ASII - Weak 3M25 PATMI growth, yet inline

KBVS update
Thursday, 15 May 2025

ASII - Weak 3M25 PATMI growth, yet inline
(Maintain BUY; TP: IDR5,850)

* Last week ASII held 3Q25 earnings call. ASII 3M25 net income -7.1% yoy driven by weak auto business PATMI and a sharp drop in HEMCE segment net profit. Despite the pressure, PATMI came in line with street and our ‘25F PATMI for ASII at a run-rate of 20.8%/21.5% vs 23.8%.

* We expect a seasonal turnaround auto sales volume, following its Mar25 (-2.0% mom) and another sharp drop in April25 (-28% mom), due to shorter working days in Ramadhan and Iedul Fitri celebration.

* ASII’s 3M25 auto business net income was surpassing our ’25F for Astra’s auto segment contribution to total consolidated PATMI of around 33%. We expect a stronger growth in auto and stable financial services and agribusiness segment net income to offset the potential continuing weakening net profit contribution from HEMCE business.

* Maintain BUY, SOTP-TP of IDR 5,850 (7.3x P/E ‘25F), while currently trading at 6.1x ‘25F P/E or slightly above its -1SD 5.3x.

Regards,
Akhmad Nurcahyadi - KBVS Research team