TSH's Backtracking On Land Disposal Is Seen As Favourable
TSH's Backtracking On Land Disposal Is Seen As Favourable
Kenanga highlighted that TSH's finances are now robust, with sufficient funds (RM250 million to RM300 million) to plant up 8,000 to 10,000 hectares of oil palm on existing land over the next two to three years. The bank also noted that, if necessary, TSH could extend the development period for new planting or choose to sell the 5,398-hectare plot at a later date. Kenanga maintained its earnings forecasts for TSH but removed an estimated RM100 million in disposal gain from its FY24F headline net profit forecast.TSH Resources Berhad (TSH) halted the disposal of its 5,398-hectare plantation in North-East Kalimantan, Indonesia, which was initially part of a two-phase sale of a 13,898-hectare oil palm plantation. The company saw a significant improvement in its balance sheet over the past two years, eliminating the need for the sale to reduce debt, according to Kenanga Investment Bank (Kenanga).
TSH Resources Berhad（TSH）停止出售其位于印度尼西亚加里曼丹东北部的5,398公顷种植园，该种植园最初是两阶段出售13,898公顷油棕榈种植园的一部分。根据肯南加投资银行（Kenanga）的数据，该公司的资产负债表在过去两年中得到了显著改善，因此无需出售资产以减少债务。
Kenanga maintained its OUTPERFORM rating on TSH with a target price of RM1.30. The bank indicated that the termination of the disposal was favourable, as 62% of the land is already planted with oil palms in their prime age, making it highly cash-generative. TSH's decision reflects a shift from strengthening its balance sheet to pursuing growth opportunities.
Kenanga维持其对TSH的跑赢大盘评级，目标价为1.30令吉。该银行表示，终止出售是有利的，因为62％的土地已经种植了处于黄金时期的油棕榈树，这使其具有很强的现金创造。TSH的决定反映了从加强资产负债表向追求增长机会的转变。
The aborted transaction was initially proposed in 2022 when TSH aimed to de-gear its balance sheet, with its net gearing nearing 1x at the time. The first tranche of the sale, involving 8,500 hectares, was completed in August 2022 for RM441 million in cash, which, along with strong cash flows from TSH's operations, has since reduced its net debt and gearing to RM47 million and 0.02x, respectively, as of the end of the first quarter of the Fiscal Year 2024 (1QFY24).
这笔中止的交易最初是在2022年提出的，当时TSH的目标是缩减其资产负债表，当时其净资产负债率接近1倍。第一批出售涉及8,500公顷土地，于2022年8月完成，现金为441万令吉，再加上TSH业务产生的强劲现金流，截至2024财年第一季度末（1QFY24），其净负债和资产负债分别减少至4700万令吉和0.02倍。
Kenanga highlighted that TSH's finances are now robust, with sufficient funds (RM250 million to RM300 million) to plant up 8,000 to 10,000 hectares of oil palm on existing land over the next two to three years. The bank also noted that, if necessary, TSH could extend the development period for new planting or choose to sell the 5,398-hectare plot at a later date. Kenanga maintained its earnings forecasts for TSH but removed an estimated RM100 million in disposal gain from its FY24F headline net profit forecast.
凯南加强调，TSH现在的财务状况良好，有足够的资金（25000万令吉至30000万令吉），可以在未来两到三年内在现有土地上种植多达8,000至10,000公顷的油棕榈树。该银行还指出，如有必要，TSH可以延长新种植的开发期或选择稍后出售这块占地5,398公顷的土地。Kenanga维持了对TSH的收益预期，但从其 FY24F 总体净利润预测中删除了估计为1万令吉的处置收益。
