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Strength:
3Q24 bottom line jumped +19.1% QoQ/+21.3% YoY, driven mainly by forex gain thanks to stronger IDR; automotive revenue grew +12.1% QoQ/+3.3% YoY in 3Q24, supported by seasonality and GIIAS; UNTR and financing segment booked solid 3Q24 results, fueled by strong heavy equipment sales and robust demand for used car and 2W financing
Weakness:
3Q24 automotive gross margin declined to 11.0% (vs. 11.4% in 3Q23), primarily due to aggressive discounts and promotional efforts aimed at bolstering weakening 4W demand amid economic uncertainty
Opportunity:
Upcoming BI rate cut(s) are expected to reduce the interest on auto loans, potentially boosting 4W demand; low BEV penetration rate in Indonesia, mainly due to limited number of charging stations, should benefit ASII and its HEV line-up; earnings upgrades may improve sentiment and result in market underperformance reversal
Threat:
Weak consumer spending may hinder 4W sales recovery, adversely affecting ASII’s future growth; competition from Chinese EV players could place pressure on ASII’s market share; current IDR depreciation may spell further bad news for ASII’s auto segment which has high USD-linked COGS of around 80-85% (our assumption)
Samuel Sekuritas Indonesia is a leading Indonesian securities brokerage firm. Established in 1997, the firm has grown to become one of the most respected and trusted financial services companies in the country. With a wide range of services and products, Samuel Sekuritas Indonesia has become a trusted partner to many investors, both institutional and individual.
The company offers a variety of financial services, including equity, debt and derivative securities brokerage services, research and portfolio management, asset management and capital market services, as well as a range of other investment solutions. Samuel Sekuritas Indonesia is also a leader in providing financial education and training, and has established itself as a leading provider of investor relations services.
The company has a strong research capability and is committed to providing its clients with up-to-date and reliable market analysis and recommendations. It also has a team of experienced and knowledgeable professionals who are dedicated to providing quality service to its clients. As a result, Samuel Sekuritas Indonesia has become a preferred partner for many investors in Indonesia.
In addition to its financial services, Samuel Sekuritas Indonesia also offers a range of other services, such as corporate finance and advisory services, mergers and acquisitions, and venture capital.
