ASII - 4W sales continue to improve

PT Astra International Tbk (ASII) booked another solid monthly car sales at 50,755 unit in Jan23 or increased by 14.5% yoy from 44,308 unit in Jan 22. In the same period, the industry saw total 4W sales 11.8% yoy higher to 94,087 unit. (Source : Investor Daily). Comment : Strong car sales in the Jan23 seems mainly driven by various huge discount to clean up 2022 inventory and not as a strong sign of continuing high based recovery momentum, in our view. Key would be on Feb and the upcoming Iedul Fitri season, whether the industry could record a similar trend and sales figures. Should the 1Q23 sales could record high single digit or mid-teens growth, we might see 2023 industry sales volume could effortlessly reach our forecast.