[%sptc%]
Research by Kenanga
MARKET PERFORM – TP RM3.60

"Timber Headwinds To Drag Earnings”

TAANN’s 1HFY24 results were disappointing. After a poor 1Q, 2QFY24 earnings continued to slip QoQ and YoY as better earnings from plantation segment were offset by losses from the timber division. Operations in the former should continue to fare well moving into 2H but the latter will likely to still face headwinds. We downgrade FY24-25 core EPS by 14% and 11%, respectively, and TP to RM3.60 (from RM4.00). MARKET PERFORM call is kept. 

Analyst:
Khoo Teng Chuan 
[%qYrC%]

$KLSE-TAANN
Research by Kenanga
MARKET PERFORM – TP RM3.60

"Timber Headwinds To Drag Earnings”

TAANN’s 1HFY24 results were disappointing. After a poor 1Q, 2QFY24 earnings continued to slip QoQ and YoY as better earnings from plantation segment were offset by losses from the timber division. Operations in the former should continue to fare well moving into 2H but the latter will likely to still face headwinds. We downgrade FY24-25 core EPS by 14% and 11%, respectively, and TP to RM3.60 (from RM4.00). MARKET PERFORM call is kept. 

Analyst:
Khoo Teng Chuan 
khootc@kenanga.com.my