Citi – We expect a rebound in 4W and 2W volume — The 4W and 2W volumes in 2015 reached 1.01m and 6.48m units, down 16% and 18% respectively.
Although automotive outlook is still facing some challenges due to slower economic growth (mainly on weaker commodity), we believe that things should start to improve. Our leading indicators (interest rates, consumer confidence) already show that things are improving.
We expect 4W and 2W volumes to go up 11% and 6% in 2016, respectively. We maintain our Buy call on Astra Intl on attractive valuation, good governance and large cap with TP of Rp7,100 translating to 19% upside.