Am Research Maintain BUY on TA ANN

1. We maintain BUY on Ta Ann Holdings Bhd, with a higher fair value of RM7.86/share (vs. RM7.60/share previously), based on a PE of 13x pegged to a raised FY12F EPS of 60.5
sen (vs. 58.5 sen previously).

2. We now expect Ta Ann’s oil palm division to fetch profit after tax of RM154mil (+26% YoY) and RM188mil (+22% YoY) for FY12F and FY13F, respectively.


3. We expect FFB production to grow by 24% and 16% annually to 570,000 tonnes and 663,000 tonnes for FY12F and FY13F, respectively. We expect the oil palm division to account for over 80% of earnings for FY12F and FY13F vs. about 77% in FY11.