month lows after unit fined RM42 mil by Indonesia

BURSA SGX Home Hot Stock Make The Edge Malaysia your preferred source on Google KUALA LUMPUR (Sept 28): TSH Resources Bhd (KL: TSH ) extended its decline on Monday after the plantation firm’s Indonesian subsidiary was slapped with a RM42 million administrative fine.

The fine could shave more than 20% off TSH Resources’ projected earnings for the current financial year, according to analyst’ estimates. However, the bigger risk is whether the Indonesian authorities could require the company to surrender productive land and future earnings.

“We expect a small negative knee-jerk share price reaction from this announcement,” Maybank Investment Bank said.

The stock fell as much as 13 sen or 9.5% to RM1.24, its lowest since Aug 21. TSH Resources ended the day at RM1.25, adding to Friday’s over 4% loss. Based on the last price, the company has a market capitalisation of RM1.5 billion.