Here we are going to look at a company based in Indonesia, which also part of the Astra International group. This company has operated nearly 50 years old in Indonesia. One of the biggest in its sector, its name is United Tractors.

Company Information

UNTR Cover

PT United Tractors Tbk distributes and leases construction machinery includes Komatsu, Nissan Diesel, Scania, Bomag, Valmet, and Tadano brands. The company also provides contract mining services, and trades and assembles heavy equipment. United Tractors (UT/the Company) is the leading and the largest distributor of heavy equipment in Indonesia, providing products from world-renowned brands such as Komatsu, UD Trucks, Scania, Bomag, Tadano, and Komatsu Forest.

We are a company with a long history. Established on October 13th, 1972, the Company reached an important milestone on September 19th, 1989, by listing its shares in Jakarta and Surabaya Stock Exchange as PT United Tractors Tbk (UNTR), with PT Astra International Tbk as the majority shareholder. This initial public offering marked the United Tractors’ commitment to becoming the world-class solution-driven company in heavy equipment, mining, and energy for the benefit of stakeholders.

Today, our vast distribution network includes 19 branch offices, 22 site support offices, and 11 representative offices in 22 provinces across the country. Not content with being the largest distributor of heavy equipment in the country, UNTR also plays an active role in the field of mining contracting and has recently ventured into the coal mining business. UNTR conducted its businesses through three major business units known as Construction Machinery, Mining Contracting, and Mining.

UNTR Milestones

Executives who lead UNTR are Djony Bunarto Tjondro as the President Commissioner and Franciscus Xaverius Laksana Kesuma “Frans Kesuma” as the President Director. UNTR IPO-ed on 19 Sep 1989 at an initial price IDR 7.250/share with PT Risjad Salim Registra as the sole underwriter.

Key Financial Statistics

Pictures provided.

UNTR Financial Statements
UNTR FInancial Ratios

Highlights of 2020

  • Recovery is in the move from the mining businesses. Revenue from heavy equipment for mining reaches 85 units while June only at 76. The total accumulated in 7 months of 2020 holds about 938 in total, dropped 55.8% compared to last year’s performance (2.122 units).
  • Revenue from the Coal mines industry is going better, currently at 691.000 tons from PT Tuah Turangga Agung in July 2020. Increase 11.32% year-on-year.
  • Gold in July performance lower than June 2020, 26.000 ounces, and 32.000 ounces, the highest was in May at 40.000 ounces. year-on-year drop 8.1% due to PSBB (pembatasan sosial berskala besar), the active workers only 50%. 2020 target 255.000 ounces-300.000 ounces.
  • UNTR lowered its Capex about USD 420 Mio in Capex due to the COVID-19. The 2020 Capex only IDR 3.5 T.

Target Price

DanareksaBuy Rating29.000
J.P. MorganBuy Rating33.000
Korea InvestmentBuy Rating26.800
Mirae Asset DaewooBuy Rating26.000
NomuraBuy Rating29.400
RHB ResearchBuy Rating25.000
Credit SuisseBuy Rating23.100
HSBCHold Rating19.400
Indo PremierBuy Rating26.500
Morgan StanleyBuy Rating26.900
SucorinvestHold Rating23.000
UOB Kay HianBuy Rating26.400
Trimegah SecuritiesBuy Rating25.500
Yuanta SecuritiesBuy Rating22.575
Kresna SecuritiesBuy Rating25.650
Valbury AsiaBuy Rating25.000
HopemityBuy Rating27.000
UNTR Target Price


UNTR prioritized the gold mines industry from April until July, after that coal mines. It may still be lower than the 2019 performance, but the numbers will catch up, due to the lowered CAPEX. It’s normal that the revenue growth not as attractive as last year, and the slowness due to COVID-19 is beginning to recover in the upcoming months. Stock prices may vary but 27.000 will be the reasonable one at the end of 2020. 

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

%d bloggers like this: