Logo Minnapadi
aboutusmpi.png
<< Back To Full Report And Update

ASII - 3Q20 Update

ASII’s 9M20 revenue stood at Rp130T, which declined by -26.4% and represented 70.1% of 2020F estimate at Rp186T. Automotive and HEMCE dropped by -35.9% (Y/Y) and -29.2% (Y/Y), respectively, as expected, in the wake of slower economic growth and benign coal demand. Net profit was penciled at Rp14T, which decreased by -11.5% (Y/Y) and represented 68.4% of 2020F estimate. Despite car sales formed a V-shape recovery, the latest figure has not yet to recover to pre-pandemic level, thus may result in a moderate automotive result in the 4Q20. 

V-SHAPED RECOVERY

 

Revenue from HEMCE segment declined by -29.2% (Y/Y) to Rp49.6T from Rp77.4T as of 9M20. Recent conference call with UNTR revealed that coal industry may face challenge next year in the wake of recent rift between China and Australia. Going forward, the Company expects sales from construction sector to at least be able to support overall heavy machinery sales, yet we express our concern regarding its margin, as the competition in construction sector is tighter than that in mining sector and ASP is lower due to smaller machines needed. Still, UNTR plans to spend US$290M of capex next year, higher than US$188M of expected capex realization this year.

BELOW OUR EXPECTATIONS

 

We changed our BUY recommendation to HOLD with TP of Rp5,540/share (previous: Rp5,540/share), which reflects 12-month P/E of 11.5x and P/B of 1.1x, as current stock price has exceeded our 12-month TP. In the meantime, there may be no significant change in the outlook.

Fri December 4Th, 2020

Disclaimer

En Lorem Ipsum In Eiusmod.

EN HOME LOREM IPSUM EU NISI NISI LABORE ANIM REPREHENDERIT ADIPISICING SED LABORE QUIS UT TEMPOR ESSE QUIS CILLUM VENIAM CILLUM SUNT NISI CILLUM UT FUGIAT FUGIAT UT OFFICIA ET QUIS.

En Lorem ipsum Velit sit magna adipisicing laborum eu voluptate exercitation minim sit ex incididunt exercitation ut in sunt culpa quis magna sed dolor in et amet sunt id fugiat sint laboris sed officia est id officia eiusmod eu reprehenderit ullamco sed esse aliquip ex minim occaecat amet ad nulla voluptate do officia in reprehenderit quis officia dolore pariatur in quis consectetur ut nostrud aliqua sed officia fugiat nisi incididunt anim in laborum.

Lorem ipsum Dolor dolor dolore quis magna nulla aute ea sed velit id amet ut id minim proident cupidatat anim pariatur ex do dolore ut sit mollit ex voluptate consequat sit eu esse cillum exercitation eu dolore pariatur sunt et ut est Ut dolore id voluptate qui Ut in fugiat non exercitation Excepteur sunt magna ullamco sint do quis laboris dolore dolore pariatur laboris nulla mollit nisi laboris magna in aute Ut enim Excepteur est culpa in enim officia enim ea cillum fugiat dolore proident officia eiusmod pariatur in elit et aliquip esse culpa sint in fugiat aliquip cupidatat non id aliquip sit ad reprehenderit mollit dolor aliqua Duis in amet exercitation ut ut cillum et adipisicing qui aliqua.