Bond Valuation<\/p>\n\n\n\n
New issuances of Shelf-Registered Bond VII Phase II Year 2025 and Shelf-Registered Sukuk Mudharabah VI Phase II Year 2025. Currently, ADMF plans to issue new bond and sukuk tranches, with target proceeds of Rp1,200bn and Rp300bn, respectively. Both instruments will offer 1-yr, 3-yr, and 5-yr tenors, with the proceeds allocated for working capital. The book-building period is 16-29 Sep-2025, with offering coupon ranges of 5.50-6.10% for the 1-yr tenor and 5.65-6.60% for the 3-yr tenor, implying 28-88 bps and 35-130 bps of risk premiums above the current risk-free rate, respectively. Looking at the current yield curve and the fair risk premiums of ADMF bonds and the average AAA bonds, which we estimate at 50-58 bps, the new bond offerings will be attractive if they give coupon rates at 5.6% and 5.70% for the 1-yr and 3-yr tenors, respectively, or at the upper range of the offering coupon.<\/p>\n\n\n\n
Key Credit Update:<\/p>\n\n\n\n
New-booking is still under pressure, given that it was corrected by -19.2% YoY to Rp16.2tn as the Company still limited its lending disbursement amid volatility in the automotive market to get higher quality assets. However, ADMF s position in the finance industry has remained solid, as its new financing was still maintained among the top 3 in our coverage as per 1H25, after ASDF at Rp18.9tn in the second place. We expect ADMF s position to remain strong as one of the largest multi-finance players in Indonesia since it has strong relationships with major sole agents of motorcycles and cars throughout the country.<\/p>\n\n\n\n
Solid 2Q25 net profit. Total revenues were corrected by -5.7% YoY to Rp4,717bn in 6M25, in line with our expectation, as it represented 50% of our FY25 forecast. The interest expenses only went down by -3.7% YoY to Rp625bn; hence, the net interest income decreased by -6.7% YoY to Rp3,182bn, aligned with our forecast (50% of FY25F). However, provision expenses have begun to ease, as it has declined by -19.9% YoY to Rp981bn. Thus, the net profit for 2Q25 has picked up by +16% QoQ, even though for 6M25, it still decreased by -21.4% YoY to Rp602bn. This was in line with our expectation, as the net profit for 6M25 represented 55% of our FY24 forecast.<\/p>\n\n\n\n
Capital structure has remained the strongest among peers. ADMF s total equity at Rp11.4tn is the second-largest among finance companies under our coverage; hence, its capital structure is very strong, with a GR at 1.5x as of Jun-2025 compared to its peers range of 2.6 4.9x. With its strong capital, ADMF has ample room to support business expansion.<\/p>\n\n\n\n
Solid financial flexibility with strong parent support. ADMF s ability to raise funds in bad times is unquestionable. Being a subsidiary of PT Bank Danamon Tbk. (subsidiary of MUFG Bank, Ltd.) has provided it with easy access to funding. Furthermore, ADMF is a listed company with AAA rating; hence, it can raise funds from the capital market, either from stocks or bonds. ADMF routinely raises funds through bond issuances, with an average of Rp4tn-5tn per year and a strong track record of meeting its interest payments and maturing bonds<\/p>\n\n\n\n
Credit outlook: Stable<\/p>\n\n\n\n
We have a stable credit view on ADMF, given its strong position in the market, solid capital structure, and sound financial flexibility, either for expansion or meeting its obligations. Key risks: 1) Tight competition amid a weak automotive market. 2) Adverse economy due to trade war issues, geopolitical tensions, and weakening commodity prices, leading to weak demand for automotive financing and rising NPF.<\/p>\n\n\n\n
Bond Name<\/p>\n\n\n\n
Obligasi Berkelanjutan VII Adira Finance Tahap II Tahun 2025 & Sukuk Mudharabah Berkelanjutan VI Adira Finance Tahap II Tahun 2025<\/p>\n\n\n\n
Rating<\/p>\n\n\n\n
idAAA & idAAA(sy) by Pefindo<\/p>\n\n\n\n
Tenor & Coupon Indication<\/p>\n\n\n\n
1 yr: 5.50% – 6.10%<\/p>\n\n\n\n
3 yr: 5.65% – 6.60%<\/p>\n\n\n\n
Issuance size target<\/p>\n\n\n\n
Bonds: IDR 1.2 Trillion<\/p>\n\n\n\n
Sukuk: IDR 300 Billion<\/p>\n\n\n\n
Book Building Period<\/p>\n\n\n\n
16 – 29 September 2025<\/p>\n\n\n\n
Payment Date<\/p>\n\n\n\n
16 Oct 2025 (Tentative)<\/p>\n\n\n\n
<><\/p>","protected":false},"excerpt":{"rendered":"
Bond Valuation New issuances of Shelf-Registered Bond VII Phase II Year 2025 and Shelf-Registered Sukuk Mudharabah VI Phase II Year […]<\/p>\n","protected":false},"author":15,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"default","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","ast-disable-related-posts":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"var(--ast-global-color-4)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"footnotes":""},"categories":[7],"tags":[],"class_list":["post-5873","post","type-post","status-publish","format-standard","hentry","category-market-research"],"_links":{"self":[{"href":"https:\/\/himdasun.or.id\/en\/wp-json\/wp\/v2\/posts\/5873","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/himdasun.or.id\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/himdasun.or.id\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/himdasun.or.id\/en\/wp-json\/wp\/v2\/users\/15"}],"replies":[{"embeddable":true,"href":"https:\/\/himdasun.or.id\/en\/wp-json\/wp\/v2\/comments?post=5873"}],"version-history":[{"count":1,"href":"https:\/\/himdasun.or.id\/en\/wp-json\/wp\/v2\/posts\/5873\/revisions"}],"predecessor-version":[{"id":5874,"href":"https:\/\/himdasun.or.id\/en\/wp-json\/wp\/v2\/posts\/5873\/revisions\/5874"}],"wp:attachment":[{"href":"https:\/\/himdasun.or.id\/en\/wp-json\/wp\/v2\/media?parent=5873"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/himdasun.or.id\/en\/wp-json\/wp\/v2\/categories?post=5873"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/himdasun.or.id\/en\/wp-json\/wp\/v2\/tags?post=5873"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}