Friday 29 Mar 2024
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KUALA LUMPUR (May 26): TDM Bhd registered a net loss of RM6.64 million for its first quarter ended March 31, 2015 (1QFY15) from a net profit of RM13.87 million in 1QFY14, on lower revenue from its plantation division.

Group revenue for the quarter shrunk 13.61% to RM75.5 million from RM87.41 million a year ago.

“During the quarter, plantation division registered 35% lower revenue compared to the same period last year. This resulted in loss before tax of RM13.3 million compared to profit before tax of RM14.9 million for the previous corresponding quarter,” it said in a filing to Bursa today.

TDM (fundamental: 1.45; valuation: 2.6) said the drop in revenue for the division was due to lower crude palm oil (CPO) and and palm kernel (PK) production and prices, higher start up losses in Indonesia, higher replanting/immature cost in its Malaysian operations, and provision for biological assets written off in its Malaysian operations.

However, the group’s healthcare division managed to record higher revenue and profit before tax by 23% and 18% respectively for the current quarter, due to a growth in patient admissions and a higher number of in-patient days from improved hospital case-mix of patients.

Despite its net loss for the quarter, the group remains positive on the long-term fundamentals of the industries it operate in.

“Despite lower CPO production and CPO price, which would be partly offset by the increase in number of patients seeking treatment at our hospitals, we expect FY2015’s performance to remain satisfactory.”

TDM closed 3.57% or 2.5 sen lower at 67.5 sen for a market capitalisation of RM1.01 billion.

(Note: The Edge Research's fundamental score reflects a company’s profitability and balance sheet strength, calculated based on historical numbers. The valuation score determines if a stock is attractively valued or not, also based on historical numbers. A score of 3 suggests strong fundamentals and attractive valuations.)

 

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