Ta Ann Holdings: Maintain Buy - 2H12 - The Better Half

• Within our expectation. 2Q12 results came in within our expectation, but below street estimates. 2Q12 net profit of MYR13m (+16% QoQ, - 75% YoY) was weaker YoY on low FFB output and a higher effective tax rate of 37%.
• As FFB output is seasonally low in 1H, we expect a significantly stronger 2H12. Our earnings forecasts are unchanged.
• We continue to like Ta Ann's medium term growth prospects. Maintain BUY with an unchanged 12M TP of MYR5.30 based on 15x 2013 PER.

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Source: Maybank Research - 22 August 2012