ASII - Astra group open opportunity to acquire toll road

Astra International (ASII) through its subsidiary will continue open opportunity to acquire toll roads and expand the business. Adding toll roads has become as one of Astra infra strategy road. Management forecast traffic will increase 13% yoy within the period of 22Dec22 - 8Jan23. Year to date the company operate total toll roads length at around 396 km. (Source : Kontan). Comment: Notwithstanding making only small portion to its total consolidated revenue, we like Astra effort to continuously adding toll roads operation to its portfolio. This could to somewhat would underpin Astra’s growth ing forward. We also think acquiring toll roads will give more benefits rather than developing the project from construction phase. We believe 2022 remain a od year for ASII earnings. Despite likely to soften in 2023 due to low base effect, we think Astra’s growth could remain sustain. Maintain BUY ASII SOTP TP IDR7,350/share (10.2x ‘23F PE).