Wednesday, September 25, 2013

TSH Resource - 77% oil palm plantations are young

About 77% of TSH’s oil palm plantings are still immature and young mature. It expects the strong trend of improving production output from these plantings in the next three years from Sept 2013.

TSH has been growing rapidly as a plantation company. It is now (Sept 2013) seeing some fruitions of our hard work put in several years ago which is just the beginning.

In the second quarter ended June 30, 2013, its profit before tax rose 21.1% to RM24.56mil from RM20.27mil. For the first half ended June 30, its earnings rose a strong 25.2% to RM37.17mil from RM29.68mil in the previous corresponding period.

Selling its 16.78% stake in Pontian United Plantations Bhd to Felda Global Ventures Holdings Bhd for RM196mil cash see it netting RM86mil.

It has also undertaken two private placements of 20.86 million shares each. At an indicative RM2.32 a share, the proposed private placement raised RM48.4mil, of which almost all would be used as additional working capital requirements and/or for potential investment projects.

Long-term outlook remains bright with 77% of its oil palm trees below seven years old which support higher yields going forward. Hence, its plantation can sustain FFB growth of more than 18% per annum over the next three years from Sept 2013.

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Please note that all data given are merely blogger's opinion. It is strongly recommended that you do your own analysis and research before investing.