ASII - 2M23 4W sales growth at 11.43% yoy

Astra International (ASII) car sales at 97,319 units in 2M23. Compared to the same period last year, sales was increased by 11.43% yoy from 87,331 units and equal to around 54% of market share. On the LCGC segment, 4W sales reached 25,756 units and around 46,9% yoy higher. (Source : Bisnis Indonesia). Comment : 4W sales result in the second month of 2023 was overall inline with our expectation. Astra 2M23 sales should be translated as Astra strong brand which will underpin demand ing forward, amid peers rapid penetration to join the auto battle. Key to surpassing street ‘23F for Astra will be cpo and mining contracting stable demand, while auto remain as the backbone which we think will stay robust. Maintain OW on Auto sector and BUY on ASII with SOTP target price of IDR7,350 (10.2x ‘23F P/E).