KUALA LUMPUR (March 1): Ta Ann Holdings Bhd emerged as the top loser on the local bourse on Tuesday (March 1) morning after it dropped as much as 63 sen or 11.48% to RM4.86.

The stock opened nine sen or 1.64% lower to RM5.40 before it plunged further after the opening bell. It closed at RM5.49 the day before.

At 10.05am, the stock traded 50 sen or 9.11% lower at RM4.99, valuing the timber and oil palm player at RM2.22 billion.

It saw a total of 4.82 million shares done.

At the time of writing on Tuesday, it was unclear what was driving the share price lower.

However, some industry observers believe it could be profit-taking as for the past month, the share price has rallied by 37.4% from RM3.61 reported in early February. 

On another note, PublicInvest Research maintained its "outperform" call on the group, with an unchanged target price of RM5.96.

“Ta Ann’s FY21 (financial year ended Dec 31, 2021) core earnings tripled to RM284 million, bolstered by stronger plantation earnings, a turnaround of its timber business and higher contributions from its associate companies. The impressive results surpassed our and the street's full-year expectations, making up 121% and 127% respectively,” it said in a research note on Tuesday. 

It added that Ta Ann recently saw its “best-ever quarterly earnings”.

“The stronger earnings were mainly led by a surge in plantation earnings and a turnaround of its timber segment. Plantation pre-tax earnings nearly tripled to RM177 million, led by a stronger profit margin. FY21 CPO (crude palm oil) production cost averaged at RM1,600/mt. Timber earnings saw a turnaround with a pre-tax profit of RM10 million on the back of a turnaround of both its log and plywood businesses. Meanwhile, the earnings contribution from its 30.4%-owned Sarawak Plantation and joint venture-owned refinery company doubled to RM19 million,” PublicInvest Research noted.