[%kAls%] 
Research by Maybank
Buy – TP of MYR 4.29

“A slow start for 1Q24” 

1Q core PATMI was off to a slow start due to low crop cycle and wet weather impacting log output, but it met our/consensus expectations. We expect earnings to play catch up, especially in 2H24. We maintain our EPS forecasts but raise our TP to MYR4.29 on 10.5x FY24E PER, its updated 5Y mean (from MYR3.67 on 9x FY24E PER), and to be more aligned to SMID cap peer valuations. Given 16% upside potential, we upgrade TAH to BUY. Net DY of >6% (based on 60% DPR) is attractive, backed by its net cash of MYR270m (ie. 16% of its market cap).

Analyst(s):
Ong Chee Ting, CA
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$KLSE-TAANN 
Research by Maybank
Buy – TP of MYR 4.29

“A slow start for 1Q24” 

1Q core PATMI was off to a slow start due to low crop cycle and wet weather impacting log output, but it met our/consensus expectations. We expect earnings to play catch up, especially in 2H24. We maintain our EPS forecasts but raise our TP to MYR4.29 on 10.5x FY24E PER, its updated 5Y mean (from MYR3.67 on 9x FY24E PER), and to be more aligned to SMID cap peer valuations. Given 16% upside potential, we upgrade TAH to BUY. Net DY of >6% (based on 60% DPR) is attractive, backed by its net cash of MYR270m (ie. 16% of its market cap).

Analyst(s):
Ong Chee Ting, CA
ct.ong@maybank-ib.com