Apr 18, 2017 13:14:59

Astra International ($ASII)’s robust 1Q17 vehicles wholesale YoY growth, both 4W and 2W

  • Astra’s 4W vehicle market shares increased to 57% in 1Q17 (1Q16: 48%). Astra’s 1Q17 cars wholesale grew 26.8% YoY (to 161,000 units) – driven by strong LCGC sales growth, while national 4W vehicle wholesale grew 5.7% YoY (to 283,000 units).
  • Astra’s 2W vehicle market shares increased to 77% in 1Q17 (1Q16: 73%) despite its 1Q17 motorcylces wholesale declined 1.6%YoY (to 1,073,000 units). During same period, national 2W vehicles wholesale declined 6.8% YoY (to 1,402,000 units).
  • QoQ, both Astra’s 4W and 2W vehicles 1Q17 wholesale came lower which we see this is likely due to lower sales discount. Notably, vehicles dealers commonly give more sales discount for inventories clearance at end of year.

Our DCF-based TP on Astra is IDR9,100 (19x/16x FY17/18F P/Es) offers a 9% upside. (Andrey Wijaya)