Higher 1QFY24 revenue for Chin Teck as FBB rises
KUCHING: Chin Teck Plantations Bhd (Chin Teck) saw an increase in its revenue for the first quarter of financial year 2024 (1QFY24) from RM62.9 million to RM63.2 million, mainly led by higher fresh fruit bunch (FFB) production despite posting lower average palm oil selling prices.
The group’s average crude palm oil (CPO) price retreated from RM4,036 per metric tonne (MT) to RM3,765 per MT, said researchers with Public Investment Bank Bhd (PublicInvest Research).
“To note, its 1QFY24 FFB production rose by three per cent year on year (y-o-y) to 64,493MT,” it said in its analysis. “Oil extraction rate for CPO climbed from 19.4 to 19.5 per cent.
“As of 1QFY24, total planted area stands at 12,679ha with 10,984ha of mature area.”
Stripping out net fair value gain on investment securities (RM3 million) and foreign exchange gain (RM1.7 million), the group’s 1QFY24 core profit dipped from RM24 million to RM16.7 million, mainly weighed by higher administrative expenses and minimal contribution from the associates compared to RM3.5 million a year ago.
The increase in administrative expenses from RM5.9 million to RM7.9 million was attributed to the acquisition of a subsidiary, Fauzi-Lim Plantation Sdn Bhd.
“Meanwhile, its Indonesia plantation associate was lossmaking while the earnings from the property development associate shrank,” it commented.
“This follows as it faced disruption to joint venture-owned Indonesian plantation continues.
“Since 2012, the unrest in the surrounding villages located in the vicinity of the plantations in Lampung Province, Indonesia, has seriously affected the routine harvesting activities.
“As of now, the total accessed area remains at 53.61 per cent of the total planted area.”
Meanwhile, harvesting of the mature area located in South Sumatera Province has also been delayed due to the unrest in the neighbouring estate. According to management, commencement of harvesting is pending clearance by the relevant authorities.