Astra International: Clearer capital allocation at group level Quick Note

Research evidence excerpt

Astra International: Clearer capital allocation at group level Quick Note

Nomura Securities Malaysia Sdn Bhd

Astra International ASII.JK ASII IJ 22 June 2026

EQUITY: AUTOS & AUTO PARTS

RatingClearer capital allocation at group level Remains Buy

Target price IDR 7,000 RemainsQuick Note

Closing price

Jardine Matheson (JM SP, Not rated) – Astra's parent holding company – held an Investor 18 June 2026 IDR 4,770

Day on 16 June. The group has set out a series of targets, with the red line being capital

allocation and TSR (total shareholder return): 1) 5% annual dividend growth to 2030E; 2) a

USD500mn buyback to end-2027E; 3) a five-year TSR of ≥9%; 4) ≥USD4bn of capital Research Analysts

recycling (excluding Hongkong Land [HKL SP, Not rated] and Astra); and 5) ≥USD200mn

Indonesia Research Team

of additional NPATMI from inorganic acquisitions. We view these targets as aligned with

Ahmad Maghfur Usman - NSM

Astra, which already carries a double-digit TSR target, and a clearer capital-

ahmad.maghfurusman@nomura.com

allocation framework at the group level should be positive for the stock. JM is, in +603 2027 6892

fact, applying this playbook hardest to Astra: of the five group companies it shows activity

across all five value-creation levers – board, management, capital allocation, strategy Onshore expert

review and long-term incentive plan – with most of it in the past six months (Fig. 3 ).

Jupriadi Tan (jupriadi.tan@verdhana.id)

TSR focused – from companies to the holdings and

JM's targets and Astra's own line-up: Astra is 46% of group NPAT — the single largest

David Tjahjadi

contributor (Fig. 2 ) — so we think the parent might find it challenging to achieve its ≥9%

(david.tjahjadi@verdhana.id),

TSR and 5% dividend-growth goals unless Astra delivers, and Astra has already