Tuesday, August 7, 2012
Astra International (ASII.IJ, BUY) - Preserving Growth
Astra International (ASII.IJ, BUY) - Preserving Growth
– While higher downpaymnet policy is likely to have an adverse impact on Astra’s 2W segment, given higher income sensitivity, we believe that there will be only a marginal impact to the 4W segment.
– Rising GDP/capita, lack of public transportation, and continued availability of financing facilities should remain supportive on ASII’s automotive business. Additional growth engine would come from the mining division as expansions remain underway.
– We upgraded our rating on ASII’s to BUY from HOLD and raised our Sum-of-the-parts (SOTP) based valuation to IDR8,200. We believe that ASII’s diversified business model and full domestic exposure will grow in parallel with the Indonesia bright economic outlook.