This article first appeared in The Edge Malaysia Weekly on August 17, 2026 - August 23, 2026

While it is cultivating good earnings from its oil palm plantations, Chin Teck Plantations Bhd (KL:CHINTEK) got an extra income boost from land sales, propelling its net profit to a new peak. The plantation group is among the beneficiaries of the influx of foreign direct investments in data centres.

Chin Teck achieved a record high net profit of RM200.5 million, or 219.46 sen per share, for the financial year ended Aug 31, 2025 (FY2025), more than double the RM87.3 million, or 95.6 sen, for FY2024. It posted a net profit of RM53.37 million in FY2023, while its earnings per share came in at 58.41 sen.

Chin Teck’s strong earnings growth translates into a compound annual growth rate of 27.7% over the three years in review — the highest among companies in the plantation sector that were assessed for the The Edge Malaysia Centurion Club Corporate Awards 2026.

Consequently, Chin Teck clinched the award for the sector’s Highest Growth in Profit After Tax Over Three Years. The latest accolade was the group’s second Centurion Club award, having won in the same category in 2023.

Notably, there was a significant contribution of RM84.56 million from the share of results of an associate, West Synergy Sdn Bhd. West Synergy is the master developer of Bandar Springhill, a 1,900-acre township in Port Dickson, Negeri Sembilan, where the land sales took place.

West Synergy disposed of 389.7 acres of land for RM424.4 million to Gamuda DC Infrastructure Sdn Bhd for the development of data centres. It also sold 53 acres of industrial land to Antmed Malaysia Sdn Bhd, a subsidiary of Shenzhen Antmed Co Ltd, a medical device manufacturer.

West Synergy is 60%-owned by MUI Properties’ wholly-owned Peristal Enterprise Sdn Bhd and 40%-owned by Chin Teck’s unit Double Alliance Sdn Bhd. MUI Properties is 72.26%-controlled by Malayan United Industries Bhd (KL:MUIIND).

Meanwhile, the group’s revenue, which is derived solely from its oil palm plantations, grew further to RM309.47 million in FY2025 from RM264.86 million in FY2024 and RM205.67 million in FY2023.

Higher average selling prices for fresh fruit bunches (FFB), crude palm oil (CPO) and palm kernel (PK) as well as an increase in production of CPO and PK boosted the group’s financial performance in FY2025.

The high CPO prices were the tailwinds to Chin Teck’s earnings. The average selling price for FFB increased by 18% to RM965 per tonne, while the average CPO price rose 10.1% to RM4,312 per tonne. PK performed even better, climbing 43.1% to RM3,326 per tonne, supported by steady demand and improved oleochemical margin.

The group continued to improve its plantation productivity, with FFB yield rising steadily over the past four years to 24.78 tonnes per hectare in FY2025 from 18.72 tonnes in FY2021, benefiting from ongoing replanting activities. It replanted 1,222ha of plantation land in FY2025 and plans to replant another 531ha in FY2026.

Besides cultivating great earnings growth, Chin Teck pays attention to its sustainability credentials. In FY2025, the group was recertified under the MSPO Certification Scheme 2.0 standard. The guidelines came into effect on Jan 1, 2025, and introduced more rigorous sustainability, traceability and ethical practices.

The group also adheres to No Deforestation, No Peat and No Exploitation (NDPE) commitments and has renewed its International Sustainability and Carbon Certification (ISCC) EU, showcasing its commitment to meeting increasingly stringent sustainability requirements in global palm oil markets.

Chin Teck’s cash-rich balance sheet speaks volumes of its financial strength. The group was in a net cash position of RM536.8 million, or RM5.81 per share, as at Aug 31, 2025.

The group’s healthy financial position has allowed it to regularly reward shareholders. Its total dividend payout increased 27.5% to 51 sen per share in FY2025, from 40 sen per share in FY2024, representing about 23% of its earnings that year.

Over the three-year period in review, Chin Teck’s adjusted share price climbed 50% to RM10.94 as at March 31, 2026, from RM7.29 as at March 31, 2023. Meanwhile, its shareholders received a total of RM1.11 per share in dividends (from FY2023 to FY2025), translating into a cumulative shareholder return of about 65.3%. The group paid 20 sen per share in FY2023, 42 sen per share in FY2022 and 30 sen per share in FY2021.

Looking ahead, Chin Teck expects satisfactory plantation performance, supported by the continued demand for biodiesel and edible oils. The group, however, warned of volatile CPO prices due to global trade, production patterns of oil crops and other market forces.

It also noted that FY2026 is unlikely to see another outsized contribution from West Synergy in the absence of more land sales.

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