TSH Resources Berhad: FY2025 Financial Review & Investment Insights
TSH Resources Berhad, a diversified Malaysian plantation group with significant investments in oil palm cultivation, forest plantation, and renewable energy, has released its audited results for the financial year ended 31 December 2025. This review summarizes the company’s performance, highlights notable developments, and provides actionable recommendations for investors based strictly on the disclosed report.
Key Financial Metrics
| Metric |
FY2025 |
FY2024 |
YoY Change |
| Revenue (Group) |
RM 1,060.4 mil |
RM 1,019.8 mil |
+4.0% |
| Profit Before Tax (Group) |
RM 303.2 mil |
RM 219.9 mil |
+37.8% |
| Net Profit (Group) |
RM 222.9 mil |
RM 158.3 mil |
+40.9% |
| Net Profit Attributable to Owners |
RM 183.4 mil |
RM 135.7 mil |
+35.2% |
| EPS (sen) |
13.98 |
9.83 |
+42.3% |
| Dividend (proposed, sen/share) |
5.0 (proposed) |
5.0 (total paid for FY2024) |
No change |
| Dividend Payout Ratio |
Policy revised to minimum 30% of net profit |
20–30% of net profit |
+Policy Upside |
| Share Buybacks (Treasury Shares) |
112.9 mil shares held (as at 31 Dec 2025) |
14.8 mil shares held (as at 31 Dec 2024) |
+98.2 mil shares |
Historical Performance Trends
- Revenue: TSH Resources Berhad recorded a 4% YoY increase in group revenue to RM 1,060.4 million for FY2025, continuing its growth trajectory, albeit at a slower pace compared to the prior year.
- Profitability: Net profit attributable to owners increased by 35.2% YoY, driven by improved profit margins, effective cost control, and stronger contributions from associates and joint ventures.
- EPS: Earnings per share surged 42.3% to 13.98 sen, reflecting both higher profits and a significant reduction in the share base due to aggressive share buybacks.
- Dividends: The Board has revised the dividend payout policy upwards to a minimum 30% of consolidated net profit, with a proposed final dividend of 5.0 sen per share for FY2025 (5.0 sen paid in FY2024).
Directors’ Remuneration
| Category |
Group (RM’000) |
Company (RM’000) |
| Executive Directors (inc. benefits-in-kind) |
5,287 |
1,951 |
| Non-Executive Directors (inc. benefits-in-kind) |
1,425 |
1,317 |
| Total Directors’ Remuneration |
6,712 |
3,268 |
Share Buybacks and Capital Management
- TSH repurchased 98.15 million shares in FY2025, raising treasury shares held to 112.95 million (approx. 8.2% of issued shares).
- Buybacks were funded by internal resources and are intended to enhance shareholder value.
- Net cash position for the Group improved, with total cash and bank balances at RM 397.3 million, against loans and borrowings of RM 296.3 million.
Exceptional Items and Impairments
- Impairment losses on property, plant, and equipment: RM 4.63 million (mainly on bearer plants of a loss-making Indonesian subsidiary).
- Impairment losses on investments in subsidiaries: RM 27.95 million (Company level), attributed to the continued losses of certain subsidiaries.
Dividend Policy and Payouts
- Dividend Policy Change: The Board has raised the dividend payout policy to a minimum of 30% of annual net profit attributable to owners (from 20–30%).
- Proposed Dividend: First and final single-tier dividend of 5.0 sen per share declared for FY2025, to be paid in 2026.
- Previous Year: 5.0 sen per share was paid for FY2024, split across interim and final dividends.
Events & Risks Affecting the Business
- No significant legal disputes, natural disasters, or regulatory changes were reported impacting FY2025.
- Currency volatility (notably IDR and USD) affected reported profits due to translation losses of RM 194.2 million in other comprehensive income.
- No new asset revaluations, major asset sales, IPOs, or fundraising events were disclosed.
- Exposure to fluctuations in commodity (CPO) prices and foreign currencies remains a key risk, but the Group has sufficient hedging and cash liquidity.
Related Party Transactions
- Directors and related parties engaged in routine transactions (e.g., purchase of FFB, management fees, interest income/expense on intercompany balances) at market rates, with no material unusual transactions reported.
Summary & Outlook
TSH Resources Berhad delivered a robust earnings recovery in FY2025, thanks to higher palm products prices, improved margins, and prudent cost management. The group’s balance sheet remains healthy, with a net cash position, enhanced by significant share buybacks that should increase EPS going forward. The company’s proactive dividend policy revision signals a clear commitment to shareholder returns.
However, the Group is exposed to currency translation losses and continues to face impairments on certain loss-making subsidiaries. Overall, the tone of the Board is constructive, with no red flags on business continuity, asset valuation, or material adverse events.
Investment Recommendation
- If you are currently holding TSH Resources Berhad shares: The strong earnings, higher dividend policy, healthy cash position, and value-accretive buybacks suggest a HOLD stance is warranted. Investors may consider accumulating further on weakness, especially if the company continues its buyback program and delivers on its new dividend commitment.
- If you are not holding TSH Resources Berhad shares: With the revised dividend policy, improved profitability, and ongoing share buybacks, TSH offers an attractive entry point for yield-seeking and value investors. However, take note of potential earnings volatility due to CPO prices and forex swings. Consider initiating a position on dips or after confirming sustained operating performance in the next quarter.
Disclaimer: This analysis is based strictly on the company’s FY2025 audited report. It does not constitute investment advice or consider your specific financial circumstances. All investments carry risks. Please consult your licensed financial advisor before making any investment decisions.
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