Astra International's Buyback Program a Pleasant Surprise — Market Talk

Astra International's larger-than-expected 8 trillion rupiah share buyback program for the next 12 months was a pleasant surprise to DBS Group Research analysts. The Indonesian conglomerate recently completed a strategic review and outlined a sharper focus on total shareholder returns, the analysts say. The planned 8 trillion rupiah program implies around 3.5% of Astra's current market capitalization, the analysts note. The company's clearer emphasis on its three core earnings segments--automotive, financial services, and heavy equipment and mining solutions--also bodes well for its strategy, the analysts say. Future mergers and acquisitions will likely target auto ecosystem expansion, auto parts and mining-related services, they add. DBS maintains its buy rating and 7,500 rupiah target price. Shares fall 5.4% to 5,300 rupiah. ([email protected])