Analysts who prepared this report are registered as research analysts in Korea but not in any other jurisdiction, including the U.S. PLEASE SEE ANALYST CERTIFICATIONS AND IMPORTANT DISCLOSURES & DISCLAIMERS IN APPENDIX 1 AT THE END OF REPORT.
KMI Wire and Cable (KBLI IJ)
Bright prospects to drive valuation re-rating
Although shares of KMI Wire and Cable (KBLI/Not Rated) have jumped >50% YTD, we
believe the stock is still attractive. Key investment points include: 1) growing demand
for aluminum power transmission cables; 2) its fewer competitors (Voksel Electric [VOKS
IJ/Not Rated] is KBLI’s main competitor in supplying aluminum cables to Indonesia’s
state-owned electricity company, Perusahaan Listrik Negara [PLN]); 3) stable margin
delivery owing to the impact of natural hedging; and 4) expectations for a valuation re-
rating.
New facilities to start producing cables for PLN in 2017-18
For FY16, KBLI’s annual capacity stood at 42,000 tonnes (16,000 tonnes for aluminum;
26,000 tonnes for copper). This year, KBLI will start producing high-voltage
underground copper (HVUGC) cables after adding 3,000 tonnes of copper cable capacity
(for high- and medium-voltage cables). In addition, KBLI will also begin construction on
15,000 tonnes of aluminum cable capacity in 2H17, as management expects aluminum
cable utilization to reach 94% (the effective maximum level) this year. The additional
15,000 tonnes of capacity are expected to come online in 2018.
Impressive FY16F stokes expectations for better performance going forward
KBLI’s management estimates that, for FY16, top line reached around IDR2.8tr (+7.6%
YoY). Meanwhile, net profit is projected at IDR300bn (excluding a tax revaluation impact
of roughly IDR30bn), more than doubling on a YoY basis. In our view, KBLI’s strong
performance was supported by a more than twofold increase in PLN’s revenue
contribution (to roughly 39%) from the FY14 level.
KBLI expects the revenue contribution of transmission cables to expand during 2017-19,
in line with increasing demand from PLN for LVAL-ACCC and LVAL-ACSR transmission
cables. LVAL-ACCC is a specialty cable that: 1) can carry two times more current than
LVAL-ACSR; 2) reduces the probability of cable sag; and 3) is able to withstand the
higher temperatures generated by peak-load power (on which PLN has been relying
recently). According to KBLI’s management, the company boasts significant competitive
edges over competitors with regard to LVAL-ACCC, which is difficult to produce.
Notably, KBLI forecasts that revenue from PLN projects will reach around 51% of total
revenue by 2019, which we think will have a positive impact on earnings.
Valuation remains cheap; Re-rating expected
For 2017, KBLI’s management conservatively assumes that bottom line will grow by
18% YoY to reach IDR354bn. This earnings level (EPS of IDR88) translates into a 2017F
P/E of 4.9x, which we deem still very attractive. In addition, KBLI is trading at a 71%
discount compared to the average 2017F multiple (16.7x) of its peer group, which
includes Schneider Electric SE (SU FP equity/Not Rated), Omron Corp. (6645 JT Equity),
LS Industrial Systems (010120 KS equity), and TBEA (600089 CH equity).
KBLI is currently trading at its seven-year average P/E. A re-rating to the +2 standard
deviation level (11.6x P/E) translates into a share price of IDR1,020/share.
