Harimau Capital

Jaya Tiasa Holdings Berhad
Kuala Lumpur, 20 June 2007 – Jaya Tiasa Holdings Berhad (“Jaya Tiasa” or “The Group”), one of the largest timber corporations in Malaysia, today announced a sterling set of results for the financial year ended 30 April 2007.
Revenue for FY07 rose 25% to RM859.9million, and net profit more than tripled to RM127.1million, compared to RM40.9million in the previous financial year. Earnings per share surged to 49.52sen, compared to 15.86sen in FY06.

The significant improvement in revenue and profits is largely due to higher selling prices of the Group’s timber and log products. Average selling prices of logs rose 19.7% year on year to RM572/m3 (FY06: RM478/m3) while average selling prices of plywood rose 31.5% year on year to RM1,705/m3 (FY06: RM1,297/m3)
The higher selling prices were a result of increasing global demand from countries such as India, China and the Middle East; coupled with the lower supply situation worldwide due to a clampdown on illegal log exports in Indonesia and reduced exports from other hardwood producing countries.

As one of the largest timber corporations in Malaysia with access to 710,000 hectares of timber concessions, Jaya Tiasa is a key beneficiary of rising log and plywood prices.
Jaya Tiasa also has one of the most diversified overseas sales markets among the timber companies in Malaysia, currently exporting to more than 10 countries, including the USA, Japan, Middle East and Korea. The global increase in timber prices over the past year has led to higher selling prices across the Group’s export markets.
The Group’s FY2007 performance was boosted by the company’s strategic emphasis on sales of higher margin products, such as customised cut-to-size plywood for recreational vehicle construction in the US.
In the past financial year, the Group also benefited from the upgrading of its machinery, resulting in improving operating efficiencies as wood veneer production was increased from each log.

Outlook and Plans
In 4Q07, the industry experienced a cyclical softer quarter as timber prices consolidated due to seasonal factors such as the Chinese New Year holidays, and the winter period in the Northern Hemisphere. This consolidation is expected to be shortlived as the overstocked position in the major timber importing countries is being cleared off gradually.
The long-term prospect of the timber prices remains positive as continued tight log supply and firm demand from major timber consuming countries are expected to drive timber prices steadily higher. In addition, the recent announcement by the Russian Government of a step up increase in export taxes on the export of softwood logs from Russia starting from July 2007 is also generally expected to have a positive impact on the hardwood timber prices.

The Group is on track with plans to shift towards a higher margin product mix. In the quarter under review, the Group has started to ship higher priced thin plywood and floorbase panels to Japan and other markets. Jaya Tiasa will continue to work towards increasing the proportion of high margin products for plywood sales.
The Group has continued to develop its oil palm plantations business to tap on rising global demand. As of May 2007, the Group has completed planting for 23,141 hectares out of approximately 83,000 hectares of land. The first oil palms mill is on schedule to begin operations in the second half of 2008.
For reforestation activities, which ensure a sustainable and renewable resource, Jaya Tiasa has planted 5,163 hectares out of 71,700 hectares of land that have been set aside for such purposes.
The Board of Directors has recommended a first and final dividend of 3% less 27% tax (2006: 3% less 28% tax) for the financial year ended 30 April 2007, subject to shareholders’ approval at the forthcoming annual general meeting.
To further reward shareholders for their loyalty and support, the Board of Directors has also declared a share dividend distribution on the basis of 1 treasury share for every 20 existing ordinary shares held, on an entitlement date to be determined later.
Dato’ Sri Tiong Chiong Hoo, Managing Director of Jaya Tiasa, said: “Jaya Tiasa has achieved yet another strong set of financials, and this demonstrates our ability to deliver results consistently. Besides benefiting from the overall strengthening of timber prices, the Group has taken pro-active steps in managing our business and operations to achieve the best returns.
I am pleased to be able to share the good performance of the Group with our shareholders. We will continue to work to strengthen our position in the timber industry, and achieve continuous growth for Jaya Tiasa in the years ahead.”


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.