KUALA LUMPUR (Oct 29): Chin Teck Plantations Bhd (KL:CHINTEK) reported a 68.58% drop in net profit for its fourth financial quarter, dragged down by lower palm product sales and the absence of a sizeable land disposal gain recorded by its associate a year earlier.
Net profit for the quarter ended on Aug 31, 2026 (4QFY2026) fell to RM36.6 million from RM115.74 million previously, while revenue declined 41.68% to RM56.37 million from RM96.65 million, according to the group's filing with Bursa Malaysia on Thursday.
It attributed the weaker revenue to lower sales volumes of fresh fruit bunches (FFB), crude palm oil (CPO) and palm kernel, despite higher average selling prices.
Chin Teck's share of profits from associates and joint ventures also fell sharply to RM16.36 million from RM78.35 million in 4QFY2025, when there was a large land sale by its property development associate, West Synergy Sdn Bhd.
On a quarter-on-quarter basis, revenue slipped 4.52% from RM59.03 million in 3QFY2026, mainly due to lower sales volumes of CPO and palm kernel.
For the full financial year, net profit dropped 53.35% to RM93.53 million from RM200.51 million in FY2025, while revenue fell 12.59% to RM270.51 million from RM309.47 million.
Chin Teck did not declare a final dividend for FY2026, having already paid interim and special dividends totalling 32 sen per share for the year. This compares with with 51 sen paid for FY2025.
On its Indonesian operations, Chin Teck said harvesting activities and mill operations have resumed at its plantations in Lampung province following disruptions caused by unrest in surrounding villages.
However, only 53.61% of the total planted area is currently accessible.
Harvesting at its joint venture plantation in South Sumatera remains delayed, pending clearance from the relevant authorities.
Looking ahead, Chin Teck expects CPO prices to remain elevated in FY2027 and anticipates satisfactory plantation results.
Chin Teck shares closed were unchanged at RM10.70 on Thursday, valuing the group RM977.6 million.