ASSA Add TP 350
Back in the fast lane
■ After struggling with high interest rates and poor used car prices that resulted in
weak earnings during FY14-15, ASSA is set to make a comeback.
■ Underpenetrated corporate rental industry, economic growth recovery and lower
interest rates should all provide growth opportunities for its rental business.
■ Base effect, higher prices of new cars as well as further expansion of its ancillary
businesses should drive earnings recovery ahead of its topline growth.
■ We believe the stock is undervalued at 0.8x FY18 P/BV. Our TP reflects both its
undervaluation and growth potential in a recovering growth environment.
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