Astra International Shares Rally on Strong Foreign Buying, Analysts See Further Upside
Main Takeaways
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JAKARTA, Investortrust.id — Shares of PT Astra International Tbk, or ASII, have climbed 10.58% over the past month to Rp 5,175, making the conglomerate one of the top three stocks most heavily bought by foreign investors during the period, with net purchases totaling Rp 1.26 trillion.
The rally outpaced the broader market’s advance, as the Indonesia Stock Exchange Composite Index rose 13.93% to 7,892 over the same period. Foreign appetite for ASII was exceeded only by net buys in PT Telkom Indonesia Tbk at Rp 2.21 trillion and PT Bank Rakyat Indonesia Tbk at Rp 1.79 trillion.
Analysts believe the stock still has room to gain. Mandiri Sekuritas noted that while the company’s four-wheel vehicle sales have been soft, two-wheel sales have remained resilient in the first half of 2025. Strong performance in financial services has also helped support overall profit, prompting the brokerage to maintain its ‘buy’ rating with a target price of Rp 6,350.
BRI Danareksa Sekuritas likewise kept its ‘buy’ call, citing ASII’s first-half net profit of Rp 16 trillion, equivalent to 53% of its full-year forecast and 50% of the analyst consensus, in line with market expectations. The earnings were driven by subsidiary PT United Tractors Tbk (UNTR), which booked Rp 6.2 trillion in operating profit on improved weather conditions that boosted output at mining contractor Pama Persada.
Aside from four-wheel automotive, heavy equipment sales, and infrastructure-logistics — which all recorded declines — every other business segment posted growth. Agribusiness operating profit jumped 78.8% to Rp 1.03 trillion on stronger crude palm oil prices, information technology rose 30% to Rp 117 billion, and property increased 14.5% to Rp 63 billion.
Financial services, meanwhile, saw a 5.6% rise in operating profit to Rp 4.65 trillion. BRI Danareksa said the combined strength of UNTR, agribusiness, and financial services offset a sharp drop in four-wheel automotive operating profit, which plunged 42% quarter-on-quarter and 87% year-on-year. The firm set a target price of Rp 5,800, assuming continued recovery at UNTR in the second half of the year to counter ongoing automotive weakness.
Source: Investing.com, updated as of the publication time.
Stronger than Peers
PT Astra International Tbk (ASII) stands out strongly in peer benchmarks, boasting a market capitalization of Rp 209.5 trillion — far surpassing the Rp 8.48 trillion average among peers and Rp 1.66 trillion sector average. The stock trades at 97.6% of its 52-week high, signaling sustained strength compared to peers at 89% and the broader sector at 80.6%.
ASII also offers a markedly higher dividend yield at 7.8% versus just 0.4% for peers and zero for the sector, alongside a 7.3% shareholder yield, contrasting with the negative peer average of -9.3%.
While its one-year price total return of 15.2% trails the peer average of 29.6%, it remains nearly double the sector’s 8.5%. Moreover, ASII’s five-year beta of 0.16 reflects significantly lower volatility compared to peers (0.80) and the sector (0.55), suggesting a more stable investment profile despite delivering solid income returns.
Room for Upside
PT Astra International Tbk (ASII) is trading at Rp 5,125, just below its recent 52-week high of Rp 5,300, after a strong upward trend in recent weeks.
Analyst consensus pegs the target price at Rp 5,511, suggesting modest short-term upside, while Investing.com’s valuation models point to a higher fair value of Rp 7,533, implying a potential 47% gain.
The valuation spread ranges from Rp 6,133 to Rp 9,178, with low uncertainty, signaling confidence in the stock’s intrinsic strength. Despite its current high P/E ratio relative to near-term earnings growth, ASII benefits from a favorable technical and sentiment backdrop, reinforced by strong foreign buying momentum and steady dividend payouts.
Source: Investing.com, updated as of the publication time.
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