KUCHING: Ta Ann Holdings Bhd (Ta An

KUCHING: Ta Ann Holdings Bhd (Ta Ann) reported a slow start to the financial year 2016 but analysts see promising prospects in the group, backed by its palm oil segment and possible recovery in its timber division.

Of note, Ta Ann recorded a net profit of circa RM14 million, which generally came below market an analysts’ expectations.

Nevertheless, analysts favour the company’s plantation earnings prospects as well as potentials in the timber division.

In a report, the research arm of AmInvestment Bank Bhd (AmInvestment Bank) said the group earnings were impacted by lower log and plywood volume and prices and traditionally, 1Q produces lower log and plywood volumes.

For Ta Ann’s plantations segment, it noted that 1Q is traditionally is also traditionally the weakest quarter for fresh fruit bunches (FFB) production and it is entering the peak crop season in 3Q16.

Nevertheless, it said, “We maintain our earnings forecasts for now, as it could still make up for the shortfalls to expectations, in view of the higher FFB production and crude palm oil (CPO) prices as well as higher log harvest in the months ahead.”

It added that it maintained its FFB production growth at 14 per cent and CPO price assumption at RM2,300 per tonne for FY16 forecast.

Meanwhile, the research arm of Affin Hwang Investment Bank Bhd (Affin Hwang Capital) pointed out that Ta Ann’s log prices have started to decline since late 2015 to about US$221 to US$236 per m3 from a high of US$289 per m3 in 3Q15.

“The high log prices and depreciation of the Indian rupee against the US dollar had pushed away Indian buyers, the largest log customers, to source for lower-cost logs in Papua New Guinea and the Solomon Islands.

“However, we believe that the decline in log prices would attract Indian buyers to Sarawak again,” it opined.

The research arm of Public Investment Bank Bhd (PublicInvest Research) also noted that plywood prices are likely to recover in 2Q given the low plywood inventory, stronger yen and better-than-expected to gross domestic product (GDP) data from Japan, which would give a boost for plywood orders.

“On the sales volume, log exports are expected to remain in the range of 160,000 to 170,000 cubic metres this year while plywood would also stand around 190,000 cubic metres,” it added.

On Ta Ann’s plantations sector, it noted that Ta Ann has allocated a lower capex of RM50 million for FY16 as majority of its plantation land are fully planted (only less than 1,000 hectares left for new planting).

Meanwhile, Kenanga Research said it anticipated stronger performance in Ta Ann’s plantation segment in 2Q16 as CPO prices have remained stable above RM2,500 metric tonne since mid-March, while FFB production should continue rising in line with cropping patterns.

Overall, it maintained a ‘market perform’ call on the stock and said it believed stabilising timber demand and better plantation outlook is offset by lower than expected timber volume.

PublicInvest Research maintained an ‘outperform’ rating on the stock. It said, “We think that the recent sharp fall in the share price performance has fully priced in the poor results for this year.

“Further downside risk is unlikely and will be capped by the current attractive dividend yield of 5.1 per cent. At current market cap, the timber concession business, which contributes at least 50 per cent earnings to the group, is significantly overlooked.”

Affin Hwang Capital maintained its ‘buy’ call and said it continue to like Ta Ann for the rising plantation earnings given the increasing matured plantation areas, FFB and CPO production, and its 5.1 per cent 2016 estimate dividend yield.

Aside from that, AmInvestment Bank upgraded its call of the stock to ‘buy;, given the oversold position, with a good dividend yield of 4.7 per cent, in addition to the capital gains upside.

Hasil (Bahasa Indonesia) 2:

