Astra International, a leading Indonesian conglomerate, has been reaffirmed with a “Buy” rating by Maybank IBG Research, highlighting its robust diversification strategy and attractive dividend yield. The company’s shares are currently trading at a price-to-earnings ratio of 6.0 times for the financial year 2025, which is considered undervalued compared to its five-year average. This valuation is supported by expectations of a rebound in automotive sales, improved consumer sentiment, and a recovery in financial services.
The report from Maybank IBG Research notes that Astra International’s diverse business operations, which span automotive, financial services, and other sectors, provide a buffer against economic fluctuations. The company’s first-half performance in 2025 was softer than expected, but analysts believe this has already been factored into the stock price. The anticipated recovery in automotive volumes and financial services is expected to act as catalysts for future growth.
Astra International’s financial outlook remains strong, with a projected dividend yield of 6.5% for FY25. The company’s earnings before interest, taxes, depreciation, and amortisation (EBITDA) are forecasted to reach IDR54,839.2 billion in FY25, with a core net profit of IDR32,289.5 billion. Despite a slight decline in core earnings per share growth, the company’s strategic diversification is seen as a key factor in maintaining its resilience.
In conclusion, Astra International’s diversified portfolio and strategic positioning are expected to support its growth trajectory, making it an attractive investment opportunity amidst market uncertainties.
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