Full-Year 2017 Corporate Earnings Report Astra International
One of Indonesia's biggest diversified conglomerates (and therefore often labelled the barometer of the Indonesian economy), Astra International, posted a solid 25 percent year-on-year (y/y) growth of net profit to IDR 18.9 trillion (approx. USD $1.39 billion) in full-year 2017. Meanwhile, the company's net revenue rose 13.8 percent (y/y) to IDR 206.1 trillion (approx. USD $15.2 billion).
Despite the double-digit growth pace of both net profit and sales, the corporate earnings of Astra International failed to meet analysts' estimates. This was particularly attributed to the weakening performance of the company's automotive business (that accounts for about 50 percent of Astra International's total profit). Net income in its automotive business segment fell 3.25 percent (y/y) to IDR 8.9 trillion because its car sales declined 2 percent (y/y) to 579,000 units in full-year 2017. Meanwhile, the company also had to offer discounts amid increasing competition from rivals in the automotive industry.
Prijono Sugiarto, President Director of Astra International, stated that after a satisfactory overall result in 2017, the Astra Group should continue to benefit from improving economic conditions in - and outside - Indonesia as well as stable commodity prices, although competition the car market is expected to intensify.
Astra International's Corporate Earnings:
| Subject | Jan-Dec 2016 |
Jan-Dec 2017 |
Change (y/y) |
| Net Revenue | 181,084 | 206,057 | +14% |
| Net Income | 15,156 | 18,881 | +25% |
| Net Earnings per Share¹ | 374 | 466 | +25% |
| Net Asset Value per Share¹ | 2,765 | 3,054 | +10% |
in billion of IDR rupiah
¹ in rupiah
Source: Astra International
Despite the weakening automotive segment, Astra International reported strong growth in the financial services segment (due to a return to profitability at Bank Permata as well as improved earnings at Astra Sedaya Finance, Federal International Finance and Asuransi Astra Buana), the property segment (primarily due to higher development earnings recognized on its Anandamaya Residences project), and heavy equipment & mining (due to strengthening commodity prices).
Astra International's Net Income per Business Line:
| Subject | Jan-Dec 2016 |
Jan-Dec 2017 |
Change (y/y) |
| Automotive | 9,166 | 8,868 | -3% |
| Financial Services | 789 | 3,752 | +376% |
| Heavy Equipment & Mining | 3,032 | 4,469 | +47% |
| Agribusiness | 1,599 | 1,602 | 0% |
| Infrastructure, Logistics & Others | 263 | (231) | -188% |
| Information Technology | 196 | 198 | +1% |
| Property | 111 | 223 | +101% |
| Attributable Net Income | 15,156 | 18,881 | +25% |
in billion of IDR rupiah
Source: Astra International
Meanwhile, Astra International also announced that a final dividend of IDR 130 per share will be proposed at the Annual General Meeting in April 2018. The proposed final dividend together with the interim dividend of IDR 55 per share will bring the company's total dividend for the year to IDR 185 per share (versus total dividend of IDR 168 per share in the preceding year). The proposed final dividend takes into consideration the increased debt at Astra International and its investment plans going forward.
Shares of Astra International, listed on the Indonesia Stock Exchange, were down 1.22 percent to IDR 8,100 per share by 15:45 pm local Jakarta time on Wednesday (28/02). So far this year, the company's shares have fallen 2.41 percent.
Stock Quote Astra International - ASII:
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