KUALA LUMPUR (April 5): TA ANN HOLDINGS BHD [] shares edged up on Thursday after Maybank Investment Bank Bhd Research initiated coverage on one the stock at RM6.20 with a Buy Rating and target price of RM8, and said three key catalysts will propel earnings for the company, namely: (i) an explosive 18% 3-year forward CAGR in FFB output, (ii) Japan‟s reCONSTRUCTION [], (iii) a maiden contribution from its forest PLANTATION [] in 2015.
At 11.30am, Tan Ann added four sen to RM6.24 with 27,600 shares traded.
In a note Thursday, the research house said Ta Ann’s earnings quality was boosted by its transformation into a producer of palm oil, which contributed 77% of PBT in 2011.
“The stock trades at 11.7x 2013 PER, with low EV/planted ha of about RM39,600, and is poised to deliver an 11% 3-year net profit CAGR. We initiate coverage with a Buy and RM8.00 TP on 15x 2013 PER (+29% upside),” it said.
At 11.30am, Tan Ann added four sen to RM6.24 with 27,600 shares traded.
In a note Thursday, the research house said Ta Ann’s earnings quality was boosted by its transformation into a producer of palm oil, which contributed 77% of PBT in 2011.
“The stock trades at 11.7x 2013 PER, with low EV/planted ha of about RM39,600, and is poised to deliver an 11% 3-year net profit CAGR. We initiate coverage with a Buy and RM8.00 TP on 15x 2013 PER (+29% upside),” it said.
