LKF Partners | United Plantations Analysis

UNITED PLANTATIONS BERHAD (UTDPLT 2089)

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SNAPSHOT

Ta Ann Holdings Berhad (Ta Ann) was founded by a group of Sarawak entrepreneurs in the 1980s. It has grown from a small timber-trading firm to a listed corporate group with interests in timber, oil palm and other agricultural products. Since it’s listing on Bursa Malaysia on 23 November 1999, Ta Ann has diversified progressively and substantially into oil palm plantations. The group has a plantation landbank of over 95,000 hectares, with 13 oil palm estates covering 72,499 hectares and 3 Palm Oil mills. Although being founded as a timber company, the bulk of Ta Ann’s revenue and profits now come from oil palm activities including oil palm cultivation, milling of crude palm oil (CPO) and trading in other oil palm products. Ta Ann also owns a 29.4% stake (approx 82.05 million shares) in Sarawak Plantations Berhad. In its timber division, Ta Ann produces PEFC-certified plywood (including structural panels, concrete panels and coated concrete panels), sawn timber, and laminated moulding products.

Key Milestones

1985 – Ta Ann founded by:

Datuk Amar Abdul Hamed bin Haji Sepawi
Datuk Wahab bin Haji Dolah
Dato Sri Ding Jack Sung
Dato Wong Kuo Hea

1999 – Listing on the Main Market of Bursa Malaysia.
2000 – Began forest plantation and diversified into the oil palm industry.
2005 – Expanded to Tasmania, Australia.
2006 – Set up Manis Oil Mill and began milling oil palm fruits in-house.
2013 – First harvest of planted forests, followed by replanting.
2018 – Acquired a 30.4% in Sarawak Plantations Bhd for RM169.9 million or RM2.00 per share in a related party transaction with Cermat Ceria Sdn Bhd, a company controlled by Ta Ann Chairman Datuk Amar Hamed Sepawi.

YE 31-Dec	2020	2021	2022	2023	2024
Revenue (RM mil)	1,340.06	2,033.48	2,514.81	2,014.25	2,197.81
Operating Profit (RM mil)	478.55	676.31	823.90	897.20	893.05
Dividends Received (RM mil)	505.64	683.42	846.49	933.49	938.88
Profit Before Tax (RM mil)	399.54	518.34	601.68	707.77	715.08
Net Profit After Tax (RM mil)	0.960	1.250	1.450	1.710	1.720
EPS (RM)	0.35	0.95	1.10	1.50	0.87
DPS (RM)	0.50	0.20	0.30	0.40	0.47
Shareholders Equity (RM mil)	2,619.97	2,674.80	2,890.73	2,850.44	2,799.78
No of Shares (millions)	416.27	416.27	416.27	416.27	416.27
Shareholders Equity Per Share (RM)	6.29	6.43	6.94	6.85	6.73
Share Price - Close (RM)	9.68	9.25	10.20	11.87	20.72

Op Profit + Div Received (RM mil)	478,545	676,308	823,903	897,202	893,049
Capital Employed (RM mil)	2,166,183	2,207,642	2,125,495	2,233,840	2,330,410
Return on Av Capital Employed (%)	22.5%	30.9%	38.0%	41.2%	39.1%
Return on Av Equity (%)	15.5%	19.6%	21.6%	24.7%	25.3%

Production Volume
Crude Palm Oil (Own)	242,856	251,600	254,390	265,973	256,008
Crude Palm Oil (Outside)	11,351	11,039	11,077	11,699	9,044
Palm Kernel (Own)	48,910	50,377	51,930	55,232	49,884
Palm Kernel (Outside)	2,318	2,217	2,435	2,552	1,940
Coconuts	81,427,861	87,963,500	86,135,967	83,628,857	90,298,794

SHARE TRADING SUMMARY CY2025

Share Price - High	RM30.30
Share Price - Low	RM20.11
Share Price - Close @ 31/12/25	RM30.06
Average Daily Volume	562,659 shares
Volume - High	3,076,800 shares
Volume - Low	57,600 shares
Total Annual Volume	137,288,795 shares
Annual Turnover (% of Share Capital)	33.0%

