SD Guthrie poised to unlock RM1.3bil profit from land monetisation strategy
KUALA LUMPUR: SD Guthrie Bhd is set to further accelerate its industrial park development strategy, following a series of joint ventures, memoranda of understanding (MOUs), and land sale agreements covering over 2,387 hectares at key locations across Malaysia over the past year.
Analysts said these initiatives reflect the group's strategy to unlock value from its extensive land bank while supporting national objectives to attract investment, generate employment, and promote sustainable industrial growth.
"SD Guthrie holds vast tracts of plantation land across the country. By converting selected parcels into industrial developments, it is able to monetise idle assets, enhance income potential, and improve capital efficiency," said an analyst who spoke on condition of anonymity.
He noted that joint venture-led projects, in particular, provide recurring income streams and represent a significant step towards diversifying the company's earnings beyond its core plantation operations.
With rising demand for industrial space driven by e-commerce, manufacturing, renewable energy, and logistics, SD Guthrie is strategically aligning its projects with government-backed corridors such as Malaysia Vision Valley 2.0 (MVV 2.0) and the port-centric development of Carey Island.
SD Guthrie's latest deal, inked on June 24, 2025, involves a 242 ha industrial project within the company's Sengkang Estate in Port Dickson with Negeri Sembilan Menteri Besar Incorporated (MBINS). The two agreements signed with MBINS form the first two phases of the Port Dickson Free Zone (PDFZ), a flagship initiative under the MVV 2.0 development corridor.
The PDFZ will eventually span 574 ha and include warehouses, logistics hubs, manufacturing facilities, and essential infrastructure. Strategically located next to Tanco Holdings Bhd's upcoming Smart AI Container Port (Midport), the development is set to enhance Negeri Sembilan's position as an emerging logistics and maritime hub.
The master plan is expected to be finalised by the first quarter of 2026, with development works commencing in the second quarter.
According to CIMB Securities Sdn Bhd, the project benefits from strong road connectivity via the Seremban–Port Dickson Highway and the Port Dickson–Linggi network, both of which link to the North-South Expressway.
"This offers seamless access to MVV 2.0, the primary economic corridor on the west coast of Peninsular Malaysia. The deal allows SD Guthrie to immediately monetise part of its land while securing a future recurring income stream," it said in a note.
Just days earlier, SD Guthrie also announced a major collaboration with Sime Darby Property to co-develop up to 809 ha in Carey Island, equivalent to about 7 per cent of its 11,592 ha landholding there. The project will be undertaken via a special-purpose vehicle (SPV) aimed at supporting the Selangor state government's vision to transform Carey Island into a key industrial and logistics hub.
"The development will co-exist with the island's integrated palm oil operations and complement activities at Westport and Northport in Port Klang. While the JV's shareholding structure has not been disclosed, the companies confirmed that PNB will nominate the chairman of the newly formed SPV. SD Guthrie currently owns 79 per cent of Carey Island, or approximately 11,592 ha," CIMB noted.
In May 2025, SD Guthrie formalised another key JV with Eco World Development Group Bhd and Negeri Sembilan Corporation (NS Corp) to jointly develop 483.6 ha in Mukim Jimah. SD Guthrie will retain a 30 per cent stake in the RM2.95 billion GDV project, with the land transacted at RM11 per sq ft.
Beyond the Klang Valley and central region, SD Guthrie is also expanding in the southern and northern states. In November 2024, it partnered with AME Elite Consortium Bhd to develop a 259 ha green industrial park in Kulai, Johor, featuring a dedicated solar park. In Negeri Sembilan, the company has partnered with TH Properties for a 187.7 ha industrial project in Bukit Pelandok, valued at RM220 million or RM10.89 per sq ft.
Meanwhile, in May 2024, SD Guthrie and PNB launched the 404.7 ha Kerian Integrated Green Industrial Park (KIGIP) in Perak. Supported by a 267 ha solar farm, KIGIP is set to become one of the largest integrated green industrial zones in northern Malaysia.
CIMB noted that the earnings impact from these initiatives will depend on how quickly SD Guthrie can obtain necessary approvals, execute land launches, and begin generating income.
"Assuming all seven MoUs and agreements signed result in an average land sale price of RM10 per sq ft, we estimate total land sales proceeds could reach up to RM2.57 billion for 2,387.6 ha of land," it said.
With a low land cost base, a 30 per cent retained stake in joint ventures, and a 24 per cent corporate tax rate on disposal gains, SD Guthrie could realise profits of up to RM1.3 billion, well above its RM500 million annual land sales target.
