TSH Resources (TSH) plans to undertake a secondary listing on the main board of the Singapore Exchange Securities Trading (SGX-ST) though Bursa Market will remain as the primary stock exchange on which the shares are listed. The proposed secondary listing will not involve any issuance of new shares by the Group. We are Neutral on this development as there is no impact on its fundamentals.

• A secondary listing on SGX-ST. TSH announced that the Group intends to undertake a secondary listing on the Main Board of the SGX ST. Nevertheless, Bursa Securities will remain as the primary stock exchange.

• No issuance of new shares. At this juncture, the Group is not planning to issue any new shares through this secondary listing platform. Note that all shares listed and quoted on both the Main Market of Bursa Securities and the Main Board of the SGX-ST will be fully fungible, which means that shareholders can opt to transfer their existing shares between both stock exchanges, pending the fulfillment of transfer conditions and criteria.

• Targeting secondary listing by 3Q 2023. The proposed secondary listing is not subject to the approval of the shareholders of TSH. However, it is conditional upon the proposed amendments, which is subject to its shareholders’ approval. The Group targets the secondary listing to be completed by the third quarter of 2023.

• FFB production softened. Following the disposal of 2 oil palm estates in Sabah and 8,391ha in Kalimantan, FFB production in 2QFY23 fell 7.2% YoY to 222,119mt. For the 1HFY23, FFB production slipped 3.6% to 421,453mt.

• Neutral. We make no changes to our earnings forecasts as there is no financial impact on the Group’s financials. Maintain Neutral call with an unchanged TP of RM1.10 based on 13x FY24 EPS.

Source: PublicInvest Research - 24 Jul 2023