Monday, March 28, 2011

Jaya Tiasa 3Q net profit up 191pct to RM39.89m, boost from higher prices

KUALA LUMPUR: JAYA TIASA HOLDINGS BHD []'s net profit rose 191% to RM39.89 million in the third quarter ended Jan 31, 2011 from RM13.67 million a year ago, boosted by higher prices for its timber and palm oil.

It said on Monday, March 28 that revenue rose 13.3% to RM237.64 million from RM209.68 million while earnings per share were 14.94 sen compared with 5.12 sen.

'Pre-tax profit improved substantially to RM58.3 million in the current quarter from RM18.4 million recorded in the corresponding quarter of the previous financial year,' it said.

Jaya Tiasa said the better results in revenue and pre-tax profit were mainly due to higher profit margin from logs sales with 36% increase in average selling price and 50 % increase in fresh fruit bunch (FFB) sales volume with 61 % improvement in average selling price.

It also benefited from the more than double increase in crude palm oil (CPO) sales volume with 56 % increase in average selling price.

It said for the nine months, net profit jumped 425% to RM92.42 million from RM17.59 million while revenue rose 10.6% to RM615.39 million from RM556.38 million. The higher earnings were underpinned by a 23% increase in average selling price of logs while average selling price of fresh fruit bunches and crude palm oil rose 24% and 28% respectively.

'For the timber division, selling prices are expected to remain firm in view of the tight log supply condition and anticipated increase in demand for wood products from Japan as a result of its reCONSTRUCTION [] efforts following the recent disasters.

'The prospect of the oil palm industry remains buoyant arising from tight global supply, high crude oil prices and continuing strong demand for palm products from emerging markets. Our oil palm division will continue to be a leading earnings contributor to the Group due to increasing FFB production boosted by improving yield and growing mature areas coupled with strong CPO prices,' it said.

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