JAKARTA - The decline in tin prices still haunts the performance of PT Timah Tbk (TINS). The price of tin for the next three months delivery on the London Metal Exchange was at US$ 19,330 per tonne on December 14, down 10.84% year-to-date from last year's final price of US$ 21,680 per tonne.
According to Anugerah Sekuritas analyst Bertoni Rio, the projected tin price in 2019 will not be much different than this year. "Tin income still grows slightly compared to this year. It is expected that other revenues, such as asset divestments, can boost TINS profits next year," Mr Rio said as quoted by Kontan.co.id, Monday (17/12).
To maintain performance, TINS will expand outside its core business by developing its property arm. Mr Rio added that expansion outside its core business could bring fresh air to contribute to the issuer's income.
Mr Rio estimates that TINS revenue growth next year will be in the range of 10% to Rp 9 trillion. According to his calculations, TINS' long-term target price is Rp 1,100 per share. (MS)