Indonesia logistics

Sector outlook
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Jonathan Mardjuki
Warehouse champ
Warehouse industry: another beneficiary of the ecommerce boom
jonathan.mardjuki@clsa.com
+62 21 5088 7815 The economic era of ecommerce has paved the way for new sector beneficiaries
such as logistics. Warehouses are another interesting area. We found a number
Wirandi Ng ecommerce and e-logistics companies with exposure to fulfilment centres and
+62 21 5088 7854 warehouses such as Blibli, Lazada and SiCepat. Globally, in developed countries,
the trend has shifted to smart warehouses. In Indonesia, modern facilities are
Aimee Garibaldi popular and suit the rising demand from ecommerce. Competition is highly
+62 21 5088 7837
fragmented, with MMLP one of the largest warehouse developers.
Growing warehouse demand
q We found a number ecommerce and e-logistics companies with exposure to fulfilment
29 July 2021 centres and or warehouses.
q Blibli, Sociolla, Lazada and JD.ID have a relatively sizeable number of warehouses and
Indonesia it is interesting to know ecommerce players with a 1P model have more warehouse
Logistics exposure compared to customer to customer (C2C), ie. Shopee or Bukalapak.
q On e-logistics, we would note the fast expansion of both SiCepat and Anteraja in
adding warehouses as their parcel delivery volume has been growing strongly.
Indonesia’s warehouse competitive landscape
q Indonesia’s warehouse market is highly fragmented, given low barriers of entry. We
noted several bigger developers in the likes of Genesis and Logos, and listed players
such as Surya Semesta Internusa Tbk (SSIA) and Mega Manunggal Property (MMLP).
q By size, MMLP is the largest with 450k sqm of net leasable area (NLA), followed by
Genesis, with 425k sqm. MMLP’s average size per warehouse (41k sqm) is larger than
Genesis (21k sqm), which implies larger tenants. Note, Logos does not disclose its NLA.

Mega Manunggal Property (MMLP)

q Established in mid-2010, MMLP targets its warehouse NLA to reach 600k in 2021.
With rising ecommerce, the company has been seeing an increasing tenancy mix from
ecommerce and logistics, from 6% in 2015 to 27% in 2020 and 27% to 39%.
q Warehouses are a high-margin, capital-intensive business, with MMLP’s gross, Ebit and
Ebitda margins at 92%, 72% and 71%.
q Additionally, MMLP made efforts to divest four of its portfolios in mid-2020, and
raised Rp.19tn in proceeds, which will to be used to expand meet its NLA target.

Warehouse industry
q Globally, in developed countries, warehouses has evolved from traditional to smart
warehouses with AI, drones, software for ecommerce packaging, storing, etc..
q In Indonesia, modern facilities are popular to suit the rising demand from ecommerce
and we are excited to see how the warehouse sector develops.
q Warehouse yields in Indonesia are decent: 6-7% based on MMLP and this is only lower
than some other countries in ASEAN and Asia, based on Colliers Property.
Warehouse rental rate in select cities across countries

www.clsa.com
Source: CLSA, Colliers Property, MMLP
CLSA and CL Securities Taiwan Co., Ltd. (“CLST”) do and seek to do business with companies covered in its research reports. As such,
investors should be aware that there may be conflicts of interest which could affect the objectivity of the report. Investors should consider
this report as only a single factor in making their investment decisions. For important disclosures please refer to page 12.
 
 

 Warehouse champ Indonesia logistics

Growing warehouse demand

The new economy era of ecommerce boom during the Pandemic has paved the way
for new sector beneficiaries, including logistics players, Indonesia logistics (E-logistics
boom) in our recent report. Warehouse is another key play.

With exponential volume growth in ecommerce, warehouse sits at the core of

logistics supply chain. That said, ecommerce and e-logistics players have been
increasingly investing into fulfilment centre to offer end-to-end product offering
and widen their network coverage.

Based on our observation, we found a number ecommerce and e-logistics players

with their exposure on fulfilment centre/warehouses. On ecommerce, Blibli,
Sociolla, Lazada, and JD.ID stand to have relatively sizeable amount of warehouses
and it is interesting to know that ecommerce players with 1P model - more to B2C
- have higher warehouse exposure compared to C2C i.e. Shopee or Bukalapak.

On e-logistics, we also noted fast expansion of both SiCepat and Anteraja in adding
number of warehouses as their parcel delivery volume has been growing strong.

