EBIT grew by 5.73% QoQ, while Net Income increased by 15.79% QoQ in 2Q25. ADMF recorded an improvement in operational performance with EBIT rising to IDR 855 billion in 2Q25 (vs. IDR 809 billion in 1Q25.

Synergy Loans Lowered Financing Costs. Through funding and credit facilities sourced from its parent company and affiliated group syndications, ADMF managed to reduce its cost of financing by 14.17% YoY to IDR 1.58 trillion in 6M25 (vs. IDR 1.84 trillion in 6M24).

Stable Asset Quality Amid Weakening Consumer Purchasing Power. Despite declining car and motorcycle sales and lower consumer confidence, which dropped 5.5% to 117.8 in 6M25 (vs. 123.3 in 6M24), ADMF maintained its asset quality.

Motorcycle Segment as the Key Contributor. The motorcycle segment remains ADMF’s primary revenue driver, contributing 49.43% to total revenue in 6M25, with a GPM of 73.39%.

Merger with MFIN as a Revenue Catalyst. Through this merger, ADMF will further strengthen its position in Indonesia’s automotive financing industry.

Using the Dividend Discount Model (DDM) with a required return of 8.71% and a terminal growth rate of 1.50%, we estimate ADMF’s fair value at IDR 10,475 per share (implying an expected P/E of 7.23x and P/BV of 0.89x in FY25). Considering both the intrinsic valuation and relative valuation, which remains below the 5-year average P/BV of 0.93x, we assign a BUY rating on ADMF with an upside potential of 15.75%.

By PHINTRACO SEKURITAS | Research
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