25/03/2026 (The Edge Malaysia), Kuala Lumpur - Ta Ann Holdings Bhd (KL:TAANN) is eyeing record palm oil production that will help offset a tough outlook at its timber business, said one of its most bullish analysts.

The Sarawak-based firm is targeting an average 7.5% annual growth in fresh-fruit bunches output over the next five years, driven by larger mature areas and higher yields, said Public Investment Bank. A new mill set to be operational in 2028 will boost its processing capacity, the research house noted.

“In our view, the stock is currently trading at an unjustifiable valuation” of below 10 times its forward earnings, given the stronger palm oil price and dividend yield of 8%, one of the highest among Malaysian stocks, the house said.

Public Investment raised its target price for Ta Ann by 78 sen to RM6.42, one of the highest among eight research houses covering the stock, and reiterated its 'outperform' call.

Shares of Ta Ann have gained more than 20% in value year-to-date, as prices of the edible oil used in everything from diesel to lipstick soared along with that of crude oil following the outbreak of the Iran war.

The benchmark three-month futures for palm oil was trading at RM4,490 on Bursa Malaysia Derivatives, up nearly 11% from the start of 2026.

However, Ta Ann’s timber business appears to be facing headwinds as strengthening ringgit erodes export receipts in US dollars and as log production declines, said Public Investment. “We expect another challenging year for the timber segment,” the research house said.

Further, weaker yen also affected purchasing power in Japan, a key market for Ta Ann, Public Investment added.

https://theedgemalaysia.com/node/797282