HAP SENG PLANTATIONS HOLDINGS (HSPLANT)

Company Profile — Hap Seng Plantations Holdings Bhd

What Is HSPLANT, Really?

Hap Seng Plantations Holdings Bhd (HSPLANT) is a pure upstream palm oil company. They grow, harvest, and process fresh fruit bunches (FFB) into crude palm oil (CPO). No refining, no olein, no downstream. Just plantations and mills. Simple business — but profitability is 100% hostage to CPO market prices.

All operations are concentrated in Sabah, East Malaysia — making HSPLANT one of the most geographically focused pure-play plantation stocks on Bursa. Sabah's fertile soils and relatively lower operating costs have historically delivered solid oil extraction rates (OER) for the company.

Key Facts

Item	Details
Company Name	Hap Seng Plantations Holdings Bhd
Stock Code	5138 (MYX)
Sector	Plantation
Parent	Hap Seng Group (Lee Family)
Shariah Status	✅ Compliant
Land Bank	~40,279 hectares (100% Sabah)
Number of Mills	4 mills (Jeroco 1 & 2, Bukit Mas, Tomanggong)
Currency	Malaysian Ringgit (RM)
Shares Outstanding	~800 million
Market Cap	~RM1.71 billion (at RM2.14)

Business Model

HSPLANT's value chain is deliberately simple:

1. Cultivate oil palms across Sabah estates
2. Harvest FFB (Fresh Fruit Bunches) at peak ripeness
3. Process FFB through 4 wholly-owned mills
4. Extract CPO (Crude Palm Oil) and Palm Kernel (PK)
5. Sell to domestic Malaysian refiners

No downstream integration — HSPLANT does not refine CPO into cooking oil, biodiesel, or oleochemicals. Margins are thinner than integrated players like IOI Corp or KL Kepong, but the business model is transparent and easy to value.

Corporate Structure

Certifications & Compliance

• ✅ MSPO (Malaysian Sustainable Palm Oil) certified — reduces EUDR risk for domestic sales
• ✅ Shariah Compliant (SC Shariah Advisory Council approved)
• ⚠️ RSPO certification — verify latest status

The Last Seven Quarters at a Glance

Quarter	Revenue (RM m)	PBT (RM m)	Net profit (RM m)	EPS (sen)	DPS (sen)	Net margin
Q4 FY24 (Dec 2024)	233.37	111.12	85.01	10.63	11.00	36.4%
Q1 FY25 (Mar 2025)	179.43	29.71	22.49	2.81	0.00	12.5%
Q2 FY25 (Jun 2025)	156.11	26.43	19.66	2.46	1.50	12.6%
Q3 FY25 (Sep 2025)	169.55	66.49	52.38	6.55	0.00	30.9%
Q4 FY25 (Dec 2025)	197.32	39.70	30.34	3.79	6.10	15.4%
Q1 FY26 (Mar 2026)	192.44	13.36	9.97	1.25	0.00	5.2%
Q2 FY26 (Jun 2026)	201.73	52.09	39.32	4.92	2.00	19.5%

Note: the database lists one quarter (Q1 FY25) twice, so only seven unique quarters are shown. All figures in RM million unless stated.

What the Numbers Say

• Earnings are highly volatile. Net profit ranged from RM10.0 million to RM85.0 million over seven quarters. Net margin swung between 5% and 36%.
• Q2 FY26 is the third-best quarter in the period after Q4 FY24 and Q3 FY25. A 19.5% net margin is healthy for a pure upstream company.
• Revenue is trending up. Q2 revenue of RM201.7 million is the highest in the seven quarters except Q4 FY24.
• Strong balance sheet. Management and analysts cite a strong net cash position, so the company does not depend on financing.

One Accounting Change You Should Know About

From January 2026 the company changed its biological asset valuation method, causing a one-off fair value loss of about RM29 million before tax (RM22 million after tax) in the first quarter. This depresses 1H26 profit on paper but is not a cash loss.

Dividends Move With Earnings

Financial year	First interim	Second interim	Total
FY2024	1.5 sen	11.0 sen	12.5 sen
FY2025	1.5 sen	6.1 sen	7.6 sen
FY2026 (so far)	2.0 sen (paid 23 Sep 2026)	Not yet announced	-

HSPLANT's pattern is clear: a small first interim dividend and a large second interim dividend (announced in February) that varies with full-year profit. There is no fixed dividend, so yield will fluctuate with CPO prices.

The FY2026 first interim of 2.0 sen is up from 1.5 sen a year ago. Trailing four-quarter dividends of about 8.1 sen give a yield of roughly 3.5% at the current price, far below the 6-9% once displayed, because the FY2025 second interim was cut.

The company has a strong net cash position, so ability to pay is not in doubt. The question is willingness, given that the replanting programme needs capital.