♦ Significantly below. Stripping off forex loss of RM4.7m, Ta Ann’s 1HFY12/10 core net profit of RM20.1m (-2.6% yoy) was significantly below our and consensus expectations, accounting for just 21-22% of our and consensus forecasts respectively. Key variance was mainly due to continued losses in its plywood division (vs. our forecast of RM10-15m profit before tax for FY10), where cost of production was higher as a result of a product mix shift, despite higher average selling prices achieved. Besides this, log production was also lower than expected due to the exceptionally wet weather.
Ta Ann Holdings Berhad : Eco Friendly but Not Profit Wise - 30/08/2010
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