Thursday 28 Mar 2024
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KUALA LUMPUR (May 19): Ta Ann Holdings Bhd's net profit for the first quarter ended March 31, 2016 (1QFY16) more than halved to RM12.55 million or 3.39 sen a share from RM27.08 million or 7.31 sen a share a year ago, as its plywood sales volume, export logs and export logs average selling price fell by 13%, 33% and 6% year-on-year respectively.

Revenue also slipped 1.6% to RM218.53 million in 1QFY16 from RM222.15 million in 1QFY15.

Nevertheless, the group declared a first interim dividend of 5 sen per share for the financial year ending Dec 31, 2016, payable on June 23.

It also declared a one-for-five bonus issue of up to 74.15 million new shares for FY16.

In a filing with Bursa Malaysia today, Ta Ann said demand for logs is expected to remain stable this year.

"Higher log production is anticipated with the improving weather condition in the second quarter. Plywood demand in Japan is still slow, but prices are believed to have hit the bottom," it said.

"Given the low plywood inventory in Japan, the commencement of the new financial year and a stronger yen, plywood purchase to replenish the stock should be in the pipeline. Coupled with the infrastructure construction works for the coming Olympics, plywood demand is expected to increase," it added.

For the palm oil sector, Tan Ann said its fresh fruit bunch (FFB) production has started to increase in April and is anticipated to continue increasing with the approaching peak crop season.

It is of the view that the better crude palm oil (CPO) price compared to 2015, and the projected rising trend of CPO price will raise the contribution of the palm oil sector to the group's revenue and profit in 2QFY16.

"Barring unforeseen circumstances, the board of directors expects a better second quarter performance than the first quarter," the group said.

Ta Ann shares closed down 12 sen or 2.99% to RM3.89 today, with a market capitalisation of RM1.44 billion.

 

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