TSH Resources Q1 net profit falls 32 per cent to RM20.1 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’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 “reasonable support” at the current level.

“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,” TSH said.

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

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“Barring any unforeseen circumstances, the group is cautiously optimistic of achieving satisfactory performance for 2024,” it said.

Shares of TSH in Singapore rose 1.6 per cent to close at S$0.325 on Monday.