ASII - FY25 earnings, inline vs KBVS and above cons

KBVS update
Wednesday, 4 March 2025

ASII – FY25 earnings, inline vs KBVS and above cons.
(Maintain BUY; TP: IDR7,050)

* The ‘25F pressure was anticipated. A slight drop on ASII’s FY25 earnings (-3.3% yoy) still came inline with our ‘25F PATMI for ASII of IDR32.23 tn and above cons. expectation at a run-rate of 101.7% and 103.3%.

* The main earnings drag was automotive & mobility division on continuing soft national car sales coupled with its HEMCE segment driven by milder coal average selling price. On the flip of coin financial services saw a solid PATMI growth of 9.2% yoy and agribusiness robust earnings remains at saw another solid PATMI growth of 28.2% yoy, with the remaining segment also noted a strong growth.

* Our conviction on the Group’s favorable trajectory remains firm, anchored by sound financial discipline and a diversified portfolio that effectively mitigates risk. The key catalysts for 2026F earnings include: higher-than-expected 4W and 2W sales, better coal sales volume and asp, resilient machineries sales, steady gold/nickel contributions, and continued momentum in financing and agribusiness segment.

* Maintain Buy SOTP TP of IDR7,050 (8.6x ‘26F P/E), currently trade at 7.6x, or slightly below its +1SD of 8.0x ‘26F P/E.

Regards,
Akhmad Nurcahyadi - KBVS Research team