Kiwoom Research | 1H26 Equity Update - 27 August 2026 PT. United Tractors Tbk. (UNTR) Earnings Pressures Mask Sequential Operational Recovery Key Takeaways: - Resilient Mining Contracting. The mining contracting segment demonstrated robust performance. Revenue for this segment also expanded by 14% y/y and 29% q/q to reach IDR 15,300 bn in 2Q26. - Significant One-Off Pressures. Profitability was severely distorted by IDR 3.3 tn in regulatory payments and asset impairments. - Sequential Gold Turnaround. Following operational hurdles early in the year, the resumption of the Martabe mine in mid-May catalyzed a massive 400% q/q rebound in 2Q26 gold sales volume. Recommendation: "BUY” We maintain our BUY recommendation with a revised 12-month target price of IDR 28,000. Our target price is constructed using a Sum-of-the-Parts (SOTP) valuation. This represents a compelling 17.40% upside potential from the last closing price of IDR 23,850 (as of 26 Aug 2026). This valuation implies a 2026F P/E of 10.0x and P/BV of 1.0x, reflecting these operational challenges. Downside risks include: 1) Prolonged weakness in domestic RKAB quota approvals; 2) Slower recovery in heavy machinery demand; 3) Unfavorable movements in global commodity benchmark prices. Adrian Djie Equity Research KIWOOM SEKURITAS INDONESIA