TINS
Contact our analyst Revita
41% upside, BUY
23rd May 2022
Current price Rp1,745
Target price Rp2,460
23rd May 2022
Current price Rp1,745
Target price Rp2,460
1Q22 profit up significantly
TINS posted a net profit of IDR 601.5 billion or a significant increase of 5,715% yoy compared to 1Q21’s IDR 10.3 billion. The increase is due to a higher tin price, but also lower operating costs. The higher tin price in 1Q22 meant record revenue of IDR 4.4 trillion or an increase of 80% compared to 1Q21. Tin ore production in 1Q22 was 4,508 tons or down 11% compared to the same period last year production of 5,037 tons. Of this, 35% or 1,583 tons came from onshore mining, while the remaining 65% or 2,925 tons came from offshore mining. 1Q22 tin metal production fell by 8% to 4,820 tons from 1Q21's 5,220 tons. Going forward, we expect higher production volume, in line with company production targets. Low-cost tin ore production from offshore mining will continue to be the main focus and this will help to maintain profit margins. We maintain our 2022 tin production, revenue & profit targets.
Leverage decrease continues
TINS continues to reduce debt and therefore interest expenses. TINS’ bond and ijarah non current portion as of 1Q22 amounted to IDR 806 billion compared to IDR 2,093 trillion in 2020. TINS’ debt to equity in 1Q22 has reduced to 0.20X compared to 1Q21‘s 1.05X. We expect a continued downtrend of interest expenses in 2022F due to the lower leverage.
Valuation: 41% upside
We maintain our target price for TINS within one year of IDR. 2,460 / share or trading at 6x PER, With 41% upside, our recommendation is maintained as BUY.
TINS posted a net profit of IDR 601.5 billion or a significant increase of 5,715% yoy compared to 1Q21’s IDR 10.3 billion. The increase is due to a higher tin price, but also lower operating costs. The higher tin price in 1Q22 meant record revenue of IDR 4.4 trillion or an increase of 80% compared to 1Q21. Tin ore production in 1Q22 was 4,508 tons or down 11% compared to the same period last year production of 5,037 tons. Of this, 35% or 1,583 tons came from onshore mining, while the remaining 65% or 2,925 tons came from offshore mining. 1Q22 tin metal production fell by 8% to 4,820 tons from 1Q21's 5,220 tons. Going forward, we expect higher production volume, in line with company production targets. Low-cost tin ore production from offshore mining will continue to be the main focus and this will help to maintain profit margins. We maintain our 2022 tin production, revenue & profit targets.
Leverage decrease continues
TINS continues to reduce debt and therefore interest expenses. TINS’ bond and ijarah non current portion as of 1Q22 amounted to IDR 806 billion compared to IDR 2,093 trillion in 2020. TINS’ debt to equity in 1Q22 has reduced to 0.20X compared to 1Q21‘s 1.05X. We expect a continued downtrend of interest expenses in 2022F due to the lower leverage.
Valuation: 41% upside
We maintain our target price for TINS within one year of IDR. 2,460 / share or trading at 6x PER, With 41% upside, our recommendation is maintained as BUY.
Previously
| tins_19_march_2018.pdf |
| tins_18_january_2018.pdf |
| tins_7_december_2017.pdf |
| tins_9_october_2017_.pdf |
