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

Jasa Marga, Only the Begining. CLSA

Jasa Marga is in the best position for infra boom in the future with the
potential implementation of the land bill. The company just signed a MoU
to be the sole operator for Trans Sumatra network, and may also get
three new toll road projects in North-East JORR2. We also highlighted
the power of connectivity which will boost IRRs of projects and our DCFvaluation
to Rp7,900/sh. Resilient traffic, future expansion, better cost
management and strong positioning remain its key success factors

Saham Pilihan Rabu, 22 Februari 2012

INCO : Terbentuk pola reversal keatas yang berpotensi untuk berlanjut didukung oleh Stochastic, histogram, dan MACD yang mulai rebound.

Support    : S1  3.550    S2  3.425

Resisten   : R1  3.825    R2  4.050

Rekomendasi : Trading Buy

Indika Energy, Craving Consolidation, CLSA

Energy investment house, Indika Energy, will finally achieve its long held
dream of consolidating a producing coal asset at the top line. The group is
wasting no time deploying cash raised from the 29% sell down of mining
contractor Petrosea buying an 85% stake in privately held Multi
Tambangjaya Utama at what we believe is fair value. The group continues
to look attractive on a sum-of-the-parts basis and downside share price
risk is looks limited at 7x PE. Retain BUY with target price Rp3,450.