{
  "id": 5494902,
  "title": "Ta Ann poised for stronger second half on higher FFB output",
  "url": "https://urgent.news/2026/09/04/ta-ann-poised-for-stronger-second-half-on-higher-ffb-output",
  "topic": "world",
  "section": "World",
  "published": "2026-09-04T05:11:25.000Z",
  "source": {
    "name": "New Straits Times",
    "slug": "new-straits-times",
    "url": "https://www.nst.com.my/business/corporate/2026/09/1525545/ta-ann-poised-stronger-second-half-higher-ffb-output"
  },
  "original_language": "en",
  "account": "Ta Ann Holdings Bhd is expected to continue its growth trend in the second half of 2026, fueled by an increase in fresh fruit bunch (FFB) production and reduced costs at its plantation segment. CGS International Securities Malaysia expects higher FFB yields as the peak crop season nears, while production costs are anticipated to decline as 65% of the fertiliser programme for the year has already been completed by July. Despite the current dry weather in parts of Sarawak, management stated that oil palms planted on peat soils are in good condition, with water levels at 60-70cm below the soil surface. However, prolonged dry weather and further drops in water levels could decrease root-zone moisture and heighten water stress risks, highlighting the significance of efficient water management. In terms of timber, drier conditions are expected to enhance harvesting and boost log production in the second half of 2026. Additionally, a recovery in average selling prices (ASPs), driven by improved demand, could contribute to margin expansion. Ta Ann's first half of 2026 core earnings of RM91 million fell short of expectations, accounting for only 38% of the full-year forecast and 40% of consensus estimates. The lower-than-anticipated profits were primarily due to higher operating costs resulting from larger-than-expected fertiliser usage. CGS International has maintained its call on Ta Ann with an unchanged target price of RM6.85, based on a 13x FY26 price-to-earnings ratio. The firm remains optimistic about Ta Ann due to its robust balance sheet and appealing forecast dividend yields of six percent for FY26 and FY27.",
  "summary": "KUALA LUMPUR: Ta Ann Holdings Bhd is likely to sustain its growth momentum in the second half of 2026 (2H FY26), driven by higher fresh fruit bunch (FFB) output and lower production costs at its plantation segment.",
  "key_points": [
    "Ta Ann expects higher FFB yields as peak crop season approaches",
    "Production costs to decline as 65% of fertiliser programme completed",
    "Drier conditions may boost log production and margin expansion"
  ],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}