PETALING JAYA: TSH Resources Bhd’s net profit rose 6.7% to RM52.51 million in the second quarter ended June 30, 2026 (Q2’26), from RM49.23 million a year earlier, despite revenue slipping 6.6% to RM250.98 million from RM268.78 million.
The plantation group said the improvement in quarterly earnings was driven by higher profit contribution from its palm products segment and joint ventures, which lifted profit before taxation by 15% to RM81.75 million from RM71.37 million, according to a filing with Bursa Malaysia.
Revenue from the palm products segment declined 5% to RM243.18 million, mainly due to lower average crude palm oil (CPO) selling prices and lower sales volumes of CPO and palm kernel (PK). Average CPO selling prices fell 3% to RM3,580 per metric tonne, while CPO and PK sales volumes declined 5% and 6%, respectively.
Nevertheless, palm products operating profit increased 10% to RM87.68 million, supported by higher oil extraction and kernel extraction rates, lower operating expenses and a recovery in fresh fruit bunch (FFB) production in Indonesia.
For the first half ended June 30, 2026 (H1’26), net profit fell 24.2% to RM73.80 million from RM97.42 million, while revenue dropped 16.2% to RM456.18 million from RM544.11 million.
The weaker half-year performance was mainly due to lower contributions from the palm products segment and higher operating losses in the others segment.
Looking ahead, TSH said CPO prices are expected to remain relatively stable in the second half, supported by steady export demand and firm energy prices. The group also expects seasonal improvement in FFB production, while Indonesia’s B50 biodiesel policy, implemented from July 1, is expected to boost domestic CPO consumption and support CPO and FFB prices.
TSH said it remains confident of delivering a satisfactory performance for the financial year ending Dec 31, 2026, barring unforeseen circumstances and uncertainties in the global economic outlook.