it y im pact ing equit y research analy sis act iv it ies as of t he dat e of t his
report .
Associat es of Daiwa I ndia, regist ered w it h I ndian regulat or s, include Daiwa Capit al Market s Singapor e Lim it ed and Daiwa Port folio Adv isory ( I ndia) Pr ivat e
Lim it ed.
Ta iw a n
This research is solely for reference and not int ended t o provide t ailored invest m ent recom m endat ions. This research is dist ribut ed in Taiwan by Daiwa-Cat hay
Capit al Market s Co., Lt d. and it m ay only be dist ribut ed in Taiwan t o specific cust om ers who have signed recom m endat ion cont ract s wit h Daiwa-Cat hay Capit al
Market s Co., Lt d. and non- cust om ers including ( i) professional inst it ut ional invest ors, ( ii) TWSE or TPEx list ed com panies, upst ream and downst ream vendors,
and specialist s t hat offer or seek advice, and ( iii) pot ent ial cust om ers wit h an act ual need for business developm ent in accordance wit h t he Operat ional
Regulat ions Governing Securit ies Firm s Recom m ending Trades in Securit ies t o Cust om ers. Recipient s of t his research including non- cust om er recipient s of t his
research shall not provide it t o ot hers or engage in any act ivit ies in connect ion wit h t his research which m ay involve conflict s of int erest s. Neit her Daiwa-Cat hay
Capit al Market s Co., Lt d. nor it s personnel who writ es or reviews t he research report has any conflict of int erest in t his research. Since Daiwa-Cat hay Capit al
Market s Co., Lt d. does not operat e brokerage t rading business in foreign m arket s, t his re sear ch is “w it hout recom m e nda tion” t o a ny foreign securitie s
and Daiwa-Cat hay Capit al Market s Co., Lt d. does not accept orders from cust om ers t o t rade in such securit ies t hat are wit hout recom m endat ion. Recipient s of
t his research in Taiwan m ay cont act Daiwa-Cat hay Capit al Market s Co., Lt d. in respect of any m at t er arising from or in connect ion wit h t he research.
Philippine s
This research is dist r ibut ed in t he Philippines by DBP- Daiwa Capit al Market s Philippines, I nc. which is r egulat ed by t he Philippines Securit ies and Exchange
Com m ission and t he Philippines St ock Ex change, I nc. Recipient s of t his research in t he Philippines m ay cont act DBP- Daiw a Capit al Market s Philippines, I nc.
in respect of any m at t er ar ising fr om or in connect ion w it h t he research. DBP- Daiwa Capit al Market s Philippines, I nc. recom m ends t hat invest ors
independent ly assess, w it h a pr ofessional adv isor , t he specific financial risk s as well as t he legal, regulat ory, t ax, account ing, and ot her consequences of a
proposed t ransact ion. DBP- Daiw a Capit al Market s Philippines, I nc. m ay have posit ions or m ay be m at erially int erest ed in t he secur it ies in any of t he m arket s
m ent ioned in t he publicat ion or m ay have perform ed ot her serv ices for t he issuers of such secur it ies.
For relevant secur it ies and t rading rules please v isit SEC and PSE link at ht t p: / / w w w.sec. gov.ph and ht t p: / / ww w. pse.com .ph/ respect ively.
Unit e d Kingdom
This research report is produced by Daiwa Secur it ies Co. Lt d. and/ or it s affiliat es and is dist r ibut ed in t he European Union, I celand, Liecht enst ein, Nor way
and Sw it zer land. Daiwa Capit al Market s Europe Lim it ed is aut hor ised and regulat ed by The Financial Conduct Aut hor it y ( “ FCA” ) and is a m em ber of t he
London St ock Ex change and Eurex. This publicat ion is int ended for invest ors who are not Ret ail Client s in t he Unit ed Kingdom w it hin t he m eaning of t he
Rules of t he FCA and should not t herefore be dist ribut ed t o such Ret ail Client s in t he Unit ed Kingdom . Should you ent er int o invest m ent business w it h Daiwa
Capit al Market s Europe’s affiliat es out side t he Unit ed Kingdom , w e are obliged t o adv ise t hat t he prot ect ion afforded by t he Unit ed Kingdom regulat or y
syst em m ay not apply ; in part icular, t he benefit s of t he Financial Services Com pensat ion Schem e m ay not be available.
Daiwa Capit al Mar ket s Europe Lim it ed has in place organisat ional arrangem ent s for t he prevent ion and av oidance of conflict s of int erest . Our conflict
m anagem ent policy is available at h t t p: / / w w w . u k . daiw acm . com / abou t - u s/ cor por at e- gov er n an ce- r egu lat or y .
Ge r m a ny
This docum ent is dist r ibut ed in Germ any by Daiwa Capit al Market s Europe Lim it ed, Nieder lassung Frankfurt which is regulat ed by BaFin ( Bundesanst alt fuer
Finanzdienst leist ungsaufsicht ) for t he conduct of business in Germ any.
Ba hr a in
This research m at er ial is dist ribut ed by Daiw a Capit al Market s Europe Lim it ed, Bahrain Branch, r egulat ed by The Cent ral Bank of Bahrain and holds
I nvest m ent Business Fir m – Cat egory 2 license and hav ing it s official place of business at t he Bahrain Wor ld Trade Cent re, Sout h Tower, 7t h floor, P.O. Box
30069, Manam a, Kingdom of Bahr ain. Tel No. + 973 17534452 Fax No. + 973 535113
This m at er ial is prov ided as a reference for m ak ing invest m ent decisions and is not int ended t o be a solicit at ion for invest m ent . I nvest m ent decisions should
be m ade at your own discret ion and risk. Accor dingly, no represent at ion or w arrant y, ex press or im plied, is m ade as t o and no reliance should be placed on
t he fairness, accuracy, com plet eness or correct ness of t he infor m at ion and opinions cont ained in t his docum ent , Cont ent herein is based on infor m at ion
available at t he t im e t he research m at erial was prepared and m ay be am ended or ot herw ise changed in t he fut ure w it hout not ice. All inform at ion is int ended
for t he pr ivat e use of t he person t o whom it is prov ided w it hout any liabilit y what soever on t he part of Daiwa Capit al Market s Europe Lim it ed, Bahrain
Branch, any associat ed com pany or t he em ployees t hereof. I f you are in doubt about t he suit abilit y of t he product or t he research m at erial it self, please
consult y our own financial adv iser. Daiwa Capit al Market s Europe Lim it ed, Bahrain Branch ret ains all r ight s relat ed t o t he cont ent of t his m at er ial, which m ay
not be redist r ibut ed or ot herw ise t ransm it t ed w it hout pr ior consent .
