DBS Timah Lagging effect Fully Valued (Prev Hold); TINS IJ; Rp1,100; TP Rp960 (Prev Rp1,128)

(Fully Valued (Prev Hold); TINS IJ; Rp1,100; TP Rp960 (Prev Rp1,128))
Timah (TINS) reported its un-audited FY08 profit of Rp1.4tn, a 21% y-o-y drop as production cost continued increasing in 4Q08 while prices had dropped quite significantly (-36% q-oq).

We cut our tin price assumption for 2009 to US$12.5k/ton on the back of weaker demand outlook while retaining prices for FY10 at US$14k/ton. Hence, following our earnings forecast revision, we cut our target price to Rp960 and downgrade our recommendation to FULLY VALUED.