United Tractors stock recommendations when the price of coal is trending, has decreased. United Tractors stock is quite recommended because it has 2 productions. The company has a coal mining and heavy equipment rental business.
In fact, for 2022 the company will experience quite significant growth. But what about 2023? To make it clearer, we can find out from the following information.
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United Tractors Stock Recommendations in 2023
United Tractors shares are shares issued by PT United Tractors Tbk, a company engaged in the sale, rental and repair of heavy equipment. Starting from trucks, bulldozers, and mining machines.
These shares are listed on the Indonesia Stock Exchange (IDX) with the ticker code UNTR. United Tractors shares are one of the most popular stocks on the Indonesian stock market and are frequently traded by stock investors in Indonesia.
The previous year, PT United Tractors Tbk (UNTR) still experienced a significant contribution. The company’s coal mining segment accounts for 42% or IDR 12.6 trillion of the company’s total operating profit of IDR 29.13 trillion.
Last year’s sales volume and percentage of thermal and metallurgical sales were still the same. The average selling price of coal is down 25% compared to last year.
This condition causes the potential for coal sales to decline. The decrease in operating profit from the coal segment for 2023 is estimated at IDR 4 Trillion.
The decline in coal and gold production actually had an impact on the company’s performance. Meanwhile, the forecast for the heavy equipment or mining lease and contract segment will still be solid in 2023.
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Decrease in Coal Production
Recommendations for United Tractors shares during a decline are actually affected by declining sales. Conservatively, United Tractors’ total share sales fell 9.7% yoy (year on year) to IDR 112 trillion.
For a 23.5% YoY decrease in net profit to IDR 123.60 trillion with a 104% YoY increase in net profit to IDR 21 trillion. Analyst Henan Putihrai from Sekuritas Alroy Soeparto said that the realization of UNTR’s revenue and net profit in 2022 was in line with projections.
The company’s share income increased by 55.56 YoY, namely to IDR 124.60 trillion. Then to increase net profit from 104% YoY to IDR 21 trillion.
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Companies Experiencing Projections
Realized revenue and net profit from United Tractors shares last year were in line with projections. Meanwhile, the income and net profit of these shares reflect the estimated 104% and 103% respectively.
This achievement was driven by the booming coal mining industry throughout 2022. Even the mining services, heavy equipment and coal mining segments jumped by 45%, 76% and 124% YoY.
The driving factor for this mining activity is the increase in commodity prices. Thus driving increased demand for heavy equipment and mining services.
So that with an increase in net profit of up to 104% YoY, United Tractors shares will pay almost 4x higher dividends. The final dividend payer is IDR 6,185 per share. Broadcast 110% dividend payout ratio.
The recommendation for United Tractors shares is overweight with a target price of IDR 32,500 per share in 2023. A buy recommendation with a target price of IDR 37,000 per share. (R10/KAMPLONGAN)