UNTR
Contact our analyst Revita
36% Upside, BUY
August 2nd, 2023
Current price Rp 26525
Target price Rp 36000
August 2nd, 2023
Current price Rp 26525
Target price Rp 36000
Komatsu sales volume up 9% YoY
In 1H23, Komatsu experienced a significant increase in sales volume, with a growth of +9% YoY. The sales volume rose to 3,145 units from 2,873 units in 1H22, surpassing our initial estimation. These sales can be attributed to the construction machinery segment. During the same period, construction machinery contributed 30% to UNTR's revenue, making it the second-largest revenue generator. The booked revenue for this segment also saw a YoY increase of +16%. According to UNTR, Komatsu holds a leading position in the heavy equipment market with a market share of 32%. Taking into account the latest results, we have adjusted our estimation for Komatsu's sales volume in 2023F to 5,500 units, which is slightly lower than the 2022FY figure of 5,753 units.
In 1H23, Komatsu experienced a significant increase in sales volume, with a growth of +9% YoY. The sales volume rose to 3,145 units from 2,873 units in 1H22, surpassing our initial estimation. These sales can be attributed to the construction machinery segment. During the same period, construction machinery contributed 30% to UNTR's revenue, making it the second-largest revenue generator. The booked revenue for this segment also saw a YoY increase of +16%. According to UNTR, Komatsu holds a leading position in the heavy equipment market with a market share of 32%. Taking into account the latest results, we have adjusted our estimation for Komatsu's sales volume in 2023F to 5,500 units, which is slightly lower than the 2022FY figure of 5,753 units.
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Mining contracting segment up +22% YoY22% YoY
As of 1H23, mining contracting remains the main contributor to UNTR's revenue, accounting for 35% of total revenue, with PAMA being the main driver. During 1H23, mining contracting generated revenue of IDR 24.3 trillion, reflecting a YoY increase of +22%. PAMA also achieved significant growth in coal production, with a YoY increase of +18% to 59 million tons. Overburden removal also saw a YoY increase of +20% to 524 million bcm. The total average strip ratio increased to 8.9x compared to 8.7x in 1H22. Considering the volatility in the coal market going forward, we have adjusted our estimation for coal production in 2023F to 127.6 million tons. This adjustment takes into account uncertainties and fluctuations in the coal market..
Other segments flat
The coal mining segment of the company has achieved a revenue of IDR 20.1 trillion in the current period, representing an increase of +8% YoY compared to IDR 18.7 trillion in 1H22. Additionally, there was a notable +11% YoY increase in coal sales volume, reaching 6.4 million tons. On the other hand, the gold mining segment experienced a decrease in revenue by -18% YoY, amounting to IDR 3.2 trillion. The sales volume of gold also declined by -24% YoY, with 110,000 ounces sold in the current period compared to 144,000 ounces in 1H22.
Nickle industry expansion
In June 2023, UNTR, through its subsidiary PT Danusa Tambang Nusantara (DTN), acquired a 19.99% stake in Nickel Industries Limited (NIC) for a total transaction value of A$ 943 million. This investment presents UNTR with additional opportunities to expand its portfolio in nickel production moving forward.
Valuation: 36% upside potential
Based on the 1H23 results, we are maintaining our target price for UNTR at IDR 36,000, which represents a valuation of 4.51x PER (Price-to-Earnings Ratio). With a potential upside of 36%, we are also maintaining our BUY recommendation for UNTR.
As of 1H23, mining contracting remains the main contributor to UNTR's revenue, accounting for 35% of total revenue, with PAMA being the main driver. During 1H23, mining contracting generated revenue of IDR 24.3 trillion, reflecting a YoY increase of +22%. PAMA also achieved significant growth in coal production, with a YoY increase of +18% to 59 million tons. Overburden removal also saw a YoY increase of +20% to 524 million bcm. The total average strip ratio increased to 8.9x compared to 8.7x in 1H22. Considering the volatility in the coal market going forward, we have adjusted our estimation for coal production in 2023F to 127.6 million tons. This adjustment takes into account uncertainties and fluctuations in the coal market..
Other segments flat
The coal mining segment of the company has achieved a revenue of IDR 20.1 trillion in the current period, representing an increase of +8% YoY compared to IDR 18.7 trillion in 1H22. Additionally, there was a notable +11% YoY increase in coal sales volume, reaching 6.4 million tons. On the other hand, the gold mining segment experienced a decrease in revenue by -18% YoY, amounting to IDR 3.2 trillion. The sales volume of gold also declined by -24% YoY, with 110,000 ounces sold in the current period compared to 144,000 ounces in 1H22.
Nickle industry expansion
In June 2023, UNTR, through its subsidiary PT Danusa Tambang Nusantara (DTN), acquired a 19.99% stake in Nickel Industries Limited (NIC) for a total transaction value of A$ 943 million. This investment presents UNTR with additional opportunities to expand its portfolio in nickel production moving forward.
Valuation: 36% upside potential
Based on the 1H23 results, we are maintaining our target price for UNTR at IDR 36,000, which represents a valuation of 4.51x PER (Price-to-Earnings Ratio). With a potential upside of 36%, we are also maintaining our BUY recommendation for UNTR.
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