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A. Stotz Investment Research

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INDF: Instant Noodles Simmer Long-Term Revenue

INDF: Fertile Soil for Agribusiness Operations

CEO, A. Stotz Investment Research

Dr. Andrew Stotz, CFA

Equity Bottom-Up

Indofood Sukses Makmur Tbk P / Equity Bottom-Up

<ul><li>High earnings quality, cheap on a gross profit basis, and good cost management relative to its sector</li><li>Better productivity and high Crude Palm Oil (CPO) prices boosted agribusiness sales by 18% YoY in 9M17; the trend should remain robust backed by continuous planting. Some plantations are to mature soon</li><li>INDF continues its export markets penetration, growing its revenue in Nigeria and China by 10% and 100% respectively in 1H17 YoY</li><li>Attractive at 18CE* 7.4% ROE/PB versus the ASEAN sector at 4.6%</li><li>Risks: Fluctuations in FX rates and rising competition in flour business</li></ul><p><em>* Consensus Estimates</em></p>

High earnings quality, cheap on a gross profit basis, and good cost management relative to its sectorBetter productivity and high Crude Palm Oil (CPO) prices boosted agribusiness sales by 18% YoY in 9M17; the trend should remain robust backed by continuous planting. Some plantations are to mature soonINDF continues its export markets penetration, growing its revenue in Nigeria and China by 10% and 100% respectively in 1H17 YoYAttractive at 18CE* 7.4% ROE/PB versus the ASEAN sector at 4.6%Risks: Fluctuations in FX rates and rising competition in flour business* Consensus Estimates

INDF（INDF IJ）：農業ビジネスと輸出が成長を支えるべき