Mandiri Sekuritas Astra International Buy, TP:idr17,900

Astra International: Multi finance unit plans Rp500bn-Rp750bn bond offer (ASII, Rp11,850, Buy, TP:Rp17,900)

Astra’s multi finance unit, Astra Sedaya Finance, plans to float Rp500-Rp750bn worth of bonds to expand its financing
fund allocation to Rp12.5tn in 2009. This year’s budget is about 9.4% lower from last year allocation of Rp12.5tn. The
company aims to finance some 95-100k car units of which 60k-65k are planned for brand new units, which accounts
for about 13.3%-14.4% of our FY09F domestic car sales of 450k units (-25.9%yoy).

We maintain Buy for Astra International, which now trades at PER09F 6.0x. Our TP still offers a 51% upside.