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TAANN (5012) : TA ANN HOLDINGS BERHAD
airasia
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Posts: 46
Joined: Dec 2011		 28 Feb 2012, 11:23 PMPost #1
waiting to deliver surprise : hit 200% record earnings.
CNY2012
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Posts: 111
Joined: Dec 2011		 25 Feb 2014, 03:35 PMPost #2
AmResearch keeps Hold call on Ta Ann Holdings, FV RM4

KUALA LUMPUR: AmResearch is maintaining its Hold call on Ta Ann Holdings with a fair value of RM4 based on a price-to-earnings (P/E) of 15 times against an FY14F core EPS of 26.7 sen.

It said on Tuesday Ta Ann posted core net profit of RM51mil (-29% on-year) which was in line with its forecast of RM53mil, but 18% below consensus’ RM62.3mil.

Apart from an earlier 5 sen a share dividend, no other amount was declared; it had anticipated a 10 sen a share payout for the year.

For 4QFY13, an inventory write-down of RM21mil (for Tasmania veneer), and write-back of PPE impairment and tax provision totalling RM40.5mil (which were earlier effected in 2QFY13) brought the FY13 bottom line to RM92mil.

AmResearch said for FY13, the exceptional items (EIs) included the recognition of the 1st tranche of compensation from the Australian government of RM62mil. Pursuant to this, it had made a tax provision of RM9.52mil and PPE impairment of RM31mil.

For 4QFY13, its core net profit came in at RM11mil (-67% on-quarter and -29% on-year), as operations continued to be affected by Tasmania with plywood division losses of about RM18mil at the pre-tax level.

Pre-EI losses for plywood totalled RM40mil for the year, which was in line with its forecast of RM38mil.

For FY13, FFB output rose by 5% on-year to 528,495 tonnes (yield: 18.5%) which was in line with its estimate of 534,800 tonnes, while CPO volume rose 17% to 93,752 tonnes (oil extraction rate: 20%) versus its estimate of 91.393 tonnes.

Log export volume growth was flat at -1% YoY, with 177,058 cu m versus 178,884 cu m in FY12 – in line with AmResearch’s estimate of 172,000 cu m. Plywood sales growth was also flat at +0.2% on-year, with 190,632 cu m vs. 190,220 cu m in FY12 (AmResearch estimate: 185,436 cu m).

CPO average selling price was at RM2,268/tonne (-21% on-year), or 2% below its estimate of RM2,305/tonne.

“For the short and medium term, Ta Ann’s growth prospects remain tied in with CPO prices, while its timber operations would continue to be hampered by its Tasmanian woes.

“Ta Ann still has 7,100ha of plantable landbank (with 1,600ha already cleared). Estate expansion would be an issue unless it can develop land in compliance with Wilmar’s environmental protection policy or secure contracts with less stringent refineries,” it said.
LIM HONG KAI
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Posts: 4
Joined: Apr 2018		 29 Mar 2020, 05:32 PMPost #3

yeahI bough this counter few year ago and made some money. Lately this counter is moving down south. Why? Is it because of the lockdown and convid 19. ? Is this only plantatiom stock or other business as well. Please share some info. TQ

 
Brian9818
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Posts: 245
Joined: Sep 2012		 11 Apr 2023, 02:50 PMPost #4

Stock to watch...
i4value
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Posts: 550
Joined: Aug 2020		 05 Oct 2023, 08:13 AMPost #5

Over the years I have invested in companies involved with plywood. I then figured out that those who will survive are those with access to timber. Those companies who rely on buying timber from third party suppliers will have a tough time.  Just look at what happend to Cymao (now Annum) and Eksons. Ta Ann is lucky to have timber operations. Just look at the comparative ROE
i4value
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Posts: 550
Joined: Aug 2020		 24 Dec 2023, 12:24 PMPost #6

I bought TAANN in mid-2019 when it was trading around RM 2.25 per share and then sold it off in early 2020 when it went up to around RM 3.40 per share. I went in on the basis of its fundamental and sold when I thought the market had overpriced it.

 

The ROE over the past few years have been improving. While the share price did have an initial spike, it is currently around the 2020 peak share price level. There seems to be a mismatch between performance and share price

When you look at the long-term performance of TAANN as represented by the ROE, you can see that it did better than KLK – one of the reference Bursa plantation companies. This quick and dirty comparison points to TAANN being fundamentally sound.

 

Is the mismatch between the ROE and market price meant that there another round to make money from a fundamental investing perspective?

 
i4value
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Posts: 550
Joined: Aug 2020		 30 Jun 2024, 04:29 PMPost #7

Ta Ann is a Bursa Malaysia timber cum plantation company.  Since Oct last year, its price had gone from about RM 3.30 per share to as high as RM 4.30 per share. Today it is down to RM 3.80 per share. Does this represent an investment opportunity?

 

I would consider Ta Ann a wonderful company in the Buffett sense. There were topline and bottom-line growths. It had diversified into the plantation sector delivered a big part of the growth.

 

The are signs of improving operating efficiencies as exemplified by the gross profitability, asset turnover, and leverage. It is financially sound and had been able to create shareholders’ value.

My valuation as shown in the Chart shows that there is more than 30% margin of safety. Surely Ta Ann cannot be a value trap.
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yeah doh drool lol mad notworthy question rant rolleyes sad shutup shy smile star sweat thumbup wub cry

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