MBSB
RESEARCH
Corporate Update
Thursday 21st. August 2025
TSH Resources Berhad
(9059 | TSH MK) Main | Plantation
2QFY25 Results Review: Momentum Carries Through
Maintain NEUTRAL
Revised Target Price RM1.23
(from RM1.16)
| Price @ 20 Aug 2025 (RM) | 1.16 |
|---|---|
| Expected share price return (%) | +6.38 |
| Expected dividend yield (%) | +2.16 |
| Expected total return (%) | +8.53 |
(Chart placeholder – no image generated)
| Price performance (%) | Absolute | Relative |
|---|---|---|
| 1 month | 0.9 | -3.2 |
| 3months | 4.5 | 1.6 |
| 12 months | 1.8 | 4.8 |
| FYE Dec | 2025E | 2026F | 2027F |
|---|---|---|---|
| Revenue | 1,048.5 | 996.6 | 967.2 |
| Operating Profit | 258.0 | 253.7 | 250.4 |
| PBT | 258.5 | 254.2 | 250.8 |
| PATAMI | 157.3 | 154.8 | 152.8 |
| EPS (sen) | 11.4 | 11.2 | 11.1 |
| DPS (sen) | 2.5 | 2.5 | 2.5 |
| Dividend Yield (%) | 2.2% | 2.2% | 2.2% |
| FBM KLCI | 1,588.21 |
| Issue shares (m) | 1,367.01 |
| Estimated free float (%) | 26.32 |
| Market Capitalisation (RM’m) | 1,504.55 |
| 52-wk price range | RM1.00-RM1.28 |
| 3-mth average daily volume (m) | 0.85 |
| 3-mth average daily value (RM’m) | 0.96 |
| Tan Aik Pen | 27.50 |
| Central Depository Pte Ltd | 18.72 |
| Tan Aik Yong | 5.54 |
Maintain NEUTRAL with revised TP of RM1.23.
We are maintaining our NEUTRAL call with a new TP of RM1.23 (previously RM1.16), as we rollover our valuation-based year to FY26F EPS of 11.2sen, pegged to a PER of 11x, nearly – 0.75SD 5-year historical average mean. The stock trades at a fair 10x of FY25F PER, within its peer range of 7-12x.
Momentum carries through.
After adjusting El’s, 2QFY25 reported PATAMI increased to RM49.2m (+15.6% yoy). The decent results driven by expanded revenue from both region Malaysia (+3.9% yoy) and Indonesia (+8.8%yoy), thanks to the relative high CPO price and PK prices realised, circa RM3,695/Mt (-0.2% yoy) and PK of RM3,315/Mt (+47.3%yoy), respectively.
PK price expected to be continued high for the rest of the year due short shortage in rival coconut oil in Philippines. While FFB production relatively flat, at 205,049 tonnes, indicating the recovery is still on track, as the peak production months have not kicked in – will only start in 3QFY25.
Notably, CPO and PK sales volumes jumped by +5.1% yoy and +3.2%yoy, respectively, largely attributable to the widened price discount of PO against SBO. This price disparity improves demand dynamics, subsequently encouraging the sales volume growth.
Despite the improvement, quarterly profit was also actually impacted by the increased of Indonesia Export levy and duty, which stood around RM25.9m (+22.3%yoy).
TSH/Wilmar.
Earnings for the JV refinery remained subdued, narrowing down to RM1.9m compared to RM2.4m prior year. We attribute the weaker results due high feedstock procurement cost due to high CPO prices that have been traded.
Earnings.
We tweaking higher earnings estimate for FY25-FY27F, as the results came in >60% of ours and streets estimates. Our newly set earnings were RM157.3m/RM154.8m/RM152.8m reflecting newly cost of production of less than RM2,000/Mt. Sector-wide in Malaysia, average CPO should be >RM4,000/Mt for CY25 – 26; by contrast, TSH will likely see less than that given its Indonesian mix.
