Shares in Ta Ann Holdings Bhd edged lower in Monday’s trading session, slipping 2 sen or 0.32% to RM6.17 as of 4:01pm.
The plantation stock opened at RM6.19 and traded between an intraday high of RM6.22 and a low of RM6.03, with 388,600 shares changing hands. The stock closed at RM6.17 against its previous close of RM6.19.
The decline comes shortly after MBSB Research upgraded Ta Ann to BUY with a higher target price of RM6.72, citing firmer crude palm oil (CPO) prices, resilient plantation operations and the group’s attractive dividend yield.
MBSB noted that Ta Ann’s share price has historically maintained a strong correlation with CPO movements, while its dividend profile continues to provide support to the investment case. The group paid a total dividend of 40 sen per share for FY2025, translating into a yield of more than 7%.
For FY2026 and FY2027, MBSB expects Ta Ann to offer dividend yields of 6.4% and 5.6% respectively.
The research house expects Ta Ann’s fresh fruit bunch (FFB) production to reach between 730,000 and 740,000 tonnes in FY2026, representing growth of about 6% to 8% from 686,000 tonnes in FY2025.
MBSB said production momentum should remain healthy in the second half of FY2026 as the group enters a seasonally stronger cycle, although weather conditions remain a key variable.
Ta Ann’s relatively young oil palm trees, averaging about 12 years old, are also expected to support production. Around 70% of its planted area is on peat land while the remaining 30% is on mineral soil, providing some protection against dry weather risks, although a prolonged El Niño could still affect future yields.
MBSB has raised its earnings forecasts for Ta Ann, projecting earnings of RM264.3 million for FY2026, RM246.6 million for FY2027 and RM245.2 million for FY2028.
Its revised RM6.72 target price is based on FY2027 forecast earnings per share of 56 sen and a 12 times price-to-earnings multiple, compared with 11.5 times previously.
At RM6.17, Ta Ann shares are trading 55 sen below MBSB’s target price, implying potential upside of about 8.9%.
