Heavy equipment: Tsunami effects - Mandiri Sekuritas

Massive damage occurred in Japan’s north eastern area due to earthquake and the ensuing tsunami on 11 March 2011. Some heavy equipment plants in that area were damaged. Meanwhile, the port of Hitachinaka is seriously damaged.

United Tractors: Most of its big sized heavy equipments are imported from Japan.
· UNTR’s sales volume of big sized heavy equipments represents around 20% of total sales volume. Big sized heavy equipments mainly are imported from Japan.
· 2 of 11 Komatsu Japan’s manufacturing plants, i.e. the Ibaraki and Oyama plants were extensively damaged by tsunami. The Oyama plant produces diesel engines, hydraulic equipment and axle.
· Komatsu Japan announced that the Port of Hitachinaka is seriously damaged. Therefore it’s concerned with the effects of the port damages even after the company resumes its production.
· Currently, UNTR has heavy equipment inventory safe for 2-month sales in the future. However, it takes between 1 to 1.5 months to receive new heavy equipments from Japan.
· The supply of small and medium sized heavy equipments of UNTR is mainly from assembly plants of Komatsu Indonesia (50%-55%) and Komatsu Thailand (20%).

Hexindo Adiperkasa: 20% of its heavy equipments are imported from Japan
· HEXA gets supply of big-and medium-sized heavy equipments from Japan, which comprises 20% of sales volume.
· Hitachi Japan’s Hitachinaka Rinko Works (manufacturing for large and ultra-large hydrolic excavators and mining dump trucks) and Hitachinaka Works (manufacturing for key components of large and ultra-large hydraulic excavators an d mining dump trucks) are still under inspections and restoring the facilities.
· Hitachi Japan is considering the possibility of redirecting exports to be handled in the Keihin region due to the significant damage at the Ibaraki Port an d Hitachinaka district.

Intraco Penta: The supply of its heavy equipment is not disturbed by tsunami
· Intraco Penta (INTA) distributes Volvo heavy equipments. Some mining contractors use big heavy equipments made by Volvo.
· INTA’s supply of heavy equipments is not disturbed by tsunami in Japan.
· 66% of its unaudited FY10 sales came from heavy equipment sales.
· INTA forecast its FY11F revenue to increase to Rp2.7tn from Rp1.9tn in FY10 (unaudited). INTA also forecast its FY11F net income before tax to grow by 67% to Rp232bn.