Research Today: Coal support companies update - DOID top pick Analyst Olie revisits the three coal support companies – United Tractors (UNTR), Delta Dunia (DOID) and Hexindo (HEXA). All three did better than expected in 2H09 as volume recovered by an average of 20% to 100% HoH. Olie has adjusted his forecasts taking into account a stronger Rupiah and improved heavy equipment unit sales – resulting in 17-27% earnings upgrade for 2010-11. There is better value in Delta Dunia and Hexindo for investors not-so constraint by liquidity. DOID is trading at PER11 of 9.9x and HEXA at 6.8x 2011 earnings. We rate DOID and HEXA as BUY while keep UNTR as Outperform.
