Ta Ann Holdings Berhad's (TAANN) performance in the first half of FY24 has been underwhelming, largely impacted by ongoing headwinds in its timber operations. Despite a promising start in plantation earnings, the company faced significant setbacks in its timber segment, leading to a disappointing overall result.
Analysts have adjusted their forecasts to reflect these dynamics. Kenanga Stock Broking House has downgraded its FY24-25 core earnings per share (EPS) estimates by 14% and 11%, respectively, and reduced the target price (TP) from RM4.00 to RM3.60. The recommendation has been maintained at MARKET PERFORM. In contrast, TAANN's recent performance has prompted other analysts to revise their targets. RHB Stock Broking House has lowered its FY24-26 EPS forecasts by 2%-6%, now projecting a TP of RM4.03, down from RM4.29, but retains a BUY call. Meanwhile, MIDF Stock Broking House maintains a BUY rating with a revised TP of RM4.16, reflecting confidence in TAANN's oil palm segment despite the timber sector's struggles. Last but not least, CGS Stock Broking House maintains an ADD rating as well for the company.
For the first six months of FY24, TAANN's core net profit fell short of expectations, standing at RM63.6 million, which represents just 35% and 33% of the full-year forecasts by analysts. The plantation segment showed resilience with improved earnings due to higher crude palm oil (CPO) prices and increased fresh fruit bunch (FFB) output. However, these gains were overshadowed by timber division losses. The timber segment recorded a pre-tax loss of RM5.8 million in 2QFY24, contrasting with a profit of RM4.5 million in the preceding quarter. This downturn was attributed to weaker demand and lower sales prices for logs and plywood.
The outlook for the remainder of FY24 presents a mixed picture. The plantation division is expected to continue its positive trajectory, buoyed by firm CPO prices. Analysts anticipate a full-year average CPO price of around RM3,800 per metric tonne, which should support earnings. On the other hand, timber operations are likely to remain under pressure due to muted demand, economic uncertainties, and higher borrowing costs that could dampen construction activities.
Looking forward, TAANN is expected to experience a rebound in 2H24, driven by improved weather conditions that should benefit timber production and higher palm oil output. The company's efforts to mitigate the impact of weak timber performance will be crucial as it navigates the remainder of the fiscal year.
Ta Ann Holdings Berhad (TAANN)在24财年上半年的表现令人失望,主要是受到木材业务持续低迷的影响。尽管种植园收益开局良好,但该公司的木材领域仍面临重大挫折,导致整体业绩令人失望。
分析师调整了预测以反映这些动态。Kenanga Stock Broking House已将其 FY24-25 核心每股收益(EPS)的预期分别下调了14%和11%,并将目标价格(TP)从4.00令吉下调至3.60令吉。Market PerForm维持了该建议。相比之下,TAANN最近的表现促使其他分析师修改了目标。RhB Stock Broking House已将其 FY24-26 每股收益预测下调了2%-6%,目前预计目标价为4.03令吉,低于4.29令吉,但保留买入看涨期权。同时,MIDF股票经纪公司维持买入评级,修订后的目标价为4.16令吉,这反映了尽管木材行业陷入困境,但对TAANN油棕榈板块的信心。最后但并非最不重要的一点是,CGS股票经纪公司也维持了该公司的ADD评级。
在24财年的前六个月,TAANN的核心净利润低于预期,为6360万令吉,仅占分析师全年预测的35%和33%。由于粗棕榈油(CPO)价格上涨和新鲜水果束(FFB)产量的增加,种植园表现出弹性,收益有所提高。但是,这些收益被木材部门的亏损所掩盖。木材板块在 2QFY24 中录得580万令吉的税前亏损,而上一季度的利润为4.5万令吉。这种低迷归因于需求疲软以及原木和胶合板的销售价格下跌。
24财年剩余时间的前景好坏参半。在CPO价格坚挺的推动下,种植园部门预计将继续保持积极的发展势头。分析师预计,全年CPO平均价格约为每公吨3,800令吉,这将支撑收益。另一方面,由于需求低迷、经济不确定性以及可能抑制建筑活动的较高借贷成本,木材业务可能仍处于压力之下。
展望未来,在天气状况改善的推动下,TAANN有望在24年下半年出现反弹,这将有利于木材产量和棕榈油产量的增加。在本财年剩余时间里,该公司为减轻木材表现疲软的影响所做的努力至关重要。