KUALA LUMPUR (May 23): Despite selling more crude palm oil (CPO) and palm kernels (PK), TSH Resources Bhd's net profit tumbled 39.07% to RM17.82 million in the first quarter ended March 31, 2018 (1QFY18), from RM29.25 million a year ago, owing to lower CPO and PK prices.

"Average CPO and PK prices for 1Q18 declined to RM2,316 per MT and RM2,043 per MT (respectively)," the Sabah-based planter said in a filing to Bursa Malaysia. Average CPO and PK prices stood at RM2,985 per MT and RM2,981 per MT respectively in 1Q17.

Pre-tax profit declined to RM28.3 million from RM43.2 million in the corresponding period last year despite a 21.8% increase in fresh fruit bunch production.

The group reported that core profit for 1QFY18 reduced to RM17 million from RM35.3 million, while its revenue was flattish at RM226.13 million against RM228.5 million in 1QFY17.

Moving forward, TSH Resources expects its crop production to increase this year because of better age profile and more planted areas reaching maturity and harvesting stage.

The group is optimistic on the industry's longer-term outlook because of higher per capita income and population growth plus palm oil's healthy qualities.

It said management will continue its focus on productivity and efficiency improvements to reduce unit cost of production.

TSH Resources traded unchanged at RM1.23 for a market capitalisation of RM1.68 billion.