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

The Week That Was in ASEAN@Smartkarma - BNI Re-Rating, Indonesian Logistics, and Astra's Recovery

Astra International (ASII IJ) - Rock Solid

Astra International (ASII IJ) - A Glimpse into the Future

Astra International (ASII IJ) - Future Clarity Through Digital Means

Astra International (ASII IJ) - Leaning into the Recovery

Astra International (ASII IJ) - Digitally Remastered in a Cyclical Recovery

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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<p><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> just released a strong set of 3Q2021 results with its EPS up by +84% YoY (excluding <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> sales), driven by a significant improvement in auto and motorcycle sales.</p>
<p>The company also saw the benefit of rising commodity prices, especially for <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> and for <a href="https://www.smartkarma.com/entities/astra-agro-lestari-tbk-pt" target="_blank" data-smartkarma-citation="entities:4050:1" rel="noopener">Astra Agro Lestari (AALI IJ)</a>. Management remains optimistic on the outlook for the rest of the year, with the backdrop of a strong balance sheet.</p>
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<section class="figure">The company's overall revenues for 9M2021 came in at IDR167.4 tn, or an increase of +28% YoY, with net income hitting IDR15tn, an increase of +7% YoY versus 9M2020.</section>
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<section class="figure">Net income from the group's auto division was a key driver for the results with net income up by +207% YoY mainly due to a low base last year in 2Q given the impact of COVID-19 and related mobility measures. The segment also benefitted from the temporary luxury sales tax incentives this year, which has boosted demand.</section>
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<p><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>'s financial services division also saw better performance with a higher contribution from consumer finance, heavy equipment finance and the general insurance businesses.</p>
<p><a href="https://www.smartkarma.com/entities/astra-international-tbk-pt" target="_blank" data-smartkarma-citation="entities:46:1" rel="noopener"></a>The group's heavy equipment business, mining, construction, and energy division booked an increase of +51% YoY mainly due to better heavy equipment sales and higher coal prices, with a strong performance from <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>. </p>
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<p>The group's agribusiness under 79.7%-owned <a href="https://www.smartkarma.com/entities/astra-agro-lestari-tbk-pt" target="_blank" data-smartkarma-citation="entities:4050:1" rel="noopener">Astra Agro Lestari (AALI IJ)</a> had a very strong performance for 9M2021 with net income increasing by +152% YoY.</p>
<p><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>'s infrastructure and logistics division also reported a strong recovery for 9M2021, driven by an improved performance from the toll road business and its Serasi Autoraya business.</p>
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<p>The group's balance sheet remains strong and puts the company in a good position to look for potential acquisitions if the right opportunity arose. This could potentially occur in the digital space, given its recent moves into that segment. We remain positive on the outlook for <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> and it continues to be one of our top picks for the recovery in Indonesia, which is already taking shape.</p>
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Astra International (ASII IJ) just released a strong set of 3Q2021 results with its EPS up by +84% YoY (excluding Bank Permata (BNLI IJ) sales), driven by a significant improvement in auto and motorcycle sales.
The company also saw the benefit of rising commodity prices, especially for United Tractors (UNTR IJ) and for Astra Agro Lestari (AALI IJ). Management remains optimistic on the outlook for the rest of the year, with the backdrop of a strong balance sheet.

The company's overall revenues for 9M2021 came in at IDR167.4 tn, or an increase of +28% YoY, with net income hitting IDR15tn, an increase of +7% YoY versus 9M2020.



Net income from the group's auto division was a key driver for the results with net income up by +207% YoY mainly due to a low base last year in 2Q given the impact of COVID-19 and related mobility measures. The segment also benefitted from the temporary luxury sales tax incentives this year, which has boosted demand.




Astra International (ASII IJ)'s financial services division also saw better performance with a higher contribution from consumer finance, heavy equipment finance and the general insurance businesses.
The group's heavy equipment business, mining, construction, and energy division booked an increase of +51% YoY mainly due to better heavy equipment sales and higher coal prices, with a strong performance from United Tractors (UNTR IJ). 


The group's agribusiness under 79.7%-owned Astra Agro Lestari (AALI IJ) had a very strong performance for 9M2021 with net income increasing by +152% YoY.
Astra International (ASII IJ)'s infrastructure and logistics division also reported a strong recovery for 9M2021, driven by an improved performance from the toll road business and its Serasi Autoraya business.

The group's balance sheet remains strong and puts the company in a good position to look for potential acquisitions if the right opportunity arose. This could potentially occur in the digital space, given its recent moves into that segment. We remain positive on the outlook for Astra International (ASII IJ) and it continues to be one of our top picks for the recovery in Indonesia, which is already taking shape.




Astra International (ASII IJ) - Driven by Autos and Commodities