TH Plantations Bhd (THP) reported an improvement in its 2Q24 performance, though results fell short of estimates. The company posted a headline net profit after tax and minority interest (PATMI) of RM5.9 million for the quarter, reflecting a substantial year-on-year increase of 630%, but a decline of 31% compared to the previous quarter. This result was boosted by a fair value gain on biological assets of RM4.5 million, though it was offset by an unrealised foreign exchange loss of RM5.9 million. The core PATMI for 2Q24 adjusted for these factors stood at RM7.1 million, up 104% from the previous quarter but down from RM10.7 million in the same quarter last year. For the first half of 2024, core PATMI amounted to RM10.5 million, compared to a loss after tax and minority interest (LATMI) of RM12.4 million in 1H23.
Analysts at Maybank have reacted to the results by adjusting their recommendations. Given the limited downside to the target price (TP), THP's rating has been upgraded to HOLD from SELL, with an unchanged TP of RM0.58 based on a 0.7x FY24E price-to-book value (PBV). Despite a fair current valuation at 14x FY24E price-to-earnings ratio (PER), THP's valuation remains higher compared to its small and mid-cap peers, who typically trade at lower valuations. Analysts prefer Sarawak Oil Palms (SOP) with a BUY rating and a target price of RM3.18, given its more attractive valuation.
The positive performance in 2Q24 was attributed to higher crude palm oil (CPO) average selling prices (ASP) and improved fresh fruit bunches (FFB) output. The adjusted core earnings before interest and tax (EBIT) rose to RM38.4 million, reflecting a significant year-on-year increase of 271% and a quarter-on-quarter rise of 16%, driven by a higher CPO ASP of RM3,927 per tonne and an increase in FFB output by 17% year-on-year and 18% quarter-on-quarter. The company's all-in cost-to-customer fell to RM2,810 per tonne in 1H24, marking a 12% decrease compared to the previous year. However, there remains uncertainty regarding the application of fertiliser compared to the full-year plan.
Looking ahead, TH Plantations has maintained its forecast for an 8% growth in FFB output for FY24E, which aligns with historical averages. Despite revisions to the industry-wide CPO ASP forecasts, THP's core earnings per share (EPS) forecasts for FY24E-26E have remained relatively unchanged. The company's key focus will be on its deleveraging efforts to enhance its balance sheet position, with RM802 million worth of assets earmarked for disposal as of the end of June 2024.
TH Plantations Bhd (THP)報告其24年第二季度業績有所改善，但低於預期。該公司公佈本季度稅後淨利潤和少數股權（PATMI）爲590萬令吉，同比大幅增長630％，但與上一季度相比下降了31％。這一結果受到生物資產450萬令吉的公允價值收益的推動，但被590萬令吉的未實現外匯損失所抵消。經這些因素調整後，24年第二季度的核心PATMI爲71.0萬令吉，較上一季度增長104％，但低於去年同期的1070萬令吉。2024年上半年，核心PATMI爲10.5萬令吉，而23年上半年的稅後虧損和少數股權（LATMI）爲12.4萬令吉。
馬來亞銀行的分析師對業績做出了反應，調整了他們的建議。鑑於目標價格（TP）的下行空間有限，THP的評級已從賣出上調至持有，基於 FY24E 賬面價格的0.7倍（PBV），目標價保持不變，爲0.58令吉。儘管目前的公允估值爲 FY24E 市盈率（PER）的14倍，但與通常以較低估值進行交易的中小型股同行相比，THP的估值仍然較高。鑑於砂拉越油棕櫚樹更具吸引力，分析師更傾向於評級爲買入、目標價爲3.18令吉的砂拉越油棕櫚樹（SOP）。
24年第二季度的積極表現歸因於粗棕櫚油（CPO）平均銷售價格（ASP）的上漲以及新鮮水果束（FFB）產量的改善。調整後的息稅前核心收益（EBIT）增至3840萬令吉，反映出同比大幅增長271％，同比增長16％，這得益於CPO ASP提高至每噸3,927令吉以及FfB產量同比增長17％，同比增長18％。該公司的客戶總成本在24年上半年降至每噸2810令吉，與去年同期相比下降了12％。但是，與全年計劃相比，化肥的應用仍然存在不確定性。
展望未來，TH Plantations維持了對FY24E FfB產量增長8％的預測，這與歷史平均水平一致。儘管對全行業CPO ASP的預測進行了修改，但THP對 FY24E-26E 的核心每股收益（EPS）預測相對保持不變。該公司的主要重點將放在去槓桿化工作上，以提高其資產負債表地位，截至2024年6月底，價值80200萬令吉的資產已計劃處置。
