ID – [ASII IJ]: Raise TP; Key Units Growing: Auto, Coal, Biodiesel
Analyst: Andrey Wijaya – RHB Sekuritas IndonesiaLink to report: https://research.rhbtradesmart.com/attachments/58/rhb-report-ind_astra-international_company-update_20180829_rhb-32399403077002265b85029bc52d8.pdf
Maintain BUY with a new SOP-based IDR9,200 TP from IDR8,450, 22% upside. Our TP implies 17-14x FY18F-19F P/Es.
We raise net profit estimates on higher heavy equipment & mining contracting earnings.
We have factored in earning from the Martabe Gold Mine, which is slated for completion by end-2018.
Astra booked strong Jul 2018 4W wholesales, driven by increased Toyota _Rush_ sales on additional production capacity.
There is also potentially higher domestic CPO demand from a mandatory B-20 implementation as an additional share price catalyst.
Astra remains our sector Top Pick.
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