TOP SHAREHOLDERS

As at 31 January 2025	Direct	Indirect
Maximum Vista Sdn. Bhd. (MVSB)	43.69%	-
Employees Provident Fund Board	6.01%	-
UIE Plc	4.69%	43.69%
C & M Holding Limited (C & M HL)	-	48.38%
Brothers Holding Ltd (BHL)	-	48.38%
YBhg. Dato' Carl Bek-Nielsen	1.24%	48.40%
Mr. Martin Bek-Nielsen	0.35%	48.38%

Total	56.0%	237.2%

Manis Palm Oil Mill, Ta Ann’s first mill, was set up in 2006 and is fully-owned by the group. In 2014, it set up the TP Palm Oil Mill under a joint venture with LCDA Holdings Sdn Bhd, followed by TBS Palm Oil Mill (TBS) in 2019. Fresh fruit bunches supplied to its mills are sourced from in-house plantations, surrounding collection centres, smallholders and other plantation estates. In addition, TBS has a collection centre and cash counter on-site to purchase FFB.

FFB YIELD

Source: Ta Ann 2024 Annual Report (Page 25)

Noteworthy

“Our oil palm division delivered a commendable performance in 2024, driven primarily by high CPO prices, positioning it as the key contributor to the Group’s profits. Fresh fruit bunch (FFB) production declined by 2% year-on-year due to ongoing replanting efforts and adverse wet weather conditions that affected pollination and fruit formation. However, the increased yield from young mature areas in the Kapit region helped reduce the overall impact. Since early last year, improved manpower availability has enabled our Group to meet all manuring dosage requirements. These improved nutrient applications are expected to drive higher production yields by 2026, potentially as early as late 2025.”

Source: Ta Ann 2024 Annual Report (Page 26)

FINANCIALS

Year Ending (RM'000)	2020 31-Dec	2021 31-Dec	2022 31-Dec	2023 31-Dec	2024 31-Dec
Revenue	1,340,058	2,033,482	2,514,808	2,014,248	2,197,810
Other Operating Income	31,395	22,120	16,280	91,927	52,100
Other Operating Expenses	(143,688)	(229,925)	(467,464)	(277,952)	(259,700)
Operating Profit/(Loss)	478,545	676,308	823,903	897,202	893,049
Finance Income	16,115	6,813	11,596	26,537	23,943
Finance Costs	(26)	(26)	(2,312)	(747)	(847)
Share of Joint Ventures	11,008	325	13,298	10,502	22,732
Profit Before Tax	505,642	683,420	846,485	933,494	938,877
Tax Expense	(104,065)	(161,177)	(240,921)	(222,473)	(219,468)
Profit After Tax	401,577	522,243	605,564	711,021	719,409
Non-Controlling Interests	(2,033)	(3,908)	(3,880)	(3,250)	(4,328)
Net Profit attributable to Owners	399,544	518,335	601,684	707,771	715,081
Basic/Diluted EPS (Sen)	96	125	145	171	172

(RM '000) Year Ending	2020 31-Dec	2021 31-Dec	2022 31-Dec	2023 31-Dec	2024 31-Dec
Cash and Cash Equivalents	128,537	299,662	537,232	579,872	484,528
Inventories	134,451	139,269	219,549	245,938	228,485
Trade and Other Receivables	287,145	437,386	160,664	213,008	304,696
Property, Plant and Equipment	1,209,385	1,209,944	1,241,751	1,250,828	1,261,498
Right-of-Use Assets	382,408	395,415	406,068	403,306	402,925
Bearer Plants and Biological Assets	38,767	48,044	45,643	51,473	63,180
Investment in Associates & JV	39,926	40,251	53,549	64,051	87,283
Goodwill & Other Intangible Assets	356,856	356,856	356,856	356,856	356,856
Deferred Tax Assets	3,831	2,705	2,134	2,201	0
Prepayments	175	7,420	6,515	5,421	11,030
Derivatives	28,093	10,837	45,828	19,700	4,982
Current Tax Assets	18,916	21,989	37	16,809	35,085
Fixed and Money Market Deposits	336,283	178,170	242,282	53,729	2,291
Other Assets	10,076	5,196	692	413	405
Total Assets	2,974,849	3,153,144	3,318,800	3,263,605	3,243,244

