KUALA LUMPUR (March 26): Subur Tiasa Holdings Bhd’s net profit for the second quarter ended Jan 31, 2021, rose 65.7% to RM3.65 million from RM2.2 million a year ago, on higher crude palm oil (CPO) prices.

Its quarterly revenue, however, slipped 0.25% to RM84.14 million from 84.36 million a year ago, dragged by its timber segment, its filing with Bursa Malaysia showed.

The group did not declare any dividend for the latest quarter.

Subur Tiasa said its revenue and pre-tax profit for the oil palm segment increased by RM27.1 million and RM17.4 million respectively, mainly contributed by a 34% increase in CPO price from RM2,436 per ton to RM3,256 per tonne.

The group also noted its oil palm segment recorded a higher profit margin of 34% compared with the previous year corresponding period's 23%, underpinned by higher CPO prices.

For the half year ended Jan 31, 2021, the group’s net profit surged 108.27% to RM5.64 million from RM2.71 million a year earlier. Its revenue for the period, however, dropped marginally to RM177.89 million from RM179.24 million a year earlier.

The group said the CPO price is expected to remain bullish underpinned by tight supplies of its inventory including other global edible oils while demand from China and India remains firm coupled with the commitments towards biodiesel implementation by Indonesia and Malaysia.

“In fact, with the forthcoming peak crop season, our oil palm segment is expected to register a better profit margin in the coming quarter,” it said.

It also said, the outlook of the timber segment remains challenging and the group has put in place various cost-rationalisation measures and streamlining of its operations to further withstand all the uncertainties and impact from the Covid-19 pandemic.

Subur Tiasa’s share price was unchanged at 71 sen today, valuing the group at RM133.7 million.