Analisa Saham ASII | 28 Februari 2019

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ID - [ ASII IJ]: Mining, Financials Boost FY18 Earnings; BUY
Andrey Wijaya, Mutiara Nita - RHB Sekuritas

Details are in our report:

♦ Keep BUY with Street high-end IDR9,500 TP, 25% upside plus 4% FY19F yield on a more promising outlook from new vehicles models – this should boost Astra International’s 4-wheeler (4W) sales. 

♦ FY18 earning rose 15% YoY: in line. ASII’s growth was driven by the heavy equipment, mining, construction, and energy wings, as well as the financial services division. 

♦ Although auto’s 4Q18 earning softened, we see EBIT margins to widening on lower sales discount in Jan 2019. 

♦ Financial services’ earnings are likely to improve, driven by higher 4W and 2-wheeler (2W) vehicle financing, as well as lower loan provisions. 

♦ Heavy equipment showed strong sales numbers in Jan 2019, while agriculture’s earnings are likely to come lower this year, no thanks to softened CPO prices.