Cable
Company Report March 9, 2017
(Recommendation) Not Rated
Target Price (12M, IDR) -
Share Price (3/8/17, IDR) 434
Expected Return -
Consensus OP (17F, IDRtr) N/A
EPS Growth (17F, %) N/A P/E (17F, x) N/A Industry P/E (17F, x) 17.4 Benchmark P/E (17F, x) 15.6 Market Cap (IDRbn) 1,739.1
Shares Outstanding (mn) 4,007.2 Free Float (mn) 2,010.5 Institutional Ownership (%) 58.5 Beta (Adjusted, 24M) 1.2 52-Week Low (IDR) 139 52-Week High (IDR) 460
(%) 1M 6M 12M Absolute 55.0 59.6 199.3 Relative 54.4 59.1 187.2
PT. Mirae Asset Sekuritas Indonesia Miscellaneous Industry Christine Natasya +62-21-515-1140 [email protected]
FY (Dec.) 2010 2011 2012 2013 2014 2015
Revenue (IDRbn) 1,228.1 1,841.9 2,273.2 2,572.4 2,384.1 2,662.0 Gross Profit (IDRbn) 135.0 168.8 276.6 276.8 211.5 285.3 Operating Profit (IDRbn) 64.6 97.1 186.9 175.9 118.1 171.0 Net Profit (IDRbn) 48.3 63.7 125.2 73.5 72.0 115.4 EPS (IDR) 12.1 15.9 31.2 18.4 18.0 28.8 BPS (IDR) 163.7 179.7 210.9 221.3 231.2 256.4 P/E (x) 6.6 6.5 6.0 7.7 7.7 4.1 P/B (x) 0.5 0.6 0.9 0.6 0.6 0.5 ROE (%) 10.9 9.3 16.0 8.5 7.9 11.8 ROA (%) 6.7 6.2 11.2 5.9 5.4 8.0 Note: NP refers to net profit attributable to controlling interests Source: Company data, Mirae Asset Sekuritas Indonesia Research estimates
40
90
140
190
240
290
340
3/1
6
4/1
6
5/1
6
6/1
6
7/1
6
8/1
6
9/1
6
10
/16
11
/16
12
/16
1/1
7
2/1
7
3/1
7
JCI KBLI(D-1yr=100)
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Efforts to increase access to electricity to benefit cable companies
The relatively low level of electrification in Indonesia is largely due to a power generation
shortage. In June 2016, the Ministry of Energy and Mineral Resources released its 2016–25
Electricity Supply Business Plan (Rencana Umum Penyediaan Tenaga Listrik; RUPTL), which
includes concrete steps to address this issue.
According to the plan, the Indonesian government aims to raise Indonesia’s electrification ratio
from 88.3% in 2015 to 99.7% in 2025, focusing heavily on rural areas. The plan indicates that, at
minimum, power plants with capacity of 80.5GW will need to be constructed by 2025 in order to
achieve that level of electrification. At present, PLN plans to add 18.2GW, and independent
power producers (IPPs) are projected to add 45.7GW. Arrangements for the remaining 16.6GW of
capacity have yet to be firmed up.
Figure 1. Government’s road map to 80.5GW of new capacity
Source: RUPTL, Mirae Asset Research Indonesia
Construction of the new power plants will require a minimum investment of around USD31.9bn
(roughly IDR430tr) from PLN, and approximately USD78.2bn from IPPs. As such, over the next 10
years, the private sector will play a greater role than ever before in the development of the
Indonesian power sector.
In addition, the mega project requires the construction of transmission networks, main
substations, and distribution networks, as well as an estimated 300,000km of aluminum
conductors. Therefore, PLN will also need to invest around USD43.7bn (IDR590tr) to expand its
transmission and distribution networks, which we believe will benefit aluminum cable producers
such as VOKS and KBLI.
Figure 2. Distribution of power plants and transmission networks
Source: PLN, Mirae Asset Sekuritas Indonesia
80,538
-
10,000
20,000
30,000
40,000
50,000
60,000
70,000
80,000
90,000
2016 F 2017 F 2018 F 2019 F 2020 F 2021 F 2022 F 2023 F 2024 F 2025 F
MW
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Cable companies producing transmission cables due to high demand from PLN
Since RUPTL’s first phase—35GW in new capacity by 2025—calls for investment exceeding
IDR1,000tr, we believe cable companies, such as VOKS and KBLI, are set to enjoy significant
boosts. The 35GW project requires the construction of power generators, transmission networks,
main substations, and distribution networks, as well as an estimated 300,000km of aluminum
conductors.