CIMB reiterated its 'Hold' rating on SD Guthrie, maintaining a sum-of-parts-based target price of RM5.06 per share.
Kenanga Research projects the gross development value (GDV) of SD Guthrie Bhd's Port Dickson property venture to be between RM1 billion and RM3 billion, with the development potentially stretching over five years or more.
Despite this, the research house is keeping its earnings forecasts for FY2025 and FY2026 unchanged, noting that SD Guthrie had earlier guided for RM500 million in land disposal gains this year, a figure already incorporated into its estimates.
"Year-to-date, SD Guthrie has accumulated about RM300 million in land disposal gain from concluded projects. Hence, there is still about RM200 million in headroom from the guided RM500 million disposal gain for this year. For FY 2026, we are raising our earlier gain of RM50 million to RM200 million. However, we are leaving the FY 2025 to FY 2026 forecast core net profit intact," it said.
Kenanga has maintained its "Market Perform" rating on SD Guthrie, with a target price of RM4.60.
The research house highlighted several risks to its outlook, including continued Western scrutiny of palm oil over sustainability and biodiversity issues, weather disruptions, labour shortages, soft commodity prices, and rising operating costs.
Kenanga also views the group's strategic expansion into industrial property development as a long-term positive, with the potential to boost return on equity (ROE). However, it cautioned that these benefits may take time to be realised due to execution challenges.
"SD Guthrie is defensive and assets rich but earnings growth is modest and extra dividends from disposals may be expected," it said.
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New Straits Times
2 days ago
- New Straits Times
SD Guthrie poised to unlock RM1.3bil profit from land monetisation strategy
KUALA LUMPUR: SD Guthrie Bhd is set to further accelerate its industrial park development strategy, following a series of joint ventures, memoranda of understanding (MOUs), and land sale agreements covering over 2,387 hectares at key locations across Malaysia over the past year. Analysts said these initiatives reflect the group's strategy to unlock value from its extensive land bank while supporting national objectives to attract investment, generate employment, and promote sustainable industrial growth. "SD Guthrie holds vast tracts of plantation land across the country. By converting selected parcels into industrial developments, it is able to monetise idle assets, enhance income potential, and improve capital efficiency," said an analyst who spoke on condition of anonymity. He noted that joint venture-led projects, in particular, provide recurring income streams and represent a significant step towards diversifying the company's earnings beyond its core plantation operations. With rising demand for industrial space driven by e-commerce, manufacturing, renewable energy, and logistics, SD Guthrie is strategically aligning its projects with government-backed corridors such as Malaysia Vision Valley 2.0 (MVV 2.0) and the port-centric development of Carey Island. SD Guthrie's latest deal, inked on June 24, 2025, involves a 242 ha industrial project within the company's Sengkang Estate in Port Dickson with Negeri Sembilan Menteri Besar Incorporated (MBINS). The two agreements signed with MBINS form the first two phases of the Port Dickson Free Zone (PDFZ), a flagship initiative under the MVV 2.0 development corridor. The PDFZ will eventually span 574 ha and include warehouses, logistics hubs, manufacturing facilities, and essential infrastructure. Strategically located next to Tanco Holdings Bhd's upcoming Smart AI Container Port (Midport), the development is set to enhance Negeri Sembilan's position as an emerging logistics and maritime hub. The master plan is expected to be finalised by the first quarter of 2026, with development works commencing in the second quarter. According to CIMB Securities Sdn Bhd, the project benefits from strong road connectivity via the Seremban–Port Dickson Highway and the Port Dickson–Linggi network, both of which link to the North-South Expressway. "This offers seamless access to MVV 2.0, the primary economic corridor on the west coast of Peninsular Malaysia. The deal allows SD Guthrie to immediately monetise part of its land while securing a future recurring income stream," it said in a note. Just days earlier, SD Guthrie also announced a major collaboration with Sime Darby Property to co-develop up to 809 ha in Carey Island, equivalent to about 7 per cent of its 11,592 ha landholding there. The project will be undertaken via a special-purpose vehicle (SPV) aimed at supporting the Selangor state government's vision to transform Carey Island into a key industrial and logistics hub. "The development will co-exist with the island's integrated palm oil operations and complement activities at Westport and Northport in Port Klang. While the JV's shareholding structure has not been disclosed, the companies confirmed that PNB will nominate the chairman of the newly formed SPV. SD Guthrie currently owns 79 per