Results underperformed. THP's MYR13m 1Q12 core net profit (-40% YoY, -65% QoQ) accounted for just 10% and 12% of our and consensus FY12 forecasts respectively. The shortfall is due to higher-than-expected cost and taxes. We maintain our earnings estimates for now pending further clarification from management. However, the underperformance could trigger short-term weakness in its share price, but mitigated by its upcoming payment of 2011 final DPS of 12.5sen/sh. Maintain HOLD with an unchanged TP of MYR2.75 (11x 2013 PER).

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Source: Maybank Research - 25 April 2012