Astra International: Better core earnings led by most segments

研报英文原文证据摘录

Astra International: Better core earnings led by most segments

e stronger

UBS Cons.

market share gains and higher product mix led ASP were key drivers. 2) Despite rising 12/26E 653 736

input costs, Astra's 4W (ADM)/2W (AHM) plants booked robust 7%/11% net margins in 12/27E 845 817

Q2, the highest level in several quarters, respectively. We believe Astra's ADM and AHM 12/28E 976 862

ASP hikes to pass on rising input costs may potentially record retained better margins in

H226E. 3) UNTR upgraded its 2026 operational guidance and we flag upside potential Igor Putra

from better mining quota (RKAB) approvals to translate into UNTR's own-coal and Analyst

igor.putra@ubs.com

mining service. 4) The consistently growing auto export market, after-sales networks

+62-21-2554 7033

and local content-led parts demand domestically imply earnings upside for automotive

parts suppliers. Continued stronger CPO prices imply earnings upside for AALI. Ivan Reynaldo Sutheja

Analyst

ivan-reynaldo.sutheja@ubs.com

Fincos: better asset quality; rising lending; manageable CoC and H226E upside

+62-21-2554 7037

We are positive on the improved Q226 asset quality at Fincos with a lower Loan-at-Risk

John Lam, CFA

(LAR) ratio and quantum vs. Q126 and Q425, and rising LAR buffers. 4W financing

(ASDF) recorded a record low LAR quantum. This was led by front-loaded credit costs, john-za.lam@ubs.com

albeit still manageable and within our 2026 estimate. New consumer finance +852-2971 6358

disbursement grew 10% YoY, aimed at recurring customers. We expect ROE upside

from Fincos from potentially lower credit cost (CoC) on better H226E buying power.

Valuation: reiterate Buy rating and price target of Rp7,380

Astra trades at a below peer 6x 2027E PE with an above peer ROE. Combined with a 7-