Mandiri Sekuritas United Tractors: heavy equipment sales continue to surge up 16%mom in Feb10 (UNTR, Rp17,400, Buy, TP:Rp19,600)

United Tractor reported heavy equipment sales in the month of February of 394 units (+16%mom), thus, the highest posted monthly sales since Sep08. Once again, Feb10 demand was dominated by mining sector which accounted for 54% of unit sales. As of 2M10, heavy equipment sales have totaled 733 units (63%yoy) and are running ahead of our FY10 target of 3,500 (equivalent to about 21% of FY10F targets). We maintain buy for the stock which currently trades at PER10F 14.5x. while posing a 13% upside to our price objective.