The largest ecommerce, Tokopedia has also expanded its services into fulfilment
through ‘TokoCabang’ since 2019 as part of its strategy to grow volume and
penetration outside Java. TokoCabang is available in six bigger cities such as Jakarta,
Bandung, Surabaya, Makassar, Palembang and Medan. However, Tokopedia does
not disclose number of TokoCabang outlets.

Figure 1

Ecommerce and e-logistics Number of fulfilment/warehouses for ecommerce and e-logistics companies
companies have been
25 Number of warehouses
increasing their exposure to
fulfilment centres and
warehouses 20

15

10

Source: CLSA, Companies, News

Indonesian O2O beauty retailer, Sociolla is an interesting example. Established in

2014, the company has been seeing growing online shopping in beauty and
personal care category. As its business model is more to B2C, Sociolla needs to
invest into warehouses for its inventory management. Note that the company has
obtained a total funding of US$166mn since 2014.

Based on iprice data, we also found a number of ‘inventory-based’ ecommerce such

as Sociolla, Orami, Zalora, Fabelio, Sephora and Orori. Inventory-based ecommerce
might imply those players who require warehouse for stock keeping. Web traffic for
some of these names has been growing during Pandemic.
Find CLSA research on Bloomberg, Thomson Reuters, FactSet and CapitalIQ - and profit from our evalu@tor proprietary database at clsa.com

29 July 2021 jonathan.mardjuki@clsa.com 2

 
 

 Warehouse champ Indonesia logistics

Ecommerce with large warehouse exposure

Lazada has 67k sqm of We observe a number of ecommerce players developing large warehouses. Lazada
warehouses in Greater has 67k sqm NLA of warehouse in Cimanggis, under Mega Manunggal Property
Jakarta (MMLP), the warehouse provider. Lazada has developed its warehouse into 2
phases; 31k sqm in 2017 and 36k sqm in 2019. Blibli also has a number of
warehouses in Indonesia, including the 27k sqm in Sidoarjo, East Java.

Despite Lazada, Blibli, and JD.id’s web traffic being lower compared to the top-2
players Tokopedia and Shopee (15% vs. 75% combined share in 1Q21), their B2C
business model implies partnering directly with brands and keeping their
inventories, leading to more significant investment into warehouses.

Figure 2 Figure 3

Size of large warehouse from ecommerce players Web traffic across ‘inventory based’ ecommerce
80,000 (sqm) Size of Warehouse (000) Sociolla Orami Zalora
7,000
70,000 Fabelio Sephora Orori
6,000
60,000
5,000
50,000

40,000 4,000

30,000 3,000

20,000 2,000
10,000
1,000
0
Lazada Blibli (Sidoarjo) Zalora (Cibitung) JD.ID (Surabaya) 0
(Cimanggis) 1Q20 2Q20 3Q20 4Q20 1Q21

Source: CLSA, Companies Source: CLSA, IPrice

Blibli and JD.id are ahead in This has also allowed Lazada, Blibli and JD.id to be quite ahead in offering fulfilment
offering fulfilment services services through Fulfilment by Lazada (FBL), fulfilment by Blibli (FBB), fulfilment by
JD.id (FBJ) for official stores in each respective platform, with wider network
coverage as compared to Tokopedia and Shopee, especially on lower-tier cities.

The C2C marketplace model like Tokopedia, Shopee and Bukalapak also has
fulfilment services, yet they are more likely to have an asset-light approach,
outsourcing the service to third-party operators.

Figure 4 Figure 5

Lazada warehouse in Cimanggis Blibli warehouse in Cawang

Source: CLSA, Lazada Source: CLSA, Blibli

29 July 2021 jonathan.mardjuki@clsa.com 3

 
 

 Warehouse champ Indonesia logistics

Warehouse evolution
The warehouse industry is Warehouse is evolving with higher service level agreement (SLA) demanding faster
evolving delivery time and cost efficiencies. This has led to transition from traditional to
smart warehouse.

Smart warehouses have Smart warehouses use artificial intelligence (AI) to streamline the entire e-
become popular commerce warehouse process and automate as much as possible. This can be done
by using drones and software for ecommerce packaging, shipping, and
storing. Some advanced examples are JD’s Asia no.1 logistics centre and Alibaba’s
smart warehouse.

