First Read United Tractors New points from Q226 management call

Research evidence excerpt

First Read United Tractors New points from Q226 management call

diluted) (Rp)

capacity of ~90MW (realized utilization of 50-55MW so far). However, UNTR thinks it UBS Cons.

could recover the impairment (positive for earnings) if SERD utilization can reach 75- 12/26E 2,585 3,386

80MW. Overall, despite positive EBITDA, SERD is loss-making at the bottom line and 12/27E 3,793 4,293

UNTR does not intend to put more capex into the geothermal business. 12/28E 4,525 4,447

Dividend payout clarification Igor Putra

Analyst

Given consecutive one-offs since Q425, we think it is sensible to seek clarification about igor.putra@ubs.com

whether the future dividend payout would rely on headline or core NPAT. UNTR stated +62-21-2554 7033

the dividend payout would be based on NPAT, excluding non-recurring items, and

Timothy Handerson

anticipates a 40-50% payout. We foresee upside to our dividend forecast, given our

assumed 40% payout. timothy.handerson@ubs.com

+62-21-2554 5000

Valuation: Reiterate Buy and SOTP-based PT of Rp31,500

Tsubasa Sasaki

We like UNTR for its undemanding valuation and view its gold business as undervalued Analyst

amid strong gold prices, with a favourable production uptrend outlook. As we have tsubasa.sasaki@ubs.com

flagged, UNTR is a H226 proxy, given an improved operating environment and as +813-5208 6207

investors may begin to factor in a positive 2027 earnings growth outlook.

Highlights (Rpb) 12/23 12/24 12/25 12/26E 12/27E 12/28E 12/29E 12/30E

Revenues 128,583 134,427 131,301 103,269 108,290 120,033 126,633 136,134

EBIT (UBS) 29,723 27,182 22,065 16,850 21,540 23,389 24,735 26,536

Net earnings (UBS) 20,612 19,531 14,810 9,642 14,149 16,879 17,601 19,019

EPS (UBS, diluted) (Rp) 5,526 5,236 3,970 2,585 3,793 4,525 4,718 5,099