KUALA LUMPUR: Maybank Investment Bank Research (Maybank IB Research) has initiated coverage on TSH Resources with a Buy call and RM3.84 target price based on 15 times FY12 earnings per share.
'The 15x PER target reflects TSH's young tree profile of just 6.6 years average, offering a strong 20% three-year forward fresh fruit bunches (FFB) output compounded annual growth rate (CAGR), which is the highest among Malaysian PLANTATION [] players under our coverage,' it said.
Maybank IB Research said the market has under-appreciated TSH. It is trading at 12.6 times 2011 price-to-earnings ratio and price earnings growth of 0.79 times, and enterprise value/planted hectare of RM49,000.
Upside catalysts will emanate from higher-than-expected FFB output, and CPO price, said the research house.
'The 15x PER target reflects TSH's young tree profile of just 6.6 years average, offering a strong 20% three-year forward fresh fruit bunches (FFB) output compounded annual growth rate (CAGR), which is the highest among Malaysian PLANTATION [] players under our coverage,' it said.
Maybank IB Research said the market has under-appreciated TSH. It is trading at 12.6 times 2011 price-to-earnings ratio and price earnings growth of 0.79 times, and enterprise value/planted hectare of RM49,000.
Upside catalysts will emanate from higher-than-expected FFB output, and CPO price, said the research house.
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