Below expectations. Recurring group net profit plunged 80% YoY in 2QFY9/12 to just MYR17m, far below our and consensus estimates. Cumulatively, recurring net profit in 1HFY9/12 was down 76% YoY. The poor results were due to the floods in Thailand that caused the Dairies Thailand plant in Rojana to report further losses in 2QFY9/12 after being submerged for 40 days last year, and were exacerbated by the relocation of Dairies Malaysia from Petaling Jaya to Pulau Indah. We maintain our Sell call and target price pending an analyst briefing today.

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Source: Maybank Research - 8 May 2012