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JAYA TIASA HOLDINGS BERHAD
12
CHAIRMAN’S
STATEMENT
Dear fellow shareholders,
On behalf of the Board of Directors of Jaya
Tiasa Holdings Berhad, I am pleased to
present to you the Annual Report and Audited
Financial Statement of the Group for the
Financial Year Ended 30 June 2014.
ECONOMY OVERVIEW
Five years after the collapse of Lehman Brothers almost
tipped the global economy into the abyss, the recovery
has been slow and halting. There were nonetheless signs
that a corner might have been turned. Of course it was still
a struggle with the Euro Zone generally underperformed
throughout the year and the living standards in most of the
developed countries still below their peak. But by the end,
even the laggards had started to catch up. Many believe
the uneven and patchy road to recovery has already begun.
The US, despite having to cope with feuding over its
budget, seems to have sped up. It has been creating
jobs and its housing market and Wall Street have moved
up sharply. Ireland had exited the bailout; consumption
in UK gained traction while Germany had a solid year
reducing unemployment. Japan’s recovery via the so called
Abenomics looked promising meanwhile improvements in
major economies benefited China’s manufacturing sector
and by extension strengthen its economy.
In Malaysia, according to Malaysian Institute of Economic
Research, there was a sharp turnaround in the external
demand in the first quarter of 2014, registering positive
year-on-year growth of almost 15%while domestic demand
expanded by 7.4%. Meanwhile, GDP expanded 6.2% over
the corresponding quarter. The subsidy rationalizations and
the imminent implementation of GST successfully dodge
a downgrade and Moody’s Investor Services had actually
upgraded its outlook for Malaysia’s A3 rating to positive
from stable.
GROUP PERFORMANCE
In FY2014, timber division continues to be our major
breadwinner by contributing 69% and 62% of the group’s
revenue and profit before tax respectively. Market demands
for our timber products remained robust and substantial
demand from our traditional market segments is expected
to remain intact.
Our oil palm business achieved a marked turnaround to
record a pre-tax profit around RM33 millions in this reporting
year comparing to RM2million pre-tax loss during last
reporting year. Despite the recent weakness, the average
selling price for FFB improved by 5% while average CPO
price remained stable at around RM2,400. Total FFB
production during the year was 766,467MT, a 15% increase
from the previous 666,899MT. Matured oil palm increased
from 48,005 to 55,438 hectares, while OER improved steadily
to 18%.
FINANCIAL PERFORMANCE
After the last disappointing reporting year, we are pleased to
report a strong set of results this year for Jaya Tiasa Group.
We closed the year with revenue of RM1,033 million, a slight
2% drop from last year due to lower sales volume for our
timber product. Nonetheless, profit before tax grew by 156%
to RM80 million and net profit was RM56 million, a 150%
increase due to positive contribution from oil palm division
and logs sales. Earning per share rose to 5.49 sen from
2.18 sen recorded last financial year. With the profitability
achieved for the financial year, shareholders’ fund improved
to RM1,752 millions compared to RM1,708 million achieved
for the preceding financial year. Net tangible assets per share
stood at RM1.73 for the year ended 30 June 2014.