Notably, VOKS and KBLI are two of the largest IDX-listed aluminum cable players providing supply
to PLN. In terms of revenue, we estimate that KBLI is the second-largest player in the industry. In
the low-voltage copper (LVCU) cable segment, Supreme Cable Manufacturing & Commerce (SCCO
IJ; Not Rated) is KBLI’s chief rival. Generally speaking, LVCU cables (around 52.6% of KBLI’s total
revenue) are sold to private companies operating in the building works, property, mining, and
industrial sectors.
Through 2016, KBLI’s revenue contribution from the private sector (including LVCU, MVCU, LVAL,
etc.) was around 59.2%. Meanwhile, PLN’s contribution to KBLI’s total revenue was only 38.5%. In
the future, management expects the contribution of the private sector to shrink gradually as
revenue from PLN steadily increases due to strong demand stemming from the utility’s role as
the direct link to the end-consumer. (For further details, please read Perpres Indonesia No. 14/2017: https://goo.gl/Qy9f8M.) KBLI expects PLN’s revenue contribution to climb to 51% by
2019.
Figure 3. Low-voltage copper cable 1KV (supplied to private sector companies)
Source: Mirae Asset Research Indonesia
Figure 4. KBLI’s revenue breakdown (2016F) Figure 5. KBLI’s revenue breakdown (2016-2019F)
Source: Company data, Mirae Asset Research Indonesia
Source: Company data, Mirae Asset Research Indonesia
59%
38.5%
2%
Sales to private sector Sales to state owned (PLN) Export sales
19%
18%17%
16%
15%
17%21% 23%
5%10% 10% 12%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2016F 2017F 2018F 2019F
Export PLN - Unit Bisnis 3 PLN - Transmisi PLN- Distribusi Freemarket Distributor
51%
39%
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As of 9M16, VOKS’ revenue exposure to PLN stood at 26%, lower than the 41% figure recorded
by KBLI. Yet, on an absolute basis, VOKS’ revenue from PLN was slightly higher than KBLI’s
(IDR376bn vs. IDR326bn). We believe that, for both companies, production capacity will
determine future revenue from PLN.
Figure 6. VOKS’ revenue from PLN vs. others (as of 9M16) Figure 7. KBLI’s revenue from PLN vs. others (as of 9M16)
Source: Company data, Mirae Asset Research Indonesia
Source: Company data, Mirae Asset Research Indonesia
Figure 8. Estimates of PLN’s contribution to KBLI’s total revenue
Source: Company data, Mirae Asset Research Indonesia
326
-
50
100
150
200
250
300
350
400
450
500
PLN Others
IDRbn
376
-
100
200
300
400
500
600
700
800
900
1,000
WSKT IJ PLN Others
IDRbn
15%23%
39% 45% 49% 51%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2014 2015 2016 F 2017 F 2018 F 2019 F
Others PLN
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Margins should remain stable even if aluminum and copper prices rise
We believe KBLI’s margin stability has historically been supported by two key factors: 1) lower
aluminum and copper prices; and 2) a natural hedge built into KBLI’s business structure (i.e.,
selling price are pegged to current commodity prices). Going forward, we believe KBLI will be able
to maintain its margins given that that it can pass on higher raw material prices to customers.
Currently, three of KBLI’s cable divisions provide supply to PLN—the distribution, transmission
and unit businesses. KBLI expects the transmission cable business to become the biggest source
of revenue, with its contribution growing from 15% in 2016F to 23% in 2019F on the back of high
demand from PLN (stemming from power plant construction activities).
Figure 9. KBLI’s expected higher revenue contribution (%) from PLN mainly comes from transmission and unit businesses (2016-2019F)
Source: Company data, Mirae Asset Research Indonesia
The distribution segment mainly sells medium-voltage aluminum (MVAL) cables to PLN
(around 14% revenue contribution) with a margin of around 30%.
