PETALING JAYA: Analysts remain broadly positive on Ta Ann Holdings Bhd
’s operational momentum, but diverge on whether that strength will translate into meaningful share price gains in the near term.
“We are positive on its 2026 outlook on the back of a higher crude palm oil (CPO) price assumption of RM4,500 per tonne, and contribution from its timber segment,” CGS International (CGSI) Research said.
The research house added that Ta Ann’s results for the first nine months of financial year 2025 (9M25), RM146mil in core net profit, up 20% year‑on‑year, came in line with expectations, supported by stronger volumes and better average selling prices.
It said that the rebound in timber was particularly noteworthy, after five quarters of losses, the segment swung back to profitability as export demand from Japan improved and more stable weather conditions helped lift production.
CGSI Research expects a strong fourth quarter of financial year 2025 (4Q25), driven by delayed peak cropping in Sarawak, although CPO prices may soften quarter‑on‑quarter.
The research firm reiterated its “add” call with an unchanged RM6.85 target price, noting Ta Ann’s solid balance sheet, 81 sen per share net cash and attractive 7% dividend yield.
MBSB Research, meanwhile, maintained its “neutral” call and RM4.38 target price, reflecting limited near‑term catalysts and what it sees as a valuation that has become “rather rich” relative to peers yet to re‑rate to higher multiples.
While acknowledging steady earnings visibility, supported by expanding fresh fruit bunch (FFB) output and low production costs of around RM2,100 per tonne, MBSB Research flagged potential weakness in 4Q25 due to subdued FFB production and softer CPO prices.
Ta Ann’s 9M25 core profit after tax and minority interest of RM147.9 million (up 14% year‑on‑year) was within the research house’s expectations at 80% of its full‑year forecast.
However, the oil palm segment showed mixed signals: topline improved, but margins compressed to 23.5% as costs ticked up and FFB sales volumes slipped. The research house said dividend payouts remained healthy but slightly below earlier projections.
“The company declared a third interim dividend per share of one sen, bringing a year‑to‑date dividend payout to three sen or 7.1% yield, equivalent to 72% payout.
“This remains below the earlier projected 3.2 sen, which would have implied a yield of approximately 8.2%,” it noted.
MBSB Research kept its FY26 estimates unchanged and noted Ta Ann’s advantage as a purely Malaysian operator, insulated from Indonesian regulatory risks.
