TSH–Fundamental Analysis (23 May 2014)

This study is created specifically for educational purposes only where I will use it on a special occasion later. I may not update analysis of this stock in the future.

TSH Analysis:-

Excel – http://1drv.ms/1niJ2LP

My View:-

– Fair values:
  – EY% – Buy below 2.19, sell above 3.75 (MOS: 11.97%)
  – In my opinion, TSH still got a little bit of upside.
– The CPO price moves in a cyclical manner.
– Analysts posted positive outlook on TSH because
  a) strong FFB production growth of 13%-15%
  b) young age profile of 6-7 years old for the majority of its planted area
– However, due to increasingly impairment costs, I am not sure efficiency of TSH management and operations. Unlike its peers, TSH leverage level is also higher.
– FY14Q1 earnings surged > 100% yoy was attributable to
  i. higher crop production
  ii. better CPO price
  iii. unrealized FX gain of RM16.7m arising from the strengthening of Ringgit and Rupiah against the US Dollar

Latest Financial – Q1 2014 Financial Report (22 May 2014) http://www.bursamalaysia.com/market/listed-companies/company-announcements/1629497

At the time of writing, I did not own shares of TSH.

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