Sales of Komatsu heavy equipment owned by PT United Tractors Tbk ( UNTR ) are still growing steadily. During the first seven months of 2022, this Kompas100 Index constituent recorded sales of 3,399 heavy equipment units.
This figure is up 117.32% from the realization of sales in the same period last year which was only 1,564 units Sales were still dominated by the mining sector, which reached 62% of total sales, followed by the construction sector at 18%. Then, sales to the forestry sector are 11% and the agribusiness sector is 9% of total sales.
In July 2022 alone, this subsidiary of PT Astra International Tbk ( ASII ) sold 526 units of heavy equipment. This number is up 11.20% from sales in June 2022 of 473 Komatsu units. When compared to the same period last year, sales in July 2022 rose 159.11%, where sales in July 2021 only reached 203 units.
Previously, UNTR decided to raise Komatsu's sales target for heavy equipment this year. UNTR increased sales to 4,800 units from the previous 3,700 units. United Tractors Corporate Secretary Sara K. Loebis said the upward revision of the target was based on the results of discussions with the principal and also the results of market analysis.
"We have adjusted our sales projections while still monitoring market movements until the end of the year," said Sara. Sara said that the ability of producers/principals to produce tools certainly cannot be accelerated quickly, but gradually. "That's why our projections need to be adjusted to the principal's ability," he continued.
This means, in the first seven months of 2022, UNTR has realized 70.8% of this year's heavy equipment sales target.
Meanwhile, UNTR has used capital expenditure or capital expenditure (capex) of IDR 3.1 trillion until the first half of this year. The capex absorption is equivalent to US$ 209 million of the total capital expenditure prepared for this year of US$ 750 million-US$ 800 million.
BRI analyst Danareksa Sekuritas Ignatius Teguh Prayoga said demand for heavy equipment remains solid, but there is a backlog from the supply side . Given the solid demand for heavy equipment, Prayoga assesses that an upward revision of the sales target is still possible if the supply side recovers.
Recently, UNTR through PT Energia Prima Nusantara or EPN officially added its share ownership in PT Arkora Hydro Tbk (ARKO), the operator of the Mini Hydro Power Plant (PLTM). The total value of the purchase transaction reached Rp 176.5 billion, so that the total ownership of the Astra Group through UNTR in ARKO increased to 31.49%.
BRI Danareksa Sekuritas assesses that the investment value per potential relative capacity made by UNTR is relatively cheap at US$ 1.77 million per megawatt (MW) compared to the PLTM guidelines provided by the Ministry of Energy and Mineral Resources of US$ 2 million per MW. BRI Danareksa Sekuritas maintains a buy recommendation with a target price of Rp 39,500 from the previous Rp 34,000.
Meanwhile, NH Korindo Sekuritas Indonesia analyst Arief Machrus recommends buying UNTR shares with a target price of Rp 38,000. NH Korindo Sekuritas sees the increase in consumer companies' energy commodity production targets will keep the demand for UNTR heavy equipment high.
Source: https://industri.kontan.co.id/news/united-tractors-untr-catat-kenaikan-penjualan-alat-berat-11732-per-juli-2022
