Kiwoom Research | 9M26 Equity Update - 03 November 2026 PT. United Tractors Tbk. (UNTR) Earnings Normalization Amidst Exceptional Pressures Key Takeaways: - Massive 3Q26 Earnings Inflection. Following a weak first half, 3Q26 net income skyrocketed by over 1000% q/q to IDR 3,509 bn. This turnaround was primarily driven by a low-base effect following the absence of non-recurring expense. - Active Buybacks Cushion Dividend Normalization. With 2026F earnings contracting, we project the dividend yield will normalize to 2.59% (down from 5.38% in 2025A). However, downside risk is well-protected by the company's aggressive fifth-tranche share buyback program. - Sequential gold recovery. After navigating early-year hurdles, the normalization of Martabe operations catalyzed a strong 50% q/q volume rebound in 3Q26 gold sales. Recommendation: "BUY" We reiterate our BUY call with a 12-month target price of IDR 28,000. Derived via a Sum-of-the-Parts framework, this valuation implies an attractive 17.40% upside potential from the last closing price of IDR 23,850 (as of 2 Nov 2026). At our target price, the stock trades at 2026F P/E of 15.4x and P/BV of 1.0x. Key downside risks to our call include: 1) USD depreciation; 2) Prolonged sluggishness in heavy equipment replacement cycles; 3) Adverse volatility in global commodity benchmarks. Adrian Djie Equity Research KIWOOM SEKURITAS INDONESIA