Astra International (ASII) - Anticipating the Rise of BI Rate

Astra International (ASII) – Maintain HOLD
Price: Rp49,400 – Target Price: Rp45,000

Anticipating the rise of BI rate

  • Strong positive correlation between Auto sales and GDP.
  • ASII continues to book result, even by assuming conservative GDP.
  • Car and motorcycle sales recorded highest level in July’10.
  • We found that ASII share price is negatively correlated to BI rate by 78%.
  • Maintain Hold, TP of Rp45,000 reflects PE’10-11E 14.9-12.9x.