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Teck Guan Perdana Bhd (KL: TECGUAN), the Sabah-based palm oil and cocoa products manufacturer, reported a sharp jump in its second-quarter earnings, with net profit more than tripling on the back of stronger operating margins in its palm oil products segment.
Net profit for the three months ended 31 July 2026 (2QFY2027) came in at RM16 million, or 40.01 sen per share, compared with RM5.26 million, or 13.11 sen per share, in the same period a year earlier, according to the company's filing with Bursa Malaysia on Friday.
Revenue surged 179% year-on-year to RM260.8 million from RM93.4 million, driven by higher sales volumes and stronger selling prices for palm oil products, which remained the group's largest revenue contributor.
Revenue from the palm oil products segment climbed to RM254.41 million from RM82.92 million, while operating profit for the segment rose to RM22.63 million, compared with RM4.34 million a year earlier.
However, net profit for the first six months of the financial year slipped 1% to RM16.5 million from RM16.6 million in the corresponding period a year earlier, even as revenue increased 24% to RM278.7 million from RM224.8 million.
Looking ahead, the company expects oil palm crop production to come in lower year-on-year in the near term, citing weather-related risks including the potential impact of El Niño and the recent haze conditions across Southeast Asia, both of which could disrupt harvesting activities and crop availability.
Despite these headwinds, Teck Guan Perdana said it remains cautiously optimistic about the long-term prospects of its palm-based businesses, supported by the continued rollout of biodiesel and renewable-fuel programmes.
The group pointed to Indonesia's palm-based biodiesel mandate and the expansion of renewable-fuel requirements in the United States as key tailwinds for global vegetable oil demand, while resilient downstream consumption from the oleochemical and food industries is also expected to underpin its palm-related operations.
Acknowledging that geopolitical developments, inflationary pressures and raw material costs could continue to weigh on profit margins, the company said it will keep focusing on improving operational efficiency and production yields, alongside strategic initiatives aimed at supporting sustainable long-term growth.
Shares of Teck Guan Perdana were unchanged at RM1.80 at the midday break on Friday, giving the Sabah-based company a market capitalisation of RM72.2 million.
Source: KLSE Screener