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9M21 core PATMI came in within our estimates. We expect a rather flattish QoQ core earnings in 4Q21. However, THP’s high net gearing of 121% (30 Sept 2021) and its plan to dispose c.MYR778m of assets to deleverage do imply that investors are unlikely to be rewarded with any dividend despite record CPO prices. The stock remains a SELL with a higher TP of MYR0.48 (from MYR0.44) as we roll forward valuation base year to FY22E on unchanged on 0.6x forward P/NTA, its -1SD of 5Y mean.

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