Jaya Tiasa’s 9MFY18 falls short of expectations

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KUCHING: Jaya Tiasa Holdings Bhd’s (Jaya Tiasa) first nine months of the financial year 2018 (9MFY18) results fell short of expectations mainly due to weaker-than-expected contributions from the timber and plantation divisions, analysts observed.

Affin Hwang Investment Bank Bhd’s research arm (AffinHwang Capital) noted that Jaya Tiasa reported 9MFY18 revenue of RM660 million, down 11 per cent year-on-year (y-o-y), mainly attributable to the lower contribution from the timber division, offsetting an increase in the palm oil division.

“The lower revenue from the timber division was due to lower log production volume (down 32.9 per cent y-o-y to 229,994 m3), while the higher revenue from the palm oil division was underpinned by higher crude palm oil (CPO) and palm kernel (PK) production volume by 24.5 and 29.5 per cent y-o-y, respectively.

“9MFY18 profit before tax (PBT) declined by 82.9 per cent y-o-y to RM15.8 million due to a decline in profit from the plantation division while the timber division was loss-making,” it explained.

After excluding one-off items, the research team noted that Jaya Tiasa’s core net profit plunged by 90.1 per cent y-o-y to RM7.4 million.