KUALA LUMPUR, Aug 24 Kuala Lumpur Kepong Bhd (KLK) has proposed to acquire 739.20 million or 33 per cent and one share of Boustead Plantations Bhd (BPlant) from Boustead.
KUALA LUMPUR: RHB Research has a Buy call on plantation company TSH Resources Bhd with RM1.25, which is a 16% upside, while it increased the FY20-21F earnings by 1%-2%, after imputing new fresh fruit bunches (FFB) revisions, capex and in-house forex assumptions.
It said on Wednesday the RM1.25 was based on 16 times FY21F P/E for its upstream division, and 0.5 times price-to-book value (P/BV) for its other divisions.
“Our TP implies an enterprise value/ha of US$12,000, in line with its peer range of US$10,000 to US$15,000/ha. We believe valuations remain undemanding, as TSH is trading at 17 times P/E (within the small-cap peer range of 11 to 18 times), while FFB growth and earnings prospects remain solid.