23/11/2011 (The Sun Daily) - Regional plantation player TSH Resources Bhd expects its fresh fruit bunch (FFB) production to increase at a compounded annual growth rate (CAGR) of 30% in the next four years as more planted areas reach maturity.

“We have substantial areas that are going into maturity. Our trees are now in the young profile category. As these oil palm trees reach its maturity, it will boost the FFB production,” its group managing director Datuk Tan Aik Sim told reporters after the company’s extraordinary general meeting yesterday.

TSH Resources is forecasting between 350,000 tonnes and 380,000 tonnes of FFB production this year.

Tan also said the company has sizeable land bank for further expansion and produces high yielding tissue culture to enhance productivity in the future.

As of Dec 31, 2010, it has a total of 98,996ha in Sabah and Indonesia, of which about 60% remained unplanted.

Tan said TSH Resources will continue to look out for new land in Indonesia to support its future growth.

The company has establish TSH Biotech Sdn Bhd in 2005 with the aim to produce high quality oil palm ramets with high FFB yield and oil extraction rate (OER) for the palm oil industry.

“We are also selling some (oil palm ramets) to small holders in Sabah. This will have better yield and produce with lower cost. It will also benefit the company (THS) in the future,” he added.

To sustain its growth, he said, there is also a need for its people to run the whole operations. The company provide field training at its plantation training centre in Kalimantan, Indonesia to nurture talents.

On its cocoa and wood businesses, Tan said these two businesses will continue to be small contributors to the company’s earnings, but that there are no plans to dispose of them.

He also said the fundamentals for the plantation segment remain strong. Earnings contribution from the plantation segment to the company has increased from 95% in 2010 to 98% this year.

TSH Resources recorded a net profit of RM34.47 million in the third quarter ended Sept 30, 2011, up 89% from RM18.24 million a year ago. Its revenue increased 27.5% to RM273.15 million from RM214.26 million previously.