TSH Resources: Strong Debut with its Secondary Listing on SGX

September 27, 2023

TSH Resources Berhad (KLSE: 9059) (SGX: TSH) marked a significant milestone with its secondary listing on the Singapore Exchange (SGX) on Tuesday.

The company’s shares demonstrated a positive market reception, witnessing a 1.1% increase and closing at S$0.295 on the inaugural trading day.

This development not only exemplifies TSH Resources’ strategic growth but also heralds exciting prospects for potential investors.

Company overview

TSH Resources is a significant player in the Malaysian plantation sector, specialising in oil palm cultivation and processing in Malaysia and Indonesia, with a focus on regions like Sabah and a market capitalisation of S$405.7 million.

Contributing to the diversified agrifood sector on the Singapore Exchange, it manages extensive plantation areas and operates six mills.

Why invest in TSH Resources?

1. Robust Market Position and Expansion Plans

TSH Resources is strategically positioned in the growing global edible oils market.

With ambitious plans to cultivate an additional 7,000 to 10,000 hectares (Ha) of plantation land and explore acquisition opportunities in Malaysia and Indonesia, the company aims to optimise oil extraction rates and address operational bottlenecks.

2. Strong Sustainability Initiatives and Experienced Management

Investors can find assurance in TSH Resources’ commitment to sustainability and its seasoned management team.

The balanced age profile of its oil palm plantations ensures steady production, while sustainability initiatives underline the company’s dedication to responsible practices.

3. Financial Resilience and Global Reach

Despite market challenges, TSH Resources showcased financial resilience with higher core profits in Q2 2023.

The company’s revenues and non-current assets predominantly originate from international markets, indicating a robust global presence and diversified revenue streams.

The Excitement Ahead

The Malaysian Palm Oil Council (MPOC) forecasts a bullish market for CPO, with demand dynamics showing a promising uptrend, especially from India, China, the ASEAN, and MENA regions.

This, coupled with the company’s strategic expansion plans and sustainability initiatives, paints a vibrant picture of the future.

As seen by the share price movement on its debut day on SGX, it reflects investors’ confidence and the excitement ahead for the company.

Disclaimer: ProsperUs Head of Content & Investment Lead Billy Toh doesn’t own shares of any companies mentioned.

Billy Toh

Billy is deeply committed to making investment accessible and understandable to everyone, a principle that drives his engagement with the capital markets and his long-term investment strategies. He is currently the Head of Content & Investment Lead for Prosperus and a SGX Academy Trainer. His extensive experience spans roles as an economist at RHB Investment Bank, focusing on the Thailand and Philippines markets, and as a financial journalist at The Edge Malaysia. Additionally, his background includes valuable time spent in an asset management firm. Outside of finance, Billy enjoys meaningful conversations over coffee, keeps fit as a fitness enthusiast, and has a keen interest in technology.

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