Figure 6 Figure 7

JD.com’s Asia no.1 logistics centre Alibaba smart warehouse

Source: CLSA, JD.com Source: CLSA, Alibaba

Based on Jones Lang Lasalle survey on 720 logistics experts in 43 countries in July
2021, most agree that demand for ecommerce would be significantly higher over
the next three years. Therefore, respondents also expect automation and robotics
would have a high impact on supply chain in the logistics sector.

Figure 8

Survey by JLL on future of The future of global logistics real estate, surveyed by Jones Lang Lasalle
the global logistics 100% 90%
industry 87% Respondents (%)
80% 74% 71% 70%
58%
60% 49%
43%
36%
40% 28%

20%

0%
Agree Anticipate Expect Anticipate Expect Expect Expect the Consider See a lack of Predict
automation increasing growth of demand further smart use of limited available significant
and robotics digitization more than from e- growth in technologies automation availability speculative growth in
will have a of supply 5% in commerce demand to be very and robotics of entitled buildings to logistics
high impact chains logistics to be from the important to be very land as the be the main demand
on supply demand significantly Express & for building imporant number one constraint (over 20%
chains over next 3 higher over Parcel design constraint higher)
years next 3 years delivery, 3rd on occupier
party demand
logistics and
others

Source: CLSA, Jones Lang Lasalle

29 July 2021 jonathan.mardjuki@clsa.com 4

 
 

 Warehouse champ Indonesia logistics

Indonesia warehouse industry

The warehouse industry in Specifically on Indonesia, warehouse automation is still nascent as the industry is
Indonesia is growing at a growing at a slower pace compared to developed countries. However, the direction
slower pace towards automation is promising, following growth in ecommerce for the past few
years and during the Pandemic.

The modern warehouse facilities is currently popular, which is a notable progress

from legacy (traditional) facilities. The main differences are typically on the design
and loading capacity of the warehouse, where the facilities are more suitable for
modern days’ ecommerce goods.

Figure 9

Modern warehouse Evolution of warehouses in Indonesia

facilities have become Legacy Facilities Modern Facilities
popular Structure Masonry-concrete, masonry- Steel structures are preferred
timber and reinforced concrete with low costs and fast
structures are often used construction periods
Clear height Approximately 5 metres to 6 At least 9-12 metres or
metres higher as a single-storey
building
Loading docks No or limited docks available Multiple loading docks
available with hydraulic
devices
Floor loading Landlords do not calculate floor- At least 3 tonnes per square
loading data. This can result in metre
floor depression if goods are
stored beyond the loading limit
Source: CLSA, MMLP

Fragmented warehouse market

Competition is fragmented Indonesia warehouse market is highly fragmented, given low barrier of entry. We
noted several bigger developers in the likes of Genesis, Logos, and listed players
such as SSIA and MMLP

By size, MMLP has the largest with 450k sqm of NLA, followed by Genesis 425k
sqm. MMLP’s average size per warehouse (41k sqm) is larger than Genesis (21k
sqm), which implies larger tenants. Note that Logos, one of the MMLP’s main
competitor, does not disclose its warehouse size in NLA.

Figure 10 Figure 11

Number of warehouses by select developers Size of warehouse portfolio by select developers

25 Number of operated warehouse by developers Size (sqm) Average size per warehouse (sqm)
500,000 50,000

20
400,000 40,000

15
300,000 30,000

10 200,000 20,000

5 100,000 10,000

0 0 0
Genesis MMLP SLP Surya Ticon Logos MMLP Genesis SLP Surya Ticon

Source: CLSA, Companies Source: CLSA, Companies

29 July 2021 jonathan.mardjuki@clsa.com 5

 
 

 Warehouse champ Indonesia logistics

Figure 12 Figure 13

Industrial estates which are developed, by location Warehouse’s average rental rate in Jakarta and Greater Jakarta
Others 90 (Rpk/sqm/mo Average rental rate
Riau and Riau 8% nth)
islands
8% 80

East Java
8% 70

Central Java
5% Jakarta, 60
Banten and
West Java
71% 50

40
Bogor Karawang Tangerang Bekasi Jakarta
Source: CLSA, Himpunan Kawasan Industri Source: CLSA, Cushman and Wakefield

MMLP
MMLP currently operates Established in mid-2010, warehouse provider MMLP has NLA under management
450k sqm NLA of of 450k sqm in 2020 and targets this to reach 600k by end of 2021, through
warehouse additional 54k sqm of Pondok Ungu warehouse and some other projects in the
pipeline. The company focuses on both built to suit and ready built with
composition of 63% and 37%.

