JAKARTA— The profits of six automotive issuers on the Indonesia Stock Exchange (IDX) shot up 31 percent to IDR 9.8 trillion in the first quarter of 2023. This increases from that in the same period in 2022 by IDR 7.45 trillion. This increase is in line with the soaring revenue by 15 percent to Rp 99 trillion from Rp 86 trillion, thanks to the car and bike improving sales.
The six issuers are PT Astra International Tbk (ASII), PT Astra Otoparts Tbk (AUTO), PT Indomobil Sukses Internasional Tbk (IMAS), PT Dharma Polimetal Tbk (DRMA), PT Industry and Trade Bintraco Dharma Tbk (CARS), and PT Congratulations Perfect Tbk (SMSM). During the first quarter of 2023, car sales grew 7 percent to 282 thousand units.
Motorcycle sales reached 1.8 million units, up 44 percent compared to the same period in 2022.
Astra gained the highest net profit, thanks to its enormous business of car and motorcycle market in Indonesia. The net profit of the largest national automotive conglomerate reached IDR 8.72 trillion in the first quarter of this year, up from IDR 6.8 trillion, driven by the stretching automotive and heavy equipment businesses. Astra controls more than 50 percent of the car market through its two flagship brands, Toyota and Daihatsu, and 79 percent of the motorcycle market through Honda. During that period, Astra’s revenue reached IDR 82.98 trillion, up from IDR 71.871 trillion.
Meanwhile, Astra Otoparts or AOP gained a net profit of IDR 433 billion in the first quarter of this year, up from IDR 225 billion. The Astra Group automotive component company recorded revenue of IDR 4.9 trillion, an increase from IDR 4.5 trillion. Indomobil also recorded a fantastic jump in net profit, from IDR 79 billion to IDR 178 billion as of March 2023. The issuer of the Salim Group’s revenue reached IDR 7.2 trillion, an increase from IDR 6.2 trillion. Indomobil is the number two automotive company after Astra, which sells Nissan, Hino, Suzuki cars and motorcycles, as well as several other brands.
Component company Selamat Sempurna earned a net profit of Rp 221 billion in the first quarter of this year, growing from Rp 187 billion. In the three months of 2023, Selamat Sempurna pocketed IDR 1.2 trillion in revenue, growing from IDR 1.1 trillion. Bintraco Dharma, owner of a Toyota dealer network in Central Java and Yogyakarta, also saw an increase in net profit to Rp 45 billion from IDR 19 billion in the first quarter of 2023. The company earned Rp 1.4 trillion in revenue, stable from the same period in 2022.
Component producer Dharma Polimetal continues to carve impressive performance, with revenue of IDR 216 billion in the first quarter of this year, up from IDR 115 billion. The supplier of motorcycle components for Honda, Hyundai, Toyota and a number of other brands earned Rp 1.4 trillion in revenue, up from IDR 915 billion.
Dharma Polimetal’s management emphasized that the increase in sales in the first quarter of 2023 was in line with market expansion, accompanied by an expansion of the product portfolio in the manufacture of suspension members for one of the car brands in Indonesia. The company will immediately realize this plan at the end of the first half of 2023. “After successful commercial production, the company will target to expand its product portfolio to other components,” said a management statement as quoted by the INVESTOR.ID recently.
Previously, Astra prepared a reserve fund of IDR 15 trillion to be used as an investment fund. This is in line with the company’s plan to create a new growth engine. Astra Main Director (ASII) Mr Djony Bunarto Tjondro said that the company has reserved funds of IDR 15 trillion which are used to meet the needs of the investment plan. The funds, said Djony, are outside of the company’s capital expenditure (capex) allocation this year of IDR 24 trillion.
“However, we cannot disclose the Rp. 15 trillion for any investment. So, in aggregate, capex and investment are around Rp. 39 trillion. This is a consolidated figure,” Mr Djony said recently.
Ciptadana Sekuritas pinned a recommendation to buy ASII shares with a target price of IDR 7,200. At the close of trading last week, ASII shares were perched at the level of IDR 6,750. (*)
