In 1H20, UNTR’s net profit was down 28.3% YoY with lower revenue from construction machinery and mining contraction. Low coal prices and economic slowdown became the main factor of weak 1H20 performance. Pamapersada targets 16% YoY lower coal production for 2020 and we see the coal outlook is still sluggish until the first quarter of 2021. Hence, we downgrade the rating to SELL for UNTR.
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