Borrowings	100	1	248	21	0
Trade and Other Payables	94,921	121,556	153,521	129,601	141,924
Deferred Tax Liabilities	149,705	136,671	180,148	182,604	176,288
Lease liabilities – NC	0	0	11,969	12,687	13,448
Employee Benefits-NC	17,077	13,908	12,805	14,098	14,083
Employee Benefits-C	2,198	2,341	2,674	2,627	2,946
Current Tax Payable	26,687	48,476	52,674	48,045	36,632
Other Liabilities	53,258	144,718	0	6,502	40,694
Total Liabilities	343,946	467,671	414,039	396,185	426,015

Net Assets	2,630,903	2,685,473	2,904,761	2,867,420	2,817,229

Share Capital	390,054	390,054	390,054	390,054	390,054
Retained Earnings	2,288,440	2,407,380	2,492,218	2,451,223	2,461,328
Forex Translation Reserve	(39,854)	(103,962)	27,129	27,831	(32,935)
Treasury Shares	(18,668)	(18,668)	(18,668)	(18,668)	(18,668)
Equity attributable to Owners	2,619,972	2,674,804	2,890,733	2850440	2,799,779
Non-Controlling Interests	10,931	10,669	14,028	16,980	17,450
Total Equity	2,630,903	2,685,473	2,904,761	2,867,420	2,817,229

No of Shares	416,268	416,268	416,268	416,268	416,268

Year Ending (RM'000)	2020 31-Dec	2021 31-Dec	2022 31-Dec	2023 31-Dec	2024 31-Dec
Net Cash from Operating Activities	385,931	530,487	924,316	690,795	688,582
Interest Received	16,173	6,921	11,577	26,507	23,931
Interest Paid	(26)	(26)	(1,635)	(29)	(86)
Acquisition of Property Plant & Equipment	(111,152)	(93,906)	(132,549)	(106,857)	(125,287)
Acquisition of Land Use Rights & Right-of-Use	(161)	(20,503)	(6,192)	(2,544)	(7,589)
Disposal of Property Plant, Equipment & Right-of-Use	1,071	1,091	874	1,367	1,567
Free Cash Flow	291,836	424,064	796,391	609,239	581,118
Dividends paid to Non-Controlling Interest	0	(4,271)	0	(1,193)	(2,690)
Free Cash Flow attributable to Owners	291,836	419,793	796,391	608,046	578,428

Cash Earnings & Utilization Metrics

YE 31-Dec ('000)	2019	2020	2021	2022	2023	2024
EBIT	327,434	478,545	676,308	823,903	897,202	893,049
Net Cash from Operating Activities	285,609	385,931	530,487	924,316	690,795	688,582

Free Cash Flow attributable to Owners	200,967	291,836	419,793	796,391	608,046	578,428
Net Investments	6,040	25,763	159,520	(64,112)	194,392	(4,664)
Dividends Paid to Owners	(290,789)	(300,719)	(394,045)	(518,481)	(746,613)	(705,135)
Residual Cash Flow	(83,782)	16,880	185,268	213,798	55,825	(131,371)
Net Cash	459,305	464,720	477,831	779,266	633,580	486,819
Free Cash Flow per share (RM)	0.966	0.701	1.008	1.913	1.461	1.390

Net Capex	110,758	110,242	113,318	137,867	108,034	131,309
Net Capex / EBIT (%)	33.8%	23.0%	16.8%	16.7%	12.0%	14.7%
Net Capex / Operating Cash Flow (%)	38.8%	28.6%	21.4%	14.9%	15.6%	19.1%

STAKEHOLDERS

Directors & CEO Remuneration

2024

Group Total: RM9.7 million

Executive & CEO: RM8.9 million

Non-Executive: RM0.8 million

CEO: RM4.9 million

2023

Group Total: RM8.3 million

Executive & CEO: RM7.4 million

Non-Executive: RM0.9 million

CEO: RM4.0 million

2022

Group Total: RM6.6 million

Executive & CEO: RM5.7 million

Non-Executive: RM0.9 million

CEO: RM2.5 million

2021

Group Total: RM7.2 million

Executive & CEO: RM6.1 million

Non-Executive: RM1.1 million

CEO: RM2.7 million

Directors & CEO Interests

2025 | 2024 | 2023 | 2022 | 2021