Our competitive strengths are summarised as follows:
We have oil palm plantations with a maturity and topographical profile that result in high FFB yields
We have oil palm plantations with a maturity and topographical profile that result in high FFB yields. As at LPD, our prime mature oil palms are those aged between 10 and 16 years, which made up approximately 94.9% of our total planted area. As a result of the ideal age profile of our oil palms whereby majority of them are in the early or mid-years of prime mature stage, as well as the topographical profile of our plantation estates, we achieved average FFB yields of 29.3MT per Ha, 26.7MT per Ha, 23.2MT per Ha and 24.1MT per Ha for FYE 2020 to 2023, respectively.
We adopt efficient plantation practices in our plantation estates, leading to our success in improving FFB yields and production of CPO and PK
We adopt plantation practices that focus on the efficiency of our plantation management and quality of our crop. Further, we utilise technology and enhanced mechanisation to achieve efficient plantation and quality crop. The adoption of these plantation practices has improved our labour productivity in terms of FFB harvested per manday as well as the management and operational efficiency of our plantation activities.
We are well positioned to benefit from the optimal conditions for oil palm plantation and infrastructural development in East Kalimantan, Indonesia
We are well positioned to benefit from optimal conditions for oil palm plantation as our oil palm plantation estates are located in East Kalimantan, Indonesia which is within the tropical belt along the equator that has an optimum climate for the cultivation of oil palm. Further, our plantation estates and palm oil mill are located close to the provincial capital of East Kalimantan, namely Samarinda; and the financial centre of Kalimantan, namely Balikpapan.
Our subsidiaries, PT MKH and PT SPS, are ISPO-certified which allows our Group to expand the market acceptance of our products in local market
In our effort to produce sustainable palm oil, we are committed to the preservation of a healthy ecosystem at our plantation estates via good estate management practices. Our subsidiaries, namely PT MKH and PT SPS received the ISPO certification in 2017 and 2022, respectively, as a testament to our sustainable plantation practices and ability to produce sustainable palm oil, which allows our Group to expand the market acceptance of our products in local market.
We have an experienced key senior management team with strong industry expertise
We have an experienced key senior management team with strong industry expertise. Our key senior management team possesses substantial knowledge and exposure in the oil palm plantation business. The team has played a vital role in promoting our growth and business expansion, and will continue to contribute to our growth in the future.
We are well positioned to benefit from growth in the global edible oils market and the oil palm industry in Indonesia
We are well positioned to benefit from growth in the global edible oils market and the oil palm industry in Indonesia as our CPO and PK are sold to downstream refineries and PK crushing plants for the production of palm-based edible oils and oleochemical products. The potential for our future revenue growth is promising in line with the increasing demand for edible oils and fats globally.
*Please read this section in conjunction with Section 7.14 from page 221 to page 224 of MKH Oil Palm (East Kalimantan) Berhad's Prospectus dated 29 March 2024.