cent of Carey Island, or approximately 11,592 ha," CIMB noted. In May 2025, SD Guthrie formalised another key JV with Eco World Development Group Bhd and Negeri Sembilan Corporation (NS Corp) to jointly develop 483.6 ha in Mukim Jimah. SD Guthrie will retain a 30 per cent stake in the RM2.95 billion GDV project, with the land transacted at RM11 per sq ft. Beyond the Klang Valley and central region, SD Guthrie is also expanding in the southern and northern states. In November 2024, it partnered with AME Elite Consortium Bhd to develop a 259 ha green industrial park in Kulai, Johor, featuring a dedicated solar park. In Negeri Sembilan, the company has partnered with TH Properties for a 187.7 ha industrial project in Bukit Pelandok, valued at RM220 million or RM10.89 per sq ft. Meanwhile, in May 2024, SD Guthrie and PNB launched the 404.7 ha Kerian Integrated Green Industrial Park (KIGIP) in Perak. Supported by a 267 ha solar farm, KIGIP is set to become one of the largest integrated green industrial zones in northern Malaysia. CIMB noted that the earnings impact from these initiatives will depend on how quickly SD Guthrie can obtain necessary approvals, execute land launches, and begin generating income. "Assuming all seven MoUs and agreements signed result in an average land sale price of RM10 per sq ft, we estimate total land sales proceeds could reach up to RM2.57 billion for 2,387.6 ha of land," it said. With a low land cost base, a 30 per cent retained stake in joint ventures, and a 24 per cent corporate tax rate on disposal gains, SD Guthrie could realise profits of up to RM1.3 billion, well above its RM500 million annual land sales target. CIMB reiterated its 'Hold' rating on SD Guthrie, maintaining a sum-of-parts-based target price of RM5.06 per share. Kenanga Research projects the gross development value (GDV) of SD Guthrie Bhd's Port Dickson property venture to be between RM1 billion and RM3 billion, with the development potentially stretching over five years or more. Despite this, the research house is keeping its earnings forecasts for FY2025 and FY2026 unchanged, noting that SD Guthrie had earlier guided for RM500 million in land disposal gains this year, a figure already incorporated into its estimates. "Year-to-date, SD Guthrie has accumulated about RM300 million in land disposal gain from concluded projects. Hence, there is still about RM200 million in headroom from the guided RM500 million disposal gain for this year. For FY 2026, we are raising our earlier gain of RM50 million to RM200 million. However, we are leaving the FY 2025 to FY 2026 forecast core net profit intact," it said. Kenanga has maintained its "Market Perform" rating on SD Guthrie, with a target price of RM4.60. The research house highlighted several risks to its outlook, including continued Western scrutiny of palm oil over sustainability and biodiversity issues, weather disruptions, labour shortages, soft commodity prices, and rising operating costs. Kenanga also views the group's strategic expansion into industrial property development as a long-term positive, with the potential to boost return on equity (ROE). However, it cautioned that these benefits may take time to be realised due to execution challenges. "SD Guthrie is defensive and assets rich but earnings growth is modest and extra dividends from disposals may be expected," it said.
Sinar Daily
5 days ago
- Sinar Daily
SD Guthrie, Negeri Sembilan join forces to transform Port Dickson into next-gen smart port city
SEREMBAN - SD Guthrie Berhad (Guthrie) and Menteri Besar Incorporated Negeri Sembilan (MBINS) have entered into a transformative collaboration to develop a 600-acre industrial park in Port Dickson, marking a bold step towards creating Malaysia's next smart port city under the Port Dickson Free Zone (PDFZ) initiative. The signing ceremony was witnessed by Negeri Sembilan Menteri Besar Datuk Seri Aminuddin Harun and MBINS chairman. The development will take place on Guthrie's Sengkang Estate, which spans 600 acres within Mukim Pasir Panjang in Port Dickson. The location, already considered strategic due to its accessibility via the Seremban–Port Dickson Highway (SPDH) and Port Dickson–Linggi road network, was also linked to the North-South Highway and the Malaysia Vision Valley 2.0 (MVV 2.0) — a vital economic corridor on Peninsular Malaysia's west coast. Guthrie Group Managing Director Datuk Mohamad Helmy Othman Basha emphasised that the project was a significant milestone in Guthrie's long-term vision. "Our collaboration with MBINS is another important milestone for Guthrie as we strengthen our presence in Negeri Sembilan's industrial development sector. By combining land monetisation and a key strategic partnership with MBINS, we are able to realise the value of the land immediately and also secure another potential recurring income stream for Guthrie. "This scalable model is necessary for the long-term growth of Guthrie and one we aim to replicate across other high-potential corridors. "The PDFZ is a forward-looking initiative, and we are proud to be part of a development that aligns with national development priorities and sustainable