Minggu, 18 April 2010

DBS United Tractors: Hold; Rp19,200; TP Rp12.695; UNTR IJ

1Q10 Heavy equipment sales up 93.95%

United Tractors sold 1,218 unit of heavy equipment in 1Q10 or increased by 93.9%yoy from only 628 units in the same period last year. It represents 32% of our full year sales volume of 3,785 units. Strong demand came from mining and plantation sectors. For the full year, the company expects 28.5%yoy growth in heavy equipment sales to 4,000 units. This year, the company plans to spend up to US$400m capital expenditure to buy heavy equipment and to finance the acquisition of new coal mining.

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