Stock Name: THPLANT
Company Name: TH PLANTATIONS BHD
MIDF Research lowered its call on Malaysia's plantation firm TH Plantations Bhd to "trading sell" from "neutral" on the back of lower earnings due to higher labour and fertilizer costs.
In a research note on Wednesday, MIDF said higher costs and lower crude palm oil (CPO) prices dragged down TH Plantations' earnings in the first quarter this year by 40 percent on year, and as much as 65 percent on quarter to RM13.07 million (US$4.26 million).
MIDF cut its FY12 and FY13 earnings forecast for the planter by 41 percent and 33 percent respectively on lower profit margin assumptions.
"We do not expect TH Plant's earnings to recover swiftly in subsequent quarters in FY12 as crude palm oil price is downtrending and production is expected to stay flat," the broker said.
MIDF also revised its target price for the company to RM2.12 from RM3.00.
As of 10.05am Malaysian time, TH Plantations' shares fell 1.07 percent. -- Reuters
Company Name: TH PLANTATIONS BHD
| Research House: MIDF | Price Call: BUY | Target Price: 3.00 |
MIDF Research lowered its call on Malaysia's plantation firm TH Plantations Bhd to "trading sell" from "neutral" on the back of lower earnings due to higher labour and fertilizer costs.
In a research note on Wednesday, MIDF said higher costs and lower crude palm oil (CPO) prices dragged down TH Plantations' earnings in the first quarter this year by 40 percent on year, and as much as 65 percent on quarter to RM13.07 million (US$4.26 million).
MIDF cut its FY12 and FY13 earnings forecast for the planter by 41 percent and 33 percent respectively on lower profit margin assumptions.
"We do not expect TH Plant's earnings to recover swiftly in subsequent quarters in FY12 as crude palm oil price is downtrending and production is expected to stay flat," the broker said.
MIDF also revised its target price for the company to RM2.12 from RM3.00.
As of 10.05am Malaysian time, TH Plantations' shares fell 1.07 percent. -- Reuters
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