TSH Resources Berhad reported a net profit of MYR60.2 million for the quarter ended Jun 30, up 7 percent year-on-year (YoY) despite a 7 percent dip in revenue to MYR250.9 million, driven by improved margins in its palm products division and higher contributions from joint ventures.

Basic earnings per share increased to 4.21 sen from 3.72 sen a year earlier. The board did not declare an interim dividend for the quarter; the only payout so far in 2026 was the final single-tier dividend of 5.0 sen per share for FY 2025, paid on Apr 30.

Segmentally, palm products generated MYR243.2 million in revenue (-5 percent YoY) and MYR87.7 million in operating profit (+10 percent YoY), supported by higher oil extraction rates (OER) and kernel extraction rates (KER) as well as lower operating expenses. Sales volumes fell—crude palm oil (CPO) shipments slipped 5 percent to 51,407 tonnes and palm kernel (PK) 6 percent to 10,324 tonnes—while the average CPO selling price eased 3 percent YoY to MYR3,580 per tonne.

The “Others” segment, which includes rubber, wood products and electricity, saw revenue contract 42 percent YoY to MYR7.8 million and posted an operating loss of MYR4.8 million, though the deficit narrowed from the prior-year quarter on lower inventory write-downs.

Headwinds included Indonesia’s CPO export levy and duty, which rose 77 percent YoY to MYR45.8 million in the quarter, and weaker contribution from non-palm businesses. Still, group pre-tax profit climbed 15 percent to MYR81.7 million, aided by a rebound in joint-venture earnings.

Looking ahead, management said it will concentrate on boosting estate productivity, accelerating new plantings—particularly on recently acquired Central Kalimantan land—and enhancing oil yields through better harvesting and milling practices. The company expects crude palm oil prices to remain relatively stable in the second half, underpinned by steady export demand and Indonesia’s B50 biodiesel mandate, though it cautioned that weather risks and geopolitical developments could sway market conditions. Barring any unforeseen circumstances, TSH Resources “remains confident of delivering a satisfactory performance for FY 2026,” the group noted.