XA Update Report | PT Astra International Tbk. (ASII) – Auxiliary Businesses Carrying The Load

 

 

By NHKSI Research Team

27-Apr-2026

 

 

We are downgrading our rating for ASII with an Underweight at a TP of IDR 5,475. Despite the accelerating rise of its non-dominant businesses (segments excluding HEMCE and Automotives & Mobility), we view it may not be enough to cushion the fall for its Automotive Sales as consumer purchasing power weakens and non-subsidized gasoline prices are adjusted upwards from the energy supply crunch.

 

 

🔹 FY25 Top-Line And Bottom-Line Stagnancy

 

• FY25 Revenue Ducked Down But HEMCE Slipped Pass Automotives. ASII revenue experienced a decline of 2% YoY to IDR 323.4 tn in FY25. With regards to revenue segment in FY25, HEMCE slipped pass to the top with 40.2% contribution—staying stable as FY24 stood at 40.6%. The Automotive and Mobility segment faced a deeper drop from 41.3% (FY24) to 38.5% (FY25); this is due to its top-line segment drop -8% YoY to IDR 125.66 tn. Its non-dominant businesses (Agribusiness, Infrastructure, IT, and Property) had a bump up from 18% in FY24 to 21% in FY25

 

 

• FY25 Net Income Dominated By Automotive Despite No Growth. The company’s FY25 bottom-line bumped down -3% IDR 32.77 tn because the main contributing segment ‘automotive and mobility’ rode over -0.32% YoY to IDR 11.37 tn followed by ‘Heavy equipment, Mining, Construction, and Energy’ de-elevated -24% YoY to IDR 9.10 tn. However, its supporting companies smoothed out the drop as Property leapt +224% YoY; IT (+33% YoY); Agribusiness (+28% YoY); Infrastructure (24% YoY); and Financial Services (+9% YoY).

 

 

 

 

🔹 Sustaining Dominance In Automotive Sector

 

• Retaining Half Its Hold On The Wholesale Auto Market. While wholesale car market declined 7% to 804k units in 2025 signified weaker primary consumption power in the automotive space, ASII’s market share is still maintained at 51% even with heightening competition as new foreign automotive companies—BYD (China brand) and Vinfast (Vietnam brand)—are penetrating Astra’s economic moat of exclusive distribution rights of major Japan-imported cars.

 

 

• Retraction Of EV Incentive Could Dent EV Shift. Despite competitors’ EV brands have been wrangling up market share, we are of the view their growth could potentially slow as the government has announced to cut back on its 0% EV tax exemption. As per Permendagri No.11 Tahun 2026, Evs will be subjected to Motor Vehicle Tax (PKB) and Ownership Transfer Tax (BBNKB). The tax rates will be determined by regional governments. The company’s secondary car market platform OLXmobbi booked a +21% growth in used car sales to 33.1k units. Additionally, Serasi Autoraya posted a +3% lift in vehicles under contract to 28.4k units. For its automotive component subsidiary Astra Otoparts, net income shifted into higher gear at 18% YoY to IDR 1.8 tn

 

 

 

🔹 Macro Sentiments Boost Prospects For United Tractors

 

• Volume Improving, Heavy Equipment Stabilizing. UNTR saw volume improvements in their heavy machinery and coal mining segments; Komatsu sales volume slightly increased by 2% YoY while coal sales volume jumped by 9% YoY. On the flip side, overburden removal fell by 10% YoY on account of lower strip ratios and high rainfall in the first half of FY25.

 

 

• Gold Mine Segment’s Anticipated Slowdown. We expect gold production volume to slightly dip due to these regulatory issues and continued constrained tailing capacity, with our FY26 forecast standing at 210k – 220k ounces.

 

 

 

🔹 Downgrading Underweight with a TP of IDR 5,475

 

• We are downgrading our rating for ASII with an Underweight at a TP of IDR 5,475. Despite the accelerating rise of its non-dominant businesses (segments excluding HEMCE and Automotives & Mobility), we view it may not be enough to cushion the fall for its Automotive Sales as consumer purchasing power weakens and non-subsidized gasoline prices are adjusted upwards from the energy supply crunch. Meanwhile, we have a stable outlook for HEMCE in FY26. Comparatively, ASII is trading at 7.81x P/E below its Multi-Sector Holdings Sector Peers Average of 25.52x P/E. While it is relatively undervalued to its peers, its dominating exposure in the traditionally aggressive automotive and energy sectors exposes the company to be sitting in the middle of Indonesia’s macroeconomic volatility and vulnerability.

 

 

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NH Korindo Sekuritas Indonesia berizin dan diawasi Otoritas Jasa Keuangan (OJK). Untuk informasi lebih lanjut, anda dapat menghubuni CS kami via email CSO@nhsec.co.id