MBSB
RESEARCH
Thursday 21st. August 2025
TSH Resources: 2QFY25 Results Summary
| FYE Dec (RM’m) | Quarterly results | Cumulatively results | ||||||
|---|---|---|---|---|---|---|---|---|
| 2QFY24 | 2QFY25 | 2QFY25 | QoQ (%) | YoY (%) | 1H24 | 1H25 | YoY (%) | |
| Revenue | 252.5 | 275.3 | 268.8 | -2.4 | 6.4 | 494.9 | 544.1 | 9.9 |
| Operating profit | 53.2 | 76.4 | 68.3 | -10.7 | 28.4 | 90.7 | 144.7 | 59.5 |
| JVs | 2.4 | 0.0 | 1.9 | >100 | -20.2 | 0.6 | 1.9 | >100 |
| PBT | 57.9 | 78.6 | 71.4 | -9.3 | 23.2 | 71.0 | 150.0 | >100 |
| Tax Expense | -10.6 | -20.9 | -15.0 | -27.9 | 41.4 | -20.5 | -35.9 | 75.2 |
| PATAMI | 42.6 | 48.2 | 49.2 | 2.2 | 15.6 | 40.7 | 97.4 | >100 |
| Core PATAMI | 42.5 | 53.6 | 49.7 | -7.3 | 16.8 | 43.5 | 103.2 | >100 |
| Core EPS (sen) | 3.1 | 3.9 | 3.6 | -7.3 | 16.8 | 3.2 | 7.5 | >100 |
| Growth & Margin (%) | +/- ppts | +/- ppts | ||||||
| OP margin (%) | 21.1 | 27.8 | 25.4 | -2.4 | 4.3 | 18.3 | 26.6 | 8.3 |
| PBT margin (%) | 22.9 | 28.6 | 26.6 | -2.0 | 3.6 | 14.3 | 27.6 | 13.2 |
| Core PATAMI margin (%) | 16.8 | 19.5 | 18.5 | -1.0 | 1.6 | 8.2 | 18.0 | 9.8 |
Source: Company, MIDFR
TSH Resources: Segmental Breakdown & Operational Stats.
| FYE Dec (RM’m) | Quarterly results | Cumulatively results | ||||||
|---|---|---|---|---|---|---|---|---|
| 2QFY24 | 1QFY25 | 2QFY25 | QoQ (%) | YoY (%) | 1H24 | 1H25 | YoY (%) | |
| Revenue | ||||||||
| – Palm product | 235.9 | 262.4 | 255.2 | -2.7 | 8.2 | 467.7 | 517.6 | 10.7 |
| – Others | 16.6 | 13.0 | 13.6 | 4.5 | -18.3 | 27.2 | 26.5 | -2.5 |
| Operating Profit | ||||||||
| – Palm product | 59.3 | 82.4 | 79.4 | -3.6 | 34.0 | 105.4 | 161.8 | 53.5 |
| – Others | -1.7 | -1.7 | -5.5 | NM | NM | -5.6 | -7.3 | NM |
| Operating Profit Margins (%) | ||||||||
| – Palm product | 25.1 | 31.4 | 31.1 | -0.3 | 6.0 | 22.5 | 31.3 | 8.7 |
| – Others | -10.4 | -13.4 | -40.8 | -27.4 | -30.4 | -20.4 | -27.4 | -7.0 |
| Operational Stats. | ||||||||
| FFB Production | 205,097 | 198,112 | 205,049 | 3.5 | 0.0 | 401,663 | 403,161 | 0.4 |
| Avg CPO Price Realised (RM/Mt) | 3,704 | 4,193 | 3,695 | -11.9 | -0.2 | 3,645 | 3,932 | 7.9 |
| Avg PK Price Realised (RM/Mt) | 2,250 | 3,203 | 3,315 | 3.5 | 47.3 | 2,088 | 3,261 | 56.2 |
Source: Company, MIDFR
MBSB
RESEARCH
Thursday 21st. August 2025
FINANCIAL SUMMARY
Income Statement
(RM’m)
| 2023A | 2024A | 2025E | 2026F | 2027F | |
|---|---|---|---|---|---|
| Revenue | 1,066.5 | 1,019.8 | 1,048.5 | 996.6 | 967.2 |
| Operating Profit | 209.8 | 208.0 | 258.0 | 253.7 | 250.4 |
| PBT | 197.8 | 219.9 | 258.5 | 254.2 | 250.8 |
| PATAMI | 95.1 | 135.7 | 157.3 | 154.8 | 152.8 |
