The share price of Ananda Development Public Company Limited (ANAN) dropped ฿0.15/share or 8% to ฿1.61/share as of 12:07 local time in Thailand, with a trading value of 89 million baht.
KGI Securities maintained an “Underperform” rating on ANAN with a target price of 1.70 baht, citing on July 30, the Administrative Court ruled that Ashton Asoke had violated construction regulations resulting in a decision to recall the construction license.
ANAN has re-iterated that the company conducted all procedures according to the laws and regulations. The company will appeal the ruling to the Supreme Administrative Court and KGI believes it could take years to be finalized. Although the KGI stress test suggests ANAN has room to handle the sunk loan in terms of the worst case scenario,
However, KGI takes a negative view as the ongoing overhang should affect units left (worth around 1 billion baht) and the potential expansion plan in the future.