In terms of type of tenants, MMLP has been seeing increasing tenancy mix from
ecommerce and logistics, from 6% in 2015 to 27% in 2020 and 27% to 39%,
respectively. Based on our last conversation with the company, management also
agrees that interests from both ecommerce and e-logistics have picked up,
especially in the last 1-2 years.

Its ecommerce tenants have Ecommerce and e-logistics companies like Lazada, TaniHub, Shopee, or Anteraja are
increased from 6% to 27% part of MMLP’s tenants. MMLP currently operates a total of 11 warehouses, with
Unilever Mega Distribution Centre as the largest (90k sqm NLA).

Figure 14 Figure 15

MMLP warehouse NLA and target MMLP tenants by type

(sqm NLA) Manufacture Logistics E-commerce Trading Others
700,000 Built to Suit Ready built 2021T
100%
600,000
6% 19% 16%
19%
80% 27%
500,000
22%
400,000 60% 35%
37% 48%
300,000 39%
40%
6%
200,000 61%
20% 27% 43%
100,000 37%
31% 28%

0 0% 6%
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021T 2015 2016 2017 2018 2019 2020

Source: CLSA, MMLP Source: CLSA, MMLP

29 July 2021 jonathan.mardjuki@clsa.com 6

 
 

 Warehouse champ Indonesia logistics

Figure 16 Figure 17

MMLP warehouse by size Some of MMLP’s tenants

(sqm NLA)
Size of warehouses
100,000

80,000

60,000

40,000

20,000

Source: CLSA, MMLP Source: CLSA, MMLP

Business model
A high margin yet capital- Warehouse is a high margin, yet capital-intensive business. Investment is heavy in
intensive business the beginning to build the warehouse. After completed, MMLP will act as
‘consultant’ and help operational, such as building management, security, or
utilities-related. To look at performance for warehouse industry, Ebit and Ebitda
tends to be a better option. Margins are high: 92% gross, 72% Ebitda and 71% Ebit,
while net margin depends on other variables below operating line.

MMLP’s revenue model relies on how fast the company expands its warehouse
development. Sales has been growing consistently since 2012 with growth of 40%
Four asset divestment mid-
in 2018, 10% in 2019 and 9M20. Revenue on a quarterly basis declined by 24%
last year
QoQ in 3Q20 and up by 10% in 9M20.

It has yet to report 2020 and 1Q21. MMLP however has put efforts to be asset light
with the establishment of warehouse private fund with the partners in mid-2020,
which results in deconsolidation of its four assets (Rp1.9tn in proceeds); Unilever,
Intirub, Li & Fung and Selayar. The four assets have total NLA of 164k sqm, equals
to 36% of MMLP’s total porffolio. MMLP participates for 25-30% of this initiative,
held in 2Q20. It also posted net loss in 3Q20 due to disposal of investment property
from the divestment.

Figure 18 Figure 19

MMLP historical revenue MMLP quarterly revenue

400 (Rpbn) Revenue YoY% (RHS) 100% 120 (Rpbn) Revenue QoQ
350 90%
100
80%
300
70% 80
250 60%
60
200 50%

150 40% 40
30%
100 20
20%
50 10% 0
0 0%
2012 2013 2014 2015 2016 2017 2018 2019 9M199M20

Source: CLSA, MMLP Source: CLSA, MMLP

29 July 2021 jonathan.mardjuki@clsa.com 7

 
 

 Warehouse champ Indonesia logistics

Figure 20 Figure 21

MMLP margins MMLP historical NPAT

100% Gross margin Ebitda margin Ebit margin 400 (Rpbn) NPAT

300
90%

200
80%

100
70%
0

60%
(100)

50% (200)
2012 2013 2014 2015 2016 2017 2018 2019 9M20 2012 2013 2014 2015 2016 2017 2018 2019 9M19 9M20

Source: CLSA, MMLP Source: CLSA, MMLP

MMLP uses two ways to look at yield; yield to cost and yield to value. Decline in
yield might be impacted by few factors. I.e. reduction in rental or higher land
acquisition cost. Occupancy rate for its warehouses also dropped slightly in 9M20,
due to new warehouse opening, which normally hovers around 40%-60% and
gradually goes up above 90%.

