12
JAYA TIASA HOLDINGS BERHAD
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 2015.
ECONOMY OVERVIEW
Global economy growth remains moderate, with uneven
prospects across the main countries and regions. US
economy has posted good momentum and unemployment
rate has fallen to below 6%, but the rest of the world has
not been as lucky. Euro Zone was barely growing. China’s
growth has dropped to five-year low of 7.3 percent. Western
sanctions and dropping oil prices have decimated Russia’s
currency. Overall, global economy did not have a stellar year.
Growth at around 3 percent did not pick up on recent years
and remains well below the pace of expansion enjoyed over
an extended period up to year 2008.
On domestic front, economy growth has also been
something of mixed bag. On the brighter side, Malaysia
surprised the markets with strong growth in Q1 2015 despite
weak oil prices and subdued external demands. Federal
overall fiscal deficit as a percentage of nominal GDP hit
the target of 3.5% while net current account of the balance
of payment also improved. On the contrary, while the
implementation of GST allowed government to collect more
income, it led to contraction in imports during Q2. And with
Ringgit Malaysia depreciating sharply at a worrying pace,
recent sentiment has rather been negative amidst various
concerns on the economy outlook.
GROUP PERFORMANCE
Our Group has also a mixed performance in FY2015. Timber
division outperformed by contributing 71% and 121%
of the group’s revenue and profit before tax respectively.
The revenue from our timber division increased slightly by
3% while profit before tax increased significantly by 47%.
The sustaining high price of log due to the tight supply
and the favorable exchange rate contributed to the better
performance.
Our oil palm division suffered loss of RM21.5 million. CPO
price decreased by 9.5% to RM2,166 per MT while FFB
price decreased by 9.8% to RM399 per MT. FFB productions
were lower than expected, a drop by 3% to 740,013 MT.
FINANCIAL PERFORMANCE
We closed the year with revenue of RM1,032 million, a
slight 0.1% drop from last year due to lower average selling
prices of CPO and FFB. Profit before tax dropped by 34%
to RM53 million and net profit was RM34 million, a 38%
decrease due to lower than expected contribution from oil
palm division. Earning per share slipped to 3.27 sen from
5.49 sen recorded last financial year. Shareholders’ fund
improved to RM1,769 millions compared to RM1,752 million
achieved for the preceding financial year. Net tangible assets
per share stood at RM1.76 for the year ended 30 June 2015.
DIVIDEND
As part of our commitment to enhancing shareholder value,
the Board of Directors stayed true to its dividend policy of
paying out not less than 20% of its net profit, subject to
not compromising the Group’s ability to support its pursuit
for long term growth. As a result, the Board of Directors
has recommended a gross dividend of 1% representing
about 28% of after tax profit in respect of the Financial
Year Ended 30 June 2015 for approval by the shareholders
at the forthcoming Annual General Meeting to be held on
26 November 2015.