Unit e d St a t e s
This report is dist ribut ed in t he U.S. by Daiwa Capit al Market s Am erica I nc. (DCMA) . I t m ay not be accurat e or com plet e and should not be relied upon as such. I t
reflect s t he preparer’s views at t he t im e of it s preparat ion, but m ay not reflect event s occurring aft er it s preparat ion; nor does it reflect PT.Bahana Sekurit as’ or
DCMA’s views at any t im e. Neit her PT.Bahana Sekurit as, DCMA nor t he preparer has any obligat ion t o updat e t his report or t o cont inue t o prepare research on
t his subj ect . This report is not an offer t o sell or t he solicit at ion of any offer t o buy securit ies. Unless t his report says ot herwise, any recom m endat ion it m akes is
risky and appropriat e only for sophist icat ed speculat ive invest ors able t o incur significant losses. Readers should consult t heir financial advisors t o det erm ine
whet her any such recom m endat ion is consist ent wit h t heir own invest m ent obj ect ives, financial sit uat ion and needs. This report does not recom m end t o U.S.
recipient s t he use of any of PT.Bahana Sekurit as’ or DCMA’s non- U.S. affiliat es t o effect t rades in any securit y and is not supplied wit h any underst anding t hat
U.S. recipient s of t his report will direct com m ission business t o such non- U.S. ent it ies. Unless applicable law perm it s ot herwise, non-U.S. cust om ers wishing t o
effect a t ransact ion in any securit ies referenced in t his m at erial should cont act a Daiwa ent it y in t heir local j urisdict ion. Most count ries t hroughout t he world have
t heir own laws regulat ing t he t ypes of securit ies and ot her invest m ent product s which m ay be offered t o t heir resident s, as well as a process for doing so. As a
result , t he securit ies discussed in t his report m ay not be eligible for sales in som e j urisdict ions. Cust om ers wishing t o obt ain furt her inform at ion about t his report
should cont act DCMA: Daiwa Capit al Market s Am erica I nc., Financial Square, 32 Old Slip, New York, New York 10005 (Tel no. 212-612-7000).
Ow ne r ship of Se cur it ie s
For “ Ownership of Secur it ies” infor m at ion please v isit BlueMat r ix disclosure Link at ht t ps: / / daiwa3. bluem at r ix. com / sellside/ Disclosures.act ion .
I nve st m e n t Ba nk ing Re la t ionships
For “ I nvest m ent Bank ing Relat ionships” please v isit BlueMat r ix disclosure link at ht t ps: / / daiwa3.bluem at rix.com / sellside/ Disclosures.act ion.
D CM A M a r k e t M a k ing
For “ DCMA Market Mak ing” please v isit BlueMat r ix disclosure link at ht t ps: / / daiwa3.bluem at rix. com / sellside/ Disclosures.act ion.
Re se a r ch Ana ly st Con flict s
For updat es on “ Research Analyst Conflict s” please v isit BlueMat r ix disclosure link at ht t ps: / / daiwa3.bluem at rix. com / sellside/ Disclosures.act ion. The
principal research analyst s who pr epared t his report have no financial int erest in secur it ies of t he issuers covered in t he report , are not ( nor are any
m em bers of t heir household) an officer, direct or or adv isory board m em ber of t he issuer( s) covered in t he report , and are not aware of any m at erial
relevant conflict of int erest involv ing t he analy st or DCMA, and did not receive any com pensat ion from t he issuer dur ing t he past 12 m ont hs except as
not ed: no except ions.
Re se a r ch Ana ly st Ce r t ifica t ion
For updat es on “ Research Analyst Cert ificat ion” and “ Rat ing Sy st em ” please v isit BlueMat r ix disclosure link at
ht t ps: / / daiwa3.bluem at rix.com / sellside/ Disclosures.act ion. The v iews about any and all of t he subj ect securit ies and issuers expressed in t his Research
Report accurat ely reflect t he personal v iew s of t he research analyst ( s) pr im ar ily responsible for t his report ( or t he v iews of t he firm producing t he report if no
indiv idual analy st is nam ed on t he report ) ; and no part of t he com pensat ion of such analy st ( or no part of t he com pensat ion of t he fir m if no indiv idual
analyst is nam ed on t he report ) w as, is, or w ill be direct ly or indirect ly relat ed t o t he specific recom m endat ions or v iew s cont ained in t his Research Report .
For st ock s a nd se ct or s in I ndone sia cove r e d by Ba ha na Se k u r it a s, t he follow ing rat ing sy st em is in effect :
St ock rat ings are based on absolut e upside or downside, which is t he difference bet ween t he t arget pr ice and t he current m ar ket pr ice. Unless ot her w ise
specified, t hese rat ings are set w it h a 12- m ont h hor izon. I t is possible t hat fut ure pr ice volat ilit y m ay cause a t em porary m ism at ch bet w een upside/ downside
for a st ock based on t he m ar ket pr ice and t he form al rat ing.
" Buy" : t he price of t he secur it y is expect ed t o increase by 10% or m ore.
" Hold" : t he pr ice of t he secur it y is expect ed t o range fr om an increase of less t han 10% t o a decline of less t han 5% .
" Reduce" : t he pr ice of t he secur it y is expect ed t o decline by 5% or m ore.
Sect or rat ings are based on fundam ent als for t he sect or as a whole. Hence, a sect or m ay be rat ed “ Overweight ” even t hough it s const it uent st ock s are all
rat ed “ Reduce” ; and a sect or m ay be rat ed “ Underweight ” even t hough it s const it uent st ocks are all rat ed “ Buy” .
“ Overweight ” : posit ive fundam ent als for t he sect or.
“ Neut ral” : neit her posit ive nor negat ive fundam ent als for t he sect or.
“ Underweight ” : negat ive fundam ent als for t he sect or.
