But Q3 revenue down 22% because of a weak performance by its palm products segment

 

PLANTATION company TSH Resources : KUH 0% reported on Thursday (Nov 21) a 12 per cent increase in net profit for the third quarter, despite a rise in crude oil prices.

 

Net profit for the three months ended Sep 30 rose to RM33.1 million from RM29.5 million in the year-ago period, the company said in a bourse filing. The company has a primary listing on Bursa Malaysia and a secondary listing on the Singapore Exchange.

 

TSH&rsquo s core profit before tax, which excludes disposal gains and foreign-exchange effects, was 18 per cent lower in Q3 2024, at RM49.4 million.

 

Revenue for the quarter was down 22 per cent on year to RM231.9 million, mainly due to lower revenue from its palm products segment.

 

Revenue from that segment stood at RM218.9 million, down 22 per cent from the year before. Its &ldquo others&rdquo segment posted a loss of 33 per cent, falling to RM13.1 million in Q3 from RM19.5 million in the year-ago quarter. The company attributed the loss to the cessation of its cacao division in Q4 of 2023, as well as lower demand for wood product exports.

 

In terms of geographical segments, the company pulled in the highest revenue in Indonesia, which contributed RM144.9 million for Q3. Quarter on quarter, however, this segment was down by a third (32 per cent).

 

Earnings per share rose to 2.40 sen in Q3, up from 2.14 sen a year ago.

 

Its losses due to foreign-currency translation difference rose 132 per cent from RM39.9 million the year before to RM92.7 million in Q3.

 

The company said that festive demand in the run-up to the Chinese New Year in January, and Ramadan the following month would support its crude palm oil prices until Q1 of 2025.

 

&ldquo However, future crude palm oil prices will continue to be influenced by factors, including supply and demand shifts and currency and financial market uncertainty,&rdquo said the company.

Revenue contribution from the palm products segment slipped marginally to RM231.8 million

PLANTATION company TSH Resources reported on Monday (May 20) a 32 per cent decline in net profit for the first quarter amid lower revenue and an absence of disposal gains.

 

Net profit for the three months ended March 31, 2024, fell to RM20.1 million from RM29.4 million in the year-ago period, the company said in a bourse filing on Bursa Malaysia, where it has a primary listing.

 

The company had a net gain on disposal of assets held for sale in the year-ago period, amounting to RM27.6 million, but had no such gain in Q1, 2024.

 

TSH&rsquo s core profit before tax, which excludes disposal gains and foreign exchange effects, was 13 per cent higher in Q1 2024, amounting to RM34.8 million.

 

Revenue for the quarter was down 3 per cent on year to RM242.4 million, mainly due to lower revenue from its wood division, as a result of poor demand from the export market.

 

Revenue contribution from the palm products segment slipped marginally by 1 per cent to RM231.8 million.

 

TSH said crude palm oil prices have traded sideways around RM3,800 per tonne, after easing from around RM4,500 per tonne in early April, and it expects prices to find &ldquo reasonable support&rdquo at the current level.

 

&ldquo The group is confident that global population and per capita income growth and the push for the expansion of biodiesel programme will drive greater demand for oil palm products in the longer term,&rdquo TSH said.

 

It added it will &ldquo undertake new planting at a steady pace on its unplanted land bank&rdquo over the next few years to progressively expand its planted hectarage.

 

&ldquo Barring any unforeseen circumstances, the group is cautiously optimistic of achieving satisfactory performance for 2024,&rdquo it said.

SHARES of Bursa Malaysia-listed TSH Resources will commence trading on the Singapore Exchange (SGX) mainboard on Tuesday (Sep 26), following its secondary listing by way of introduction.

 

The oil palm plantation company announced in July that it was undertaking a secondary listing of its shares on the SGX to expand and diversify its shareholder base and improve trading liquidity.

 

The company also noted that the secondary listing would provide an additional avenue for fundraising in Singapore and could attract wider research coverage for the company. The secondary listing does not involve any issuance of new shares.

 

TSH Resources will maintain its primary listing on Bursa Malaysia, and shares of TSH that are listed on Bursa Malaysia and on the SGX will be fully fungible.

 

The shares in Malaysia closed at RM1 per share on Monday or around S$0.2918, based on exchange rates as at 5 pm on Sep 25. At that price, the group had a market capitalisation of around RM1.38 billion.

 

TSH Resources posted revenue of RM1.3 billion for the financial year ended Dec 31, 2022, according to its annual report. This was 9.8 per cent higher than revenue for FY21, supported by revenue growth of the palm products segment.

 

Oil palm cultivation and processing of fresh fruit bunches into crude palm oil and palm kernel accounted for around 92 per cent of total revenue in FY22.

 

The group posted profit after tax of RM525 million in FY22, up from RM202 million in FY21, mainly due to gains arising from disposal of assets.

 

Net profit attributable to shareholders rose to RM456.4 million for FY22, from RM169.4 million a year earlier. On a per-share basis, earnings per share rose to 33.07 sen from 12.27 sen over the same period.

 

There are 27 companies with a secondary listing on the SGX. Hong Kong-listed wireless solutions provider Comba Telecom Systems also carried out a secondary listing on the mainboard of SGX in January this year.