|
Top Calls
|
||
|
|
||
|
Company Update � Ta Ann (BUY, maintain)
- Firm log prices, increasing log exports, rising FFB yields Subsequent to Myanmar�s ban on log exports effective 1 Apr-14, India has been aggressively purchasing logs from other major log producers in the world. In our view, this has resulted in firm average selling prices for tropical logs, i.e. at US$250/m3 in May-June 2014, and has been a great boon for timber producers like Ta Ann. We expect Ta Ann�s palm oil division to be the future key earnings driver, underpinned by: 1) increasing maturity of its plantation estates; and 2) rising FFB and CPO production as well as yield. In addition, Ta Ann is expected to receive the second tranche of AU$3.6m remaining compensation from the Australian Government by 1 Sept-14 (in return for reducing its peeler wood supply entitlement held under the contract with Forestry Tasmania), and this will be a boost to 3Q14�s earnings. We maintain our BUY rating on Ta Ann as we remain upbeat on this timber and plantation group�s outlook in the near term, with an unchanged SOTP-derived target price of RM5.12.
|
|
Other Calls
|
||
|
|
||
|
Debt Market Research
- Some buying interest ahead of MPC, firmer MYR was catalytic, reversal of MYR ahead?
|
||
|
No comments:
Post a Comment
Note: Only a member of this blog may post a comment.