Coorporate Flash Notes:
Astra International (ASII IJ, BUY, IDR9,000)
More Upbeat On Imminent Launch Of New Models
Astra International (ASII IJ, BUY, IDR9,000)
More Upbeat On Imminent Launch Of New Models
Ground
checks at the Gaikindo Indonesia International Auto Show (GIIAS) have led us to
believe auto makers are now more upbeat on a sales recovery. Auto makers like Toyota,
Mitsubishi and a new player, Wuling, are set to launch new models in 2017.
Competition in the MPV segment is likely to tighten. However, Astra as the
first mover has an advantage and is likely to be a winner, thanks to its
well-known brands and strong after-sales services. Maintain BUY, with a
SOP-based TP of IDR9,000 (15% upside) implying 18x FY17F P/E.
♦ More new models in
2017. Being
more upbeat on Indonesia’s car market, auto makers like Toyota, Mitsubishi and
new player SAIC-General Motors-Wuling (Wuling) are set to launch new models
next year. After launching the Toyota Calya, Daihatsu Sigra and
Toyota Sienta, Astra is likely to launch a new crossover car model, the Toyota
C-HR, in 2017. Mitsubishi will also launch a small crossover MPV,
the Mitsubishi MX which is targeted towards buyers who like models like
Honda’s B-RV. In addition, Wuling is expected to launch a 7-seater MPV
which is likely to compete head-to-head with Astra’s Toyota Avanza
and/or the Toyota Calya. However, Astra (a first-mover) has an advantage
and is likely to emerge a winner, thanks to its robust brands as well as strong
after-sales services.
♦ Mitsubishi to boost
car sales. Mitsubishi
will locally produce passenger cars and a small crossover MPV model at its new
manufacturing plant in Bekasi, West Java, which are expected to commence
operations in Apr 2017. Mitsubishi plans to launch the small crossover MPV, Mitsubishi
MX (for details, see Mitsubishi
MX Stand) in Oct 2017. The plant’s production capacity is 160,000 units
pa, of which half will be allocated to assemble the Mitsubishi MX, while
the remainder will be to assemble the Pajero Sport and Colt Diesel
L300.
♦ Wuling introducing a
7-seater MPV.
Wuling will introduced 7-seater MPVs with two types of engines, ie for 1.5l and
1.8l (link to Wuling
Indonesia). It is still uncertain whether Wuling cars will
compete in the low-cost green car (LCGC) or low-MPV categories. Its new cars
are likely to be introduced in 2H17, after the completion of its new plant
(scheduled for Jul 2017) in Kota Deltamas, Bekasi which will have a production
capacity of 150,000 units pa. It plans to have over 50 dealerships, spare parts
and maintenance service centers across Indonesia over the next two years, with
the majority located in the Greater Jakarta area.
♦ Toyota Calya
is the darling.
Astra's new 7-seater LCGC MPVs, the Toyota Calya and Daihatsu Sigra
were big favourites at (link to Toyota
Calya stand) at the GIIAS (Indonesia’s largest auto show, link to 2016 GIIAS crowds) this year.
Priced below IDR150m/unit, the Calya offers an attractive exterior, good
quality spacious interior and a 1.2l engine. It is no doubt that it will be
another Astra sales growth driver. An Astra salesman said that demand for the Calya
is very strong. This model is targeted towards first car buyers.
Best regards,
Andrey Wijaya
Senior Vice President
Research Analyst – Auto,
Consumer, Cement
PT. RHB Securities
Indonesia
