23/08/2012 (Bernama) - Kenanga Investment Bank Bhd has maintained TSH Resources Bhd's financial years 2012 and 2013 (FY12, 13) earning estimates of RM112 million-RM149 million based on crude palm oil price assumption of RM3,150-RM3,100 and fresh fruit bunches (FFB) production of 448,000-583,000 tonnes.

In a research note on Thursday, Kenaga said the long-term outlook remained positive as historically, TSH's FFB was skewed towards second half of the year with the volume usually making up 55 per cent of the full-year production.

"We believe TSH can sustain a five-year FFB compounded annual growth rate of 16 per cent as its Kalimantan estates mature," it said.

It said eventhough TSH's FFB production in the first half of this year declined four per cent year-on-year but still outperformed other planters which suffered deeper production slump of nine-18 per cent for the same period.

"This could be due to the group's younger palm oil tree, which can withstand the tree stress effect better," it said.

Kenanga said it has maintained its 'outperform' call on the company at a target price of RM2.85.