Chin Teck declares special, interim dividends

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KUALA LUMPUR (July 30): Chin Teck Plantations Bhd has declared a special dividend of 10 sen per share and a second interim dividend of 10 sen per stock unit for the financial year ending Aug 31, 2018 (FY18).

The company said the dividends will be paid to shareholders on Aug 30.

In a filing with Bursa Malaysia today, Chin Teck said the declaration of special dividend is to commemorate the 60th anniversary of the company.

Chin Teck announced that its net profit for the third financial quarter ended May 31, 2018 (3QFY18) jumped 3.75 times to RM24.2 million from RM6.45 million a year ago, on higher sales volume of its fresh fruit bunches (FFB), crude palm oil and palm kernel, amid lower average selling prices.

“Other income was also substantially higher mainly due to an amount of RM17.45 million being net fair value gain transferred to profit or loss upon sale of available-for-sales investment securities,” it added.

Quarterly revenue also rose 14.72% to RM39.64 million, from RM34.56 million previously.

In a filing with Bursa Malaysia today, Chin Teck said the overall expenses was lower for 3QFY18, thanks to the absence of foreign currency loss and a decrease in administrative expenses.

For the cumulative nine months (9MFY18), Chin Teck's net profit doubled to RM60.45 million from RM30.29 million a year ago, while revenue rose 8.5% to RM124.35 million from RM114.59 million in 9MFY17.

On outlook, Chin Teck warned that the average crude palm oil selling price has weakened, which could result in negative impact for its plantations profit in 4QFY18.

Chin Teck shares gained 0.1 sen or 0.14% to close at RM7.25 today, for a market capitalisation of RM662.38 million.