CLSA Astra's net profit holding up better than expected

Astra's net profit holding up better than expected - due to the strong performance of United Tractors, comment by Wilianto

Astra International (ASII IJ)'s net profit down 17% yoy and +3% qoq to Rp1.87tn. The net profit in 1Q09 amounted to 32% of our full year forecast, but we expect earnings momentum to remain weak in the coming quarter.

1Q09 profit is boosted by strong performance of United Tractors (UNTR IJ - Rp7,400 - BUY),+57% YoY, that is well above our expectation and market consensus.

Excluding United Tractors, Astra’s net profit was down 29% from last year as earnings fell sharply in motorcycle (-45% yoy) and agribusiness (-74% yoy).

We remain negative and believe earnings recovery will be slow.