ASII - 9M23 net profit grew 10.1% yoy

ASII - 9M23 net profit grew 10.1% yoy Astra International (ASII) revenue grew by 8.8% yoy to IDR240.9 tn. 9M23 net profit grew by 10.1% yoy to IDR25.7tn, while excluding fv adjustments in GoTo and Hermina, PATMI at IDR26.1tn, or 17.2% yoy higher. On profitability side, NPM flattish (0.1% yoy) at 10.7%. Division net income reported auto business having the highest growth of 35% yoy, followed by financial services at 32.7% yoy. Auto segment accounted around 35.2% of total consolidated net income, while HEMCE and agribusiness was 36.2% and 22.5%, respectively. (Source: Company) Comment: Auto will remain as the key growth driver, while financial services should play important role amid the stable financing and insurance demand, in our view. We expect HEMCE business to note significant recovery in the following quarters, while on agribusiness we did not expect much as we think increasing ASP is likely to be motionless. Maintain BUY with SOTP target price of IDR7,350 (10.9x ‘23F P/E).