TSH positive on 2013 outlook despite low CPO price

Business & Markets 2013
Written by Janice Thean of thedgemalaysia.com
Tuesday, 21 May 2013 12:11
A + / A - / Reset

KUALA LUMPUR (MAY 21): TSH RESOURCES BHD [] expects
earnings to perform well this year despite sluggish crude palm oil (CPO)
prices.
"Despite the low prices of CPO at RM2,200 per tonne, we recorded
about RM26.2 million profit before tax for the first quarter of this year,
which I think is very respectable," group managing director Datuk Tan
Aik Sim said.
"We expect that we will perform quite good for the rest of the year," he
told the press after the company's AGM here today.
The group expects CPO price to average at about RM2,300 per tonne
for the first half of the year, and then trend higher to between RM2,600
and RM2,800 for the second half.
"One point to note is that the discount between soy bean oil and palm oil
is still very wide," Tan said, adding that consumption is also likely to
grow.
"This will support the prices of CPO as well."
Although CPO price has been trading lower than expected, Tan said that
price disruptions are not unheard of in the sector.
"Over the long-term, the fundamentals are strong in the palm oil sector,"
he said.