KUALA LUMPUR: MKH Oil Palm (East Kalimantan) Bhd’s (MKHOP) prospects for the rest of the financial year remain positive as crude palm oil (CPO) prices are expected to remain well-supported, according to non-independent non-executive chairman Tan Sri Chen Kooi Chiew @ Cheng Ngi Chong.
He said this is due to the anticipated El Niño dry weather effect, potentially lasting until May 2024, which could lead to a tighter global CPO supply.
“We are optimistic of delivering a stronger financial performance in the upcoming financial year. Our net profit for the first six months has already reached RM26.5mil, compared to RM30.4mil for the entire financial year ended Sept 30, 2023 (FY23),” Chen said in a statement.
MKHOP is set to debut on the Main Market of Bursa Securities on April 30.
The group posted a net profit of RM16mil in the second quarter ended March 31 (2Q24), up 53.3% from RM10.4mil in the preceding quarter.
Revenue in 2Q24 stood at RM86.05mil, up 4.5% compared to RM82.3mil in 1Q24.
It said the revenue growth in the current quarter was primarily driven by the increase in the average selling price of CPO and palm kernel (PK).
The average CPO price per metric ton (MT) rose by 4.8% to RM3,441 in 2Q24, up from RM3,284 in the preceding quarter.
Meanwhile, the average PK price per MT increased by 6.4% to RM1,582 in the current quarter from RM1,487 in 1Q24.
No comparative figures are available for the preceding corresponding period as this marks the group's first interim financial report, complying with the Main Market Listing Requirements of Bursa Malaysia Securities Bhd for its upcoming initial public offering (IPO) exercise.
In the first six months to March 31, MKHOP posted a net profit of RM26.5mil on revenue of RM168.3mil.
