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.

Source: KIMENG dated 7 August 2012