ASII - Inline 9M25 earnings amid sustain pressure

KBVS update
Monday, 3 November 2025

ASII - Inline 9M25 earnings amid sustain pressure
(Maintain BUY; TP: IDR5,850)

* ASII delivered a resilient and diversified performance through 9M25, with earnings stabilizing in line with our and cons. 25F forecast (75.9%/77.1% vs 75.9%), despite a slight yoy decline.

* The key catalysts for ‘26F earnings include: higher-than-expected 4W and 2W sales, better coal asp, resilient machineries sales, steady gold/nickel contributions, and continued momentum in financing/agribusiness.

* Reflecting the stock's outperformance (+31.4% since our ‘25F initial report and 25.5% YTD) and its consistent break of our SOTP-based TP, we are formally revising our model to incorporate the current price and rolled over our valuation to ‘26F.

* Maintain BUY, SOTP-TP of IDR 5,850-UR (7.3x P/E ‘25F), currently at slightly above avg. hist. mean. of 7.0x ‘25F P/E.

Regards,
Akhmad Nurcahyadi - KBVS Research team