KUALA LUMPUR: TSH RESOURCES BHD [] shares edged up in early trade on Tuesday, June 28 after Maybank IB Research initiated coverage on the stock with a Buy call and RM3.84 target price based on 15 times 2012 EPS.
At 9.30am, TSH added two sen to RM3.04 with 6,000 shares traded.
Maybank IB Research said on June 28 that the 15x PER target reflects TSH's young tree profile of just 6.6 years average, offering a strong 20% 3-year forward FFB output CAGR, which is the highest among Malaysian PLANTATION [] players under its coverage.
'Trading at 12.6x 2011 PER, PEG of 0.79, and EV/planted hectare of circa RM49,000, the market has under-appreciated this stock.
'Upside catalysts will emanate from higher-than-expected FFB output, and CPO price,' it said.
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