Tuesday, 13 March 2012

TSH up on firmer CPO prices, higher earnings ahead

KUALA LUMPUR (March 13): Shares of TSH RESOURCES BHD [] rose on Tuesday, riding on the upward trend in the crude palm oil futures prices despite the weakening broader market.

At 3.57pm, TSH was up 13 sen to RM2.32. There were 1.44 million shares done.

The FBM KLCI was just 0.04 of a point higher at 1,564.79. Turnover was 899.56 million shares valued at RM1.032 billion. Losers beat gainers 467 to 231 while 339 counters were unchanged.

Meanwhile, CPO futures for May delivery rose RM44 to RM3,360 per tonne.

Analysts were maintain a buy on TSH with a higher fair value of RM2.60 a shares compared with RM2.10 a share previously based on a FY12F price-to-earnings of 15 times. TSH’s historical seven-year PE band ranged from a low of 4.0 times to a high of 28 times.

“TSH’s FY11 results were in line with our expectations and consensus estimates. Our FY12F earnings estimates for TSH are relatively unchanged.

“Going forward, we have forecast that TSH’s net profit would climb 20% in FY12F, underpinned by a 26% increase in fresh fruit bunches production,” said Amresearch.

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