Wednesday, 25 April 2012

TH Plantations among top decliners on weaker 1Q profit

KUALA LUMPUR (April 25) : TH PLANTATION []s Bhd fell as much 3% to be among major decliners across the exchange on the company’s weaker first quarter (1Q) profits.

Shares of TH Plantations declined nine sen to settle at RM2.72 at lunch break with some 800,000 shares done.

The company said on Tuesday net profit fell 40% to RM13.07 million in the quarter to March 31, 2012 (1QFY12) from RM 21.83 million a year earlier due to higher cost of sales and tax expense. Revenue, however, grew 27% to RM95.05 million from RM75.06 million.

While the 1Q numbers are not expected to augur well for the company’s shares, analysts have, however, directed the spotlight on TH Plantations plan to reward shareholders with a first and final single-tier dividend of 12.5 sen a share for financial year ended December 31, 2011.

“Although the lacklustre 1QFY12 performance would be negative to sentiment, the upcoming ex-date of its 2011 final dividend of 12.5sen/share on May 2,2012 will provide some support to the share price, we believe,” Maybank Investment Bank Bhd analyst Ong Chee Ting wrote in a note.

“We maintain our earnings estimates for now pending further clarification from management,” Ong added. Maybank is maintaining its target price of RM2.75 and “hold” call for TH Plantations shares.

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