KUALA LUMPUR (April 30): Chin Teck Plantations Bhd's net profit more than doubled in the second financial quarter ended Feb 28, 2018 (2QFY18), mainly lifted by a net fair value gain of RM14.1 million as a result of the divestment of available-for-sale of investment securities.
The plantation group announced that its quarterly net profit jumped by 2.8 times to RM22.7 million or 24.8 sen per share, from RM8.1 million or 8.88 sen per share in the previous corresponding quarter.
According to a filing with Bursa Malaysia, the overall expenses were also lower mainly due to an absence of impairment loss of RM3.6 million on investment in a joint venture in the financial quarter under review.
Its quarterly revenue grew 12.3% to RM42.2 million as compared to RM37.6 million a year ago, mainly due to higher sales volume of fresh fruit bunch (FFB), crude palm oil (CPO) and palm kernel although the average selling prices of FFB, CPO and palm kernel were lower.
For the first half of the financial year ended Feb 28, 2018 (1HFY18), Chin Teck's net profit jumped by 52% to RM36.2 million or 39.68 sen per share, from RM23.8 million or 26.09 sen per share in the corresponding period a year ago.
Similarly, the group's revenue went up by 5.8% to RM84.7 million from RM80 million in 1HFY17.
"The sales volumes of FFB, CPO, palm kernel were higher, however the average selling prices of FFB, CPO and palm kernel were lower," it added.
Chin Teck, however, revealed that the group has not completed its quantification of the financial effects of the differences between financial reporting standards and accounting standards under the Malaysian Financial Reporting Standards (MFRS) framework due to the ongoing assessment.
As the adoption of the MFRS framework by transitioning entities will be mandatory for annual periods beginning on or after Jan 1 this year, the financial performance and financial position as disclosed in these financial statements for the year ending Aug 31, 2018 could be different if prepared under the MFRS framework.
As of closing, Chin Teck's share price was down by 10 sen or 1.4% at RM7.02 with about 1,500 shares traded, giving it a market capitalisation of RM641.4 million.