MKH Oil Palm (East Kalimantan) Berhad, a forthcoming player in the oil palm plantation sector, disclosed its financial results for the second quarter (“2QFY2024”) and the initial half ended on March 31, 2024 (“1HFY2024”).
This interim financial report marks the Group’s inaugural announcement in compliance with the Main Market Listing Requirements of Bursa Malaysia Securities Berhad, coinciding with its imminent initial public offering (“IPO”).
In 2QFY2024, MKHOP recorded a revenue of RM86.0 million, up by 4.5% from RM82.3 million in the previous quarter (“1QFY2024”). Profit before tax surged by 26.4% to RM20.1 million compared to RM15.9 million in 1QFY2024. Net profit soared to RM16.0 million, marking a significant increase of 53.3% from RM10.4 million in 1QFY2024.
The revenue growth was primarily attributed to the uptick in the average selling prices of crude palm oil (“CPO”) and palm kernel (“PK”). The average CPO price per metric ton (“MT”) rose by 4.8% to RM3,441 in 2QFY2024, while the average PK price per MT increased by 6.4% to RM1,582.
Additionally, fair value gains on biological assets amounted to RM1.4 million in the current quarter, in contrast to fair value losses of RM0.1 million in the preceding quarter.
For 1HFY2024, MKHOP reported a net profit of RM26.5 million on revenue of RM168.4 million. As of March 31, 2024, the Group’s cash and bank balances stood at RM89.6 million.
Tan Sri Dato’ Chen Kooi Chiew @ Cheng Ngi Chong, Non-Independent Non-Executive Chairman of MKHOP, expressed satisfaction with the Group’s financial performance for 2QFY2024 and highlighted positive prospects for the remainder of the financial year, driven by anticipated supportive CPO prices.
Anticipating a stronger financial performance in the upcoming financial year, Tan Sri Dato’ Chen Kooi Chiew emphasized the strategic significance of the upcoming IPO, expecting its proceeds to facilitate expansion plans and technological investments to enhance operational efficiencies and market presence, ultimately aiming at long-term value creation for shareholders.
MKHOP is scheduled to debut on the Main Market of Bursa Securities on April 30, 2024, with an issue price of RM0.62 per share, resulting in a market capitalization of RM634.6 million based on an enlarged share capital of 1.02 billion shares.
