PETALING JAYA: Boustead Holdings Bhd is positive on earnings for this year as the conglomerate sees profit contribution coming from new oil palm estates, new property launches and the delivery of a warship to the Royal Malaysian Navy (RMN).
"This year, we can expect 20 per cent growth in normalised profits from last year as we expect additional contribution from the new estates in Sabah, new property launches and payment for delivery of the littoral combat ship to RMN,” said Boustead Holdings deputy chairman and group managing director Tan Sri Lodin Wok Kamaruddin.
Boustead Holdings is involved in the business of plantation, property, pharmaceutical, heavy industries, building materials and banking.
Earlier this year, its plantation entity, Boustead Plantations Bhd sold 343 acres in Penang for RM136.04 million.
Next month, it will complete the purchase of a 11,579ha in Sabah. By then, the group’s total landbank would expand back to 93,417ha.
In extracting value of Boustead’s plantation landbank, Lodin said the group will continue to sell plots near the suburbs that have become more suitable for property development and buy suitable agricultural land near existing oil palm estates.
Also present were Boustead Holdings chairman Tan Sri Mohd Ghazali Che Mat, group finance director Daniel Ebinesan, Boustead director of property division Datuk Seri Ghazali Mohd Ali, Boustead director of industrial division Datuk Koo Hock Fee, Boustead Plantations Bhd chief executive officer Fahmy Ismail, Boustead Heavy Industries Corp Bhd (BHIC) managing director Tan Sri Ahmad Ramli Mohd Nor and Pharmaniaga Bhd managing director Datuk Farshila Emran.
“We have shifted our shipbuilding activities to suit the RMN requirements. The first of six littoral combat ships that are being built by us for the RMN is expected to be operational in 2019,” said BHIC managing director Tan Sri Ahmad Ramli Mohd Nor.
Malaysia is currently in the process of recapitalising its aging RMN warships. This calls for the reduction of the service’s order of battle from 15 to five classes of vessels and submarines by 2030.
The five classes of ships consists of 12 littoral combat ships, 18 Kedah-class offshore patrol vessels, 18 China-designed littoral mission ships, three multi-role support ships and four submarines.
On property, Boustead Holdings divisional director of property Datuk Seri Ghazali Mohd Ali noted while overall property market is challenging, reasonably priced properties in good locations are selling well.
“In Johor particularly, Malaysians working in Singapore who are in small and medium-sized businesses and home upgraders are always on the lookout for houses in nice neighbourhoods like Taman Mutiara Rini,” he said.
Ghazali said, this year, Boustead will launch properties of RM1.5 billion in gross development value in Klang Valley and Johor.
Boustead Holdings declared 11 sen per share in dividends for 2017. This translates to a 3.8 per cent in dividend yield.