PT United Tractors Tbk (UNTR) is projected to be able to keep the increase in sales of heavy equipment and coal mining business until next year. It is expected to be the underpinning the growth of financial performance.
RHB Securities is targeting a rise in the company's net profit to Rp 8.86 trillion (USD 665 million) in 2018, compared to an estimate of the year 2017 Rp 7.66 trillion and realization years ago of Rp 5 trillion. Revenue is expected to rise to Rp 70.50 trillion (USD 5.2 billion) in 2018, compared this year's estimate of Rp 62.43 trillion and revenues last year of Rp 45.53 trillion.
RHB Securities analyst Hariyanto Wijaya said, the trend continued with the company's business until next year are shown over the success of the realization of appropriate sales targets until October 2017.
From the heavy equipment sales, the company managed to sell as much as 314 Komatsu heavy equipment unit October 2017, compared to the same month last year as many as 218 units. The total sales from heavy equipments business from January-October 2017 reached 3,058 units or the equivalent of 86.9% of the targets set by RHB Securities sales as much as 3,520 units of heavy equipments.
"Based on the company's management estimates the demand for heavy equipment mining sector tends to rise until the end of next year. Depending on how the company's ability get the supply of heavy equipment from Komatsu principals to meet rising demand, "he writes in a research published in Jakarta.
