PETALING JAYA: Strong crude palm oil (CPO) prices lifted TSH Resources Bhd’s net profit, which doubled to RM39.72mil for the second quarter ended June 30, 2021 (Q2’21) from RM19.82mil in the corresponding quarter last year.

       Consequently, the group’s earnings per share (EPS) rose to 2.88 sen from 1.44 sen previously.

       During the period in review, its revenue grew 46% to RM307.41mil from RM210.57mil in Q2’20, driven by its palm products segment despite impacted by the increase in export levy and duty in Indonesia.

       For the six months to June 2021 (H1’21), TSH’s net profit almost tripled to RM60.5mil from RM22.07mil in H1’20, resulting in its EPS rising to 4.38 sen from 1.60 sen previously.

       Its revenue rose 17.9% to RM551.5mil in H1’21 from RM467.95mil in H1’20.

       Year to date, CPO prices have been enjoying a strong run, underpinned by tight stock levels, and prices are expected to remain buoyant in the foreseeable future.

       “Premised on the above factors, the group is optimistic of achieving satisfactory performance for 2021. The management will continue its focus on raising productivity and efficiency to lower unit cost of production,” TSH said.

       It remained optimistic on the long-term prospect of the palm oil industry.

       “Global population and per capita income growth as well as the many health qualities of palm oil are expected to drive greater demand for palm products.

       This augurs well for the group as palm products segment which accounts for approximately 92% of the revenue for the group will remain the core contributor to the group profit,” TSH said.