Tuesday, October 30, 2012

ASII

Astra International (ASII.IJ, BUY) -  2013F-14F: Shifting Into Higher Gear

v      Astra International (ASII.IJ) will report its 9M12 financial results on 31st October. Based on the 9M12 volume realisation across all business units, we expect earnings growth to have slowed to single digits from 12.7% YoY realisation in 1H12.
v      On a quarterly basis, 3Q12 earnings should dip on the seasonality factor of lower auto sales during the Ramadan holiday in August. Additionally, we expect Komatsu volume performance to worsen in 3Q12. On palm oil division, higher production would be offset by lower CPO price.
v      Despite seasonal dip in 3Q12, we raise our FY13F14F earnings by 4% in anticipation of higher car sales volume growth of 16% on Low Cost Green Car (LCGC). Thus, we raise our sumoftheparts TP to IDR8,800 and reiterate our BUY rating.
 source: KIMENG dated 25 October 2012