Analisa Saham ASII | 30 Oktober 2018

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ID – [ ASII IJ]: 9M18 earning beat expectation

Astra International (Astra)’s 3Q18 earning reached IDR6.7trn ( +23.8% QoQ, +38.6% YoY), bring 9M18 earning increased to IDR17.1trn (+20.6% YoY), achieved 80% of our and Street full -year estimates, beat expectation. We see this strong earning was driven by Astra’s key major units, such as Auto, Heavy Equipment and Mining Conctractor, as well as Plantation.

Auto’s 3Q18 cars vehicle wholesale increased to 302,800 units ( +15.7% QoQ, +12% YoY) which we see this was driven by higher sales of its low-SUV Toyota Rush, as well as lower sales discount. Motorcycles wholesale was also strong.
Heavy Equipment and Mining Contractor’s 3Q18 earning grew 22% QoQ or 62% YoY was driven by better volume and stronger USD.
Plantation 3Q18 earning rose 38% QoQ or 63% YoY driven by widened EBIT margin thanks to higher FFB output and CPO sales volume which lowered fixed cost per unit.

Maintain BUY on Astra with IDR9,200 TP, implies to 14-13x FY19-20F P/Es, 21% upside.