ta ann


Analysts: Plantations sector to see strong results in 4Q18

KUCHING: Analysts expect the plantations sector to record strong results in the fourth quarter of 2018 (4Q18) on the back of stronger output in the second half of 2018 (2H18). According to the research arm of Maybank Investment Bank Bhd (Maybank IB Research), between 3Q and 4Q18, earnings will likely peak in 4Q18 on high […]

Toyota recalls one million hybrid cars over technical problem

TOKYO, Sept 5 ― Japanese car giant Toyota today recalled more than one million hybrid cars globally due to a technical problem which could in the worst case cause a fire in the vehicles.  About 1.03 million vehicles built between June 2015…

Corporate earnings in Q2 ‘show some semblance of improvement’

PETALING JAYA: PublicInvest Research said the second-quarter's earnings report card showed some semblance of improvement following the previous quarter's letdown, but the uptick may not be structural in nature.

Positive surprises were evident in the auto and healthcare sectors, while the bleeding in the oil and gas sector seems to have abated. Manufacturing, however, remains a disappointment and airlines also surprised on the downside.

“Of some encouragement is the fact that none of the market-moving economic-defining sectors showed any significant worse for wear,” it said in a research note today.

For PublicInvest Research, the current quarter's earnings hits (above and/or in line) are at 68:32%, versus 60:40% in the first quarter.

With most of the current misses still cost-related, the research house has lowered its expectations again.

“The one encouragement, if any, is that sales trends for most still remain intact albeit muted, while upward revisions are rising slightly.”

As the market is fairly valued currently, PublicInvest Research is maintaining the 2018 year-end target for the FBM KLCI at 1,790 points.

On whether there is a further upside to the market, the research house said the earnings growth assumptions for 2018, 2019 and 2020 are 3.2%, 5.9% and 6.5%, respectively.

“On this score, we are suggesting a preliminary year-end 2019 FBM KLCI target of 1,900 points, though many odds could be stacked against its favour.”

PublicInvest Research is maintaining an “overweight” stance on the oil and gas and manufacturing sectors despite weakness seen in earnings. It also suggests selective exposure in the banking sector.

The research house continues to see value in the small- and mid-cap space, and retain most of its suggested picks despite year-to-date underperformances of some companies as it believes the current share price weaknesses are overdone.

“AMMB Holdings, Hibiscus Petroleum, Mega First, N2N Connect, Perak Transit continue to make up the core holdings in our suggested picks, in addition to CIMB Group and Tenaga Nasional. Ta Ann Holdings is newly included.”

MIDF Research noted that the aggregate reported earnings of FBM KLCI 30 constituents totalled RM11.42 billion in Q2, down 31.2% quarter on quarter and 27.4% year on year.

However, more pertinently, the aggregate normalised sequential growth was positive at +2.7% quarter on quarter while the normalised on-year number posted a much smaller negative at -3.2% year on year.

Within MIDF Research’s universe, merely 3% of stocks under coverage reported higher than expected earnings. Of the rest, 39% posted earnings that were lower than expected versus 58% which came within expectations.

It has trimmed the aggregate FY18 earnings estimate and FY2019 earnings forecast of the FBM KLCI constituents under its coverage by -0.2% to RM55 billion and 0.8% to RM57.2 billion, respectively.
MIDF Research is maintaining its end-2018 FBM KLCI target at 1,800 points.

Equities markets still marred by external uncertainties

KUALA LUMPUR: The extent of the trade war and how it may evolve further will certainly be the main focal point that will plague regional equity markets including Malaysia as fund managers remain on the sidelines and adopt a wait-and-see approach. Generally speaking, the Malaysian equities markets is still marred by the external uncertainties, says […]

Ta Ann’s Certificate for Forest Management award garners neutral views

KUCHING: Ta Ann Holdings Bhd’s (Ta Ann) recent Certificate for Forest Management award has garnered neutral views from analysts given that its earnings impact is likely to be minimal in the near term. In a filing to Bursa Malaysia, Ta Ann announced that the group’s Kapit Forest Management Unit (FMU), managed by wholly-owned subsidiary Tanjong […]

Adventa defers proposed rights issue

PETALING JAYA: Adventa Bhd has deferred its rights issue plan after its major shareholder and managing director Low Chin Guan said he is not in a position to provide an undertaking for the fundraising exercise amid legal proceedings against him by Top Glove Corp Bhd.

“In view of the above, the board resolves to defer the proposed rights issue. Adventa will make further announcements in the event there are material developments,” according to Adventa's filing with Bursa Malaysia.

In a separate announcement, Adventa clarified that the group and its subsidiaries are not involved in the legal proceedings between Low and Top Glove.

Adventa's share price declined 4.5 sen or 8.3% to close at 5 sen today on 430,000 shares done.

Last January, Adventa announced a plan to undertakea a right issue exercise on the basis of three rights shares for every three shares as well as one free warrant for every two rights shares subscribed. The rights issue was to raise RM50.42 million for business expansion and working capital.

The group proposed to procure irrevocable undertakings from Low to subscribe for his rights entitlements and all the remaining rights shares which have not been subscribed. 

Ta Ann’s Kapit FMU attains Forest Management Certificate

KUALA LUMPUR: Ta Ann Holdings Bhd’s Kapit Forest Management Unit (FMU) has been awarded the Certificate for Forest Management (Natural Forest) under the Malaysian Timber Certification Scheme. The Kapit FMU is managed by Tanjong Manis Holdings Sdn Bhd, a wholly-owned unit of Ta Ann. In a filing to Bursa Malaysia yesterday, Ta Ann said the certificate […]

Stormy quarter puts pressure on Ta Ann’s cash flow


BAD luck and ongoing timber woes are sapping the cash reserves of Ta Ann Holdings Bhd, which paid nearly RM171 million for 30.4% of Sarawak Plantation Bhd (SPLB) earlier this year. In the first quarter ended March 31, 2018, Ta Ann’s cash and cash equivalents fell from RM272.86 million to RM179.85 million, equivalent to 37.2% of its current liabilities. The 0.37 cash ratio is the company’s lowest on a quarterly basis since 2012, according to data compiled by Bloomberg. Its cash and cash equivalents had fallen on a q-o-q basisRead More

Quiet first quarter for planters, but positivity intact

KUCHING: Despite plantation firms seeing an unexciting quarter for the first quarter of financial year 2018 (1Q18), MIDF Amanah Investment Bank Bhd (MIDF Research) expects better crude palm oil (CPO) prices in the second half of 2018 (1H18) to translate into better earnings. Out of the 10 plantation companies under its coverage, MIDF Research saw […]

India likely to remain major buyer from Ta Ann Group

SIBU: Ta Ann Holdings Berhad (Ta Ann) is confident that India will remain the major buyer from them throughout this year. Ta Ann chief executive officer Dato Wong Kuo Hea said India will definitely remain as the major buyer with export volume expected to remain strong in FY2018. “The export selling price for our Group […]