Borneo Lumbung Energy : Not a bullish takeaway, but still within target

Having met management at our 2011 Asian Stars Conference in Singapore,
these are some of our takeaways.

Volume ramp-up slower than expected
Borneo Lumbung Energy - BORN is still guiding for 3.6mt coal production/sales for 2011, though output in
May was only 285,000t (vs. 0.532mt in 1Q). BORN claimed this was mainly due to
sub-optimal mine site productivity (e.g., equipment utilization not at full capacity),
and not barging issue. Our FY sales estimate of 3.24mt still looks achievable.

Coking coal prices seen trending down
BORN expects prices to trend down in 2H (consistent with our view) as more
Queensland coal hits the market. We understand it has not made any sales to
China in 1Q. It believes it can return to China if its price acceptance level
improves (still no more than US$240/t). It guided for full-year ASP at US$220-
240/t, which looks very conservative given 2Q saw ASPs settled at US$250-300/t.
We maintain our full-year estimate of US$260/t.

9-12% discount because of slightly higher VM and lower CSR
While BORN products can be considered premium HCC, its Coke Strength after
Reaction (CSR; ie, strength of coke while hot) is relatively low end at 60%
(industry average 65%). Its Volatile Matter (the amount of material liberated at

Indofood Sukses Makmur An opportunity to lighten

􀂃 Over the past few weeks, INDF’s share price has remained firm, in spite of a

soft 1Q11A result (9.5% below our quarterly forecast), and the share prices of

its two key investments ICBP (Rp5,200, Neutral, Rp5,700 PT) and IFAR

(S$2.05, Not Rated) continuing to decline (collectively 75% of INDF’s NAV).

􀂃 We highlight that this divergence has increased the implied value of Bogasari

to Rp14.5tr, and quite likely reflects anticipatory buying in the lead-up to the

SIMP IPO. However, we believe the view that the IPO will act as a positive

catalyst for INDF’s share price to be misplaced, and we expect the reverse to

occur, and the stock to sell off after the IPO. We recommend investors utilise

the current strength as a short term trading opportunity to lighten.

Impact

􀂃 We do not believe SIMP’s IPO will act as positive catalyst for INDF: While

INDF’s share price has been strong in recent weeks, IFAR’s share price (the

vehicle actually conducting the IPO) has continued to weaken, indicating that

investors are concerned about the dilutionary consequences of the offer,

and/or the transaction converting IFAR into a holding company. Certainly

there are no indications from IFAR’s share price that the IPO is about to

imminently crystallise value or trigger a positive re-rating. In addition, we

would also flag that after a strong run in the lead-up to ICBP’s IPO, INDF’s

share price collapsed by c10–15% in the days following the IPO. Successfully

trading around the ICBP IPO required selling out before the IPO, not after.

􀂃 Valuation difficult to justify: INDF's share price relative to ICBP and IFAR’s

is now implying a Rp14.5tr valuation for Bogasari – representing a 13.5x

FY11E PER based on normalised (10-year average) margins of 9.5% (which

is high by global flour-milling standard). We note that 1Q11A margins were

below mid-cycle levels, at 8.0%, and could fall further in coming quarters with

PT Sampoerna Agro 1Q11 results update

Solid 1Q11 results – SGRO reported earnings grew triple in 1Q11, the highest in our plantation coverage. Growth was mainly driven by spiking CPO price and production growth in 1Q11. Average CPO price increased by 42% YoY to RM3,649/ton, and SGRO managed to double its CPO production. 1Q11 results were above our expectation, however we will not change our estimation as SGRO’s production pattern has not been able to be predicted yet.

Earning increased by 337% - SGRO’s earning grew by 337% YoY to IDR 189bn, followed by sales and EBIT that surged by 151% and 286% to IDR 759bn and IDR 248bn, respectively. Palm product contributed 95.3% of total revenue. Average CPO selling price was up by 27.7% YoY to IDR8,357/kg while palm kernel increased by 112% YoY to IDR6,675/kg. Volume sales for both product also surged by approximately 86% each. Overall results were above our estimation, EBIT and earning results were 30-35% of our full year 2011 projection.

