Below expectations. Ta Ann's 1Q12 core net profit of MYR11m (-70% QoQ,
-57% YoY) accounted for 7% of our and 6% of consensus full year
forecasts. The significant shortfall is due to a weak performance at the
timber division, and lower palm oil earnings. We cut our FY12-14 net
profit estimates by 16-20% but maintain our BUY call with a lower TP of
MYR7.50 (-17%) based on an unchanged 15x FY13 PER. We advocate
accumulating on dips, as short-term sentiment will continue to be
affected by the poor results and recent CPO price weakness.
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Source: Maybank Research - 25 May 2012
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