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）停止出售其位於印度尼西亞加里曼丹東北部的5,398公頃種植園，該種植園最初是兩階段出售13,898公頃油棕櫚種植園的一部分。根據肯南加投資銀行（Kenanga）的數據，該公司的資產負債表在過去兩年中得到了顯著改善，因此無需出售資產以減少債務。
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維持其對TSH的跑贏大盤評級，目標價爲1.30令吉。該銀行表示，終止出售是有利的，因爲62％的土地已經種植了處於黃金時期的油棕櫚樹，這使其具有很強的現金創造。TSH的決定反映了從加強資產負債表向追求增長機會的轉變。
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).
這筆中止的交易最初是在2022年提出的，當時TSH的目標是縮減其資產負債表，當時其淨資產負債率接近1倍。第一批出售涉及8,500公頃土地，於2022年8月完成，現金爲441萬令吉，再加上TSH業務產生的強勁現金流，截至2024財年第一季度末（1QFY24），其淨負債和資產負債分別減少至4700萬令吉和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.
凱南加強調，TSH現在的財務狀況良好，有足夠的資金（25000萬令吉至30000萬令吉），可以在未來兩到三年內在現有土地上種植多達8,000至10,000公頃的油棕櫚樹。該銀行還指出，如有必要，TSH可以延長新種植的開發期或選擇稍後出售這塊佔地5,398公頃的土地。Kenanga維持了對TSH的收益預期，但從其 FY24F 總體淨利潤預測中刪除了估計爲1萬令吉的處置收益。
