United Tractors (UNTR.JK) Alert: Weak January Komatsu Sales But Not Alarming, Citi

United Tractors (UNTR.JK)

Alert: Weak January Komatsu Sales But Not Alarming

 Weak start for heavy equipment sales but management maintains guidance —

Komatsu sales fell 15.6% Y-Y (+0.7% M-M) in January to 617 units. The company

attributed the surprising drop to customers’ requests for postponement of their order

deliveries due to heavier-than-normal rainfall in January. We construe the drop as

delayed deliveries and expect a substantial rebound in the next couple of months.

We remain comfortable with our 13% Y-Y sales growth in 2012E to 9,560 units.

Management also maintains its 10-15% growth guidance for 2012.

CLSA INDO update: ITMG FY11 Result 11% ahead of CLSA on strong ASP, hedging gain

Stock: Indo Tambangraya Megah (ITMG IJ)

Market cap, T/O: US$5.4b, US$2.5m

Rec, TP: BUY, Rp46,000/sh

Event: FY11 result released, 11% ahead of 11CL, 14% ahead of consensus estimates

Our resources analyst Jayden’s comments below.

·         ITM (the 3^rd largest coal miner by market cap listed in Indonesia) released audited accounts after market close today.

·         The earnings result is 14% ahead of consensus and 11% ahead of CL estimates.

·         Production was in line with guidance at 24.7mt for the full year, however a strong 4Q11 ASP led to revenues ahead of our and consensus expectations.

Saham Pilihan Kamis, 23 Februari 2012

PNLF : Muncul pola hammer pada candle stick didukung oleh reboundnya stochastic dan menghijaunya histogram membuka peluang terjadinya penguatan.

Support    : S1  135    S2  129

Resisten   : R1  149    R2  159

Rekomendasi : Trading Buy