MKH Oil Palm (East Kalimantan) Bhd said its prospect for this year will be well supported by the good demand for CPO, which is trading at around RM3,700 per tonne.

KUALA LUMPUR (April 25): MKH Oil Palm (East Kalimantan) Bhd (MKHOP), the plantation arm of property developer MKH Bhd, reported RM16.02 million net profit on the back of RM86.05 million revenue for the second quarter ended March 31, 2024 (2QFY2024), ahead of its listing on Bursa Malaysia’s Main Market.

As the company is not yet a public listed entity, there are no comparative figures for the same period in the previous year. MKHOP is going for a public debut on April 30, at an initial public offering (IPO) price of 62 sen per share.

However, on a quarter-on-quarter (q-o-q) basis, MKHOP’s earnings jumped 44.39% from RM11.09 million in the preceding quarter, as its revenue increased 4.55% from RM83.3 million.

The higher earnings in 2QFY2024 could be due to the higher average prices of crude palm oil (CPO) and palm kernel (PK) realised during the quarter.

Average CPO price was RM3,441 per tonne during the quarter, compared with RM3,284 per tonne in 1QFY2024, while average PK price was RM1,582 per tonne, higher than the RM1,487 per tonne in the preceding quarter.

For the first half of FY2024, MKHOP registered a net profit of RM26.47 million on the back of RM168.35 million in revenue.

At an IPO price of 62 sen per share, and an enlarged share capital of 1.02 billion shares, MKHOP is valued at RM634.6 million.

The group said its prospect for this year will be well supported by the good demand for CPO, which is trading at around RM3,700 per tonne.

“The board of directors is optimistic about the group’s future prospects and results for the financial year ending Sept 30, 2024 [FYE2024],” it said.