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KUALA LUMPUR (May 31): Hap Seng Consolidated Bhd is looking at expanding its acreage in Sabah as it continues to expect stable contributions from its palm oil plantations division.
With crude palm oil (CPO) prices coming off its high and expected to hover between RM2,500 and RM3,000 per metric tonne, some people are more willing to sell land, said group managing director Datuk Edward Lee Ming Foo after Hap Seng's annual general meeting today.
The plantations division is expected to continue being a stable contributor to the group's revenue, with a CPO production cost of RM1,159 per tonne, according to Lee.
Meanwhile, the group expects to launch properties with total gross development value of RM1.86 billion this year, including its Akasa Cheras development launched earlier this year, affordable Rumah Selangorku homes in Puchong, and projects in Sabah.
It currently has unbilled sales of RM1.6 billion, which is expected to be recognised in the next two to three years.
The group has a total landbank of 3,105 acres, which is almost equally divided between East and West Malaysia, said its executive director Cheah Yee Leng.
The company registered a 10% growth in net profit to RM1 billion or 42.36 sen per share in its 2016 financial year (FY16), while revenue rose to RM4.89 billion.
Its biggest revenue contributor was the building materials division, which had seen the completed acquisition of Malaysian Mosaics Sdn Bhd and recorded RM1.3 billion in revenue. — theedgemarkets.com
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