Astra International 4Q12 in-line

Astra International: 4Q12 in-line, final DPS proposed at Rp150 (ASII, Neutral, Rp7,950, TP: Rp7,900)

ASII reported FY12 NPAT at Rp19,421bn (+9.2%yoy), in-line with our (100%) and consensus (101%) expectation. Stripping-out the Rp215bn FX losses, core profit came at Rp19,636bn (+11.1%yoy), also in-line with our core profit estimates of Rp19,478bn (101%).

Sales (+15.7%yoy), gross profit (+13.0%yoy), operating profit (+11.4%yoy), and pretax profit (+8.2%yoy) also met our and consensus estimates. Margins slightly declined compared to FY11, which happened almost across the board with the exception of 4W division, thanks to its strong volume growth.

Contribution of automotive NPAT edged up to 48.8% from 46.5% in FY11, posting a 14.6%yoy growth led by the 4W (+34.2%yoy) and components (+5.2%yoy), offsetting the weak 2W (-11.2%yoy). Contribution from infrastructures and IT, albeit small, also edged up to 3.5% and 0.7% from 3.4% and 0.6%, respectively in 2011.

4Q12 NPAT came at Rp4,750bn (-4.9%qoq; +9.3%yoy), translated down from the top as margins were relatively unchanged.  Weak QoQ performance is expected, as auto sales volumes are seasonally weaker leading to year-end. Notable pick-up, nevertheless, was seen in the net margin of the auto components subsidiary that led to a 20.0%qoq growth in its NPAT.

ASII will hold an analyst meeting on Monday. We currently have a Neutral call on ASII. The stock now trades at 14.5x FY13F PE. Management would propose a final DPS of Rp150 (1.8% yield) at the upcoming AGM in April, bringing total DPS of Rp216 including the interim paid in November 2012.