Astra International (ASII) - Three Threats on Auto Sales

Astra International (ASII) – Maintain HOLD
Price: Rp54,300 -  Target Price: Rp54,000
Three threats on auto sales

  • Progressive tax impact should be minimal 2M11.
  • New registration of ownership tax strike car sales in Surabaya.
  • Price increase is still at tolerable level.
  • We still maintain the Hold recommendation for ASII at target price Rp54,000 (reflect PE’11 15.1x and EV/EBITDA 11.6x). Maintain Hold.