Figure 22 Figure 23

MMLP yield to cost and to fair value MMLP occupancy rate

30.0% Yield to cost Yield to fair value 105% Occupancy rate%

100%
25.0%

95%
20.0%
90%
15.0%
85%
10.0%
80%

5.0% 75%

0.0% 70%
2013 2014 2015 2016 2017 2018 2019 9M20 2012 2013 2014 2015 2016 2017 2018 2019 9M20

Source: CLSA, MMLP Source: CLSA, MMLP

Warehouse industry
Indonesia’s warehouse industry is growing rapidly thanks to the rising demand from
ecommerce and we are excited to see future’s development in the sector.
Warehouse yield in Indonesia is decent; 6%-7% based on MMLP and this is only
lower than some other countries in ASEAN and Asia, based on Collies Property.

29 July 2021 jonathan.mardjuki@clsa.com 8

 
 

 Warehouse champ Indonesia logistics

Figure 24 Figure 25

Warehouse yields in select cities across countries Warehouse rental rates in select cities across countries
10.0% 20 (US$k/sqm/m
Yield (%) Warehouse rental rate
onth)
8.0% 16

6.0% 12

4.0% 8

2.0% 4

0.0% 0

Source: CLSA, Colliers Property, MMLP Source: CLSA, Colliers Property, MMLP

Figure 26

Survey of warehouse rental rates in Greater Jakarta area

(Rpk/sqm/month) Warehouse rental rate
90
Bekasi Bogor Depok Jakarta

60

30

Source: CLSA, property agents

Appendix
Figure 27

Structure of MMPL

Source: CLSA, MMLP

29 July 2021 jonathan.mardjuki@clsa.com 9

 
 

 Warehouse champ Indonesia logistics

Figure 28 Figure 29

MMLP balance sheets MMLP cash flow

(Rpbn) Cash Debt Net gearing% 1,500 (Rpbn) Operating CF Investing CF Free CF
1,400 70%
60% 1,000
1,200
50%
1,000 40% 500
30%
800
20% 0
600 10%
0% (500)
400
-10%
200 (1,000)
-20%
0 -30%
(1,500)
2012 2013 2014 2015 2016 2017 2018 2019 9M20
2012 2013 2014 2015 2016 2017 2018 2019 9M19 9M20
Source: CLSA, MMLP Source: CLSA, MMLP

Figure 30 Figure 31

Tokopedia’s ‘TokoCabang’ Blibli warehouse in Sidoardjo East Java

Source: CLSA, Tokopedia Source: CLSA, BliBli

29 July 2021 jonathan.mardjuki@clsa.com 10

 
 

 Important disclosures Indonesia logistics

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Companies mentioned
Adi Sarana (N-R)
Alibaba (BABA US - US$186.07 - BUY)
Anteraja (N-R)
Blibli (N-R)
BLSI (N-R)
CJ Logistics (N-R)
DHL (N-R)
Fabelio (N-R)
Genesis (N-R)
GIC (N-R)
Indolog Pte Ltd (N-R)
JD Logistics (N-R)
JD.com (JD US - US$64.77 - BUY)
Kamigumi (N-R)
Keppel Corp (KEP SP - S$5.28 - O-PF)
Keppel-MMP (N-R)
Lagos (N-R)
Lazada (N-R)
Li&Fung (N-R)
Manulife (N-R)
Mega Manunggal (N-R)
Orami (N-R)
Orori (N-R)
PT Ace Dalle Mega Properti (N-R)
PT Bukalapak (N-R)
PT Indo Log Advisory (N-R)
PT Indo Log One (N-R)
PT intirub (N-R)
PT Manunggal Persada Properti (N-R)
PT Manunggal Timur Properti (N-R)
PT Mega Angkasa Properti (N-R)
PT Mega Arga Properti (N-R)
PT Mega Aruna Nusantara Properti (N-R)
PT Mega Bawana Properti (N-R)
PT Mega Cahaya Properti (N-R)
PT Mega Cakrawala Internusa Properti (N-R)
PT Mega Dharma Properti (N-R)
PT Mega Jaya Lestari Properti (N-R)
PT Mega Khatulistiwa Prperti (N-R)
PT Mega Properi Logistik Nusantara (N-R)
PT Mega Samudera Internusa Properti (N-R)
PT Mega Sumber Anugerh Properti (N-R)
PT Mega Surya Properti (N-R)
PT Mega Tridaya Properti (N-R)
PT Subang Cakrawala Properti (N-R)
PT Subang Horison Properti (N-R)
Sephora (N-R)
Shopee (N-R)

