ASII - Inline 1H25 earnings amid prolonged uncertainty

KBVS update
Wednesday, 6 August 2025

ASII - Inline 1H25 earnings amid prolonged uncertainty
(Maintain BUY; TP: IDR5,850)

* ASII 1H25 net income arrive inline within ours and cons. ‘25F forecast (48%/49% vs 47%). Auto segment (as one of the backbone), despite facing market headwinds, maintained its leadership position. Strategic diversification into components and used cars, along with the resilience of its motorcycle segment, provided crucial support.

* The financial services division emerged as a key growth driver, propelled by a strategic expansion in its loan portfolio, particularly in heavy equipment financing.

* Meanwhile, the HEMCE division presented a mixed picture. Strong results in heavy equipment and gold sales were overshadowed by significant weaknesses in mining services and coal, which were impacted by external factors such as commodity price fluctuations and adverse weather.

* The ongoing prolonged cautious outlook, challenges from lower coal prices and a soft national car market, are expected to persist and may impact full-year results, in our view. We are encouraged by the strength of its diversified portfolio, which continues to mitigate risks from sector-specific weaknesses. We also like Astra latest corporate actions that bolsters portfolio with strategic acquisitions and partnerships

* Maintain BUY, SOTP-TP of IDR 5,850 (7.3x P/E ‘25F), currently (6.3x ‘25F P/E) slightly above its -1SD 6.0x.

Regards,
Akhmad Nurcahyadi - KBVS Research team