Ownership of Secur it ies
For “ Ownership of Secur it ies” infor m at ion, please v isit BlueMat r ix disclosure Link at ht t ps: / / daiw a3.bluem at rix. com / sellside/ Disclosures.act ion .
I nvest m ent Bank ing Relat ionships
For “ I nvest m ent Bank ing Relat ionship” , please v isit BlueMat r ix disclosure Link at ht t ps: / / daiwa3.bluem at rix .com / sellside/ Disclosures.act ion .
Relevant Relat ionships ( Bahana Sekurit as)
Bahana Sekurit as m ay fr om t im e t o t im e have an indiv idual em ployed by or associat ed w it h it serves as an officer of any of t he com panies under it s research
coverage.
Bahana Sekurit as m ar ket m ak ing
Bahana Sekurit as m ay from t im e t o t im e m ake a m arket in secur it ies covered by t his research.
Addit iona l in for m a t ion m a y be a va ila ble upon r e que st .
Ja pa n - a ddit iona l not ifica t ion it e m s pur sua nt t o Ar t icle 3 7 of t he Fina ncia l I n st r u m e n t s a nd Ex cha nge La w
( This Not ificat ion is only applicable where report is dist ribut ed by Daiwa Secur it ies Co. Lt d.)
I f y ou decide t o ent er int o a business arrangem ent w it h us based on t he inform at ion descr ibed in m at erials present ed along w it h t his docum ent , we ask you
t o pay close at t ent ion t o t he follow ing it em s.
• I n addit ion t o t he purchase pr ice of a financial inst rum ent , we w ill collect a t rading com m ission* for each t ransact ion as agreed beforehand w it h you. Since
com m issions m ay be included in t he purchase pr ice or m ay not be charged for cert ain t ransact ions, w e recom m end t hat you confirm t he com m ission for
each t ransact ion.
• I n som e cases, we m ay also charge a m ax im um of ¥ 2 m illion ( including t ax) per year as a st anding proxy fee for our deposit of y our securit ies, if you are
a non- resident of Japan.
• For derivat ive and m ar gin t ransact ions et c., we m ay require collat eral or m argin requirem ent s in accor dance w it h an agreem ent m ade beforehand w it h
you. Ordinar ily in such cases, t he am ount of t he t ransact ion w ill be in excess of t he required collat eral or m argin requirem ent s.
• There is a r isk t hat you w ill incur losses on y our t ransact ions due t o changes in t he m arket pr ice of financial inst rum ent s based on fluct uat ions in int erest
rat es, exchange rat es, st ock pr ices, real est at e pr ices, com m odit y prices, and ot hers. I n addit ion, depending on t he cont ent of t he t ransact ion, t he loss
could exceed t he am ount of t he collat eral or m argin requirem ent s.
• There m ay be a difference bet ween bid pr ice et c. and ask pr ice et c. of OTC der ivat ives handled by us.
• Before engaging in any t rading, please t horoughly confirm account ing and t ax t reat m ent s regarding y our t rading in financial inst rum ent s w it h such expert s
as cert ified public account ant s.
* The am ount of t he t rading com m ission cannot be st at ed here in advance because it w ill be det erm ined bet ween our com pany and you based on current
m arket condit ions and t he cont ent of each t ransact ion et c.
When m ak ing an act ual t ransact ion, please be sure t o carefully read t he m at er ials present ed t o y ou pr ior t o t he execut ion of agreem ent , and t o t ake
responsibilit y for y our own decisions regarding t he signing of t he agr eem ent w it h us.
Corporat e Nam e:
Mem berships:
Daiwa Secur it ies Co. Lt d.
Financial inst rum ent s fir m : chief of Kant o Local Finance Bureau ( Kin- sho) No.108
Japan Secur it ies Dealers Associat ion, Financial Fut ures Associat ion of Japan
Japan Secur it ies I nvest m ent Adv isers Associat ion
Type I I Financial I nst rum ent s Fir m s Associat ion
Asiamoney’s
2013
Best Domestic
Equity House
1 1 Apr il 2 0 1 7
Adi Sa r a na Ar m a da
BUY
Sect or: Land Transport at ion (Neut ral)
( unchanged)
Rat ing m om ent um * :
Gr e gor iu s Ga r y
PX: I DR242–TP: I DR330( from : I DR280)
TP/ consensus: 93% ; TP m om ent um * :
JCI : 5,628
E- m ail: gregorius@bahana.co.id
Phone: + 6221 250 5081 ext . 3604
M oving for w a r d
I m pr oving use d ca r pr ice s since 2 0 1 6 , posit iv e for r e nt a l busine ss:
Based on our m ar ket research, ASPs in t he last few m ont hs on used Toyot a
Avanza ( exhibit 5) , t he highest - selling MPV in I ndonesia, are support ive of
our view of a recovery in t he secondary- car m arket in 2017. We not e t hat
t he ASP on second- hand 2012 Toyot a Avanzas in March im proved 4.7% m m or 5.5% y- y, t o I DR134m n. Going forward, we expect t he used car price
im provem ent prevalent at t he m om ent t o be sust ained, paving t he way for a
posit ive cat alyst for ASSA’s vehicle- rent al and auct ion businesses in 2017.
St r ong r e nt a l gr ow t h lik e ly t o su st a in ut iliz a t ion of 9 3 .4 % in 2 0 1 7 F:
For 2016 ASSA booked st rong earnings of I DR62.1bn, up by 82% y- y,
beat ing our and consensus expect at ions by 18% and 13% , respect ively. The
solid earnings im provem ent was largely at t ribut able t o higher operat ing
profit of I DR256.2bn, up 20.5% y- y, on a st rong perform ance from ASSA’s
vehicle- rent al segm ent . ASSA m anaged t o increase it s ut ilizat ion rat e t o
93.4% in 2016, from 92.6% in 2015, wit h t ot al fleet up 6.7% y- y t o 19,199
unit s ( from 17,991) ( exhibit 6) , support ed by t he com pany’s abilit y t o ret ain
long- t erm cont ract s, coupled wit h an efficient fleet - m anagem ent syst em .
