PETALING JAYA: Chin Teck Plantations Bhd
is heading into its new financial year with a measured sense of confidence, anchored by steady plantation fundamentals and tempered by the absence of exceptional one-off gains recorded previously.
Executive chairman Goh Wei Lei said the group expects satisfactory plantation results for the financial year ending Aug 31, 2026 (FY26) amid continued demand for biodiesel and for edible oils, while crude palm oil (CPO) prices may be volatile due to global trade and economic policies, production patterns of oil crops and other market forces.
“The overall financial performance of the group in FY26 is expected to remain satisfactory while outsized contributions from West Synergy Sdn Bhd are not expected to materialise in the absence of a recurrence of the sale of large sizeable tracts of land,” he stated in the company’s recently released annual report.
The report highlighted both near-term volatility and longer-term structural demand for palm oil, with Chin Teck noting “long-term prospects of palm oil is promising as there is global demand for palm products”.
Beyond food consumption, the group pointed to diversification potential, stating that besides its nutritional values, palm oil has vast potential as a renewable energy source.
Chin Teck’s cautious optimism followed a standout financial performance in FY25, whereby its profit after tax surged by 129.56% to RM200.51mil and revenue rose 16.84% to RM309.47mil compared with the preceding year.
The noteworthy increase in profit after tax was mainly due to improvement in revenue with a significant contribution from the associate engaged in property development West Synergy that had completed the disposal of land to Gamuda DC Infrastructure Sdn Bhd.
Commodity pricing provided additional support during the year.
Shareholders benefited from the strong FY25 outcome, with total dividends rising 27.5% to RM46.60mil or 51 sen per stock unit including substantial special dividends.
