Plantation: THPlant vs TDM [Part 1]

I’m in the midst of comparing plantation counters. In previous post, i talked about Dutalnd vs Tanamas.

Today would like to make a comparison between TH Plantations Berhad (THPLANT) and TDM Berhad (TDM).

In terms of company history, THPLANT was listed in Main Board in year 2006.

Core business for both companies are also in palm oil industry; however, TDM diversified its business into healthcare and food industry.

Plantation Highlights:

TDM manages 12 oil palm estates with a total of 37,000 hectares in Terengganu and undertaking expansion exercise in Kalimantan, Indonesia. From its 2008 annual report, planted area is 32,836 Ha, which means there are still 11% unplanted available for expansion in the future.

Out of the 32,836 planted area, 30,972 (94%) is in mature stage and around 5.3% still immature, which means can start to collect $$$.

THP group’s estates are located in Pahang, Johor, N.Sembilan, Terengganu, Sabah & Sarawak. Total plantation land bank is 39,059 hectares of which 30,543 Ha have been fully planted. 24,138 Ha(79%) is in mature stage and the rest of 21% is still immature.

Since TDM is having much more mature plantation areas compared with THPLANT, it’s FFB (Fresh Fruit Bunches) production shall also better than THPLANT.

Let’s compare this information from 2008 annual reports for both companies.

TDM - FFB Production(MT) – 595,001

THPLANT – FFB Production(MT) – 303,645

FFB yield for TDM is 19.2 tonnes per hectare while THPLANT is 22.12 tonnes per hectare.