Production strong, pattern volatile – For 1Q production result, 1Q11 was the highest since 2006. FFB production reached 383,673tons, increased 101% YoY and led to CPO production of 27,710tons, increased by 104% YoY. This is significant as robust production occurred when CPO price picked. Further, production growth in 1Q11 was also driven by Kalimantan side, increased 7% QoQ and 65.3% YoY. In our view, Kalimantan production

PT INTERNATIONAL NICKEL INDONESIA TBK REPORTS FIRST QUARTER 2011 EARNINGS OF US$111.9 MILLION

JAKARTA, May 6, 2011 --- PT International Nickel Indonesia Tbk (“PTI” or the
“Company”, IDX: INCO) announces results for the first quarter 2011 (“1Q11”), unaudited.
PTI recorded net earnings of US$111.9 million in 1Q11 (US$0.011 per share), a slight
increase compared to US$108.9 million (US$0.011 per share) achieved in the fourth quarter
of 2010 (“4Q10), and 47% above the US$76.2 million (US$0.008 per share) in first quarter of
2010 (“1Q10”). Earnings before interest, taxes, depreciation and amortization (“EBITDA”)
totalled US$172.7 million in 1Q11, compared to US$170.1 million in 4Q10 and US$121.7
million in 1Q10. The increase in net earnings and EBITDA in 1Q11 compared to 4Q10 was
mainly driven by higher average realized prices, partially offset by lower deliveries mainly
due to lower production.
The Company recorded an average realized price for nickel in matte of US$20,246 per metric
ton during 1Q11, compared to US$18,011 per metric ton in 4Q10. Sales revenue was
US$322.4 million for the three months period ended March 31, 2011, a slight decrease
compared to US$329.2 million in 4Q10. This was mainly due to lower deliveries of nickel in
matte. In 1Q11 deliveries totalled 15,924 metric tons compared to 18,280 metric tons in
4Q10.
Production of nickel in matte in 1Q11 was 16,501 metric tons, a decrease of 8% compared to
17,996 metric tons in 4Q10. Production was mainly impacted by natural events, like the
earthquake that took place in Sorowako on February 15th, and lightning storms. Electrical
lines and some facilities were impacted causing a temporary shutdown of production. All
procedures were taken to guarantee a proper and safe operation before the restart. The
production impact is expected to be compensated throughout 2011.
PT International Nickel Indonesia Tbk’s total cost of goods sold in 1Q11 decreased to US$155.3 million fromUS$166.8 million in 4Q10, primarily due to lower production and deliveries of nickel in
matte. The cost of goods sold per metric ton in 1Q11 increased by 7% compared to 4Q10,mainly due to an increase in diesel costs, employee costs and services and contracts for
additional activities at the Process Plant and Hydroelectric facility related to the earthquake,
which were partially offset by the decrease in HSFO (High Sulphur Fuel Oil) costs.
The Karebbe hydroelectric power generating plant project is progressing very well, as
planned, and is expected to be concluded on time and on budget. Overall, the project was
approximately 87% complete at the end of 1Q11 and is expected to come on line in the
second half of 2011. The project will produce enough hydroelectric energy to displace

AKRA Coal Mining ready for Production

JAKARTA, May 3, 2011 - PT AKR Corporindo, Tbk. (Bloomberg: AKRA IJ), Indonesia’s leading bulk logistics and infrastructure company and largest private sector distributor of petroleum and basic chemicals, announced that the Company’s coal concessions in Barito Utara, Central Kalimantan are ready for production with the receipt of required approvals from the Governmental authorities and appointment of contractors.

AKRA’s subsidiary PT Bumi Karunia Pertiwi, holder of the mining concession has formally secured Ijin Pinjam Pakai (Borrow and Use License) from Ministry of Forestry, Republic of Indonesia dated April 29, 2011, Operation and Production IUP – (Operation and Production Mining License) and other permits to operate Coal Port terminal.
The Company also announced that it has appointed PT Karunia Bumi Khatulistiwa, an experienced coal mining contractor, to conduct the mining activities who have commenced

FINANCIAL STATEMENT OF INDONESIA COMPANY

if you need financial statement of Indonesia company that liste in Indonesia Stock Exchange, please contact me at truly.fendi@gmail.com

Indonesian Banks BBRI.JK, BBRI IJ Overweight Rp6,450 Price Target: Rp7,300 1QFY11 Results Wrap: Patchy Profits, Micro Plays Stand Out

Ex Bank Rakyat Indonesia (BBRI) & Bank Mandiri (BMRI), sector profits grew 12.6% y/y in 1Q: 3 Banks under our coverage, BBRI, BMRI &Bank Danamon ( BDMN), declared 1Q results today, bringing 1Q results season to a close. Overall 1Q net profits were colored by BMRI (1Q recoveries) & BBRI (4QFY10/1QFY11 accounting change). Excluding these two banks, aggregate sector profits grew by 12.6% y/y. We see these as generally below par with sector (ex BBRI/BMRI) 1Q profits at just 22.5% of FY11E consensus.

BRI grew loans at19% y/y in 1QFY11. Net profits at Rp 3.26 trn were up 51% y/y.
These results were almost exactly in line with our forecasts, which envisaged Rp
3.26 in profits – although in reality tax rates were a bit lower than we anticipated.