KONTAN.CO.ID - JAKARTA. Shares of PT Astra International Tbk (ASII) have been under pressure for nearly two weeks. Various negative sentiments are affecting the performance of ASII shares. On Thursday (25/1), the price of ASII shares fell 0.49% or Rp 25 to Rp 5,050 per share.

The price of ASII shares has fallen 10.62% since the beginning of the year.

BRI Danareksa Securities analyst Richard Jerry in his January 25, 2024 research said one of the sentiments causing the decline in ASII's performance is the government's regulation regarding the target number of electric vehicles.

"The cost of EV batteries is still expensive and still significantly different from cars with internal combustion engine technology or (ICE)," said Richard, on Thursday (25/1).

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Richard predicts that 4W or four-wheel sales will recover in the full year 2024 or potentially increase by 5.5% due to lower interest rates with a slight contribution from electric car regulations.

For 2W or two-wheel, it is expected to face short-term pressure due to the weak purchasing power of middle to lower consumers. Richard also predicts that ASII's future growth will still be driven by the net profit growth of the automotive and coal segments. 

Equity Research Analyst at Kiwoom Securities Vicky Rosalinda added that ASII's prospects could continue to be pressured along with the weakening coal prices and declining car sales.

This is because one of ASII's revenues is still supported by the coal business and the automotive segment.

"The weakening of ASII's price is influenced by the weakening of coal prices. Then the decline in car sales which is added by the negative sentiment of Daihatsu's safety test issue, and also the entry of BYD into Indonesia also hurts ASII," Vicky told Kontan.co.id, Thursday (25/1).

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For some time to come, BYD can indeed affect ASII, but Vicky said the effect will not last long.

The largest revenue of ASII until September 2023 came from the automotive segment, different from the same period last year which came from the heavy equipment, mining, construction, and energy segments.

Revenue from the automotive segment reached Rp 99.16 trillion, up 13.03% from previously Rp 87.73 trillion.

Followed by revenue from the heavy equipment, mining, construction, and energy segments fell 6.63% to Rp 97.6 trillion from previously Rp 91.53 trillion.

Although currently, ASII is still under pressure, ASII is considered to still have several advantages that can support and survive in difficult conditions.  Richard recommends holding ASII shares with a target price of Rp 5,700 per share.

Editor: Syamsul Azhar