Our take on the results (SSI: In-line; Cons: Above

• ASSA reported significant EPS growth in 2Q24 of +223.7% YoY, bringing 1H24 net profit to IDR 128bn (+84.6% YoY), in line with our estimate but much higher than consensus expectation. This strong result was propelled by improved GPM (2Q24: 28.5%, 2Q23: 21.8%) from Anteraja (2Q24: 7.4%; 2Q23: 3.6%) and Caroline’s used car sales (2Q24: 4.1%; 2Q23: 3.6%), which experienced higher ASP of +4-5% in 2Q24.
• On the volume front, sales of Caroline (online-to-offline used car trading platform) increased +9.3% YoY to 1,488 units while JBA (ASSA's auction business) grew +43.2% YoY to ~58,000 units, despite -19% YoY decline in domestic new car sales volumes (we suspect ASSA benefited from consumer down trading to used cars). Regarding Anteraja, we expect parcels/day of around 460-550k, which should be sufficient to achieve profitability in 2025.
• Focusing on B2B logistics, ASSA has added investment of IDR 20bn in CargoShare, which manages mid-mile operations between distribution centers and retail stores, serving prominent player such as JNE and SiCepat, and others sector including FMCG, F&B, Express Logistic, Retail. The focus is not only on logistic clients but also on the entire end-to-end B2B value chain. Utilizing advanced Transportation Management System (TMS), Cargoshare optimizes truckloads and routes, reducing costs. Furthermore, CargoShare vehicles are registered as yellow plate vehicles (commercial use), which are subject to final tax of 1.1%, much lower than final tax imposed on rented vehicles (11%), helping Anteraja to cut costs further.
• With ASSA having implemented another investment in PT Kedai Pangan Sejahtera for food distribution and obtaining MUI halal certification to support distribution of halal products in Indonesia, sentiment on the company should remain positive and support recent market outperformance. BUY with TP of IDR 1,200.