For 2017, we expect ASSA t o m aint ain it s rent al ut ilizat ion rat e at 93.4%
and grow it s fleet size t o 20,900 unit s ( + 8.9% y- y) , result ing in rent alsegm ent revenue of I DR1.0t n ( + 15.7% y- y) .
BidW in’s e x pa nsion lik e ly int o a not he r 3 cit ie s in 2 0 1 7 : ASSA’s carauct ion segm ent , BidWin, plans t o add new auct ion locat ions in 3 cit ies,
nam ely Pekanbar u, Lam pung and Banj arm asin. Current ly, BidWin holds
auct ion in 10 m aj or cit ies, wit h weekly event s in Jakart a and bi- m ont hly
auct ions in Surabaya, Medan and Balikpapan. BidWin m anaged t o post
st rong perform ance in 2016 wit h t he num ber of cars sold reaching 5,969
unit s ( exhibit 7) , in- line w it h our est im at es. We expect BidWin t o cont inue
it s solid perform ance and sell 7,000 cars ( + 17% y- y) in 2017. Moreover,
BidWin is current ly developing it s own e- auct ion syst em in order t o support
it s m aj or expansion plans. This would increase BidWin’s econom ies of scale,
t arget m arket as well as flexibilit y in t he auct ion process wit hout having t o
spend a sizeable am ount on capit al expendit ures.
Re com m e n da t ion : Re a ffir m BUY ca ll w it h a highe r TP of I D R3 3 0
At t his st age of t he cycle, we cont inue t o like ASSA given t he recent
im provem ent in secondary- car m arket prices, which we believe will drive t he
com pany’s rent al segm ent growt h over t he m edium t erm . Hence, we expect
ASSA’s sharp YTD m ar ket out perform ance t o cont inue ( exhibit 4) ,
part icularly as t he out look for t he car- rent al and auct ion businesses rem ain
int act , in our view. We raise our 2017- 18F earnings ( exhibit 9) by 17- 20%
due t o lower int erest cost on t he debt at 9.2% ( from 9.75% ) , leading us t o
lift our 12- m ont h TP t o I DR330 ( from I DR280) , based on an unchanged
2017F PER of 12x. Wit h 36% upside pot ent ial t o our new TP, we reaffirm
our BUY rat ing. Risks t o our call would be lower- t han- expect ed secondary
m arket prices, a slower fleet expansion and lower ut ilizat ion rat es.
Ex hibit 1 . Com pa n y inform a t ion
Market cap ( I DRbn/ USDm n)
:
3M avg.daily t .o.( I DRbn/ USDm n) :
Bloom berg code
:
822.2/ 61.9
1.0/ 0.1
ASSA I J
Source: Bloom berg
Ex hibit 2 . Sha r eh olde r s in form at ion
Adi Dinam ika I nvest indo ( % )
:
Daya Adicipt a Must ika ( % )
:
Ot hers ( % )
:
Free float ( % )
:
24.94
19.17
18.45
37.44
Source: Bloom berg
Ex hibit 3 . Ke y fore ca st s an d va lu at ion s
2015
2016 2017F 2018F
Ye a r t o 3 1 D e c
Revenue ( I DRbn)
1,393 1,570 1,796 2,032
EBI T ( I DRbn)
213
256
283
369
Net profit ( I DRbn)
34
62
93
145
Bahana/ cns. ( % )
89
115
EPS ( I DR)
10
18
27
43
EPS growt h ( % )
( 20.5)
81.8
50.3
55.7
EV/ EBI TDA ( x)
4.7
4.2
4.2
3.7
PER ( x)
24.1
13.2
8.8
5.7
FCFPS ( I DR)
( 90)
( 5)
( 51)
( 32)
FCF yield ( % )
( 37)
( 2)
( 21)
( 13)
BVPS ( I DR)
251
266
282
308
PBV ( x)
1.0
0.9
0.9
0.8
DPS ( I DR)
5
4
11
17
Yield ( % )
2.1
1.7
4.5
7.0
ROAA ( % )
1.2
2.1
2.8
3.9
ROAE ( % )
4.0
6.9
9.7
13.9
EBI T m argin ( % )
15.3
16.3
15.7
18.1
Net gearing ( % )
205.6 197.9 208.2 206.7
Source: Bloom berg, Bahana forecast s
Not e: Pricing as of close on 11 April 2017
Ex hibit 4 . Rela t ive sh a re price pe r for m a n ce
(% )
100
92.9
80
100
80
60
60
34.8
40
40
25.4
20
17.8
16.1
20
0
0
( 6.8)
( 20)
yt d
1M
( 20)
3M
6M
9M
12M
Source: Bloom berg, Bahana
Disclosure: Bahana Securit ies does and seeks t o do business wit h com panies covered in it s research report s. I nvest ors should consider t his report as only a single fact or in
m aking t heir invest m ent decision.
