News & Updates

News & Updates

Malaysia's PPB Group Plans MYR622 Mln Capital Expenditure Over Next 4 Years

KUALA LUMPUR (Mar 02) -- Malaysian flour-to-property conglomerate PPB Group plans to spend 622 million ringgit ($158.84 million) in capital expenditure to fund film exhibition, distribution, grains and agriculture businesses over the next four years, it said in a statement Friday.

The company plans to spend 296 million ringgit to open nine new movie screens as well as upgrade existing screens, it said.

Two-thirds of the total 259 million ringgit capital expenditure allocated for grains & agribusiness will be used for investment in China, PPB Group Director Ong Hung Hock said at a news conference in Kuala Lumpur. The company also plans to spend $21 million to build a new 500 ton per day flour mill for its Vietnam operation.

The company will allocate 20 million ringgit this year, to construct a new production facility for its venture into catering business, said Ong. The company ventured into the segment via its 45%-owned associate company Kart Food Industries.

PPB Group's net profit for the fiscal fourth quarter fell 24.2% year-on-year to 375.93 million ringgit, while revenue increased 11.1 % to 1.14 billion ringgit

Profit suffered due to lower contribution from 18.6%-owned Wilmar International, as well as reduced profit from grains and agribusiness segments.

Meanwhile, Chemquest Group, the environmental engineering and utilities arm of PPB Group, plans to bid for 500 million ringgit jobs for water and sewerage projects, its managing director Leong Yew Weng said at the same event, adding that contracts are likely to be awarded in next few months.

 

Source from: https://asia.nikkei.com/Markets/Nikkei-Markets/Malaysia-s-PPB-Group-Plans-MYR622-Mln-Capital-Expenditure-Over-Next-4-Years

News & Updates

PPB expects Wilmar to continue support its financial performance

KUALA LUMPUR: Diversified PPB Group Bhd expects contributions from agri-based Wilmar International Ltd to continue to support the company’s financial performance this year.

PPB managing director, Lim Soon Huat, said for financial year ended Dec 31, 2017 (FY17), Wilmar’s contributions helped boost the group’s profit by 29% to RM970mil from RM750mil in FY16.

Lim said Wilmar, which PPB has a 18.5% stake, has adopted an integrated business model and this has actually benefitted PPB as Wilmar was not relying heavily on the palm oil business.

“Their businesses are not only palm oil and the fact that they have big presence geographically, including China, will do good to PPB,” Lim said, adding that Wilmar’s share in palm oil consumer pack in China stood at about 40%.

Lim said this to reporters after PPB’s press and analyst briefing here today. He said the company’s indirect subsidiary, VFM-Wilmar Flour Mills Co Ltd, was in the midst of expanding its milling capacity by setting up a new flour mill at its existing location in Vietnam with additional capacity of 500 metric tonnes per day for US$21mil (US$1 = RM3.91).

On PPB’c core businesses, he said, the company has set aside RM622mil capital expenditure (capex) for the next four years.

“Of the capex, RM296mil will be used for its film, exhibition and distribution segment. The company plans to open nine new cinemas, of which eight would operate under Golden Screen Cinemas brand and would be located in Malaysia while another one is expected to be opened in Phnom Penh, Cambodia,” he said.

On Dec 8, 2017, PPB’s wholly-owned unit, Mediamore Sdn Bhd, has acquired entire issued and paid-up capital of LGSC Cambodia Ltd.

As for its grains and agribusiness, which contributed 67% to the company’s revenue in FY17, PPB has allocated RM259mil, of which the amount would be channelled to flour mills in China and Vietnam.

The remaining RM67mil would be set aside for consumer products, environmental, engineering and utilities,property and other segments.

For the FY17, the company’s net profit was slightly higher and stood at RM1.24bil as compared with RM1.11bil recorded in the previous year, while its revenue rose to RM4.31bil vis-a-vis RM4.19bil chalked up in FY16. - Bernama

 

Source from: https://www.thestar.com.my/business/business-news/2018/03/02/ppb-expects-wilmar-to-continue-support-its-financial-performance/

News & Updates

PPB to acquire LTAT's 16.8% stake in Hillcrest for RM59.06m

KUALA LUMPUR (April 26): PPB Group Bhd is acquiring the Armed Forces Fund Board's (LTAT's) 16.8% stake in Hillcrest Gardens Sdn Bhd for RM59.06 million. 

Hillcrest's audited consolidated net assets as at Dec 31, 2017 stood at RM199.55 million, including 147.78 acres of freehold land in Taman Seri Gombak and Taman Puchong Utama, PPB said in a filing with Bursa Malaysia.

The purchase consideration represents a premium of 76% over 16.8% of audited consolidated net assets, PPB said.

"The company deems the premium reasonable after considering the strategic location, as well as the prospects and development potential of the lands, although the actual value can only be ascertained based on Hillcrest’s eventual development plans, which the company is not privy to at this juncture," the filing added. 

In comparison, LTAT’s original cost of investment for the stake in 1976 was RM1.2 million. 

PPB said it initiated the proposed acquisition to expand its investments in property-based activities and enable the group to continue diversifying its source of earnings.

Additionally, PPB sees the 147.78 acres of land owned by Hillcrest to be strategically located and expects to have good development potential.

"Although PPB will only own 16.8% equity interest in Hillcrest after the proposed acquisition, the future development of the land by Hillcrest is expected to contribute positively to the group’s future earnings," the filing added. 

As the acquisition will be internally funded, it will not have any effect on the gearing of the group, PPB added. 

PPB's major shareholder Kuok Brothers Sdn Bhd has a 51.9% direct and indirect interest in Hillcrest. 

However, approval from PPB shareholders is not required as the deal only represents 0.28% of applicable financial ratios to measure related party transactions.

 

Source from: http://http://www.theedgemarkets.com/article/ppb-acquire-ltats-168-stake-hillcrest-rm5906m

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