DBS Astra International Fully Valued TP; idr11,200

Astra International
Jan 09 can and motor cycle sales dropped
(Fully Valued; ASII IJ; Rp11,700; TP Rp11,200)
It is reported that Jan 09 domestic car and motorcycle sales
fell 25% y-o-y and 20.5% y-o-y, respectively. Car sales fell to
around 31,000 units in Jan 09 or dropped c.24% m-o-m.
Meanwhile domestic motorcycle sales fell to around 376,000
units or dropped c.7% m-o-m.
According to the motorcycle producer association, Honda sold
179,685 units (+3.4% m-o-m), Yamaha 162,656 units (-
16.3% m-o-m) and Suzuki 22,369 units (-27.8% m-o-m).
Hence, Honda gained its market share back to 49%, higher
than Yamaha.
The automotive sellers blamed price increase and lack of
available auto financing as the cause of weak auto sales in Jan
09. Auto producers had raised the selling price of the
products by around 5-10% in Jan 09 due to the weakening
rupiah. We are reviewing our forecast and target price for
ASII.