TH Plantations Bhd

TH Plantations Bhd maintains a debt-to-equity ratio of 0.88, indicating a moderate level of leverage, and a current ratio of 4.15, suggesting strong short-term liquidity. The company's liquidity position is assessed as medium, with free cash flow of MYR 23.43 million and operating cash flow of MYR 27.00 million, but net cash is negative after subtracting total debt.

Profitability metrics show a return on equity (ROE) of 1.28% and a return on assets (ROA) of 0.49%, both below the typical thresholds for high-performing food processing firms. The company's operating income of MYR 39.85 million and net income of MYR 13.04 million reflect modest profitability relative to its asset base.

The company's revenue is concentrated in the palm oil and palm oil-based products segment, with no disclosed geographic diversification. This concentration may expose the company to regional demand fluctuations and supply chain disruptions.

Looking ahead, the company is expected to maintain a stable revenue trajectory, with no significant growth or decline projected in the current or next fiscal year. Capital expenditures of MYR -8.86 million suggest a focus on cost management rather than expansion.

The company's risk profile is characterized by medium liquidity risk and low dilution risk. The risk assessment highlights a key flag: net cash is negative after subtracting total debt, which could impact the company's ability to fund operations without external financing.

Recent events include analyst estimates indicating a strong buy recommendation, with a mean price target of MYR 0.67 and a mean recommendation score of 1.00. This suggests positive sentiment among analysts, though the lack of variance in price targets implies limited consensus on upside potential.

Revenue grew 9.5% year-over-year to MYR 961.2 million in FY2026, demonstrating strong top-line expansion.

Net income surged 22.1% to MYR 91.8 million in FY2026, significantly outpacing revenue growth.

Analysts assign a strong buy rating with a target price of MYR 0.67, implying 9.8% upside.

Cash conversion ratio of 2.07 is above the cohort median of 0.98, indicating efficient cash generation.

Debt-to-equity ratio of 0.88 places the company in the bottom quartile of its cohort, signaling high leverage.

Return on equity of 1.28% is well below the cohort median of 4.99%, indicating poor capital efficiency.

The company faces high credit risk, posing a significant threat to financial stability and borrowing costs.

Free cash flow declined 5.9% year-over-year to MYR 92.5 million, weakening liquidity generation.

Medium liquidity risk flags potential challenges in meeting short-term obligations or operational needs.

Revenue MYR 961.2M, +9,5% YoY; Operating income +7,0% YoY.

• ▍Revenue MYR 961.2M, +9,5% YoY
• ▍Operating income +7,0% YoY
• ▍Net income +22,1% YoY
• ▍Free cash flow −5,9% YoY
• ▍Net margin 9.6%

Revenue MYR 877.7M, +16,7% YoY; Operating income +53,2% YoY.

• ▍Revenue MYR 877.7M, +16,7% YoY
• ▍Operating income +53,2% YoY
• ▍Net income +61,3% YoY
• ▍Free cash flow +29,2% YoY
• ▍Net margin 8.6%

Revenue MYR 752.0M, −14,7% YoY; Operating income −30,6% YoY.

• ▍Revenue MYR 752.0M, −14,7% YoY
• ▍Operating income −30,6% YoY
• ▍Net income −32,2% YoY
• ▍Free cash flow −30,1% YoY
• ▍Net margin 6.2%

Revenue MYR 881.3M, +15,8% YoY; Operating income −9,7% YoY.

• ▍Revenue MYR 881.3M, +15,8% YoY
• ▍Operating income −9,7% YoY
• ▍Net income −2,0% YoY
• ▍Free cash flow −19,8% YoY
• ▍Net margin 7.8%

Revenue MYR 760.8M; Operating income MYR 215.4M.

• ▍Revenue MYR 760.8M
• ▍Operating income MYR 215.4M
• ▍Net margin 9.2%