Figure 10. Cable for PLN's distribution projects (MVAL)
Source: Mirae Asset Research Indonesia
19% 18% 17% 16%
15% 17% 21% 23%
5%
10%
10%12%
0%
10%
20%
30%
40%
50%
60%
2016F 2017F 2018F 2019F
PLN - Unit Bisnis 3 PLN - Transmisi PLN- Distribusi
3 Year CAGR growth (2016F-2019F) =26.4%
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The transmission cable business primarily sells low-voltage aluminum (LVAL) cables. Its
flagship products are LVAL-ACCC (aluminum conductor composite core) and LVAL-ACSR
(aluminum conductor steel-reinforced), which together deliver a revenue contribution
of 13.9% and a gross margin of 30-35%—marking the highest levels among KBLI’s cable
products. KBLI expects transmission business revenue to expand as demand from PLN
for LVAL-ACCC and LVAL-ACSR grows.
LVAL-ACCC is a specialty cable that can carry twice as much current as comparable
ACSR cables. In addition, it uses a cutting-edge composite core that: 1) lowers the
probability of sag; 2) boasts strength advantages over rival technologies; and 3) can
withstand higher peak-load temperatures. According to KBLI’s management, the
company boasts significant competitive edges over competitors with regard to LVAL-
ACCC, which is difficult to produce.
Figure 11. Cable for PLN’s transmission projects (LVAL-ACCC) Figure 12. Cable for PLN’s transmission projects (LVAL-ACSR)
Source: Mirae Asset Research Indonesia
Source: Mirae Asset Research Indonesia
The unit business mainly sells HVUGC cables. In 2016, its contribution to total revenue
was merely 2.5% due to a lack of capacity. (KBLI has traditionally imported HVUGC
cables from Korea-based LS Industrial Systems.)
Going forward, we predict KBLI’s performance to be solid due to its plan to largely shift
production toward HVUGC for supply to PLN (higher voltage higher margins).
According to the company, the need for HVUGC cables is likely to grow. This is likely to
benefit KBLI, which has just finalized its investment in a HVUGC cable plant. KBLI
expects the already-high margins from HVUGC cables to expand further going forward
due to strong demand from PLN arising from the 35GW project.
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Figure 13. Cable for PLN’s unit business projects (HVUGC)
Source: Mirae Asset Research Indonesia
KBLI is expecting higher contributions from HVUGC and LVAL-ACCC and LVAL-ACSR cables
(which yield higher margins compared to LVCU) in 2017. However, the company is conservatively
forecasting that margins will stabilize at the current level (20-22%).
Figure 14. Gross margin estimates by segment
Source: Company data, Mirae Asset Research Indonesia
Figure 15. KBLI’s quarterly gross margin (%)
Source: Company data, Mirae Asset Research Indonesia
15%
20%
25%
30% 30%
35%
0%
5%
10%
15%
20%
25%
30%
35%
40%
Private sector-distributor (LVCU)
Private sector-freemarket (LVCU)
PLN- Unit Business(HVUGC)
PLN- Distribution(MVAL)
PLN- Transmission(LVAL ACCC)
PLN- Transmission(LVAL ACSR)
2017-2019 F
-
5
10
15
20
25
Q3 2013 Q4 2013 Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 2016 Q3 2016 Q4 2016 F
(%) Gross Margin (%)
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New facilities to start producing cables for PLN in 2017
For FY16, KBLI’s annual capacity stood at 42,000 tonnes (16,000 tonnes for aluminum; 26,000
tonnes for copper). This year, KBLI will start producing HVUGC cables after adding 3.000 tonnes
of copper cable capacity (for high- and medium-voltage cables). In addition, KBLI will also start
constructing 15,000 tonnes of new aluminum cable capacity in 2H17, as management expects
aluminum cable utilization to reach 94% (the effective maximum level) this year. The additional
15,000 tonnes of capacity are expected to come online in 2018.
