Koon Yew Yin favourite stock.
Review of Performance
(a) Comparison of Results with Previous Corresponding Period
For the quarter under review, the Group’s revenue was down by 10.5% to RM245.5 million
as compared with RM274.3 million recorded in the previous corresponding quarter. Pre-tax
profit was up by 43.3% to RM26.0 million from RM18.1 million reported in the same period
Lower revenue was mainly due to:-
• 29% and 15% fall in logs and plywood sales volume respectively; and
• 22% and 27% reduction in fresh fruit bunches (FFB) and crude palm oil (CPO) average
selling prices respectively.
Whereas higher pre-tax profit was contributed by 17% and 12% increase in logs and
plywood average selling prices respectively.
(b) Comparison of Year-to-date with Previous Year-to-date
Comparison of cumulative results is not presented as this is the first quarter for the financial
year ending 30 June 2014.
15 Comparison of Profit Before Tax with Immediate Preceding Quarter
The Group’s pre-tax profit for the current quarter increased significantly to RM26.0 million as
compared with RM8.3 million reported in the preceding quarter. The improvement was contributed
by lower FFB production cost as a result of 42% increase in production volume during the quarter
16 Commentary on Prospects
For the timber segment, the average selling prices and demand for timber products are expected to
sustain in view of the general improvement in the global economic outlook for 2014 coupled with
the anticipated increase in demand for wood products from Japan in preparation for its hosting of
2020 Olympic .
The Malaysian government’s effort to increase the biodiesel blend from “B5” to “B7” and the
ambition of the Indonesian government to increase usage of CPO in the biodiesel will provide
stability to the CPO prices and positive outlook for the oil palm segment.
The Board will continue to take prudent measures to improve operational efficiency and production
yield to ensure that the performance for the current financial year would be satisfactory.