Please see t he im port ant disclaim er inform at ion on t he back of t his r eport
*Based on consensus’ recent changes ↑ (up), ↓ (down), ↔ (unchanged)
T
1 1 Apr il 2 0 1 7
Ex hibit 5 . Ave r a ge 2 0 1 2 Toyot a Ava nz a se conda r y m a r k e t ASPs
( I DRm n)
ASPs on use d Toy ot a Ava nza
suppor t
our
vie w
of
a
r e cove r y in t he se conda r y
ca r m a r k e t in 2 0 1 7
140
135
130
125
120
115
110
105
100
95
90
Source: Com pany, Bahana
Ex hibit 6 . ASSA’s fle e t siz e a nd ut iliz a t ion r a t e , Ja nua r y 2 0 1 5 - M a r ch 2 0 1 7
( unit s)
(% )
20,000
96.0
95.0
19,000
94.0
I m pr ovin g
ut iliz a t ion
to
9 3 .4 % in 2 0 1 6 fr om 9 2 .6 %
in 2 0 1 5 ; w e e x pe ct ASSA t o
e x pa nd it s fle e t siz e by 8 .9 %
y- y t o 2 0 .9 k unit s in 2 0 1 7 F
w it h a 9 3 .4 % ut iliz a t ion r a t e
18,000
93.0
17,000
92.0
16,000
91.0
15,000
90.0
Series1
Series2
Source: Com pany, Bahana
Ex hibit 7 . N um be r of BidW in’s offe r e d a nd sold ca r s, June 2 0 1 4 – M a r ch 2 0 1 7
( unit s)
BidW in
r e cor de d
st r on g
pe r for m a nce
w it h
t he
a uct ion of c.3 0 k ca r s since
it s de but in June 2 0 1 4
2,500
2,000
1,500
1,000
500
0
Offer ed car s
Sold cars
Source: Com pany, Bahana
PT. Ba h a n a Se k u r it a s – Equ it y Re se a r ch – ASSA I J Cor por a t e Fla sh
1 1 Apr il 2 0 1 7
Ex hibit 8 . ASSA pa st - 3 - ye a r for w a r d PER ba nd, 2 0 1 4 - yt d
(x)
18
ASSA sha r e s cur r e n t ly t r a de
ne a r
t he ir
pa st - 3 - ye a r a ve r a ge for w a r d PER of
1 1 .6 x
16
14
12
10
8
6
Source: Bloom berg, Bahana forecast s
Ex hibit 9 . Ea r nings r e vision s
Old
( I D Rbn )
2016
Re v e n u e
New
2017F
2018F
2016
Ch a nge ( % )
2017F
2018F
2016
2017F
2018F
1 ,5 7 0
1 ,7 5 2
2 ,0 8 3
1 ,7 9 6
2 ,0 3 2
2.5
( 2.4)
Gr oss pr ofit
456
538
685
518
634
( 3.7)
( 7.4)
Gross profit m argin ( % )
29.0
30.7
32.9
28.8
31.2
Ope r a t in g pr ofit
256
300
381
283
369
( 5.8)
( 3.2)
Operat ing m argin ( % )
16.3
17.1
18.3
15.7
18.1
N e t profit
62
80
121
93
145
16.7
20.2
Net m argin ( % )
4.0
4.6
5.8
5.2
7.2
EPS ( I D R)
18
24
36
27
43
16.7
20.2
Source: Com pany, Bahana forecast s
Ex hibit 1 0 . Re giona l pe e r s
I ndone sia La nd Tr a nspor ta tion
Tick e r
Com pa ny
Ma r k e t ca p
PER ( x )
PBV ( x )
EV/ EBI TD A ( x )
D iv . y ie ld ( % )
RO E ( % )
EPS gr ow th ( % )
( U SD m n)
2017F
2018F
2017F
2018F
2017F
2018F
2017F
2018F
2017F
2018F
2017F
731
1 1 .1
9 .8
1 .7
1 .5
4 .7
4 .1
1 .1
1 .8
1 5 .4
1 5 .2
1 4 .5
1 0 .8
8 .8
5 .7
0 .9
0 .8
4 .2
3 .7
4 .5
7 .0
9 .7
1 3 .9
5 0 .3
5 5 .7
BI RD I J
Blu e Bird Tb k PT
ASSA I J
Ad i Sa ra n a Arma d a Tb k PT
62
TAXI I J
Exp re ss Tra n sin d o Ut a ma Tb k
26
I ndone sia a v e r a ge
3 8 .0
1 1 .7
4 0 .1
1 0 .4
0 .4
0 .4
1 .6
3 .5
1 .4
4 .6
3 .6
4 .1
0 .5
1 .4
0 .4
2 .2
1 .1
1 4 .5
1 .0
1 4 .6
na
1 6 .8
2018F
(5 .2 )
1 3 .7
Re giona l La nd Tr a nspor ta tion
Tick e r
Com pa ny
Ma r k e t ca p
PER ( x )
PBV ( x )
EV/ EBI TD A ( x )
D iv . y ie ld ( % )
( U SD m n)
2017F
2018F
2017F
2018F
2017F
2018F
2017F
2018F
RO E ( % )
2017F
EPS gr ow th ( % )
2018F
2017F
2018F
CAB AU
Ca b ch a rg e Au st ra lia Lt d
261
1 0 .4
1 4 .8
1 .1
1 .1
8 .5
8 .9
2 4 .6
4 .5
(4 .9 )
1 0 .8
(2 9 .3 )
(2 9 .9 )
0 0 2 3 5 7 CH
Sich u a n Fu lin Tra n sp o rt a t io n G
581
2 3 .9
2 0 .3
4 .1
3 .6
na
na
1 .2
1 .2
1 8 .0
1 7 .8
2 5 .9
1 7 .8
CD SP
Co mfo rt De lGro Co rp Lt d
4 ,0 0 8
1 6 .6
1 6 .0
2 .2
2 .1
6 .9
6 .7
4 .2
4 .6
1 3 .4
1 3 .4
4 .0
Re giona l a v e r a ge
1 7 .2
1 6 .5
2 .4
2 .2
6 .1
6 .0
Source: Bloom berg, Bahana forecast s for I ndonesian- list ed st ocks; prices as of close on 11 April 2017
PT. Ba h a n a Se k u r it a s – Equ it y Re se a r ch – ASSA I J Cor por a t e Fla sh
4 .9
4 .2
1 3 .0
1 3 .8
4 .8
3 .8
3 .7
1 1 Apr il 2 0 1 7
Adi Sa r a na Ar m a da
Ye a r t o 3 1 D e ce m be r
PROFI T & LOSS ( I D Rbn )
Sa le s
Gr oss pr ofit
EBI TDA
Depreciat ion
EBI T
Net int erest inc./ ( expense)
Forex gain/ ( losses)
Ot her incom e/ ( expense)
Pr e - t a x pr ofit
Taxes
Minorit y int erest
N e t profit
2014
2015
2016
2017F
2018F
1 ,1 4 0
349
471
287
184
( 139)
0
11
56
13
0
43
1 ,3 9 3
415
548
336
213
( 171)
( 0)
15
57
23
0
34
1 ,5 7 0
456
625
369
256
( 184)
0
17
89
27
0
62
1 ,7 9 6
518
678
395
283
( 175)
17
125
31
0
93
2 ,0 3 2
634
806
437
369
( 192)
17
194
48
0
145
BALAN CE SH EET ( I D Rbn )
Cash and equivalent s
Trade receivables
I nvent ories
Fixed asset s
Ot her asset s
Tot a l a sse t s
I nt erest bearing liabilit ies
Trade payables
Ot her liabilit ies
Tot a l lia bilit ie s
M in or it y int e r e st
Sha r e h olde r s' e qu it y
22
131
26
2,193
136
2 ,5 0 7
1,456
57
157
1 ,6 6 9
0
838
28
168
20
2,538
140
2 ,8 9 3
1,784
44
210
2 ,0 3 8
0
854
40
193
31
2,631
134
3 ,0 3 0
1,828
39
259
2 ,1 2 6
0
904
30
221
31
2,904
147
3 ,3 3 4
2,028
45
300
2 ,3 7 4
0
960
34
250
32
3,182
196
3 ,6 9 2
2,198
49
397
2 ,6 4 5
0
1 ,0 4 7
CASH FLOW ( I D Rbn )
