KUALA LUMPUR: TSH Resources Bhd's net profit fell 42.41 per cent to RM25.43 million in the fourth quarter (Q4) ended Dec 31, 2023 from RM44.16 million last year.
In its filing with Bursa Malaysia today, TSH Resources said its revenue fell seven per cent to RM260.93 million in Q4 2023 from RM281.59 million last year.
This mainly attributable to lower average selling prices of crude palm oil (CPO) and palm kernel oil (PK) and low demand for wood products.
For the six month ended Dec 31, 2023 (6MFY23), TSH Resources registered a lower net profit of RM94.96 million from RM456.41 million last year, while revenue fell to RM1.07 billion in 6MFY23 from RM1.31 billion previously.
TSH Resources said on the back of declining palm oil stock and seasonally lower output of fresh fruit bunch (FFB) for the first half of the year, CPO price has been trending up since January 2024.
It recently breached the RM3,900 level, supported by the rising demand for biodiesel in Indonesia and the anticipation of flattish palm oil production.
The company is on strong financial footing with a net asset per share of RM1.48 and net gearing of 0.02 times as at Dec 31, 2023.
"Underpinned by its strong balance sheet, the company will undertake new planting at a steady pace on its unplanted land bank over the next few years to progressively expand its planted hectarage," it said.
TSH Resources intends to pursue strategic investments in the green economy to further enhance its long-term shareholder value.
"In view of the general market expectation that average CPO price for 2024 will be at around current level and with receding inflationary pressure, barring any unforeseen circumstances, the company is cautiously optimistic of achieving satisfactory performance for 2024," it added.