PETALING JAYA: TSH Resources Bhd
will remain focused on driving estate and mill productivity, as well as enhancing oil yields, as the group seeks to strengthen operational performance and support growth ahead.
In a filing with Bursa Malaysia, the plantation group said estate productivity would be supported by improvements in field operations, while oil yield enhancement would be driven by better harvesting standards and mill performance.
The group also plans to accelerate its new planting programmes in the coming years, including on plantation land secured through its recently completed acquisitions in Central Kalimantan.
“The group is committed to maintain a prudent capital structure and disciplined capital allocation that balances investment and returns to shareholders, while remaining committed to advancing its sustainability agenda,” TSH Resources further pointed out.
For the quarter ended June 30, 2026 (2Q26), TSH Resources recorded revenue of RM251mil, slightly lower than RM268.8mil in the corresponding quarter last year, mainly due to a RM12mil decline in revenue from the company’s palm products segment.
Despite the lower revenue, profit before tax in 2Q26 increased 15% to RM81.7mil as compared to RM71.4mil in the same period a year ago, primarily attributable to higher profit contribution from the palm products segment and joint ventures of TSH Resources.
For the six-month period ended June 30, the group recorded a revenue of RM456.2mil, while profit before tax stood at RM129mil.
Going forward, TSH Resources expects crude palm oil (CPO) prices to remain relatively stable in the second half of the year, supported by steady export demand and firm energy price.
However, it noted that the trajectory ahead will depend on geopolitical and trade policy developments.
“The B50 biodiesel policy implemented from July 1, 2026, is expected to increase domestic CPO consumption and raise CPO and fresh fruit bunches (FFB prices), albeit moderated by the export levy and duty,” said TSH Resources.
“Weather-related risks, including the rising probability of an El Nino event, remain a key variable for the outlook. Any adverse developments potentially affecting FFB production may, nevertheless, be counterbalanced by higher palm products prices,” the group added.