Table 1. KBLI’s production capacity
Production capacity
(Tonne)
2016F 2017F 2018F 2019F
Copper 26,000 29,000 29,000 29,000
Aluminum 16,000 16,000 31,000 31,000
Total capacity 42,000 45,000 60,000 60,000
Source: Company data, Mirae Asset Research Indonesia
Table 2. KBLI ‘s utilization rate
Utilization rate 2016F 2017F 2018F 2019F
Copper 62% 61% 67% 74%
Aluminum 74% 94% 66% 79%
Total utilization rate 67% 73% 66% 77% Source: Company data, Mirae Asset Research Indonesia
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Figure 16. High-voltage cable extruder machine Figure 17. KBLI’s plant
Source: Company data, Mirae Asset Research Indonesia
Source: Company data, Mirae Asset Research Indonesia
Figure 18. KBLI’s factory Figure 19. KBLI’s factory
Source: Mirae Asset Research Indonesia
Source: Mirae Asset Research Indonesia
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Java-Sumatra HVDC interconnection system is needed
To take advantage of the large coal deposits in Sumatra, three mine mouth coal-fired power
plants are being constructed in Bangko Tengah (South Sumatra) under the IPP scheme. The
plants will have total capacity of 3,000MW.
Java and Bali, which have limited energy resources and plants, generate the highest per-capita
demand for electricity; meanwhile, Sumatra boasts large coal deposits that can support coal-fired
steam power plants. In light of these dynamics, we believe that a Java-Sumatra high-voltage
direct current (HVDC) interconnection system would be mutually beneficial to both regions. An
HVDC system would improve the reliability of power supply by linking South Sumatra’s power
plants with a Java load center. Notably, the scheme would require a 500kV HVDC overhead
transmission line network, submarine cables, and a switching station.
We believe that an interconnection system could potentially improve power supply-demand
conditions in both Sumatra and Java. And If the project is brought to life, we think it would have
a positive impact on KBLI in the future.
Table 3. Electricity demand per capita (TWh)
Demand (TWh) 2016F 2018F 2020F 2022F 2024F 2025F
Indonesia 216.8 267.9 315.3 366.0 424.9 457.0
Jawa Bali 162.1 197.1 228.2 260.8 297.5 317.7
East Indonesia 22.7 29.8 36.4 43.6 52.2 56.4
Sumatra 32.1 41.0 50.7 61.7 75.2 82.9
Source: RUPTL, Mirae Asset Research Indonesia
Figure 20. Electricity demand per capita
Source: RUPTL, Mirae Asset Research Indonesia
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Impressive FY16F stokes expectations for better performance going forward
KBLI’s management estimates that, for FY16, top line reached around IDR2.8tr (+7.6% YoY).
Meanwhile, core net profit is projected at IDR300bn (excluding a tax revaluation impact of
roughly IDR30bn), more than doubling on a YoY basis.
In our view, KBLI’s strong performance was supported by a more than twofold increase in PLN’s
revenue contribution (to roughly 39%) from the FY14 level. In addition, for 2016, PLN was
allocated around IDR23tr in state capital investment (Penanaman Modal Negara; PMN)—the
highest level among state-owned enterprises—and we believe this benefited KBLI and VOKS.
Notably, KBLI forecasts that revenue from PLN projects will account for around 51% of total
revenue by 2019, which we think will have a positive impact on earnings.
Figure 21. Larger contribution from PLN to total revenue Figure 22. State capital investment (PMN) 2016)
Source: Company data, Mirae Asset Research Indonesia
Source: Company data, Mirae Asset Research Indonesia
Figure 23. KBLI’s quarterly net profit
Source: Company data, Mirae Asset Research Indonesia
15%23%
39%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2014 2015 2016 F
Others PLN
23.6, 43.6%
4.2, 7.7%4.0, 7.4%
3.0, 5.6%
2.5, 4.5%
2.3, 4.2%
2.0, 3.7%
2.0, 3.7%
1.3, 2.4%
9.3, 17.1%
PLN
Sarana Multi Infrastruktur
Wijaya Karya (WIKA IJ)
Hutama Karya
Krakatau Steel (KRAS IJ)
Pembangunan Perumahan(PTPP IJ)
Angkasa Pura II
Perum Bulog
Jasa Marga (JSMR IJ)
Others
(IDRtr)
49
62
80
86
102
(20)
-
20
40
60
80
100
120
3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16F
(IDRbn)
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Valuation remains cheap; Re-rating expected
For 2017, KBLI’s management conservatively assumes that bottom line will grow by 18% YoY to
reach IDR354bn. This earnings level (EPS of IDR88) translates into a 2017F P/E of 4.9x, which we
deem still very attractive. In addition, KBLI is trading at a 71% discount compared to the average
2017F multiple (16.7x) of its peer group, which includes Schneider Electric, Omron Corp., LS
Industrial Systems, and TBEA.
