Stock Name: TAANN
Company Name: TA ANN HOLDINGS BHD
Affin Investment Bank downgraded Ta Ann Holdings Bhd to "sell" from "add", and cut its target price to RM3.08 per share from RM5.08 previously, after the timber firm's first-half earnings missed market expectations.
"Given the weaker-than-expected second quarter (ended June 30, 2012) performance, we are cutting our financial year ending Dec 31, 2012 (FY2012) to FY2014 net profit forecast by 20 percent to 32 percent," the research house said in a note on Wednesday.
"At current share price level, the stock is trading at 14.7 times 2013 price-to-earnings ratio (PER), expensive in our view, considering its high risk to earnings, while also trading above its historical average PER of 13 times," Affin added.
Ta Ann reported on Friday a weaker-than-expected first-half net profit of RM24.8 million, a 68 percent drop year-on-year, mainly on lower selling prices and higher cost of production.
By 9.20am (0120 GMT), the counter dropped 1.78 percent to RM4.42 per share, while the broader index rose 0.16 percent. -- REUTERS
Company Name: TA ANN HOLDINGS BHD
| Research House: AFFIN | Price Call: SELL | Target Price: 3.08 |
Affin Investment Bank downgraded Ta Ann Holdings Bhd to "sell" from "add", and cut its target price to RM3.08 per share from RM5.08 previously, after the timber firm's first-half earnings missed market expectations.
"Given the weaker-than-expected second quarter (ended June 30, 2012) performance, we are cutting our financial year ending Dec 31, 2012 (FY2012) to FY2014 net profit forecast by 20 percent to 32 percent," the research house said in a note on Wednesday.
"At current share price level, the stock is trading at 14.7 times 2013 price-to-earnings ratio (PER), expensive in our view, considering its high risk to earnings, while also trading above its historical average PER of 13 times," Affin added.
Ta Ann reported on Friday a weaker-than-expected first-half net profit of RM24.8 million, a 68 percent drop year-on-year, mainly on lower selling prices and higher cost of production.
By 9.20am (0120 GMT), the counter dropped 1.78 percent to RM4.42 per share, while the broader index rose 0.16 percent. -- REUTERS
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