29 July 2021 jonathan.mardjuki@clsa.com 11

 
 

 Important disclosures Indonesia logistics

SiCepat (N-R)
Sociolla (N-R)
Surya Semesta (SSIA IJ - RP496 - O-PF)
TaniHub (N-R)
TokoCabang (N-R)
Tokopedia (N-R)
WPC Logistics (N-R)
Yamaha Corp (N-R)
Yusen Logistics (N-R)
Zalora (N-R)

Analyst certification
The analyst(s) of this report hereby certify that the views expressed in this research report accurately reflect my/our
own personal views about the securities and/or the issuers and that no part of my/our compensation was, is, or will
be directly or indirectly related to the specific recommendation or views contained in this research report.

Important disclosures
Recommendation history of Surya Semesta Internusa Tbk SSIA IJ

Date Rec Target Date Rec Target

19 Nov 2020 O-PF 623.00 02 Jul 2019 BUY 975.00
07 Oct 2020 U-PF 469.00 02 May 2019 SELL 600.00
02 Aug 2020 U-PF 389.45 04 Feb 2019 SELL 500.00
21 Apr 2020 U-PF 325.00 09 Nov 2018 SELL 400.00
18 Dec 2019 BUY 875.00
Source: CLSA

29 July 2021 jonathan.mardjuki@clsa.com 12

 
 

 Important disclosures Indonesia logistics

Recommendation history of JD.com Inc JD US

Date Rec Target Date Rec Target

16 Apr 2021 BUY 110.00 16 Nov 2019 BUY 42.97
12 Jan 2021 BUY 118.00 14 Aug 2019 BUY 38.00
17 Nov 2020 BUY 113.00 11 May 2019 BUY 35.00
04 Sep 2020 BUY 97.00 06 May 2019 O-PF 35.00
18 Aug 2020 BUY 81.00 01 Mar 2019 O-PF 31.00
19 Jun 2020 BUY 75.00 20 Nov 2018 U-PF 24.00
16 May 2020 BUY 59.00 20 Sep 2018 U-PF 29.00
10 Jan 2020 BUY 46.00 17 Aug 2018 O-PF 38.80
Source: CLSA

Recommendation history of Alibaba Group Holding Ltd BABA US

Date Rec Target Date Rec Target

14 May 2021 BUY 300.00 23 May 2020 BUY 280.00
12 Apr 2021 BUY 320.00 10 Jan 2020 BUY 270.00
06 Nov 2020 BUY 351.00 06 May 2019 BUY 240.00
21 Aug 2020 BUY 325.00 03 Nov 2018 BUY 210.00
09 Jul 2020 BUY 310.00 22 Oct 2018 BUY 220.00
Source: CLSA

29 July 2021 jonathan.mardjuki@clsa.com 13

 
 

 Important disclosures Indonesia logistics

Recommendation history of Keppel Corp Ltd KEP SP

Date Rec Target Date Rec Target

25 Jun 2021 O-PF 5.90 24 Jan 2020 U-PF 6.67
06 Jan 2021 U-PF 5.36 21 Nov 2019 O-PF 7.50
10 Dec 2020 U-PF 5.10 05 Sep 2019 BUY 7.50
30 Oct 2020 U-PF 4.70 16 May 2019 BUY 7.95
03 Aug 2020 U-PF 5.37 11 Feb 2019 BUY 7.60
30 Apr 2020 U-PF 5.90 30 Nov 2018 BUY 7.70
Source: CLSA

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related to the specific recommendation or views contained in this the stock trades.
report or to any investment banking relationship with the subject "High Conviction" Ideas are not necessarily stocks with the most
company covered in this report (for the past one year) or otherwise upside/downside, but those where the Research Head/Strategist
any other relationship with such company which leads to receipt of believes there is the highest likelihood of positive/negative returns.
fees from the company except in ordinary course of business of the The list for each market is monitored weekly.
company. The analyst/s also state/s and confirm/s that he/she/they Overall rating distribution for CLSA (exclude CLST) only Universe:
has/have not been placed under any undue influence, intervention or Overall rating distribution: BUY / Outperform - CLSA: 77.02%,
pressure by any person/s in compiling this research report. In Underperform / SELL - CLSA: 22.98%, Restricted - CLSA: 0.18%; Data
addition, the analysts included herein attest that they were not in as of 30 Jun 2021. Investment banking clients as a % of rating