EBI T
Depreciat ion
Working capit al
Ot her operat ing it em s
Ope r a t in g ca sh flow
Net capit al expendit ure
Fr e e ca sh flow
Equit y raised/ ( bought )
Net borrowings
Ot her financing
N e t ca sh flow
Cash flow at beginning
Ca sh flow a t e n d
184
287
( 6)
( 145)
321
( 591)
( 270)
295
( 29)
(4)
26
22
213
336
( 50)
( 162)
336
( 641)
( 305)
329
( 18)
6
22
28
256
369
( 14)
( 182)
430
( 448)
(18)
44
( 13)
12
28
40
283
395
( 15)
( 184)
480
( 653)
( 173)
200
( 37)
(10)
40
30
369
437
( 19)
( 215)
573
( 682)
( 109)
170
( 58)
3
30
34
5.1
1.7
30.6
41.3
16.2
3.8
71.1
0.4
0.8
171.1
58.1
41.3
25.7
11.6
4.0
1.2
29.8
39.4
15.3
2.5
49.7
0.4
0.8
205.6
61.7
43.4
16.3
7.3
6.9
2.1
29.0
39.8
16.3
4.0
21.9
0.5
0.7
197.9
60.3
44.3
12.6
10.1
9.7
2.8
28.8
37.7
15.7
5.2
39.8
0.5
0.6
208.2
60.8
44.3
12.6
8.9
13.9
3.9
31.2
39.7
18.1
7.2
39.8
0.5
0.5
206.7
59.5
44.3
12.6
8.1
14,873
92.1
1,793
96.9
17,991
92.6
2,337
92.2
19,199
93.4
2,284
88.1
20,900
93.4
3,000
88.9
22,601
93.4
3,000
89.8
RATI OS
ROAE ( % )
ROAA ( % )
Gross m argin ( % )
EBI TDA m argin ( % )
EBI T m argin ( % )
Net m argin ( % )
Payout rat io ( % )
Current rat io ( x)
I nt erest coverage ( x)
Net gearing ( % )
Debt s t o asset s ( % )
Debtor t urnover ( days)
Credit or t urnover ( days)
I nvent ory t urnover ( days)
M AJOR ASSUM PTI ON S
Fleet unit ( unit s)
Ut ilizat ion rat e ( % )
Unit of disposal ( unit )
ASP used car (I DRm n)
Source: Com pany, Bahana forecast s
Gregorius Gary ( gregorius@bahana.co.id) + 6221 250 5081 ext . 3604
PT. Ba h a n a Se k u r it a s – Equ it y Re se a r ch – ASSA I J Cor por a t e Fla sh
Low e r int e r e st cost a t 9 .2 %
in 2 0 1 7 F
H ighe r de bt le ve ls …
… t o fina nce flee t e x pa nsion
H ighe r ne t m a r gin a t 5 .2 %
in 2 0 1 7 F
D isposa l of 3 ,0 0 0 ca r s pe r
ye a r in 2 0 1 7 - 1 8 F
H e ad Office
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I ndonesia
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This publicat ion is prepared by PT. Bahana Sekurit as and rev iewed by Daiwa Secur it ies Group I nc. and/ or it s affiliat es, and dist r ibut ed out side I ndonesia by
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Ja pa n
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Wit hin t he preceding 12 m ont hs, The subsidiaries and/ or affiliat es of Daiwa Securit ies Group I nc. * has lead- m anaged public offerings and/ or secondary offerings
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• Daiwa- Cat hay Capit al Market s Co. , Lt d.
• Daiwa Secur it ies Capit al Market s Korea Co., Lt d
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I nvest m ent Bank ing Relat ionship
Wit hin t he preceding 12 m ont hs, Bahana Sekur it as has lead- m anaged public offer ings and/ or secondary offerings ( ex cluding st raight bonds) of t he securit ies
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Philippine s
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Com m ission and t he Philippines St ock Ex change, I nc. Recipient s of t his research in t he Philippines m ay cont act DBP- Daiw a Capit al Market s Philippines, I nc.
in respect of any m at t er ar ising fr om or in connect ion w it h t he research. DBP- Daiwa Capit al Market s Philippines, I nc. recom m ends t hat invest ors
independent ly assess, w it h a pr ofessional adv isor , t he specific financial risk s as well as t he legal, regulat ory, t ax, account ing, and ot her consequences of a
proposed t ransact ion. DBP- Daiw a Capit al Market s Philippines, I nc. m ay have posit ions or m ay be m at erially int erest ed in t he secur it ies in any of t he m arket s
m ent ioned in t he publicat ion or m ay have perform ed ot her serv ices for t he issuers of such secur it ies.
For relevant secur it ies and t rading rules please v isit SEC and PSE link at ht t p: / / w w w.sec. gov.ph and ht t p: / / ww w. pse.com .ph/ respect ively.
Unit e d Kingdom
This research report is produced by Daiwa Secur it ies Co. Lt d. and/ or it s affiliat es and is dist r ibut ed in t he European Union, I celand, Liecht enst ein, Nor way
and Sw it zer land. Daiwa Capit al Market s Europe Lim it ed is aut hor ised and regulat ed by The Financial Conduct Aut hor it y ( “ FCA” ) and is a m em ber of t he
London St ock Ex change and Eurex. This publicat ion is int ended for invest ors who are not Ret ail Client s in t he Unit ed Kingdom w it hin t he m eaning of t he
Rules of t he FCA and should not t herefore be dist ribut ed t o such Ret ail Client s in t he Unit ed Kingdom . Should you ent er int o invest m ent business w it h Daiwa
Capit al Market s Europe’s affiliat es out side t he Unit ed Kingdom , w e are obliged t o adv ise t hat t he prot ect ion afforded by t he Unit ed Kingdom regulat or y
syst em m ay not apply ; in part icular, t he benefit s of t he Financial Services Com pensat ion Schem e m ay not be available.
