Bond Valuation
Currently, CNAF is set to issue 2 new sukuk series, with 1-yr and 3-yr tenors, targeting a total issuance of Rp1.0tn to support its sharia financing disbursement. The offering coupon ranges are 6.00-6.50% for the 1-yr tenor and 6.50-7.00% for the 3-yr tenor, with the final coupons set at 6.15% and 6.50%, respectively, implying 45 bps and 70 bps of risk premiums above the current risk-free rate. Given that the average fair risk premiums for CNAF s bonds and the average AA+ -rated category are estimated at ~65-74 bps, we view the pricing of CNAF s new sukuk issuances as relatively fair.
Key Credit Update: 6M25 results in line with our expectation
New bookings continued with robust double-digit growth, rising by +12.18% YoY to Rp5,189bn in 6M25 (vs. +1.4% YoY in Dec-2024), underscoring its resilience despite a weakening automotive market in the domestic side and the challenging geopolitical tensions that are becoming more intense, especially in the Middle East. All the segments reported positive performance, except for refinancing. The new-car and used-car segments grew by +18.6% YoY to Rp1,371bn and +12.0% YoY to Rp3,260bn, respectively; the others segment grew by +6.0% YoY to Rp4bn, while the refinancing segment slightly contracted by -0.9 YoY to Rp553bn.
Asset quality remained well below the industry figure. Though it went up slightly to 1.5% in Jun-2025, it was maintained well below the industry average of 2.4% (per Apr-2025). The slight uptick is considered seasonal, largely due to extended public holidays in the first half of 2025, which temporarily disrupted collection activities. Historically, CNAF s NPF tends to normalize toward year-end, as seen in 2024, when it declined from 1.4% in June to 1.0% in December. Looking ahead, we expect the NPF to remain low, as the Company is committed to prioritizing its asset quality through prudent lending disbursements. In addition, CNAF s customer base predominantly comprises captive customers from Bank CIMB Niaga, who generally belong to the prime segment, further contributing to the Company s low-risk credit profile and stable portfolio quality.
Sound 6M25 financial results, with the total revenues still growing solidly by +27.7% YoY to Rp1,161bn in 6M25 and outpacing the broader industry, which grew at +9.3% YoY in Apr-2025. The net interest income was maintained solid, growing at +21.2% YoY to Rp617bn, in line with our forecast (57% of FY25F). On the cost side, the opex growth was manageable, going up by +318.4% YoY to Rp270bn, followed by the provision expense, which continued to decrease, going down by -82.4% YoY. Thus, CNAF s net profit sharply increased by+27.6% YoY to Rp247bn, in line with our expectation, at ~51% of our FY25 forecast.
Credit outlook: Stable
We have a stable credit view on CNAF, given its continued growth and considering it is the subsidiary of Bank CIMB Niaga, one of Indonesia s largest banks; hence, its parent has superior capacity in providing it with extraordinary support. Key risks: Tight competition amid a weakening automotive market; and adverse economy due to trade war issues, geopolitical tensions, and weakening commodity prices, leading to weak demand for automotive financing and rising NPF.
Ariestya Putri Adhzani
ariestya.adhzani@mandirisekuritas.co.id
Ali Hasanudin
