PT. Astra International Tbk (ASII) Weathering the Heavy Equipment Drag Key Takeaways: - 1Q26 Earnings Contraction. Consolidated net income fell 16% y/y to IDR 5.9tn, heavily dragged by HEMCE's underperformance - Heavy Equipment & Mining Hurdles. Regulatory constraints, specifically lower national coal RKAB allocations, significantly dampened heavy equipment demand. - Catalysts on the Horizon. The regulatory approval for the Martabe Gold Mine to resume operations in March 2026 paves the way for segmental recovery. Recommendation: "BUY” We maintain our "BUY" recommendation for ASII. Our valuation is derived through a SOTP methodology. We determine a 12-month target price of IDR 6,400 (lowered from IDR 7,100). This presents a 28.77% upside potential from the last close of IDR 4,970 (as of 28 Jul 26). Valuations remain compelling at a 2026F P/E of 8.91x and P/BV of 0.84x. Downside risks include: persistent weakness in automotive purchasing power, intensifying competition from the influx of Chinese automakers in the domestic market, and continued volatility in global commodity prices. Adrian Djie Equity Research KIWOOM SEKURITAS INDONESIA