PETALING JAYA: Ta Ann Holdings Bhd
’s upstream plantation business is set to benefit from higher crude palm oil (CPO), palm kernel oil prices (PKO) and external fresh fruit bunch (FFB) which will offset any fall in its production.
Ta Ann has benefitted from higher CPO and PKO prices year-to-date (y-t-d), which has been reflected in its improved share price performance, but RHB Research warned that should CPO prices fall, Ta Ann would be more susceptible than its peers, with earnings to be affected by 12% to 15% for every RM100 a tonne change in CPO price.