| Core PATAMI | 80.5 | 122.7 | 157.3 | 154.8 | 152.8 |
| EPS (sen) | 5.8 | 8.9 | 11.4 | 11.2 | 11.1 |
| PER (x) | 19.9 | 13.0 | 10.2 | 10.3 | 10.5 |
| DPS (sen) | 5.0 | 2.5 | 2.5 | 2.5 | 2.5 |
| Dividend yield (%) | 4.3% | 2.2% | 2.2% | 2.2% | 2.2% |
Cash Flow
(RM’m)
| 2023A | 2024A | 2025E | 2026F | 2027F | |
|---|---|---|---|---|---|
| PBT | 197.8 | 219.9 | 201.3 | 180.0 | 163.1 |
| Operating cash flow | 226.7 | 240.6 | 245.4 | 231.5 | 213.7 |
| Investing cash flow | -35.9 | -66.8 | -55.0 | -55.0 | -55.0 |
| Financing cash flow | -328.4 | -148.7 | -34.5 | -34.5 | -34.5 |
| Net cash flow | -137.6 | 25.1 | 155.9 | 142.0 | 124.2 |
| Beginning cash flow | 376.2 | 251.0 | 261.9 | 417.8 | 559.8 |
| Ending cash flow | 251.0 | 261.9 | 417.8 | 559.8 | 684.1 |
Balance Sheet
(RM’m)
| 2023A | 2024A | 2025E | 2026F | 2027F | |
|---|---|---|---|---|---|
| PPE | 1,277.8 | 1,338.0 | 1,287.3 | 1,240.4 | 1,197.1 |
| Right-of-use Assets | 253.4 | 248.5 | 238.2 | 228.3 | 218.8 |
| Biological assets | 366.0 | 366.4 | 365.2 | 364.0 | 362.8 |
| Non-current assets | 2,200.4 | 2,290.2 | 2,249.4 | 2,210.2 | 2,175.7 |
| Inventories | 93.7 | 102.7 | 105.6 | 100.3 | 97.4 |
| Trade receivables | 36.2 | 44.1 | 45.4 | 43.1 | 41.9 |
| Derivative assets | 0.295 | 0.298 | 0.298 | 0.298 | 0.298 |
| Current assets | 644.6 | 457.6 | 617.6 | 752.2 | 872.2 |
| Total Assets | 2,845.0 | 2,747.8 | 2,867.0 | 2,962.4 | 3,047.9 |
| Loans & borrowings | 191.2 | 201.1 | 201.1 | 201.1 | 201.1 |
| Trade & other payables | 123.5 | 108.4 | 111.4 | 105.9 | 102.8 |
| Current liabilities | 317.9 | 317.2 | 320.3 | 314.8 | 311.6 |
| Loans & borrowings | 111.0 | 58.6 | 58.6 | 58.6 | 58.6 |
| Non – Current liabilities | 221.9 | 169.6 | 169.6 | 169.6 | 169.6 |
| Liabilities & equity | 2,845.0 | 2,747.8 | 2,867.0 | 2,962.4 | 3,047.9 |
Margins
| 2023A | 2024A | 2025E | 2026F | 2027F | |
|---|---|---|---|---|---|
| EBITDA margin | 29.0% | 32.8% | 30.2% | 29.2% | 28.0% |
| EBIT margin | 19.7% | 20.4% | 19.2% | 18.0% | 16.8% |
| PBT margin | 18.5% | 21.6% | 19.2% | 18.1% | 16.9% |
| Core PATAMI margin | 9.7% | 11.8% | 11.8% | 11.1% | 10.4% |
Source: Bloomberg, MIDFR
MBSB
RESEARCH
Thursday 21st. August 2025
MBSB RESEARCH (formerly known as MIDF RESEARCH) is part of MBSB Investment Bank Berhad (formerly known as MIDF Amanah Investment Bank Berhad)
(Bank Pelaburan) (A Participating Organisation of Bursa Malaysia Securities Berhad)
DISCLOSURES AND DISCLAIMER
This report has been prepared by MBSB Investment Bank Berhad (formerly known as MIDF AMANAH INVESTMENT BANK BERHAD) 197501002077 (24878-Χ).
