Mansek PT Astra International: FY08 net income reaches Rp9.2tn, up 41%yoy

PT Astra International: FY08 net income reaches Rp9.2tn, up 41%yoy (ASII, Rp11,300, Buy, TP: Rp17,900)

Astra International results came in-line with our expectations, but beats consensus with FY08 revenues amounting to Rp97tn (+38%yoy) and net income at Rp9.2tn (+41%yoy). Net income was about 1.1% higher than our forecast but higher than consensus estimates by 3.2%. Once again, its vehicle and vehicle related contribution accounted significantly with 54% of total revenues and 46% of net income coming from these sub segments. This is primarily due to its 4-wheeler sales growing by 43% to 318k units, resulting in a slightly higher market share of 52%. Likewise, it sold a total of 2.9mn motorcycles (+34%), thus maintaining 46% market share. Note that Astra’s unit sales growth outpaced the domestic market with wholesale motorcycles growing only by 33% and 4-wheelers by 40%.

A final dividend will be proposed at the Annual General Meeting in May 2009 of Rp570/share, thus bringing the total dividend for the year if approved, to Rp870/share with an equivalent yield of 7.7% based on current stock price. 2007:Rp644/share, yield of 5.7%)

Maintain buy for ASII currently trading at PER09 5.7x and P/BV09F of 1.3x.