Mandiri Sekuritas Timah: FY09 net income is inline with our estimate, but 9% above consensus (TINS, Rp2,400/share, Buy, TP: Rp3,000/share)

􀂄 Timah posted FY09 revenues of Rp7.7tn (-14.8%yoy, +9.0%qoq) and net income of Rp314bn (-76.6%yoy, +11.4%qoq), which is in line with our estimate, but 9% above consensus.
􀂄 YoY worsening performance was mainly due to lower ASP by 26%, qoq better performance was also due to better ASP of 3%. The company has not given any operational details.
􀂄 Company’s performance is highly depends on ASP and tin ore mix between offshore and onshore mining. We expect the company to be able to maintain equal mix between offshore and onshore mining. With 1Q10 tin price up by 11%qoq, we expect the company to continue its strong profitability growth.
􀂄 We still maintain Buy recommendation for TINS which is currently trading at PER10-11F of 9.6x-6.2.