Although it has been diversifying its businesses, car sales still account for about half of Astra International's corporate earnings. In the first half of 2017 the company's car sales rose 9.4 percent year-on-year (y/y) to 298,488 units, particularly supported by a whopping 72 percent growth in sales of low-cost green car vehicles from 54,389 units to 93,594 units.

However, Yulian Warman, Head of Public Relation at Astra International, said the company's car sales in June 2017 have declined due to the long Idul Fitri holiday that fell in June this year. Still, it aims to maintain its market share at 57 percent in the domestic car sales market.

Astra International should be able to continue its momentum in the remainder of the year. In the first quarter of 2017 the company reported a 63.5 percent (y/y) increase in net profit to IDR 5.1 trillion, and 16.5 percent (y/y) increase in revenues, particularly supported by its financial services division, heavy equipment, agribusiness, and the automotive segments. The only disappointing business segments of the company in that quarter were information technology, infrastructure and logistics.

Although shares of Astra International tumbled on Wednesday by 2.31 percent to IDR 8,475 per share, JP Morgan is confident that the company will see improving corporate earnings in the foreseeable future. It set its target price for Astra shares at IDR 9,200 a piece. So far this year the company's shares have risen only 2.42 percent.

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