Daily BriefsIndonesia

Daily Brief Indonesia: Astra International, Sido Muncul and more

In today’s briefing:

  • Astra International (ASII IJ) – Indonesia’s Mirror Image
  • Sido Muncul (SIDO IJ) – Iconic Modern Jamu


Astra International (ASII IJ) – Indonesia’s Mirror Image

By Angus Mackintosh

  • Astra International booked record earnings for 2023 despite some softening of commodities, driven by strong performance from the auto division and financing plus the strong performance from motorcycles. 
  • Astra has continued to invest in growth areas of the Indonesian economy with investments last year in the EV battery ecosystem, increased exposure to healthcare, and investment in data centres.
  • Management flagged a potential 2H cyclical downturn but it is well-diversified enough to weather this. Valuations look attractive on 6.8x FY2024E PER and with a 6.6% dividend yield.

Sido Muncul (SIDO IJ) – Iconic Modern Jamu

By Angus Mackintosh

  • Sido Muncul‘s recent results reflect a sharp recovery in its core herbal and F&B business as increased sales volumes have brought scale benefits to its iconic products. 
  • The company saw recovery in both sales and profits, with margins improving considerably  in 4Q2023 due to increased volumes and lower raw material prices. 
  • Tolak Angin remains an iconic brand catering to all demographics with 70% leadership of its category, with Kuku Bima being the leader in powdered energy drinks. Valuations appealing versus history. 

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