MARKET DEVELOPMENT
Recent Rainy Spell Sees Jaya Tiasa Production Output Decline
Recent Rainy Spell Sees Jaya Tiasa Production Output Decline
30/01/2015 (Borneo Post) - Jaya Tiasa Holdings Bhd’s (Jaya Tiasa) log and fresh fruit bunch (FFB) production declined in the second quarter of the financial year 2015 (2QFY15), which analysts at Affin Hwang Investment Bank Bhd (Affin Hwang Capital) peg to be partly due to bad weather.
Nevertheless, strong demand and tight log supply helped keep timber product ASPs high. In 2QFY15, Jaya Tiasa’s total log production declined by 4.6 per cent year on year to 272,537 cubic metres.
Meanwhile, its FFB production was also down in 2QFY15 by 14.4 per cent yoy to 182,672 metric tonnes.
“These declines were unexpected although we are aware that the unfavourable weather condition during the monsoon season – against that seen in 1QFY15 – potentially slowed down the harvesting process,” AffinHwang Capital said.
“We expect Jaya Tiasa’s palm oil division revenue to grow by about 48 per cent to RM477 million in FY15E.
This is underpinned by increasing production of FFB and crude palm oil, as well as yields; and rising maturity of its plantation estates.” On other corporate updates, the group’s third palm oil mill in Lassa Plantation was completed recently with a capacity of 120 metric tonnes per hour. The commissioning of the third palm oil mill should help Jaya Tiasa to cope with the increasingly matured palm oil estates and trim transportation costs, the firm said.
Meanwhile, Jaya Tiasa’s fourth palm oil mill in Hariyama Plantation is expected to be completed by end-2015 or early 2016, with a capacity of 60MT/hour.
Nevertheless, strong demand and tight log supply helped keep timber product ASPs high. In 2QFY15, Jaya Tiasa’s total log production declined by 4.6 per cent year on year to 272,537 cubic metres.
Meanwhile, its FFB production was also down in 2QFY15 by 14.4 per cent yoy to 182,672 metric tonnes.
“These declines were unexpected although we are aware that the unfavourable weather condition during the monsoon season – against that seen in 1QFY15 – potentially slowed down the harvesting process,” AffinHwang Capital said.
“We expect Jaya Tiasa’s palm oil division revenue to grow by about 48 per cent to RM477 million in FY15E.
This is underpinned by increasing production of FFB and crude palm oil, as well as yields; and rising maturity of its plantation estates.” On other corporate updates, the group’s third palm oil mill in Lassa Plantation was completed recently with a capacity of 120 metric tonnes per hour. The commissioning of the third palm oil mill should help Jaya Tiasa to cope with the increasingly matured palm oil estates and trim transportation costs, the firm said.
Meanwhile, Jaya Tiasa’s fourth palm oil mill in Hariyama Plantation is expected to be completed by end-2015 or early 2016, with a capacity of 60MT/hour.