UNTR
Contact our analyst Revita
17% Upside, Hold
8th December 2021
Current price Rp 22,475
Target price Rp 26,290
8th December 2021
Current price Rp 22,475
Target price Rp 26,290
Targetting 11% revenue growth
As of 9M21, UNTR booked revenue of IDR 57.8 trillion or 24% growth YoY while bottom line profit increased 46% YoY from a slower increase in operating expenses of only 5%. Mining contracting is still the largest contributor to revenue at 42% followed by construction machinery 27%, coal mining 18%, gold mining 11%, and construction 2%. Komatsu’s 9M21 heavy equipment sales volume increased 84% YoY to 2,194 units. Coal production increased only 2.34% YoY but ASP increased 6,95% YoY and helped mining contracting revenue to increase 22% in 9M21. Komatsu’s sales target remains at 2,500 units driven by stronger demand in mining as coal demand increases together with higher construction activity. We estimate revenue in 2021-2022F will increase at a CAGR of 10.78% compared to 2020A.
As of 9M21, UNTR booked revenue of IDR 57.8 trillion or 24% growth YoY while bottom line profit increased 46% YoY from a slower increase in operating expenses of only 5%. Mining contracting is still the largest contributor to revenue at 42% followed by construction machinery 27%, coal mining 18%, gold mining 11%, and construction 2%. Komatsu’s 9M21 heavy equipment sales volume increased 84% YoY to 2,194 units. Coal production increased only 2.34% YoY but ASP increased 6,95% YoY and helped mining contracting revenue to increase 22% in 9M21. Komatsu’s sales target remains at 2,500 units driven by stronger demand in mining as coal demand increases together with higher construction activity. We estimate revenue in 2021-2022F will increase at a CAGR of 10.78% compared to 2020A.
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Gold still second largest profit contributor
As of 9M21, the contribution to pretax profit from gold mining decreased to 28% from 34% in 9M20 but it is still the second largest contribution. As of 9M21, Total sales volume of gold equivalent from Martabe was 258,000 ounces, up 1% compared to 256,000 ounces in 9M20. Gold mining recorded net revenue of IDR 6.5 trillion up 17% YoY. The ASP (Average Selling Price) for Gold was USD. 1,750 per ounce compared to USD. 1,482 per ounce in 9M20. Gold sales volume in 2021 is targeted at 342,400 ounces compared to 320,000 ounces in 2020. We believe UNTR’s bottom line profit growth this year will still be driven by gold mining as it remains the second largest contributor.
Valuation: 17% upside potential
Our target price for UNTR is IDR 26,290, which is a valuation of 10,7x PER with 17% upside potential. We have a HOLD recommendation.
As of 9M21, the contribution to pretax profit from gold mining decreased to 28% from 34% in 9M20 but it is still the second largest contribution. As of 9M21, Total sales volume of gold equivalent from Martabe was 258,000 ounces, up 1% compared to 256,000 ounces in 9M20. Gold mining recorded net revenue of IDR 6.5 trillion up 17% YoY. The ASP (Average Selling Price) for Gold was USD. 1,750 per ounce compared to USD. 1,482 per ounce in 9M20. Gold sales volume in 2021 is targeted at 342,400 ounces compared to 320,000 ounces in 2020. We believe UNTR’s bottom line profit growth this year will still be driven by gold mining as it remains the second largest contributor.
Valuation: 17% upside potential
Our target price for UNTR is IDR 26,290, which is a valuation of 10,7x PER with 17% upside potential. We have a HOLD recommendation.
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