ASEAN Insight Provider, CrossASEAN Research

Angus Mackintosh

In Equity Sales and Research for more than 25 years covering Asian markets. Possesses in-depth knowledge of a wide range of companies, economies, and markets in Asia. Over his career, he has specialised in HK/China and ASEAN markets at various different Investment Banks, most recently heading equities in Indonesia for Bank of America Merrill Lynch in Jakarta for more than three years. Whilst in Jakarta, he produced a well-read daily and weekly product on the Indonesian market, which included company visits, as well as political, economic and sector commentary. A former racing skier, who enjoys ultra-marathons and surfing in his spare time.

ASEAN Insight Provider

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Astra International (ASII IJ) - Simmering Recovery Afoot

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CrossASEAN Research

At CrossASEAN Research we strive to produce unbiased and differentiated on the ground insights on companies across South East Asia. Our Research is produced for the most part after face to face meetings and conversations with company management to dig deep into the long term vision and strategy of the companies we cover. We seek to deliver investable and actionable themes on sectors and markets across SE Asia, often in collaboration with other Insight Providers across the region, pooling the vast experience of the analysts within the Smartkarma Ecosystem. We also offer bespoke work and tailor made trips for our clients. 

Insights across South East Asia

Equity Bottom-Up

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A call with <a href="https://www.smartkarma.com/entities/astra-international-tbk-pt" target="_blank" data-smartkarma-citation="entities:46:1" rel="noopener">Astra International (ASII IJ)</a> management revealed that it has seen the worst of it for its core auto division, with a gradual recovery underway for both its autos and motorbikes, where its market share is back to pre-COVID-19 levels at 52% and 75% respectively.  Most of the company's businesses have already started to see significant recoveries from COVID-19 and this momentum will continue into the end of the year and into 2021. Watch out for the increasing impact of digitalization and potential acquisitions utilizing the proceeds of the <a href="https://www.smartkarma.com/entities/bank-permata-tbk-pt" target="_blank" data-smartkarma-citation="entities:728:1" rel="noopener">Bank Permata (BNLI IJ)</a> sale.
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October may see slightly less positive car sales given a 2nd round of PSBB measures were in place for half the month and consumers delayed purchases in the hope that luxury tax would be removed, which did not happen. 
<a href="https://www.smartkarma.com/entities/astra-international-tbk-pt" target="_blank" data-smartkarma-citation="entities:46:1" rel="noopener">Astra International (ASII IJ)</a> financial services arm is seeing some recovery and has already made adequate provisioning.
The company has a rock-solid balance sheet post the <a href="https://www.smartkarma.com/entities/bank-permata-tbk-pt" target="_blank" data-smartkarma-citation="entities:728:1" rel="noopener">Bank Permata (BNLI IJ)</a> sale but is considering a number of investment opportunities, potentially in the digital space where it has already invested in <a href="https://www.smartkarma.com/entities/gojek" target="_blank" data-smartkarma-citation="entities:25976:1" rel="noopener">Gojek (1379371D IJ)</a>.
<a href="https://www.smartkarma.com/entities/astra-international-tbk-pt" target="_blank" data-smartkarma-citation="entities:46:1" rel="noopener">Astra International (ASII IJ)</a> is very focused on digitalizing its overall business with an "Astra Digital" department at head office focused on creating synergies across its businesses, as well as utilizing data analytics.
<a href="https://www.smartkarma.com/entities/united-tractors-tbk-pt" target="_blank" data-smartkarma-citation="entities:698:1" rel="noopener">United Tractors (UNTR IJ)</a> is supported by its gold exposure, where this business is worth more than the rest of its businesses combined. 
<a href="https://www.smartkarma.com/entities/astra-international-tbk-pt" target="_blank" data-smartkarma-citation="entities:46:1" rel="noopener">Astra International (ASII IJ)</a> remains one of our top picks for the recovery in the Indonesian economy going into 2021. It trades on 12.7x FY21E PER, with EPS growth forecast at +9.5% and +20.6% for FY21E and FY22E respectively.


A call with Astra International (ASII IJ) management revealed that it has seen the worst of it for its core auto division, with a gradual recovery underway for both its autos and motorbikes, where its market share is back to pre-COVID-19 levels at 52% and 75% respectively.  Most of the company's businesses have already started to see significant recoveries from COVID-19 and this momentum will continue into the end of the year and into 2021. Watch out for the increasing impact of digitalization and potential acquisitions utilizing the proceeds of the Bank Permata (BNLI IJ) sale.

October may see slightly less positive car sales given a 2nd round of PSBB measures were in place for half the month and consumers delayed purchases in the hope that luxury tax would be removed, which did not happen. 
Astra International (ASII IJ) financial services arm is seeing some recovery and has already made adequate provisioning.
The company has a rock-solid balance sheet post the Bank Permata (BNLI IJ) sale but is considering a number of investment opportunities, potentially in the digital space where it has already invested in Gojek (1379371D IJ).
Astra International (ASII IJ) is very focused on digitalizing its overall business with an "Astra Digital" department at head office focused on creating synergies across its businesses, as well as utilizing data analytics.
United Tractors (UNTR IJ) is supported by its gold exposure, where this business is worth more than the rest of its businesses combined. 
Astra International (ASII IJ) remains one of our top picks for the recovery in the Indonesian economy going into 2021. It trades on 12.7x FY21E PER, with EPS growth forecast at +9.5% and +20.6% for FY21E and FY22E respectively.

Astra International (ASII IJ) - An Auto-Recovery Story with a Golden Digital Twist