Company Update / Automotive / IJ / Click here for full PDF version
A uthor(s): Anthony- +62 21 5088 7168 ext. 714;Ryan Dimitry
- 9M24 net profit of Rp25.9tr (+1% yoy/+19% qoq) came as a beat on one-off gain in and recovery in auto segment.
- 4W/2W volume grew by +13/30% qoq partly due to GIIAS event in Jul24. Auto EBIT margin also improved by +20bp qoq on higher-end sales mix.
- Fincos generally posted an improvement (+6% yoy/+4% qoq), while was in-line as ASP hike offset by lower production. Maintain Buy.
9M24 was a was a beat on one-off gain in and auto recovery
posted 9M24 net profit Rp25.9tr (+1% yoy/+19% qoq), ahead at 82/84% of our/consensus estimates vs. 3Y average of 77%. The beat was mainly due one-off gain in (i.e. forex/asset disposal gain) amounting Rp1tr and recovery in auto segment. Core profit came at Rp26.2tr, still above ours (at 83%).
Recovering auto volume with better margin post GIIAS event
Auto net profit of Rp8.5tr in 9M24 was declined by -7% yoy but improved +7% qoq as auto revenue increased by +12% qoq supported by pickup in both 4W and 2W volume by 13/30% qoq respectively - this was partly due to GIIAS event in Jul24. Moreover, auto EBIT margin also improved by +20bp qoq to 1.2% partly due to sales mix from higher-end models to support its margin. At the same time, our channel check with dealers indicated that discounts trend has been consistently declining since GIIAS event which also help margin. We anticipate auto sales volume will maintain its momentum in 4Q, supported by seasonal year-end discounts, though potentially at the expense of margin.
Fincos and agri also posted positive qoq performance
Fincos booked 9M24 net profit of Rp6.2tr (+6% yoy/+4% qoq) supported by consumer finance, heavy equipment finance and general insurance business. 's 9M24 net profit rose sequentially to Rp15.6tr (+2% yoy/+22% qoq) but primarily attributed to forex/asset disposal gain amounting to Rp1.1tr in 3Q24. Moreover, posted 9M24 profit of Rp801bn (flat yoy/+11% qoq), attributed to improvement in ASP (+3% yoy/+10% qoq) but offset with lower CPO production (-17% yoy/flat qoq).
Maintain Buy
We maintain Buy with unchanged TP as we await more details from its earnings call (31stof Oct24). Risks: 1) lower-than-expected 4W/2W volumes; and 2) lower-than-expected commodity prices.
Sumber : IPS