KUALA LUMPUR (Aug 22): Sabah-based plantation company TSH Resources Bhd (KL:TSH) saw its net profit nearly double to RM20.63 million in the second quarter ended June 30, 2024 (2QFY2024) from RM10.56 million a year earlier, on higher profit from its palm products segment, lower corporate expenses and finance costs, coupled with an increased profit contribution from associate and joint ventures.

This resulted in a higher earnings per share of 1.49 sen for 2QFY2024 compared with 0.77 sen for 2QFY2023.

Revenue for the quarter, however, fell 1.6% to RM252.52 million from RM256.57 million in 2QFY2023, mainly due to lower volume of fresh fruit bunches (FFB) and crude palm oil (CPO) sold, despite higher average CPO and palm kernel prices.

No dividend was declared during the quarter under review.

For the first six months ended June 30, 2024 (1HFY2024), TSH Resources’ net profit rose 1.8% to RM40.7 million from RM39.99 million a year ago, while revenue fell 2.4% to RM494.91 million from RM506.87 million.

In a filing with Bursa Malaysia on Thursday, TSH Resources said it is confident in its growth trajectory, underpinned by healthy cash flow and a robust balance sheet, with a net asset per share of RM1.46 and zero net gearing as at June 30, 2024.

"The group will undertake new planting at a steady pace on its unplanted land bank over the next few years to progressively expand its planted hectarage. The group will continue to seek strategic opportunities within the green/sustainable segment to complement its long-term shareholder value enhancement initiatives," it added.

Barring any unforeseen circumstances, the group is cautiously optimistic of achieving satisfactory performance for FY2024.

Shares in TSH Resources closed unchanged at RM1.15 on Thursday, giving it a market capitalisation of RM1.59 billion. The stock has risen 18.6% so far this year.