29 July 2021 jonathan.mardjuki@clsa.com 14

 
 

 Important disclosures Indonesia logistics

category: BUY / Outperform - CLSA: 12.59%, Underperform / SELL - professional advice, including tax advice. Investments involve risks,
CLSA: 1.76%; Restricted - CLSA: 0.18%. Data for 12-month period and investors should exercise prudence and their own judgment in
ending 30 Jun 2021. making their investment decisions. The value of any investment or
Overall rating distribution for CLST only Universe: Overall rating income my go down as well as up, and investors may not get back the
distribution: BUY / Outperform - CLST: 93.44%, Underperform / SELL full (or any) amount invested. Past performance is not necessarily a
- CLST: 6.56%, Restricted - CLST: 0.00%. Data as of 30 Jun 2021. guide to future performance. CLSA, CLSA Americas, and/or CLST
Investment banking clients as a % of rating category: BUY / do/does not accept any responsibility and cannot be held liable for
Outperform - CLST: 0.00%, Underperform / SELL - CLST: 0.00%, any person’s use of or reliance on the information and opinions
Restricted - CLST: 0.00%. Data for 12-month period ending 30 Jun contained herein. To the extent permitted by applicable securities
2021. laws and regulations, CLSA, CLSA Americas, and/or CLST accept(s) no
There are no numbers for Hold/Neutral as CLSA/CLST do not liability whatsoever for any direct or consequential loss arising from
have such investment rankings. For a history of the recommendation, the use of this publication/communication or its contents.
price targets and disclosure information for companies mentioned in To maintain the independence and integrity of our research, our
this report please write to: CLSA Group Compliance, 18/F, One Pacific Corporate Finance, Sales Trading, Asset Management and Research
Place, 88 Queensway, Hong Kong and/or; (c) CLST Compliance (27/F, business lines are distinct from one another. This means that CLSA’s
95, Section 2 Dun Hua South Road, Taipei 10682, Taiwan, telephone Research department is not part of and does not report to CLSA
(886) 2 2326 8188). EVA® is a registered trademark of Stern, Stewart Corporate Finance department or CLSA’s Sales and Trading business.
& Co. "CL" in charts and tables stands for CLSA estimates, “CT” stands Accordingly, neither the Corporate Finance nor the Sales and Trading
for CLST estimates, "CRR" stands for CRR Research estimates and department supervises or controls the activities of CLSA’s research
“CS” for Citic Securities estimates unless otherwise noted in the analysts. CLSA’s research analysts report to the management of the
source. Research department, who in turn report to CLSA’s senior
Charts and tables sourced to CLSA in this report may include data management. CLSA has put in place a number of internal controls
extracted from CLSA’s automated databases, which derive their designed to manage conflicts of interest that may arise as a result of
original data from a range of sources. These can include: companies; CLSA engaging in Corporate Finance, Sales and Trading, Asset
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data or market pricing providers such as Bloomberg, FactSet or IBES. controls include: the use of information barriers and other controls
Additional information on data sources for specific charts or tables designed to ensure that confidential information is only shared on a
can be obtained by contacting the publishing analysts. “need to know” basis and in compliance with CLSA’s Chinese Wall
This publication/communication is subject to and incorporates policies and procedures; measures designed to ensure that
the terms and conditions of use set out on the www.clsa.com website interactions that may occur among CLSA’s Research personnel,
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publication/communication nor any portion hereof may be reprinted, personnel, CLSA’s financial product issuers and CLSA’s research
sold, resold, copied, reproduced, distributed, redistributed, published, analysts do not compromise the integrity and independence of CLSA’s
republished, displayed, posted or transmitted in any form or media or research.
by any means without the written consent of CLSA, CLSA Americas Subject to any applicable laws and regulations at any given time,
and/or CLST. CLSA, CLSA Americas and/or CLST has/have produced CLSA, CLSA Americas, CLST, their respective affiliates, officers,
this publication/communication for private circulation to directors or employees may have used the information contained
professional, institutional and/or wholesale clients only, and may not herein before publication and may have positions in, or may from time
be distributed to retail investors. The information, opinions and to time purchase or sell or have a material interest in any of the
estimates herein are not directed at, or intended for distribution to or securities mentioned or related securities, or may currently or in
use by, any person or entity in any jurisdiction where doing so would future have or have had a business or financial relationship with, or
be contrary to law or regulation or which would subject CLSA, CLSA may provide or have provided corporate finance/capital markets
Americas, and/or CLST to any additional registration or licensing and/or other services to, the entities referred to herein, their advisors
requirement within such jurisdiction. The information and statistical and/or any other connected parties. As a result, you should be aware
data herein have been obtained from sources we believe to be that CLSA, CLSA Americas, and/or CLST and/or their respective
reliable. Such information has not been independently verified and we affiliates, officers, directors or employees may have one or more
make no representation or warranty as to its accuracy, completeness conflicts of interest. Regulations or market practice of some
or correctness. Any opinions or estimates herein reflect the judgment jurisdictions/markets prescribe certain disclosures to be made for
of CLSA, CLSA Americas, and/or CLST at the date of this certain actual, potential or perceived conflicts of interests relating to
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without notice. Where any part of the information, opinions or certain reports as required by the relevant rules and regulation and
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to the published view of CLSA, CLSA Americas, and/or CLST. Any therein include the position of CLSA, CLSA Americas, and CLST only.
price target given in the report may be projected from one or more Unless specified otherwise, CLSA did not receive any compensation
valuation models and hence any price target may be subject to the or other benefits from the subject company, covered in this
inherent risk of the selected model as well as other external risk publication/communication, or from any third party. If investors have
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offer to subscribe for or purchase any securities in any jurisdiction analyst(s)) in Australia by CLSA Australia Pty Ltd (ABN 53 139 992
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suitable for your particular circumstances and, if appropriate, seek Korea by CLSA Securities Korea Ltd.; in Malaysia by CLSA Securities