KBLI is currently trading at its seven-year average P/E. A re-rating to the +2 standard deviation
level (11.6x P/E) translates into a share price of IDR1,020/share.
Figure 24. KBLI’s forward P/E band
Source: Bloomberg, Mirae Asset Research Indonesia
Table 4. Peer group valuation
Company P/E ratio (2017F)
Schneider Electric SE (SU FP equity/Not Rated), 16.5
Omron Corp. (6645 JT equity/Not Rated), 24.0
LS Industrial Systems (010120 KS equity/Not Rated) 12.7
TBEA (600089 CH equity/Not Rated) 13.7
Average P/E 16.7 Source: Bloomberg, Mirae Asset Research Indonesia
-1 Std Dev
Avg PER
+1 Std Dev
+2 Std Dev
1
3
5
7
9
11
13
15
17
Jan-10 Jan-11 Jan-12 Jan-13 Jan-14 Jan-15 Jan-16 Jan-17
( x )
+3 Std Dev
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APPENDIX 1
Important Disclosures & Disclaimers
Stock Ratings Industry Ratings
Buy Relative performance of 20% or greater Overweight Fundamentals are favorable or improving
Trading Buy Relative performance of 10% or greater, but with volatility Neutral Fundamentals are steady without any material changes
Hold Relative performance of -10% and 10% Underweight Fundamentals are unfavorable or worsening
Sell Relative performance of -10%
* Our investment rating is a guide to the relative return of the stock versus the market over the next 12 months. * Although it is not part of the official ratings at Mirae Asset Sekuritas Indonesia, we may call a trading opportunity in case there is a technical or short-term material development. * The target price was determined by the research analyst through valuation methods discussed in this report, in part based on the analyst’s estimate of future earnings. The achievement of the target price may be impeded by risks related to the subject securities and companies, as well as general market and economic conditions. Analyst Certification The research analysts who prepared this report (the “Analysts”) are registered with the Indonesian jurisdiction and are subject to Indonesian securities regulations. They are neither registered as research analysts in any other jurisdiction nor subject to the laws and regulations thereof. Opinions expressed in this publication about the subject securities and companies accurately reflect the personal views of the Analysts primarily responsible for this report. PT. Mirae Asset Seukritas Indonesia (“Mirae Asset Daewoo”) policy prohibits its Analysts and members of their households from owning securities of any company in the Analyst’s area of coverage, and the Analysts do not serve as an officer, director or advisory board member of the subject companies. Except as otherwise specified herein, the Analysts have not received any compensation or any other benefits from the subject companies in the past 12 months and have not been promised the same in connection with this report. No part of the compensation of the Analysts was, is, or will be directly or indirectly related to the specific recommendations or views contained in this report but, like all employees of Mirae Asset Daewoo, the Analysts receive compensation that is determined by overall firm profitability, which includes revenues from, among other business units, the institutional equities, investment banking, proprietary trading and private client division. At the time of publication of this report, the Analysts do not know or have reason to know of any actual, material conflict of interest of the Analyst or Mirae Asset Daewoo except as otherwise stated herein. Disclaimers This report is published by Mirae Asset Daewoo, a broker-dealer registered in the Republic of Indonesia and a member of the Indonesia Stock Exchange. Information and opinions contained herein have been compiled in good faith and from sources believed to be reliable, but such information has not been independently verified and Mirae Asset Daewoo makes no guarantee, representation or warranty, express or implied, as to the fairness, accuracy, completeness or correctness of the information and opinions contained herein or of any translation into English from the Indonesian language. In case of an English translation of a report prepared in the Indonesian language, the original Indonesian language report may have been made available to investors in advance of this report. The intended recipients of this report are sophisticated institutional investors who have substantial knowledge of the local business environment, its common practices, laws and accounting principles and no person whose receipt or use of this