· UT postponed its plan on acquiring one remaining coal mine as the company failed to meet agreement in negotiation process. UT said that the completion of this acquisition will be delayed from the company’s original schedule. Previously, UT targeted to complete the transaction in 4Q10.
· Separately, UT said that the company’s operational data remain stable in September where UT cited that its heavy equipment sales volume was not disrupted by rainfall season. Despite such statement, we view that long holiday season in September was a major concern in heavy equipment sales instead of rainfall.
· Rain may affect the company’s coal mining contracting and coal mine business where this has affected UT’s profitability in 2Q10.
· Currently UNTR is trading at 2011F PER of 14.5x and EV/EBITDA of 7.7x, Hold.
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