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Kamis, 12 Mei 2011

FLASH..!! Astra Int will see faster than expected recovery - Nomura

Toyota (Japan) said this afternoon that it expects output to be 70% of normal by Jun11, faster than initial expectation of Jul-Aug. Parts in shortage supply also fell from 150 in Apr to 30 now.

This is good news for Astra International (ASII IJ - BUY) as demand remain strong thus production recovery will result in strong and swift recovery in sales volume. We initially expect Jun11 production to remain at 50% and only start to recover in Jul11. Given that most of car sold in Indonesia of lower specs, we expect Astra production recovery is of higher percentage than global’s 70%.

We retain our BUY recommendation on Astra Int.

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