Jaya Tiasa/3Q07/Mar28
PRESS RELEASE
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Kuala Lumpur, 28 March 2007 – Jaya Tiasa Holdings Berhad, one of the
largest timber corporations in Malaysia, today held a corporate briefing for the
investment community and the media in Crowne Plaza Mutiara Kuala Lumpur to
provide an update on the latest company developments, in conjunction with its
3Q07 results announcement.
The Group reported a strong set of results for the financial quarter ended 31 Jan
2007. Net profit jumped two-fold to RM39million, on the back of a 14.3% increase
in revenue to RM227million.
3Q07 Performance Highlights:
Yr-End 30 April 3Q07 3Q06 Change 9M07 9M06 Change
Revenue (RM’m) 227.0 198.6 +14.3% 625.7 485.2 +28.9%
Net Profit (RM’m) 39.0 12.2 +218.9% 96.0 31.7 +203%
EPS (sen) 15.22 4.74 +221.1% 37.34 12.32 +203.1%
The strong performance is attributed to increasing log and plywood prices, as well
as Jaya Tiasa’s improving operational efficiency and its focus on higher margin
products.
Selling prices for round logs and plywood have risen due to increasing global
demand from countries such as India, China and Japan, and also as a result of
the clampdown on illegal log exports in Indonesia, which has substantially
reduced supply in the market.
Jaya Tiasa/3Q07/Mar28/Pg 2of3
As one of the largest timber corporations in Malaysia with access to 710,000
hectares of timber concessions, Jaya Tiasa is well positioned to benefit from
rising timber prices. The Group currently exports to more than 10 countries,
including the Middle East and Japan.
Future Plans and Outlook
The Group had already embarked on plans to shift towards a higher margin
product mix, to increase sales of higher value products such as thin plywood and
certain types of value-added plywood such as floorbase panels. Going forward,
the Group will continue on its strategy of shifting towards higher margin product
mix.
Jaya Tiasa is moving into oil palm plantations and oil palm milling to tap on rising
global demand in this segment. The Group currently has approximately 83,000
hectares of land slated for oil palm plantation, out of which 20,120 hectares have
been planted and 2,787 hectares currently matured. The Group is also developing
oil palm mills, the first of which to be ready in the second half of 2008.
To ensure sustainable and renewable resources for its timber products, Jaya
Tiasa is actively involved in reforestation activities, where 71,700 hectares of land
have been set aside for such purposes, on which 5,015 hectares have already
been planted.
Commenting on the Group’s performance, Managing Director of Jaya Tiasa, Mr
Tiong Chiong Hoo said: “We are pleased that our efforts and hard work have paid
off. With established expertise and resources, we are well placed to reap the full
benefits from rising timber prices in the market and thus maintain our strong
performance for the remaining of this financial year. I am confident that our plans
and strategies moving forward will bring continued growth for the Group in the
years ahead.”
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About Jaya Tiasa Holdings Berhad
Listed on the main board of Bursa Malaysia, Jaya Tiasa Holdings Berhad is one of
the largest timber corporations in Malaysia - with access to about 710,000
hectares of timber concessions in the state of Sarawak.
Jaya Tiasa is a leading fully integrated timber producer in the global tropical
hardwood market and is engaged primarily in the sale and export of logs, and the
manufacture and sale of a diverse range of quality plywood, veneer and timber
related products. The Group currently exports their products to the United States,
North Asia, South East Asia, Europe, and the Middle East.
Jaya Tiasa is also involved in oil palm plantations and reforestation activities.
More information on Jaya Tiasa can be found at http://www.jayatiasa.net
Issued on behalf of Jaya Tiasa Holdings Berhad by Boardroom Corporate
Services Pte Ltd.