Daiwa Capit al Mar ket s Europe Lim it ed has in place organisat ional arrangem ent s for t he prevent ion and av oidance of conflict s of int erest . Our conflict
m anagem ent policy is available at h t t p: / / w w w . u k . daiw acm . com / abou t - u s/ cor por at e- gov er n an ce- r egu lat or y .
Ge r m a ny
This docum ent is dist r ibut ed in Germ any by Daiwa Capit al Market s Europe Lim it ed, Nieder lassung Frankfurt which is regulat ed by BaFin ( Bundesanst alt fuer
Finanzdienst leist ungsaufsicht ) for t he conduct of business in Germ any.
Ba hr a in
This research m at er ial is dist ribut ed by Daiw a Capit al Market s Europe Lim it ed, Bahrain Branch, r egulat ed by The Cent ral Bank of Bahrain and holds
I nvest m ent Business Fir m – Cat egory 2 license and hav ing it s official place of business at t he Bahrain Wor ld Trade Cent re, Sout h Tower, 7t h floor, P.O. Box
30069, Manam a, Kingdom of Bahr ain. Tel No. + 973 17534452 Fax No. + 973 535113
This m at er ial is prov ided as a reference for m ak ing invest m ent decisions and is not int ended t o be a solicit at ion for invest m ent . I nvest m ent decisions should
be m ade at your own discret ion and risk. Accor dingly, no represent at ion or w arrant y, ex press or im plied, is m ade as t o and no reliance should be placed on
t he fairness, accuracy, com plet eness or correct ness of t he infor m at ion and opinions cont ained in t his docum ent , Cont ent herein is based on infor m at ion
available at t he t im e t he research m at erial was prepared and m ay be am ended or ot herw ise changed in t he fut ure w it hout not ice. All inform at ion is int ended
for t he pr ivat e use of t he person t o whom it is prov ided w it hout any liabilit y what soever on t he part of Daiwa Capit al Market s Europe Lim it ed, Bahrain
Branch, any associat ed com pany or t he em ployees t hereof. I f you are in doubt about t he suit abilit y of t he product or t he research m at erial it self, please
consult y our own financial adv iser. Daiwa Capit al Market s Europe Lim it ed, Bahrain Branch ret ains all r ight s relat ed t o t he cont ent of t his m at er ial, which m ay
not be redist r ibut ed or ot herw ise t ransm it t ed w it hout pr ior consent .
Unit e d St a t e s
This report is dist ribut ed in t he U.S. by Daiwa Capit al Market s Am erica I nc. (DCMA) . I t m ay not be accurat e or com plet e and should not be relied upon as such. I t
reflect s t he preparer’s views at t he t im e of it s preparat ion, but m ay not reflect event s occurring aft er it s preparat ion; nor does it reflect PT.Bahana Sekurit as’ or
DCMA’s views at any t im e. Neit her PT.Bahana Sekurit as, DCMA nor t he preparer has any obligat ion t o updat e t his report or t o cont inue t o prepare research on
t his subj ect . This report is not an offer t o sell or t he solicit at ion of any offer t o buy securit ies. Unless t his report says ot herwise, any recom m endat ion it m akes is
risky and appropriat e only for sophist icat ed speculat ive invest ors able t o incur significant losses. Readers should consult t heir financial advisors t o det erm ine
whet her any such recom m endat ion is consist ent wit h t heir own invest m ent obj ect ives, financial sit uat ion and needs. This report does not recom m end t o U.S.
recipient s t he use of any of PT.Bahana Sekurit as’ or DCMA’s non- U.S. affiliat es t o effect t rades in any securit y and is not supplied wit h any underst anding t hat
U.S. recipient s of t his report will direct com m ission business t o such non- U.S. ent it ies. Unless applicable law perm it s ot herwise, non-U.S. cust om ers wishing t o
effect a t ransact ion in any securit ies referenced in t his m at erial should cont act a Daiwa ent it y in t heir local j urisdict ion. Most count ries t hroughout t he world have
t heir own laws regulat ing t he t ypes of securit ies and ot her invest m ent product s which m ay be offered t o t heir resident s, as well as a process for doing so. As a
result , t he securit ies discussed in t his report m ay not be eligible for sales in som e j urisdict ions. Cust om ers wishing t o obt ain furt her inform at ion about t his report
should cont act DCMA: Daiwa Capit al Market s Am erica I nc., Financial Square, 32 Old Slip, New York, New York 10005 (Tel no. 212-612-7000).
Ow ne r ship of Se cur it ie s
For “ Ownership of Secur it ies” infor m at ion please v isit BlueMat r ix disclosure Link at ht t ps: / / daiwa3. bluem at r ix. com / sellside/ Disclosures.act ion .
I nve st m e n t Ba nk ing Re la t ionships
For “ I nvest m ent Bank ing Relat ionships” please v isit BlueMat r ix disclosure link at ht t ps: / / daiwa3.bluem at rix.com / sellside/ Disclosures.act ion.
D CM A M a r k e t M a k ing
For “ DCMA Market Mak ing” please v isit BlueMat r ix disclosure link at ht t ps: / / daiwa3.bluem at rix. com / sellside/ Disclosures.act ion.
Re se a r ch Ana ly st Con flict s
For updat es on “ Research Analyst Conflict s” please v isit BlueMat r ix disclosure link at ht t ps: / / daiwa3.bluem at rix. com / sellside/ Disclosures.act ion. The
principal research analyst s who pr epared t his report have no financial int erest in secur it ies of t he issuers covered in t he report , are not ( nor are any
m em bers of t heir household) an officer, direct or or adv isory board m em ber of t he issuer( s) covered in t he report , and are not aware of any m at erial
relevant conflict of int erest involv ing t he analy st or DCMA, and did not receive any com pensat ion from t he issuer dur ing t he past 12 m ont hs except as
not ed: no except ions.
