Hap Seng Plantations’ 4Q Net Profit Surges 4x on Higher CPO Prices and Sales

Financial Performance & Growth Drivers

Hap Seng Plantations Holdings Bhd (HSPLANT) posted a net profit of RM85.01 million in 4QFY2024, a fourfold increase from RM20.69 million a year earlier.
The sharp profit growth was driven by higher crude palm oil (CPO) and palm kernel (PK) selling prices, as well as increased CPO sales volume.
Fair value adjustments of biological assets contributed RM24.4 million in gains, compared to a RM21.1 million loss in 4QFY2023.

4Q revenue surged 33.7% YoY to RM223.37 million from RM174.56 million.
CPO prices rose 26.1%, while PK prices jumped 66.3%.
CPO sales volume grew 4%, though PK sales declined 7% due to a lower kernel extraction rate.
FY2024 net profit more than doubled to RM204.64 million, while revenue increased 12.7% to RM752.45 million.
Declared a second interim dividend of 11 sen per share, bringing total FY2024 dividends to 12.5 sen, up from 6.8 sen in FY2023.

Indonesia’s B40 biodiesel mandate and higher export levy (10% from 7.5%) are expected to tighten global palm oil supply, benefiting Malaysian exporters.
Malaysia’s palm oil exports are set to become more price competitive against Indonesian palm oil.
The rising minimum wage for foreign workers will raise production costs, but this will be partially offset by a higher windfall tax threshold in Sabah (RM3,650 from RM3,500).
Hap Seng will continue improving operational efficiencies and yield to mitigate cost pressures.

Shares closed unchanged at RM1.94 on Wednesday, with a market cap of RM1.55 billion.
Stock has declined 2.5% year-to-date.

4QFY2024 net profit soared 4x to RM85.01M, driven by higher CPO & PK prices.
Revenue jumped 33.7% YoY, while FY2024 profit doubled to RM204.64M.
Declared 11 sen dividend, bringing FY2024 total to 12.5 sen (vs. 6.8 sen in FY2023).
Stronger palm oil exports expected due to Indonesia’s policies, despite rising labor costs.
Shares remained flat at RM1.94, down 2.5% YTD.

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