TINS
Contact our analyst Revita
19% upside, HOLD
30th November 2022
Current price Rp 1275
Target price Rp1520
30th November 2022
Current price Rp 1275
Target price Rp1520
99M22 profit up 87%
In 9M22, TINS posted a net profit of IDR 1,146 trillion which is up by 87% YoY compared to 9M21’s IDR 611 billion. The increase is due to a higher tin price, but also lower operating costs and lower finance costs. Tin ore production in 9M22 was 14,502 tons, down by -19% compared to the same period last year when TINS produced 17,929 tons. Of the tin ore produced, 35% or 3,829 tons came from onshore mining, while the remaining 65% or 6,072 tons came from offshore mining. 9M22 tin metal production decreased by 26% to 14,1300 tons from 9M21's 19,120 tons. We revise our production target based on the 9M22 results due to lower demand caused by the current geopolitical tensions. 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 which will help to improve profit margins.
Leverage decrease continues
Although TINS’ net debt to equity in 9M22 has increased to 0.25X compared to 1H22‘s 0.16X due to an increase in short-term bank loans in 9M22, total Liabilities in 9M22 decreased by -27% to IDR. 6.1 trillion compared to IDR. 8.4 trillion in 2021A. We expect a continued downward trend of interest expenses in 2022F due to the lower liabilities.
Valuation: 19% upside
We revise our target price for TINS within one year of IDR. 1,520 / share or trading at 4,9x PER, With an 19% upside, our recommendation is HOLD.
In 9M22, TINS posted a net profit of IDR 1,146 trillion which is up by 87% YoY compared to 9M21’s IDR 611 billion. The increase is due to a higher tin price, but also lower operating costs and lower finance costs. Tin ore production in 9M22 was 14,502 tons, down by -19% compared to the same period last year when TINS produced 17,929 tons. Of the tin ore produced, 35% or 3,829 tons came from onshore mining, while the remaining 65% or 6,072 tons came from offshore mining. 9M22 tin metal production decreased by 26% to 14,1300 tons from 9M21's 19,120 tons. We revise our production target based on the 9M22 results due to lower demand caused by the current geopolitical tensions. 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 which will help to improve profit margins.
Leverage decrease continues
Although TINS’ net debt to equity in 9M22 has increased to 0.25X compared to 1H22‘s 0.16X due to an increase in short-term bank loans in 9M22, total Liabilities in 9M22 decreased by -27% to IDR. 6.1 trillion compared to IDR. 8.4 trillion in 2021A. We expect a continued downward trend of interest expenses in 2022F due to the lower liabilities.
Valuation: 19% upside
We revise our target price for TINS within one year of IDR. 1,520 / share or trading at 4,9x PER, With an 19% upside, our recommendation is HOLD.
Previously
| tins_19_march_2018.pdf |
| tins_18_january_2018.pdf |
| tins_7_december_2017.pdf |
| tins_9_october_2017_.pdf |
