%20Shares%20Can%20Still%20Rise.jpeg "Kegiatan pertambangan Grup United Tractors (UNTR). (Foto: Perseroan)") |
| Kegiatan pertambangan Grup United Tractors (UNTR). (Foto: Perseroan) |
PT United Tractors Tbk (UNTR) recorded strong sales in the first quarter of 2022, exceeding analyst expectations. The increase in coal prices will be the engine of growth for the subsidiary of PT Astra International Tbk (ASII) this year.
In March 2022, United Tractors posted Komatsu heavy equipment sales of 636 units, up 133% on an annual basis and up 20% on a monthly basis. This achievement was supported by strong demand from the mining sector of 413 units, up 270% on an annual basis or an increase of 63% on a monthly basis. The surge in growth was mainly driven by favorable coal prices.
"On a quarterly basis, United Tractors posted Komatsu sales of 1,694 units in the first quarter of 2022, growing 146% over the same period last year or already reaching 45% of expectations throughout 2022. We think there is a potential increase for unit sales in the current 2022 period for Komatsu," wrote Mirae Asset Sekuritas analysts Hariyanto Wijaya and Emma Fauni in their research.
Hariyanto and Emma revealed that the issuer with the UNTR stock code would increase the volume of mining contracts. Amid heavy rains in March that surrounded the Sangatta mining area with heavy flooding, the company's subsidiary, PT Pamapersada Nusantara (PAMA), was able to record a higher MoM monthly coal production of 8.6 million tons in March 2022, up 6% on a yearly basis. monthly, minus 13% yearly.
Additionally, PAMA also recorded a higher monthly overburden removal of 73.6 million BCM, up 8% m/m and up 6% y/o.
“We expect monthly contract mining volumes from overburden removal and coal production to continue to increase in the coming months, supported by improving weather. In addition, PAMA's clients, namely coal miners, want to increase their coal production to monetize the current profitable coal price,” said Hariyanto and Emma.
Based on research, coal sales volume in the first quarter of 2022 is in line with Mirae Asset's expectations. UNTR posted coal sales volume of 1.1 million tonnes in March (+0.1% yr, -23% mth), which was in line with analyst expectations, as coal sales reached 2.9 million tonnes in Q1 -2022. “The result represents 32.8% of our 2022 expectation of 9.0 million tons,” explained Hariyanto and Emma.
The company's gold sales are also considered to be in line with analyst projections. UNTR posted gold sales in the first quarter of 2022 of 74 thousand ounces , down 22% YoY, which was in line with analyst expectations. Mirae Sekuritas forecasts a decrease of 24% from 2022 expectations of 314 thousand ounces .
Therefore, Mirae still maintains the UNTR price target of Rp. 31,900. “We maintain our assumption and target price of IDR 31,900, which is lowered from our target P/E of 10.1 times in FY22 EPS. Short-term catalysts include the company's operational guidelines, particularly sales of Komatsu 2022 units, and higher monthly mining contractor operating volumes," concluded Hariyanto and Emma.
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