Friday, August 19, 2011

TSH Resources posts record pre-tax profit of RM51.63m in 2Q

KUALA LUMPUR: TSH RESOURCES BHD [] posted an impressive set of results in the second quarter ended June 30, 2011 with a record pre-tax profit of RM51.63 million, which was 192% above the RM17.69 million a year ago, boosted by its PLANTATION []s business, especially from its Indonesian operations.

It said on Friday, Aug 19 net profit increased by 217% to RM35.96 million from RM11.32 million a year ago. Its revenue rose 59% to RM329.95 million from RM207.47 million. Earnings per share were 8.77 sen compared with 2.77 a year ago.

For the first half, its pre-tax profit rose 139.4% to RM85.27 million from RM35.61 million in the previous corresponding period while net profit was RM59.92 million, up 165% from RM22.59 million.

'Overall, the palm and bio-integration business segment's performance improved significantly as a result of higher crop production arising mainly from higher yield and increased hectarage of mature plantation field in Indonesia,' it said.

TSH said the cocoa manufacturing segment reported a lower profit due to lower production and unfavourable cocoa butter price. As for the wood products segment, the decrease in loss was attributed to strengthening of ero and better sale mix which contributed to better gross profit margin.

Commenting on the plantations business, group chairman Datuk Kelvin Tan said: 'The group fresh fruit bunches (FFB) crop for the half year of 2011 was 50% higher than 2010, contributed by the maturing profile of TSH's Indonesian oil palm plantations as more area comes into harvesting, as well as the high yield of our Sabah plantations,' s.

For FY2011, he expected the Sabah estates to achieve average yield of above 30 tonnes FFB per hectare which was well above the industry standard.

'Despite the young age profile of our Indonesian oil palms of 4 - 5 years, we are now achieving a'' high oil extraction rate (OER) of over 25% for FFB from our own crops', stated Datuk Kelvin.'' 'This has further boosted our bottomline'.

Tan said with more of its Indonesian plantations being planted with TSH's Wakuba clonal oil palm ramets, future FFB yield and OER will be further enhanced.

He explained the ramet plantings can yield up to 17 tonnes FFB per hectare in its first year of harvesting.

'This, coupled with the young age profile of our palms, will assure us of exponential growth for years to come,' he added.

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