KUALA LUMPUR (July 29): Chin Teck Plantations Bhd (KL:CHINTEK) reported a 44% decline in net profit for the third quarter, as lower sales volume of fresh fruit bunches (FFB), crude palm oil (CPO) and palm kernel (PK) dragged on revenue despite higher average selling prices.

Net profit fell to RM19.42 million in the three months ended May 31, 2026 (3QFY2026) from RM34.66 million a year earlier, while revenue declined 26.43% to RM59.03 million from RM80.24 million.

The group said production and purchases of FFB were lower during the quarter, resulting in lower CPO and PK production.

The weaker quarterly performance was also weighed down by lower share of results from associate and joint ventures, which decreased by 94.1% to RM134,000 from RM2.27 million, as weaker contribution from property development more than offset the smaller loss from its Indonesian oil palm joint ventures.

The board declared a second interim dividend of eight sen per share and a special dividend of four sen per share — a 66.67% decline from the 36 sen paid last year — payable on Aug 28.

This brings total dividends declared for FY2026 so far to 32 sen per share, a 37% drop from 51 sen per share paid in the same period last year.

For the first nine months of FY2026 (9MFY2026), net profit declined 32.56% to RM57.17 million from RM84.77 million, although revenue edged up 0.62% to RM214.14 million from RM212.82 million, supported by higher sales volume of CPO and PK.

On its outlook, Chin Teck Plantations said CPO prices are expected to remain volatile amid uncertainties arising from geopolitical conflicts in the Middle East, although rising global biodiesel demand could provide support.

Chin Teck Plantations expects the group's overall financial performance to be lower than FY2025 as the large land sale by its 40%-owned associate West Synergy Sdn Bhd is not expected to recur.

Chin Teck Plantations last traded at RM11.04 on Tuesday, valuing the group at RM1.01 billion.