KUALA LUMPUR (Jan 7): Affin Hwang Capital Research has maintained its “Buy” rating on Jaya Tiasa Holdings Bhd at RM1.01 with a higher target price (TP) of RM1.55 (from RM1) and said it expects Jaya Tiasa’s earnings to turn around in FY20, mainly driven by its palm-oil plantation division.

In a note today, the research house said this would be largely underpinned by higher crude palm oil (CPO) production and a recovery in CPO prices.

“We have increased our FY20-22 core EPS forecasts by 1-46%, mainly to take into account likely higher contribution from the plantation division that is partially offset by a lower timber contribution.

“In tandem with our earnings upgrade, our 12-month SOTP-derived TP for Jaya Tiasa is raised to RM1.55; maintain Buy,” it said.