TSH’s net gearing will reduce from 1.04 times (as at Dec 31 2012) to 0.69 times, below its targeted long-term net gearing ratio of 0.8 times following the private placement and disposal of its 16.2% stake in Pontian (pending acceptance from other major minority shareholders of Pontian).
Given the improving financial standing, management highlighted that it will embark on slightly more aggressive new planting and resumes its plan to construct a palm oil mill in Kalimantan, Indonesia.
In addition, management also highlighted that it is eyeing more landbank. With the land acquisition announced in June 2013, TSH has total landbank of 103,927ha, of which 35,500ha are planted with oil palm. Assuming 60% of the unplanted landbank is plantable and with new planting of 4,000 to 5,000ha per year, the existing plantable reserves will keep TSH busy for the next eight to 10 years.
No comments:
Post a Comment