ID - [ ASII IJ]: 4W Market Share At 19-Month High; Affirm BUY
Andrey Wijaya, Mutiara Nita - RHB Sekuritas
Maintain BUY and IDR9,500 TP, 16% upside, implying 15-13x FY19F-20F P/Es.
Astra’s recently-released 4W wholesales data shows its market share rose to 56.5% in Oct 2018 (Sep 2018: 53.4%), the highest in 19 months since Mar 2017.
The Oct 2018 wholesales are notably the highest in 22 months.
As it does not apply any discount rates for the Rush and Terios, we believe this should bring better sales mix and generate higher margins ahead.
We also believe the current Avanza and Xenia model are likely near the end of their lifecycles, and new models may be launched soon that should boost 4W sales further.
Key risks include intense competition in the industry. However, Astra is now better at managing competition, as indicated by its increased market share.
Link to report: https://research.rhbtradesmart.com/attachments/90/rhb-report-ind_astra-international_company-update_20181115_rhb-758694917807341025becac5d3815e.pdf
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