29 July 2021 jonathan.mardjuki@clsa.com 15

 
 

 Important disclosures Indonesia logistics

Malaysia Sdn. Bhd.; in the Philippines by CLSA Philippines Inc (a Financial Advisers Regulations and the relevant Notices and
member of Philippine Stock Exchange and Securities Investors Guidelines issued thereunder (as disclosed in Part C of the Securities
Protection Fund); in Singapore by CLSA Singapore Pte Ltd and solely Dealing Services – Singapore Annex of the CLSA terms of business),
to persons who qualify as an "Institutional Investor", "Accredited in respect of any financial advisory services that CLSA Singapore Pte
Investor" or "Expert Investor" MCI (P) 024/12/2020; in Thailand by Ltd may provide to you. MCI (P) 024/12/2020
CLSA Securities (Thailand) Limited; in Taiwan by CLST and in the EU United States of America: Where any section of the research is
and United Kingdom by CLSA Europe BV or CLSA (UK). compiled by US analyst(s), it is distributed by CLSA Americas. Where
Australia: CLSA Australia Pty Ltd (“CAPL”) (ABN 53 139 992 any section is compiled by non-US analyst(s), it is distributed into the
331/AFS License No: 350159) is regulated by ASIC and is a Market United States by CLSA solely to persons who qualify as "Major US
Participant of ASX Limited and CHI-X. This material is issued and Institutional Investors" as defined in Rule 15a-6 under the Securities
distributed by CAPL in Australia to "wholesale clients" only. This and Exchange Act of 1934 and who deal with CLSA Americas.
material does not take into account the specific investment However, the delivery of this research report to any person in the
objectives, financial situation or particular needs of the recipient. The United States shall not be deemed a recommendation to effect any
recipient of this material must not distribute it to any third party transactions in the securities discussed herein or an endorsement of
without the prior written consent of CAPL. For the purposes of this any opinion expressed herein. Any recipient of this research in the
paragraph the term "wholesale client" has the meaning given in United States wishing to effect a transaction in any security
section 761G of the Corporations Act 2001. CAPL’s research mentioned herein should do so by contacting CLSA Americas.
coverage universe spans listed securities across the ASX All The European Union (“EU”) and the United Kingdom: In these
Ordinaries index, securities listed on offshore markets, unlisted jurisdictions, this research is a marketing communication. It has not
issuers and investment products which Research management deem been prepared in accordance with the legal requirements designed to
to be relevant to the investor base from time to time. CAPL seeks to promote the independence of investment research, and is not subject
cover companies of relevance to its domestic and international to any prohibition on dealing ahead of the dissemination of
investor base across a variety of sectors. investment research. The research is disseminated in these countries
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requirements under the Financial Advisers Act (Chapter 110), the (“CLST”).

29 July 2021 jonathan.mardjuki@clsa.com 16