Our resource analyst Olie has taken over coverage on United Tractors (UNTR IJ) as a natural extension to his resource coverage. Our ex UNTR analyst Wilianto has decided to focus more on regional CPO coverage.
As his first move, Olie has revised up his earnings forecast for United Tractors (UNTR IJ) by 30% in 2009 , 21% in 2010, and 15% in 2011. This follows UNTR’s strong performance in 1Q09. Olie also raised TP to Rp10,000 (fr Rp8,000).
However, Olie also cut the rating from Buy to Outperform. UNTR does not look particularly cheap relative to its historical trading range. The stock is trading close to 12x PE back in the end of 2007 and early 2008, this was when heavy equipment sales this was when heavy equipment sales expectation was more than twice of today’s level and coal prices were hovering above US$100/t.
A cheaper alternative to UNTR is Hexindo (HEXA IJ), which is the sole distributor for Hitachi heavy equip. Main shareholders are Hitachi (53%) and Itochu (22%). The stock is trading on 6.8x 09 Vs 11.4x 09CL for UNTR. But it is not just cheap, though. HEXA is also known for its good CG and strong balance sheet. The kicker here is plenty more upside for the counter from the recently signed big contracts with BUMI, Thiess, and Newmont.
Tidak ada komentar:
Posting Komentar