- Group Financial Reversal: TDM Berhad (“TDM”) reported a strong second-quarter performance for FY2026, generating RM205.3 million in revenue (+18% YoY) and turning a Profit Before Tax (PBT) of RM15.3 million, reversing a Loss Before Tax (LBT) of RM1.0 million in Q2 FY2025.
- Dual-Engine Growth: The Plantation segment registered an 18% revenue expansion to RM105.0 million on elevated CPO prices and higher sales volumes, while Healthcare revenues surged 18% to RM100.3 million, yielding a 178% jump in PBT to RM14.3 million.
- First Half Recovery: For 1H FY2026, total group revenue expanded 25% to RM379.9 million, pulling overall PBT into positive territory at RM6.4 million (compared with an LBT of RM23.4 million in 1H FY2025) and doubling EBITDA to RM54.7 million.
| Segment Financial Metrics (Q2 FY2026 vs Q2 FY2025) | Q2 FY2026 (RM’000) | Q2 FY2025 (RM’000) | YoY Growth (%) | 1H FY2026 (RM’000) | 1H FY2025 (RM’000) | YoY Growth (%) |
| Plantation Revenue | 105,005 | 88,660 | +18% | 189,323 | 138,269 | +37% |
| Healthcare Revenue | 100,342 | 85,371 | +18% | 190,563 | 165,937 | +15% |
| Total Group Revenue | 205,347 | 174,031 | +18% | 379,886 | 304,206 | +25% |
| Plantation PBT / (LBT) | 8,714 | 700 | >100% | 4,526 | (11,613) | >100% |
| Healthcare PBT | 14,310 | 5,139 | +178% | 15,963 | 4,368 | >100% |
| Total Group PBT / (LBT) | 15,271 | (991) | >100% | 6,414 | (23,412) | >100% |
| Total Group EBITDA | 39,348 | 23,227 | +69% | 54,669 | 24,510 | >100% |
Terengganu-state linked corporation TDM Berhad has logged an operational turnaround for the second quarter ended 30 June 2026, led by synchronized margin recovery across its upstream palm oil and private hospital divisions.
Group Chief Executive Officer Tuan Haji Najman Kamaruddin attributed the second-quarter bounce to higher crop production, disciplined operational execution, and rising revenue per inpatient across the group’s medical facilities.
Operational Segment Analysis
1. Malaysia Plantation Division: Volume and Realization Upside
The Group’s plantation operations, managed via TDM Plantation Sdn Bhd (TDMP), recorded an 18% revenue jump in Q2 FY2026 to RM105.0 million.
- Volume and Price Drivers: Sales volumes for Crude Palm Oil (CPO) and Palm Kernel (PK) both expanded 13% year-on-year during the quarter, complimented by a 6% rise in average realized CPO selling prices and an 8% increase in PK prices.
- Cumulative Output (1H FY2026): For the six-month period, fresh fruit bunch (FFB) production climbed 24%, driving CPO and PK sales volumes up by 40% and 41% respectively, and converting a prior 1H LBT of RM11.6 million into a PBT of RM4.5 million.
- Industry Dynamics: Despite broader Malaysian CPO production contracting 7% YoY in Q2 FY2026 to 4.78 million metric tonnes and inventory levels rising 5% to 2.54 million metric tonnes at end-June, average 1H CPO prices held firm at RM4,360 per metric tonne.
2. Healthcare Division (KMI Healthcare): Margin Expansion
Operating through subsidiary Kumpulan Medic Iman Sdn Bhd (KMI Healthcare), the group’s network of five community specialist hospitals delivered solid revenue expansion despite the seasonal impact of Ramadan and festive holidays.
- Inpatient Yields: Q2 healthcare revenue reached RM100.3 million (+18% YoY), bolstered by an 18% surge in average revenue per inpatient, a 5% increase in total inpatient volume, and an 8% rise in outpatient volume.
- Earnings Conversion: Division PBT for Q2 spiked 178% to RM14.3 million, while EBITDA surged 89% to RM19.5 million.
- Expansion Pipeline: Construction is proceeding on schedule for KMI Bertam Medical Centre, while KMI Chukai Medical Centre is advancing toward the active construction phase. TDM is also evaluating a proposed medical facility in Bandar Baru Tunjong, Kota Bharu, and a corporate collaboration with the UiTM Private Specialist Centre in Sungai Buloh.
3. Discontinued Operations: Indonesian Exit Progress
TDM confirmed that the Conditional Share Purchase Agreement (CSPA) for the disposal of its Indonesian plantation units—PT Rafi Kamajaya Abadi (PT RKA) and PT Sawit Rezki Abadi (PT SRA)—to Ikhasas Sawit Sdn Bhd has seen its fulfillment deadline extended to a Seventh Extended Long Stop Date of 31 December 2026. The extension allows PT RKA to finalize a land rehabilitation blueprint required under a joint agreement signed with Indonesia’s Ministry of Environment and Forestry (KLHK) in July 2025.
What it means for Malaysia
- Regional Economic Spillovers in Terengganu: As a key commercial entity tied to the Terengganu state government, TDM’s return to profitability secures local employment across its 13 oil palm estates, two palm oil mills, and regional hospital assets.
- Expansion of Secondary Private Healthcare Infrastructure: KMI Healthcare’s capital expenditure across secondary towns (Bertam, Chukai, Kuantan, Kuala Terengganu) directly supports government directives to decentralize private medical facilities away from primary Klang Valley clusters.
What it means for ASEAN
- Cross-Border Supply Chain Normalization: Stable 1H CPO realizations above RM4,300/MT provide margin buffers for middle-tier ASEAN planters managing weather uncertainties, potential El Niño disruptions, and shifting import requirements in major markets like India.
- Corporate Restructuring and Indonesian Divestments: TDM’s ongoing exit from its Indonesian assets highlights the complex regulatory, environmental, and land-use compliance mandates facing regional agribusinesses operating cross-border plantation portfolios within ASEAN.
Editor’s Take
TDM’s Q2 FY2026 turnaround underscores the strategic balance of running a dual-core business. Upstream agriculture provides raw cyclical upside when commodity prices and crop yields line up, while private healthcare offers steady, inflation-resistant cash flows. With CPO prices holding steady above RM4,000 per metric tonne and KMI Healthcare scaling up inpatient capacity, TDM’s primary focus must now rest on executing its hospital construction pipeline on schedule and finally closing the long-standing divestment of its Indonesian plantation assets by the December 2026 deadline.