Posted by moneySIFU > 2021-11-24 17:09 | Report Abuse

Badly managed.

TSH’s core net profit would have been higher in 3QFY21 if the group did not record fair value losses of RM16.1mil on commodity futures contracts. Unrealised and realised losses on commodity contracts amounted to RM24.9mil in total in 9MFY21.

Posted by warrenchok90 > 2021-11-24 17:19 | Report Abuse

don't you think bursa undervalued this counter? it doesn't make sense it stay at RM1.1

Posted by vcinvestor > 2021-11-24 17:31 | Report Abuse

@moneySIFU it is not fair to blame management for fair value losses on futures contracts.

As planters you do your best to hedge against future movements of CPO - at the time of hedging TSH probably looked at record CPO prices and decided to hedge with a view that it could go down (instead, and unexpectedly we hit a new record high of 5k per MT).

Fair value losses can come about when a planter has hedged at one price but prices move higher than expected, resulting in unrealised (foregone) profits. If this were the inverse, and CPO prices came back down to earth would it be fair to praise their management?

It is simply best practice to lock in prices (and profits) wherever possible to minimize volatility

Posted by s3phiroth > 2021-11-24 17:34 | Report Abuse

99% of retailers do not understand the purpose of hedging and simply blame the management for hedging losses.

Posted by vcinvestor > 2021-11-24 17:35 | Report Abuse

i try to educate lo. instead of just blaming "sharks" or "operators"