Operational performance of PT United Tractors Tbk down 2.5% on July

Operational performance of PT United Tractors Tbk (UNTR, Rp14.750, NEUTRAL, TP Rp17.000) during July were down 2.5% month on month (MoM) rated below expectations. The decline caused by a decrease in mining and construction sectors in the same period.



Sales of UNTR in construction sector during the first 7 months of 2013, which represents 55% of the 2013 target is still under estimation. The sales decline was associated with rising interest rates and the fell of Rupiah's exchange rate against the U.S. dollarto undermine the interests of the non-mining sector. Mining sector demand is still low due to the price of coal is still weak.

Contract mining down 5% MoM due to higher rainfall in July. Overburden removal project fell 5.7% MoM and coal production fell 5.2% MoM in July, still within the expectations. July coal sales volume fell 41.2% MoM due to weak prices.

Low price also makes UNTR lowering sales volume and are under expectation and only 41.7% of our 2013-year target. UNTR currently traded at the price per earnings ratio (PE ratio)  11.6 x for 2013 and 10.5 x for 2014.

for Indonesia Market Summaries