ASII - Solid 1Q23 result

Astra International (ASII) performance grew positive in first quarter this year. PATMI at IDR8.72 tn was 27% higher yoy, while top line grew by 15% yoy. The grew was driven by the solid 2022 earnings which coupled by continuing recovery momentum. Aside from automotive, financial services and predominantly HEMCE segment has become the earnings driver in the 1Q23 period. Challenge will come from commodity prices and higher interest rates. (Source : Kontan). Comment : We like ASII’s 1Q23 earnings result which came in at 31.9% of our net profit forecast for ASII in 2023 and beats 3.3% above 5year historical average of 1Q to its FY. ASII’s 1Q23 PATMI at IDR8.7 tn was 4.8% above our forecast at IDR8.32tn. Auto likely to remain as the backbone, while HEMCE and financial segment could overall underpin the 2023 earnings amidst the commodity prices challenge which could further derail its agribusiness segment.