UNTR IJ - Strong March Coal Sales; Reiterate BUY
Andrey WIJAYA, Fauzan DJAMAL, Ryan SANTOSO - RHB Sekuritas
Link to report: https://bit.ly/2Y8RGDQ
♦️ Reiterate BUY, IDR21,700 TP, 34% upside and c.7% yield.
♦️ United Tractors still booked weak heavy equipment (HE) sales in March, from uncertainties related to COVID-19.
♦️ However, coal sales continued growing, buffered by stable prices – albeit offset by the soft performance from HE and mining contracting.
♦️ Although its gold sales growth has been capped during the pandemic, the commodity’s price (+14% YTD) should keep this segment afloat in the long run.
♦️ Key downside risks: further weak HE sales, and an unprecedented downturn in coal prices.
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