This article first appeared in The Edge Financial Daily, on October 22, 2015.
TDM Bhd (-ve)
PLANTATION company TDM (Fundamental: 1.05/3, Valuation: 1.4/3) has rebounded by 36.8% since hitting a one-year low of 53 sen on Aug 17.
Majority-owned by the Terengganu state government, TDM is mainly involved in plantation and healthcare businesses. In 2014, plantation accounted for 73% of its revenue with the balance coming from healthcare.
For 1H2015, net profit slumped 81% to RM5.5 million, due to weak CPO prices, lower fresh fruit bunches production and start-up losses at its Indonesian operations.
TDM owns 32,175ha landbank in Terengganu and 36,283ha in Kalimantan, Indonesia. The landbank in Terengganu is fully planted with an average age of 15 years while approximately 26% of its Indonesian landbank is planted with an average age of less than 3 years.
The company operates 4 community specialist hospitals in Peninsular Malaysia. It plans to expand the capacity of its existing hospitals from 270 beds to 450 beds in the next 2-3 years.