Stock Recommendations: Astra International's Performance is Predicted to Grow

STOCK MARKET - JAKARTA. PT Astra International Tbk (ASII) predicts that its performance will grow positively this year. The growth prediction is supported by the economic growth in Indonesia, which is expected to continue to grow well in 2024, thus supporting the performance of Astra's businesses.

Astra International's Head of Investor Relations, Tira Ardianti, acknowledges that one of the factors that can affect ASII's performance and business prospects is economic growth. 

“Therefore, we hope that the economy this year can continue to grow positively as it is now,” Tira told Kontan.co.id, Sunday (18/2). 

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In addition to economic conditions, she said that there are several other factors that can affect Astra's performance. Global conditions including geopolitical situations can also impact commodity and energy prices.

“As well as economic policies implemented by other countries that can affect domestic economic conditions,” she said. 

Tira said, ASII is currently implementing a number of strategies to increase sales and performance. One of them is by releasing a number of attractive car models such as xEV, including BEV, HEV and PHEV. “Specifically for BEV products, we have the Toyota BZ4X product, as well as Lexus UX and RZ,” she said. 

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Tira mentioned that ASII also has a number of HEV products, two of which have been produced locally, namely Toyota Innova Zenix and Toyota Yaris Cross, which have been well received by consumers. 

“We hope to continue to present car products that meet the needs of Indonesian consumers, including xEV products,” she said. 

Tira also said, they will always explore business opportunities to strengthen and also for the sustainability of Astra's business.

Head of Business Development Division at Henan Putihrai Asset Management (HPAM), Reza Fahmi predicts that ASII's performance will still grow positively this year.

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This is reflected in ASII's positive performance recorded in the third quarter of 2023, with revenue up 14.6% and net profit up 23.7% annually. 

“ASII also has promising prospects, due to the increase in car sales, especially in the low MPV and SUV segments, as well as plans for electric vehicle development,” Reza told Kontan.co.id, Sunday (17/2). 

He recommends a buy for ASII shares, with an average price target of Rp 8,500 per share. 

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Meanwhile, Kiwoom Securities Indonesia Analyst, Miftahul Khaer believes that ASII shares are attractive if they start moving above the Rp 5,300 per share level, with a potential target heading towards resistance at the Rp 5,750 per share level. 

“But investors should limit purchases if ASII instead starts to fall below the support of Rp 5,000,” he said, to Kontan.co.id, Saturday (17/2).