It is for distribution only under such circumstances as may be permitted by applicable law. Readers should be fully aware that this report is for information purposes only. The opinions contained in this report are based on information obtained or derived from sources that we believe are reliable. MBSB INVESTMENT BANK BERHAD (formerly known as MIDF AMANAH INVESTMENT BANK BERHAD) makes no representation or warranty, expressed or implied, as to the accuracy, completeness or reliability of the information contained therein and it should not be relied upon as such. This report is not, and should not be construed as, an offer to buy or sell any securities or other financial instruments. The analysis contained herein is based on numerous assumptions. Different assumptions could result in materially different results. All opinions and estimates are subject to change without notice. The research analysts will initiate, update and cease coverage solely at the discretion of MBSB INVESTMENT BANK BERHAD (formerly known as MIDF AMANAH INVESTMENT BANK BERHAD). The directors, employees and representatives of MBSB INVESTMENT BANK BERHAD (formerly known as MIDF AMANAH INVESTMENT BANK BERHAD) may have an interest in any of the securities mentioned and may benefit from the information herein. Members of the MBSB Group and their affiliates may provide services to any company and affiliates of such companies whose securities are mentioned herein This document may not be reproduced, distributed or published in any form or for any purpose.
MBSB INVESTMENT BANK (formerly known MIDF INVESTMENT BANK): GUIDE TO RECOMMENDATIONS
STOCK RECOMMENDATIONS
- BUY
- Total return is expected to be >10% over the next 12 months.
- TRADING BUY
- The stock price is expected to rise by >10% within 3 months after a Trading Buy rating has been assigned due to positive news flow.
- NEUTRAL
- Total return is expected to be between -10% and +10% over the next 12 months.
- SELL
- Total return is expected to be <-10% over the next 12 months.
- TRADING SELL
- The stock price is expected to fall by >10% within 3 months after a Trading Sell rating has been assigned due to negative news flow.
SECTOR RECOMMENDATIONS
- POSITIVE
- The sector is expected to outperform the overall market over the next 12 months.
- NEUTRAL
- The sector is to perform in line with the overall market over the next 12 months.
- NEGATIVE
- The sector is expected to underperform the overall market over the next 12 months.
ESG RECOMMENDATIONS* – source Bursa Malaysia and FTSE Russell
- ☆☆☆☆
- Top 25% by ESG Ratings amongst PLCs in FBM EMAS that have been assessed by FTSE Russell
- ☆☆☆
- Top 26-50% by ESG Ratings amongst PLCs in FBM EMAS that have been assessed by FTSE Russell
- ☆☆
- Top 51%- 75% by ESG Ratings amongst PLCs in FBM EMAS that have been assessed by FTSE Russell
- ☆
- Bottom 25% by ESG Ratings amongst PLCs in FBM EMAS that have been assessed by FTSE Russell
* ESG Ratings of PLCs in FBM EMAS that have been assessed by FTSE Russell in accordance with FTSE Russell ESG Ratings Methodology
