Astra’s higher market shares in October
Astra International continued gaining market shares in which its 4W and 2W market shares increased to 60% in October (Sept: 59.9%) and 78.2% in Oct (Sept: 76.1%), respectively. Higher 4W market shares was driven by low cost green cars (LCGC) sales which increased by 7% MoM. In term of sales volume, Astra cars wholesales slightly declined to 55,197 units (-0.5% MoM), while that of motorcycles rose to 446,611 units (+5.5% MoM).
In 10M16, Astra cars wholesales grew 11.6% YoY, much faster than that of national wholesales growth which was merely 2.6% YoY. For 2W, Astra’s motorcycles wholesales declined merely 2.7% YoY, while national motorcycles sales fell 9.2% YoY.
Astra is strengthening its position both in 4W and 2W domestic market. We maintain BUY with DCF base TP of IDR9,250 (18% upside), implying 19x FY17F P/E. (Andrey Wijaya)