UNTR Revises Plans and Prepares for Up to USD 1 Billion Acquisition
Sun 31 Aug 2025, 02:23 AM
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PT United Tractors Tbk (UNTR) revised its 2025 overburden volume guidance to 1.18 billion bcm, lower than the initial target of 1.25 billion bcm and implying a 3% year-on-year decrease from the 2024 realization.
The downward revision of the mine's overburden and rock removal target was due to poor weather in the first half of 2025, which hampered mining contractor activity. This was revealed by United Tractors management in a recent earnings call with analysts discussing second-quarter 2025 performance.
"The client's stripping ratio for 2025 is estimated to be around 7.7-7.8 times, which implies coal production of 151-153 million tons, or an increase of 2-3.4% year-on-year from the 2024 realization," Stockbit Sekuritas wrote in a note, quoted on Sunday (August 31, 2025).
Meanwhile, UNTR, maintained its 2025 sales guidance for Komatsu-brand heavy equipment at 4,600 units. Sales are projected to remain relatively flat in 2026, before increasing in 2027 as the mining sector enters its heavy equipment replacement cycle.
Meanwhile, coal sales volume in 2025 is estimated at 14 million tons, unchanged from initial guidance. Sales volume in 2026 is expected to be flat or slightly higher, with a projected maximum sales volume of 15 million tons.
For 2027, UNTR projects an increase in sales volume to 17-18 million tons, in line with the completion of port infrastructure development.
Regarding the mineral and gold segments, UNTR maintains its gold and nickel sales guidance for this year at 24 thousand oz of gold and 2 million tons of nickel, respectively.
UNTR will focus on the minerals sector rather than the renewable energy sector due to the potential for larger businesses to be acquired. "UNTR is targeting acquisitions worth USD 500 million to USD 1 billion, although management did not specify a timeline," said Stockbit Sekuritas.
Overall, according to Stockbit, the points conveyed by UNTR management align relatively with Stockbit's views. "We remain neutral on UNTR. Investors should monitor the progress of the acquisition plan, as a quality and scalable acquisition could be a positive catalyst for UNTR's share price," the securities broker stated.
Currently, in the mining contractor sector, Stockbit is more positive on PT Darma Henwa Tbk (DEWA) and PT Petrosea Tbk (PTRO). This assessment is based on the growth drivers of each company.
Stock Price Recommendations and Targets
In the second quarter of 2025, United Tractors (UNTR) posted revenue of IDR 34.26 trillion, relatively flat quarterly (0.0% quarter-on-quarter) but up 6.7% year-on-year (yoy). Cumulatively, revenue for this subsidiary of PT Astra International Tbk (ASII) increased 6.2% year-on-year in the first half of 2025 to IDR 68.52 trillion.
UNTR's net profit in the second quarter of 2025 was IDR 4.94 trillion, a 55% quarter-on-quarter increase, but a slight 0.8% year-on-year decline. This brings the company's total net profit for the first half of 2025 to IDR 8.13 trillion, a 14.7% year-on-year decline.
"UNTR's net profit in the first half of 2025 was still below analyst expectations, reaching 44.7%," wrote Miftahul Khaer, an equity researcher at Kiwoom Sekuritas Indonesia, in his research.
Operationally, UNTR's Komatsu heavy equipment sales in the second quarter of 2025 reached 1,343 units, a 3% decrease quarter-on-quarter (QoQ) but a 31.5% increase year-on-year. Total sales for the first half of 2025 reached 2,728 units, a 27.1% increase year-on-year.
Coal production in the second quarter of 2025 reached 36 million tons, up 2.7% quarter-on-quarter (QoQ) but down 3.3% year-on-year. Gold sales reached 368,000 ounces, up 19.3% quarter-on-quarter (QoQ) or 33.2% year-on-year. Nickel sales reached 562,000 WMT, up 7% quarter-on-quarter (QoQ) or 12.3% year-on-year.
"Despite challenges in several segments, UNTR demonstrated resilience in its construction and gold mining business lines, while also facing margin pressure across its operations," Miftahul said.
Kiwoom Sekuritas recommends holding UNTR shares. Based on multiple valuation methods (DCF, P/E, and PBV) and a projected decline in net profit, UNTR's target share price for the next 12 months has been revised to IDR 26,775 from IDR 28,725.
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