19.05.2021 (www.theedgemarkets.com) - KUALA LUMPUR (May 19): TSH Resources Bhd's net profit rose ninefold to RM20.78 million in the first quarter ended March 31, 2021 (1QFY21), from RM2.25 million a year earlier, thanks to higher crude palm oil (CPO) and palm kernel prices, partially offset by lower sales contribution from the cocoa segment due to the pandemic.

The group said profitability was also affected by the higher export levy and duty of RM52.6 million imposed by Indonesia compared with RM10.29 million in 1QFY20.

Quarterly revenue sank 5% to RM198.72 million, from RM209.14 million a year ago, the group said in a filing with Bursa Malaysia.

TSH said the average CPO price was RM3,010 per tonne, compared with RM2,599 a year prior, while average palm kernel price was higher at RM2,113 versus RM1,480 previously.

As for fresh fruit bunch production, the group achieved 228,188 tonnes, up from 207,727 tonnes previously.

On a quarter-on-quarter basis, the group's revenue went up marginally from RM195.24 million in 4QFY20, while net profit fell 36.93% from RM32.95 million.

TSH attributed the lower profitability to a higher foreign exchange loss of RM11.9 million in 1QFY21, compared with foreign exchange gains of RM12.5 million in 4QFY20.

Noting that palm oil prices have been trading above RM4,000 per tonne in recent weeks, boosted by stronger soybean oil prices and concerns about weak CPO production, the group said it is optimistic about achieving a satisfactory performance in FY21.

Shares of TSH closed three sen or 2.44% lower at RM1.20, giving the group a market capitalisation of RM1.66 billion. The stocks saw 4.32 million shares traded.