KUCHING: Ta Ann Holdings Bhd (Ta Ann) melaporkan awal yang lambat untuk tahun keuangan 2016 tetapi analis melihat prospek menjanjikan dalam kelompok, didukung oleh segmen kelapa sawit dan kemungkinan pemulihan di divisi kayunya. Dari catatan, Ta Ann mencatat jaring keuntungan sekitar RM14 juta, yang umumnya datang di bawah pasar harapan suatu analis. Namun demikian, analis mendukung prospek pendapatan perkebunan perusahaan serta potensi di divisi kayu. dalam laporannya, lengan penelitian AmInvestment Bank Bhd (AmInvestment Bank) mengatakan pendapatan kelompok terkena dampak yang lebih rendah log dan kayu lapis volume dan harga dan tradisional, 1Q menghasilkan log dan kayu lapis volume yang lebih rendah. untuk Ta Ann segmen perkebunan, mencatat bahwa 1Q secara tradisional juga tradisional kuartal paling lemah untuk tandan buah segar produksi (TBS) dan memasuki puncak musim panen di 3Q16. Namun demikian, katanya, "kami mempertahankan perkiraan pendapatan kami untuk saat ini, karena masih bisa menebus kekurangan harapan, mengingat produksi TBS yang lebih tinggi dan minyak sawit mentah (CPO harga) serta lebih tinggi panen log di bulan depan. " ia menambahkan bahwa mempertahankan pertumbuhan produksi TBS nya pada 14 persen dan asumsi harga CPO di RM2,300 per ton untuk FY16 forecast. Sementara itu, lengan penelitian Affin Hwang Investasi Bank Bhd (Affin Hwang Capital) menunjukkan bahwa harga log Ta Ann ini telah mulai menurun sejak akhir 2015 menjadi sekitar US $ 221-US $ 236 per m3 dari tinggi US $ 289 per m3 di 3Q15. "tingginya harga log dan depresiasi rupee India terhadap dolar AS telah menjauh pembeli India, pelanggan log terbesar, sumber untuk biaya lebih rendah log di Papua Nugini dan Kepulauan Solomon. "Namun, kami percaya bahwa penurunan harga log akan menarik pembeli India ke Sarawak lagi, "itu berpendapat. lengan penelitian Investasi Publik Bank Bhd (PublicInvest Research) juga mencatat bahwa harga kayu lapis cenderung pulih pada 2Q mengingat persediaan kayu lapis rendah, penguatan yen dan (PDB) lebih baik dari perkiraan untuk produk domestik bruto Data dari Jepang, yang akan memberikan dorongan untuk pesanan kayu lapis. "pada volume penjualan, ekspor kayu diharapkan tetap di kisaran 160.000 ke 170.000 meter kubik tahun ini sementara kayu lapis juga akan berdiri di sekitar 190.000 meter kubik," tambahnya. pada sektor perkebunan Ta Ann, itu mencatat bahwa Ta Ann telah mengalokasikan belanja modal lebih rendah dari RM50 juta untuk FY16 sebagai mayoritas lahan perkebunan sepenuhnya ditanam (hanya kurang dari 1.000 hektar yang tersisa untuk penanaman baru). Sementara itu, Kenanga Research mengatakan hal itu diantisipasi kuat kinerja di segmen perkebunan Ta Ann di 2Q16 karena harga CPO tetap stabil di atas RM2,500 metrik ton sejak pertengahan Maret, sementara produksi TBS harus terus meningkat sejalan dengan pola tanam. secara keseluruhan, itu mempertahankan 'pasar berkinerja' sebut pada saham dan mengatakan itu diyakini menstabilkan permintaan kayu dan prospek perkebunan baik diimbangi oleh lebih rendah dari volume kayu yang diharapkan. PublicInvest Penelitian mempertahankan rating 'outperform' pada saham. Dikatakan, "Kami berpikir bahwa penurunan tajam baru-baru ini dalam kinerja harga saham telah sepenuhnya dari dalam hasil buruk untuk tahun ini. " Risiko downside lebih lanjut tidak mungkin dan akan dibatasi oleh dividend yield yang menarik saat ini sebesar 5,1 persen. Pada cap pasar saat ini, bisnis konsesi kayu, yang memberikan kontribusi setidaknya 50 per laba persen ke grup, secara signifikan diabaikan. " Affin Hwang Capital dipertahankan nya 'membeli' menelepon dan mengatakan itu terus seperti Ta Ann untuk penghasilan perkebunan naik diberikan meningkatnya areal perkebunan matang, TBS dan CPO produksi, dan 5,1 persen 2016 dividend yield estimasinya. Selain itu, AmInvestment Bank upgrade seruannya dari saham untuk 'membeli ;, diberikan posisi oversold, dengan dividend yield yang baik dari 4,7 persen, selain capital gain terbalik.