Re se a r ch Ana ly st Ce r t ifica t ion
For updat es on “ Research Analyst Cert ificat ion” and “ Rat ing Sy st em ” please v isit BlueMat r ix disclosure link at
ht t ps: / / daiwa3.bluem at rix.com / sellside/ Disclosures.act ion. The v iews about any and all of t he subj ect securit ies and issuers expressed in t his Research
Report accurat ely reflect t he personal v iew s of t he research analyst ( s) pr im ar ily responsible for t his report ( or t he v iews of t he firm producing t he report if no
indiv idual analy st is nam ed on t he report ) ; and no part of t he com pensat ion of such analy st ( or no part of t he com pensat ion of t he fir m if no indiv idual
analyst is nam ed on t he report ) w as, is, or w ill be direct ly or indirect ly relat ed t o t he specific recom m endat ions or v iew s cont ained in t his Research Report .
For st ock s a nd se ct or s in I ndone sia cove r e d by Ba ha na Se k u r it a s, t he follow ing rat ing sy st em is in effect :
St ock rat ings are based on absolut e upside or downside, which is t he difference bet ween t he t arget pr ice and t he current m ar ket pr ice. Unless ot her w ise
specified, t hese rat ings are set w it h a 12- m ont h hor izon. I t is possible t hat fut ure pr ice volat ilit y m ay cause a t em porary m ism at ch bet w een upside/ downside
for a st ock based on t he m ar ket pr ice and t he form al rat ing.
" Buy" : t he price of t he secur it y is expect ed t o increase by 10% or m ore.
" Hold" : t he pr ice of t he secur it y is expect ed t o range fr om an increase of less t han 10% t o a decline of less t han 5% .
" Reduce" : t he pr ice of t he secur it y is expect ed t o decline by 5% or m ore.
Sect or rat ings are based on fundam ent als for t he sect or as a whole. Hence, a sect or m ay be rat ed “ Overweight ” even t hough it s const it uent st ock s are all
rat ed “ Reduce” ; and a sect or m ay be rat ed “ Underweight ” even t hough it s const it uent st ocks are all rat ed “ Buy” .
“ Overweight ” : posit ive fundam ent als for t he sect or.
“ Neut ral” : neit her posit ive nor negat ive fundam ent als for t he sect or.
“ Underweight ” : negat ive fundam ent als for t he sect or.
Ownership of Secur it ies
For “ Ownership of Secur it ies” infor m at ion, please v isit BlueMat r ix disclosure Link at ht t ps: / / daiw a3.bluem at rix. com / sellside/ Disclosures.act ion .
I nvest m ent Bank ing Relat ionships
For “ I nvest m ent Bank ing Relat ionship” , please v isit BlueMat r ix disclosure Link at ht t ps: / / daiwa3.bluem at rix .com / sellside/ Disclosures.act ion .
Relevant Relat ionships ( Bahana Sekurit as)
Bahana Sekurit as m ay fr om t im e t o t im e have an indiv idual em ployed by or associat ed w it h it serves as an officer of any of t he com panies under it s research
coverage.
Bahana Sekurit as m ar ket m ak ing
Bahana Sekurit as m ay from t im e t o t im e m ake a m arket in secur it ies covered by t his research.
Addit iona l in for m a t ion m a y be a va ila ble upon r e que st .
Ja pa n - a ddit iona l not ifica t ion it e m s pur sua nt t o Ar t icle 3 7 of t he Fina ncia l I n st r u m e n t s a nd Ex cha nge La w
( This Not ificat ion is only applicable where report is dist ribut ed by Daiwa Secur it ies Co. Lt d.)
I f y ou decide t o ent er int o a business arrangem ent w it h us based on t he inform at ion descr ibed in m at erials present ed along w it h t his docum ent , we ask you
t o pay close at t ent ion t o t he follow ing it em s.
• I n addit ion t o t he purchase pr ice of a financial inst rum ent , we w ill collect a t rading com m ission* for each t ransact ion as agreed beforehand w it h you. Since
com m issions m ay be included in t he purchase pr ice or m ay not be charged for cert ain t ransact ions, w e recom m end t hat you confirm t he com m ission for
each t ransact ion.
• I n som e cases, we m ay also charge a m ax im um of ¥ 2 m illion ( including t ax) per year as a st anding proxy fee for our deposit of y our securit ies, if you are
a non- resident of Japan.
• For derivat ive and m ar gin t ransact ions et c., we m ay require collat eral or m argin requirem ent s in accor dance w it h an agreem ent m ade beforehand w it h
you. Ordinar ily in such cases, t he am ount of t he t ransact ion w ill be in excess of t he required collat eral or m argin requirem ent s.
• There is a r isk t hat you w ill incur losses on y our t ransact ions due t o changes in t he m arket pr ice of financial inst rum ent s based on fluct uat ions in int erest
rat es, exchange rat es, st ock pr ices, real est at e pr ices, com m odit y prices, and ot hers. I n addit ion, depending on t he cont ent of t he t ransact ion, t he loss
could exceed t he am ount of t he collat eral or m argin requirem ent s.
• There m ay be a difference bet ween bid pr ice et c. and ask pr ice et c. of OTC der ivat ives handled by us.
• Before engaging in any t rading, please t horoughly confirm account ing and t ax t reat m ent s regarding y our t rading in financial inst rum ent s w it h such expert s
as cert ified public account ant s.
* The am ount of t he t rading com m ission cannot be st at ed here in advance because it w ill be det erm ined bet ween our com pany and you based on current
m arket condit ions and t he cont ent of each t ransact ion et c.
When m ak ing an act ual t ransact ion, please be sure t o carefully read t he m at er ials present ed t o y ou pr ior t o t he execut ion of agreem ent , and t o t ake
responsibilit y for y our own decisions regarding t he signing of t he agr eem ent w it h us.
Corporat e Nam e:
Mem berships:
Daiwa Secur it ies Co. Lt d.
Financial inst rum ent s fir m : chief of Kant o Local Finance Bureau ( Kin- sho) No.108
Japan Secur it ies Dealers Associat ion, Financial Fut ures Associat ion of Japan
Japan Secur it ies I nvest m ent Adv isers Associat ion
Type I I Financial I nst rum ent s Fir m s Associat ion