Adi Sarana Armada (ASSA IJ) (Buy) - Solid top-line growth

Solid top-line growth

ASSA booked 1Q26 revenue of IDR1.5tn (+11% y-y, -2.3% q-q), in line with our and consensus run-rates at 23-24%. Logistics revenue grew +21% y-y to IDR782bn, remaining the structural growth driver, while ASSA Rent grew +9.4% y-y on continued B2B demand. Used car sales were largely flat (+0.8% y-y) on softer auction throughput. Net profit came in at IDR98bn (-3.2% y-y, +42% q-q), weighed by 1Q salaries and bonus accruals.

Logistics: structural growth lever intact

Logistics revenue grew +21% y-y to IDR782bn, continuing to anchor top-line growth as Anteraja express volumes and B2B contracts ramp. We see the growth pipeline holding up through FY26F, supported by deepening B2B mandates with FMCG champions (Sampoerna full warehousing, JTI exploring outsourcing) and continued e-commerce parcel volume momentum. The integrated first-to-last-mile network – combining fleet scale, warehousing, and same-day delivery – remains a high-barrier moat, in our view. New project wins should support continued double-digit growth in FY26F.

Rental & used car: stable cash engine, used car drag to ease

ASSA Rent grew +9.4% y-y to IDR585bn, with EBIT +18% y-y, supported by high fleet utilization and corporate demand benefiting from tighter leasing conditions pushing clients toward rental. Used car sales were largely flat (+0.8% y-y), with EBIT -42% y-y on softer auction throughput, reflecting weaker resale pricing in the >IDR200M segment. We expect the used car drag to ease as fleet rejuvenation cycles normalize and asset quality improves through the year. The integrated rent-retire-resell cycle continues to support capital efficiency, in our view.

Maintain Buy with TP of IDR1,600

We expect earnings momentum to build through FY26F on logistics expansion (Sampoerna, JTI pipeline, FMCG B2B), stable rental utilization, and easing used car pressure once asset quality normalizes. Our TP of IDR1,600 is based on a target FY26F P/E of 12x. ASSA is now trading at a FY26F P/E of 7x and an ROE of 18%. Risks to our call include lower used car prices and operational inefficiency.

Fig. 1: ASSA IJ – 1Q26 results

ASSA IJ (IDRbn)	4Q24	1Q25	4Q25	1Q26	q-q%	y-y%	1Q25	1Q26	y-y%	% Ours	% Cons
Revenue	1,314	1,385	1,575	1,539	-2.3%	11%	1,385	1,539	11%	23%	24%
ASSA Rent	519	535	821	585	-29%	9.4%	535	585	9.4%
Used car sales	522	400	394	403	2.3%	0.8%	400	403	0.8%
Logistics	819	647	823	782	-5.0%	21%	647	782	21%
Elimination	(545)	(197)	(463)	(231)	-50%	18%	(197)	(231)	18%
GP	429	418	506	462	-8.7%	11%	418	462	11%	21%	23%
ASSA Rent	146	135	157	156	-0.9%	15%	135	156	15%
Used car sales	105	133	100	102	2.2%	-23%	133	102	-23%
Logistics	178	163	255	212	-17%	30%	163	212	30%
Elimination	(0.7)	(13)	(5.9)	(7.7)	31%	-40%	(13)	(7.7)	-40%
EBIT	155	232	203	230	13%	-0.5%	232	230	-0.5%	20%	21%
ASSA Rent	43	75	56	88	56%	18%	75	88	18%
Used car sales	36	82	42	47	12%	-42%	82	47	-42%
Logistics	80	109	111	114	2.6%	4.6%	109	114	4.6%
Elimination	(4.9)	(34)	(6.1)	(19)	204%	-45%	(34)	(19)	-45%
EBITDA	358	431	413	472	14%	10%	431	472	10%	23%	23%
Pretax	87	186	144	180	25%	-3.3%	186	180	-3.3%	19%	21%
NP	31	102	69	98	42%	-3.2%	102	98	-3.2%	19%	20%

Margins %	4Q24	1Q25	4Q25	1Q26			1Q25	1Q26
GPM %	33%	30%	32%	30%			30%	30%
ASSA Rent	28%	25%	19%	27%			25%	27%
Used car sales	20%	33%	25%	25%			33%	25%
Logistics	22%	25%	31%	27%			25%	27%
EBIT	12%	17%	13%	15%			17%	15%
ASSA Rent	8.3%	14%	6.9%	15%			14%	15%
Used car sales	7.0%	20%	11%	12%			20%	12%
Logistics	10%	17%	14%	15%			17%	15%
Pretax	6.6%	13%	9.2%	12%			13%	12%
NP	2.4%	7.3%	4.4%	6.4%			7.3%	6.4%

Balance sheet Rp bn	4Q24	1Q25	4Q25	1Q26			1Q25	1Q26
Total Asset	7,724	8,226	8,473	8,855			7,690	8,473
Cash	593	759	1,085	1,045			772	1,085
Interest bearing debt	4,014	4,135	4,222	4,304			3,964	4,222
Net debt (cash)	3,421	3,377	3,137	3,259			3,192	3,137
Equity	2,783	2,926	3,194	3,387			2,749	3,194
Net gearing (x)	1.2	1.2	1.0	1.0			1.2	1.0

ROA (%, ttm)	3.2%	3.3%	4.9%	4.7%			1.3%	1.2%
ROE (%, ttm)	8.8%	9.4%	13%	12%			3.7%	3%

Source: Company data, Verdhana research

INVESTMENT RATINGS
A rating of ‘Buy’, indicates that the analyst expects the stock to outperform the Benchmark over the next 12 months. A rating of ‘Neutral’, indicates that the analyst expects the stock to perform in line with the Benchmark over the next 12 months. A rating of ‘Reduce’, indicates that the analyst expects the stock to underperform the Benchmark over the next 12 months. A rating of ‘Suspended’, indicates that the rating, target price, and estimates have been suspended temporarily to comply with applicable regulations and/or firm policies. Securities and/or companies that are labelled as ‘Not Rated’ or ‘No Rating’ are not in regular research coverage. Benchmark is Indonesia Composite Index (‘IDX Composite’). A ‘Target Price’, if discussed, indicates the analyst’s forecast for the share price with a 12-month time horizon, reflecting in part of the analyst’s estimates for the company’s earnings, and may be impeded by general market and macroeconomic trends, and by other risks related to the company or the market in general.

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Rating Table

Rating Remains	Buy
Target price Remains	IDR 1,600
Closing price 28 April 2026	IDR 825

Research Analysts

Jupriadi Tan (jupriadi.tan@verdhana.id)

David Tjahjadi (David.tjahjadi@verdhana.id)

Tags: TRANSPORT OR LOGISTICS, Adi Sarana Armada, ASSA, ASSA JK, ASSA IJ, Jupriadi Tan, David Tjahjadi

Adi Sarana Armada (ASSA IJ) (Buy) - Solid top-line growth

Solid top-line growth

Fig. 1: ASSA IJ – 1Q26 results

Fig. 2: Revenue keeps grinding higher

Fig. 3: Logistics takes the wheel; rental steady

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Adi Sarana Armada (ASSA IJ) (Buy) - Logistic boosts business

Adi Sarana Armada (ASSA IJ) (Buy) - Solid top-line growth

Fig. 1: ASSA IJ – 1Q26 results

Fig. 2: Revenue keeps grinding higher

Fig. 3: Logistics takes the wheel; rental steady

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