We expect Tigar to publish its 1H09 financial statements this week. We forecast the company’s consolidated net profit at RSD 439.5m for 1H09. No consensus is available yet and the company did not disclose common-size quarterly statements. The stock has risen 52.1% in the past three months and now trades broadly in line with our fair value forecast of RSD 760. Total sales are expected at RSD 1,680.4m (+10.0% y/y) in 1H09 on the back of stronger rubber footwear exports in July. Tigar reported total exports of RSD 111.6m (€ 1.2m) for July 2009. The footwear segment should be a major contributor to the significant increase in exports in 1H09. Most exports went to traditional buyers in Finland and Italy, which accounted for nearly half of the firm’s exports in 1H09. Tigar Chemical also announced higher-than-expected exports to Greece. We believe higher exports will be the main catalyst of sales growth in 1H09. EBIT is expected at a loss of RSD 60.3m (-79.2% y/y) in 1H09 on the back of more efficient production processes at Tigar Footwear’s new production facility. Tigar has continued with the relocation of its facilities. This process is likely to have affected the business results of Tigar Technical Rubber in 2Q09. However, the firm’s lower exposure to the technical rubber segment should lead to an improvement in operating efficiency compared to 1H08. Other result is expected at RSD 518.0m (-20.2% y/y) in 1H09 on the back of one-off gains from the sale of an equity stake in Tigar Tyres.