Mandiri Sekuritas UNTR A Better Tomorrow

Our survey on leasing companies indicates that leasing rate for heavy equipment remain high at 22-25% p.a. Jan09 sales (+53.2% mom) rebounded, easing the worry when the month after Moslem Festive did not rebound in Sep08. Our survey on listed mining companies also indicates that demand for mining contracting remains robust. Thus, we upgraded FY09F-FY10F earnings projections by 29.7-36.6% on higher extraction and overburden assumption. We also assigned new corporate tax rate on our valuation. Ultimately, we reiterated our Buy stance at new T! P of Rp7, 800/share, implying a target PER09F of 9.8x.