Indonesia Strategy:1Q17,cyclical beats in commodities

The majority of listed corporates have reported 1Q17earnings as of thisweek. We’ve analysed a sample of 52major listed companies with meaningfulFY17consensus estimates (exceptions are companies with limited auditreview which have until end June 2017for submission).

    Sectors that reported above consensus earnings expectations: CPO, Telcos,Consumer Staples. Below: Cement, Property, Industrial Estates, Mediaand Poultry. In line: Banks, Retail, Contractors, Industrials, Healthcare.

    Overall revenue momentum improved in 1Q17up +11% yoy/flat qoq with Ebitmargins expanding +1.4% yoy/+2.1% qoq. Free cashflow expanded 17% yoywith a 5% yoy increase in capex, the first expansion since FY14.