Astra International, one of the largest publicly-listed companies in Indonesia, saw its net profit rise 31 percent year-on-year (y/y) to IDR 9.36 trillion (approx. USD $704 million) in the first half of 2017. These earnings were supported by improving earnings from most of the diversified conglomerate's business segments. But as the company generates nearly half of its earnings from the automotive sector, the 9.4 percent (y/y) increase in the company's car sales was particularly key to boost growth.
Net revenue rose 11 percent (y/y) to IDR 98.03 trillion in the January-June 2017 period. Besides the automotive segment, Astra Internasional's good corporate earnings in H1-2017 were also attributed to the group's improving financial services businesses with a return to profit by Permata Bank. Also the group's heavy equipment and mining segments performed well, as well as its agribusiness activities, as they all benefited from higher commodity prices.
Prijono Sugiarto, President Director of Astra International, noted in a statement that Astra's market share in the domestic automotive sector has expanded from 51 percent to 56 percent in the first half of 2017, supported by the launch of one new car model and four revamped car models as well as discount offerings (although at the same time these discounts also slightly limit the pace of earnings).
For the remainder of 2017 Sugiarto expects the Astra Group to continue to benefit from stable coal prices, although earnings may be tempered by increasing competition in Indonesia's car market and soft demand in the motorcycle market.
However, directly after trading opened on Friday morning (28/07) shares of Astra International fell 0.93 percent to IDR 8,000 a piece as most Asian stock market are in red territory on Friday morning. So far this year Astra's shares have fallen 3.32 percent.
Source: Indonesia Investment