Surpassing the Target
Key Takeaways :
▪️ AUTO recorded a total revenue of IDR18.6tn or stood flat 0.4% YoY in FY23. Sales from related parties also saw a growth of 3.4% YoY, reaching IDR6.8tn in FY23. Astra Honda Motor (AHM) and Astra Daihatsu Motor (ADM) dominates this segment, each accounting for 22.0%/8.1%, respectively. Additionally, sales from joint venture experienced a 41.9% YoY jump to IDR948.2bn (vs IDR696.9bn in FY22).
▪️ Margins-wise, the GPM, OPM and NPM stood at 16.5%/6.3%/9.9% as the maintenance cost was prudently managed by the aid of digitalization and automation in manufacture, which also brought the overall costs down. This was further supported by the normalization of commodity prices (incl: aluminium, rubber, steel and plastic) in FY22-FY23.
▪️ Ultimately, the net income was able to reach IDR1.8tn (+38.9% YoY), standing above our/consensus estimates at 122.6%/112.3%.
▪️ We maintain BUY for AUTO with a higher TP : IDR3,500, which implies PE/PBV 5.6x/0.7x on FY24E and 5.2x/0.7x in FY25F. Its stable financial position and strong brand positioning should be able to drive growth. Downside risks to our call include: 1) slower than expected in 4W and 2W sales; 2) higher interest rates, which may trigger lower vehicle sales; 3) higher raw material cost.