progress that will bring more socioeconomic benefits for the people," he said. Subject to the formal establishment of the joint venture and finalisation of a master plan targetted in Q1 2026, infrastructure work was expected to begin in Q2 2026. The PDFZ was set to be developed across from the future site of Midport, an upcoming artificial intelligent (AI)-powered smart container port. Both projects were expected to transform Port Dickson into a vibrant "New Port City", underpinned by cutting-edge technology and infrastructure. Aminuddin said the collaboration highlighted the state's strong commitment to forward-looking and sustainable development. "This collaboration is a manifestation of our serious commitment to sustainable, innovation-driven development. With the establishment of PDFZ, we are not only developing a modern industrial park but also laying the groundwork for Port Dickson to become Malaysia's next generation smart port city. "The success of Midport is intrinsically linked to the development of PDFZ. Together, they form a twin-growth model that will attract global industry leaders, support high-value jobs and enhance Negeri Sembilan's role in national economic development," he said. The PDFZ will offer investors smart warehouses, advanced manufacturing zones and strong utility infrastructure, making it ideal for just-in-time logistics and supply chain efficiency. More broadly, the industrial park was expected to attract high-impact sectors such as green technology, smart logistics and advanced manufacturing. It aimed to create skilled job opportunities, enhance environmentally conscious industrial clusters and contribute to Malaysia's national economic goals. The PDFZ forms part of the MVV 2.0's broader masterplan, which also included the NS High Tech Industrial Park, NS Aerospace Valley, Integrated Maritime Hub and NS Semiconductor Valley. In line with its strategic approach, Guthrie had earlier partnered with Eco World Development Group Berhad and NS Corporation to launch Eco Business Park 7 in Mukim Jimah. The company is also actively engaging with state agencies and business partners to extend its new business pillars in key growth regions across Malaysia. The initiative is a clear reflection of Guthrie's long-term strategy to unlock the full potential of its landbank while securing future income streams.
The Sun
5 days ago
- The Sun
Negeri Sembilan MB inks strategic land agreements with SD Guthrie to kickstart Port Dickson Free Zone
NEGERI SEMBILAN: The Negeri Sembilan Menteri Besar Incorporated, known as Menteri Besar Negeri Sembilan (Pemerbadanan) (Mbins), today signed two significant agreements with SD Guthrie Bhd, marking a key milestone for the development of the Port Dickson Free Zone (PDFZ), a cornerstone project within the Malaysia Vision Valley 2.0 (MVV 2.0). The first agreement involves the sales and purchase (S&P) of approximately 300 acres of strategically located land within SD Guthrie's Sengkang Estate in Mukim Pasir Panjang, Port Dickson, Negeri Sembilan. Concurrently, Mbins and SD Guthrie have signed a memorandum of understanding (MoU) to jointly develop an additional 300 acres within the same strategic area. Collectively, these agreements represent the first two critical phases of the ambitious PDFZ project, a comprehensive industrial zone covering around 1,420 acres in total. This industrial area is envisioned to host modern warehouses, advanced manufacturing plants, logistics facilities, and essential public infrastructure, enhancing the economic landscape of Negeri Sembilan. Strategically aligned with Tanco Holdings Bhd's upcoming Smart AI Container Port (Midport) located adjacent to PDFZ, this development underscores Negeri Sembilan's ambition to emerge as a key logistics and maritime hub under the Malaysia Vision Valley 2.0 (MVV 2.0) initiative. Under an earlier joint venture cum shareholders agreement, Mbins and Tanco Land Sdn Bhd (TLSB), an indirect subsidiary of Tanco Holdings, will jointly undertake the development of these initial 600 acres. Mbins and Tanco Holdings will strategically evaluate various value-unlocking opportunities. Potential development strategies include further joint ventures, direct developments, targeted land sales, and bespoke design-and-build arrangements, all of which are adaptable to future market demands and investor interests. Negeri Sembilan has increasingly positioned itself as an investment hotspot in recent years, leveraging its proximity to the Klang Valley and the Kuala Lumpur International Airport (Klia), as well as its competitive land pricing. Recent major foreign investments in the state, including from notable multinational corporations in the automotive, food technology, and electronics sectors, further underline its attractiveness. Analysts believe that PDFZ will contribute significantly to the state's GDP, boost employment, accelerate industrial growth, and attract further local and international investments. This strategic land deal with SD Guthrie represents a critical step in realising these economic goals and underscores Negeri Sembilan's rising prominence as a key economic hub within Malaysia.
