TDM - CPO Boost Profits

TDM has reported one of their best quarterly results in the past four years only 2nd to the 3rd quarter of 2008 when the CPO prices were sky high during the commodity bubble. This quarter's EPS of 12.82 sens is supported by the steady rise of CPO prices in the past year following the bubble burst in early 2009.

Since Oct this year, prices of CPO has continuously appreciated above RM3000 and is now hovering near the RM3400 range. TDM with their fully matured plantations will reap the benefits fully this current quarter if the prices of CPO can carry over to 2011. As long as CPO maintains at current levels, this quarter will easily surpass last quarters results.

Health care is another point of growth for TDM. So far these past 9 months, health care profits has increased 38% compared to the same 9 months period in 2009. Although small compared to the plantation segments results, it nevertheless provides TDM with a steady growing income that is not affected by 'world' prices like the CPO.