UNTR
Contact our analyst Revita
46% Upside, BUY
March 1st, 2023
Current price Rp 28075
Target price Rp 41100
March 1st, 2023
Current price Rp 28075
Target price Rp 41100
Targetting 6.80% revenue growth
As of 2022, UNTR booked revenue of IDR 123.6 trillion or an increase of +56% YoY. In line with revenue, bottom line profit continued to increase significantly, up 104% YoY to IDR 21 trillion helped by a slower increase in operating expenses of only 17% YoY. Komatsu sales volume increased by 86% YoY from 3,088 units to 5,753 units. Overall, construction machinery revenue increased by 43% YoY with 116 mn tons of coal production and 954 mn BCM of overburden removal. Coal mining revenue increased by 127% YoY to IDR 31.1 trillion supported by the increase in the average selling price. Gold mining revenue decreased by -8% YoY to IDR 7.7 trillion with gold sales volume down -13% YoY to 286k ounces. Mining contracting and construction machinery were still the major contributors to total revenue at 38% and 30% respectively. Based on 2022 results, we revise up our revenue target in 2023-2024F to a CAGR of 7% within 2 years with komatsu volumes targeted to stay at 4,000 units with an expected less favourable coal market this year compared to 2022A.
As of 2022, UNTR booked revenue of IDR 123.6 trillion or an increase of +56% YoY. In line with revenue, bottom line profit continued to increase significantly, up 104% YoY to IDR 21 trillion helped by a slower increase in operating expenses of only 17% YoY. Komatsu sales volume increased by 86% YoY from 3,088 units to 5,753 units. Overall, construction machinery revenue increased by 43% YoY with 116 mn tons of coal production and 954 mn BCM of overburden removal. Coal mining revenue increased by 127% YoY to IDR 31.1 trillion supported by the increase in the average selling price. Gold mining revenue decreased by -8% YoY to IDR 7.7 trillion with gold sales volume down -13% YoY to 286k ounces. Mining contracting and construction machinery were still the major contributors to total revenue at 38% and 30% respectively. Based on 2022 results, we revise up our revenue target in 2023-2024F to a CAGR of 7% within 2 years with komatsu volumes targeted to stay at 4,000 units with an expected less favourable coal market this year compared to 2022A.
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Diversify into nickle mining
UNTR through its subsidiary, PT Danusa Tambang Nusantara signed a Conditional Shares Sale and Purchase Agreement (CSPA) to acquire 90% of the shares of PT Stargate Pacific Resources (SPR) that holds a mining business license for nickel production and acquired 90% of the shares of PTStargate Mineral Asia (SMA) which holds a license to develop and operate a nickel smelter processing plant. This is part of UNTR’a strategy to diversify and expand their business portfolio into nickel. We believe, this will strengthen UNTR’s earnings in the future.
Valuation: 46% upside potential
Based on 2022 result, We revise our target price for UNTR to IDR 41,100, which is a valuation of 6.04x PER. With 46% upside potential, we maintain our BUY recommendation.
UNTR through its subsidiary, PT Danusa Tambang Nusantara signed a Conditional Shares Sale and Purchase Agreement (CSPA) to acquire 90% of the shares of PT Stargate Pacific Resources (SPR) that holds a mining business license for nickel production and acquired 90% of the shares of PTStargate Mineral Asia (SMA) which holds a license to develop and operate a nickel smelter processing plant. This is part of UNTR’a strategy to diversify and expand their business portfolio into nickel. We believe, this will strengthen UNTR’s earnings in the future.
Valuation: 46% upside potential
Based on 2022 result, We revise our target price for UNTR to IDR 41,100, which is a valuation of 6.04x PER. With 46% upside potential, we maintain our BUY recommendation.
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