Automotive Sector - Positive yoy and weak mom; run rates were higher

KBVS Update
Monday, 23 February 2026

Automotive – Positive yoy and weak mom; run rates were higher
(Maintain Neutral)

* The Jan 26 auto sales serve as a confidence boost amid the sector growth doubt, in our view. Yet, we have not accepted this as a continuing recovery amid a much higher run rate.

* ⁠The IIMS IDR 700bn "beat" is a huge win, and rapid, steady, robust penetration from China’s car should translate as a solid cushion and at the same time act as a catalyst for hitting auto ‘26F volume targets.

* ⁠A more materialized transmission rate cut to car and motorcycle loans yield tied with continuing promotions from dealers and financing companies will be a strong help.
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* ⁠Maintain Neutral on the sector and BUY ASII with SOTP-based TP of IDR 7,050 (8.6x ‘26F P/E), currently trading at 8.0x, or at its +1SD.

Regards,
Akhmad Nurcahyadi - KBVS Research Team