Thursday, January 23, 2014

TDM - first harvest 2015

The group’s interests lie in twp core segments within and outside Terengganu – plantations and healthcare.

For its plantation division, its Indonesian operation is expected to contribute between 40 and 45% to the group's earnings over the next five years from Jan 2014.

The company has invested between RM250 million and RM300 million over seven years on its 40,000 ha plantation in Indonesia. 12,000 ha had been planted with oil palm trees while 500 ha had matured.

TDM, capitalising on the maturation of these oil palm trees, the group would set up a 60-tonne palm oil mill costing RM80 million to correspond with the first harvest which was expected by 2015.

The group is the first plantation company in the East Coast to achieve 100 certification for its mills and estates," he said after the Roundtable on Sustainable Palm Oil (RSPO) certificate presentation. The group's plantation arm received the RSPO certification in November 2013.

TDM also has two oil palm mills in Sungai Tong and Kemaman, Terengganu.

Its plantation division has been the major contributor to the group's revenue of about 90% compared with its healthcare unit.

TDM’s majority shareholder is Terengganu Inc Sdn Bhd, which is the state government’s investment arm. Terengganu Inc whose chairman is MB Datuk Seri Ahmad Said, holds a 47% stake in the plantation and healthcare company.

TDM, which derives 77% of its income from the plantations segment, owns two palm mills and manages 32000ha of oil palm plantations in Terengganu.

The group also has made inroads into Indonesia with 8000ha of planted oil palm land. About half of its oil palm trees are at peak yield age, between nine and 18 years with the rest being mainly immature trees.

In the healthcare segment, TDM is gaining a foothold as the leading private healthcare provider in the East Coast. It operates four specialist hospitals with another two under construction.

TDM has a dividend policy of declaring at least 30% of its earnings as dividends.

To recap, the shares in TDM during July 2013, which have gone from a share split exercise, have been in the limelight as investors picked up the stock leading up to the Kuala Besut by election in Terengannu. Investors snapped up TDM shares in anticipation of the ruling coalition BN victory in Kuala Besut. The preservation of the status quo allows the state government to proceed with existing investment initiatives.

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