report would violate any laws and regulations or subject Mirae Asset Daewoo and its affiliates to registration or licensing requirements in any jurisdiction shall receive or make any use hereof. This report is for general information purposes only and it is not and shall not be construed as an offer or a solicitation of an offer to effect transactions in any securities or other financial instruments. The report does not constitute investment advice to any person and such person shall not be treated as a client of Mirae Asset Daewoo by virtue of receiving this report. This report does not take into account the particular investment objectives, financial situations, or needs of individual clients. The report is not to be relied upon in substitution for the exercise of independent judgment. Information and opinions contained herein are as of the date hereof and are subject to change without notice. The price and value of the investments referred to in this report and the income from them may depreciate or appreciate, and investors may incur losses on investments. Past performance is not a guide to future performance. Future returns are not guaranteed, and a loss of original capital may occur. Mirae Asset Daewoo, its affiliates and their directors, officers, employees and agents do not accept any liability for any loss arising out of the use hereof. Mirae Asset Daewoo may have issued other reports that are inconsistent with, and reach different conclusions from, the opinions presented in this report. The reports may reflect different assumptions, views and analytical methods of the analysts who prepared them. Mirae Asset Daewoo may make investment decisions that are inconsistent with the opinions and views expressed in this research report. Mirae Asset Daewoo, its affiliates and their directors, officers, employees and agents may have long or short positions in any of the subject securities at any time and may make a purchase or sale, or offer to make a purchase or sale, of any such securities or other financial instruments from time to time in the open market or otherwise, in each case either as principals or agents. Mirae Asset Daewoo and its affiliates may have had, or may be expecting to enter into, business relationships with the subject companies to provide investment banking, market-making or other financial services as are permitted under applicable laws and regulations. No part of this document may be copied or reproduced in any manner or form or redistributed or published, in whole or in part, without the prior written consent of Mirae Asset Daewoo.
Disclosures As of the publication date, PT. Mirae Asset Sekuritas Indonesia, and/or its affiliates do not have any special interest with the subject company and do not own 1% or more of the subject company's shares outstanding.
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March 9, 2017
Mirae Asset Sekuritas Indonesia Research
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Mirae Asset Daewoo Co., Ltd. (Seoul) Mirae Asset Securities (HK) Ltd. Mirae Asset Securities (UK) Ltd. Global Equity Sales Team Mirae Asset Center 1 Building 26 Eulji-ro 5-gil, Jung-gu, Seoul 04539 Korea
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555 S. Flower Street, Suite 4410, Los Angeles, California 90071 USA
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PT. Mirae Asset Sekuritas Indonesia Mirae Asset Securities (Singapore) Pte. Ltd. Mirae Asset Securities (Vietnam) LLC Equity Tower Building Lt. 50 Sudirman Central Business District Jl. Jend. Sudirman, Kav. 52-53 Jakarta Selatan 12190 Indonesia
6 Battery Road, #11-01 Singapore 049909 Republic of Singapore
7F, Saigon Royal Building 91 Pasteur St. District 1, Ben Nghe Ward, Ho Chi Minh City Vietnam
Tel: 62-21-515-3281 Tel: 65-6671-9845 Tel: 84-8-3911-0633 (ext.110)
Mirae Asset Securities Mongolia UTsK LLC Mirae Asset Investment Advisory (Beijing) Co., Ltd Beijing Representative Office
#406, Blue Sky Tower, Peace Avenue 17 1 Khoroo, Sukhbaatar District Ulaanbaatar 14240 Mongolia
2401B, 24th Floor, East Tower, Twin Towers B12 Jianguomenwai Avenue, Chaoyang District Beijing 100022 China
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Shanghai Representative Office Ho Chi Minh Representative Office
38T31, 38F, Shanghai World Financial Center 100 Century Avenue, Pudong New Area Shanghai 200120 China
7F, Saigon Royal Building 91 Pasteur St. District 1, Ben Nghe Ward, Ho Chi Minh City Vietnam
Tel: 86-21-5013-6392 Tel: 84-8-3910-7715