TSH Resources: Maintain Hold - Stressed Trees, Stressed Earnings

• Within house but below street expectations. 2Q12 net profit of MYR15m (-59% YoY, -3% QoQ) brings TSH's 1H12 net profit to MYR30m (-51% YoY), meeting 31% of our FY12 estimates. At just 23% of the street's full-year forecast, however, the results will be seen as a miss.
• There is no change to our earnings forecasts. We expect TSH's 2H12 FFB production to be stronger, and production costs to normalise.
• The share price has however priced in its growth potential; the stock remains a HOLD on an unchanged TP of MYR2.35 on 15x FY13 PER.

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Source: Maybank Research - 23 August 2012