KUALA LUMPUR: SD Guthrie Bhd is estimated to gain a profit of RM385 million from its joint venture (JV) with Sime Darby Property Bhd to develop an industrial hub in Kuala Selangor.
CIMB Securities said, based on an assumption of 1,000 acres at RM20 per sq ft, the estimated total land value is approximately RM871 million.
“Based on SD Guthrie’s 2024 annual report, the net book value of its land in Selangor stands at RM1.31 billion for 35,047 hectares, equivalent to RM0.35 per sq ft. Using this estimate, SD Guthrie’s potential 50 per cent share of profit from the JV—after accounting for a 10 per cent real property gains tax (RPGT)—could be around RM385 million.
“Overall, we view this development positively as it strengthens prospects for higher land sale gains, recurring earnings from industrial development, and potentially higher dividend payouts,” it said in a note.
The first phase of the development will cover 404.7 hectares within SD Guthrie’s Jalan Acob, Bukit Kerayong, and Bukit Cherakah estates through a special-purpose vehicle to be jointly established by both parties.
“The JV aims to unlock the value of SD Guthrie’s extensive landbank while leveraging Sime Darby Property’s expertise in building sustainable, integrated industrial ecosystems.
“This collaboration also complements their earlier Carey Island JV by creating a strategic inland–coastal industrial linkage from Klang to Carey Island, reinforcing Selangor‘s position as Malaysia’s leading maritime and logistics hub,” it added.
CIMB Securities maintained its “buy’ call on the stock with a target price of RM6.01.
© New Straits Times Press (M) Bhd
