Latest news with #SDGuthrie
The Star
3 days ago
- Business
- The Star
HELP FOR SMALLHOLDERS
Towards cleaner fuel: Johari launching SD Guthrie's B30 biodiesel pilot project in Carey Island. Also present are Nik Norzrul (left) and SD Guthrie's group managing director Datuk Mohamad Helmy Othman Basha (fourth from right). Ministry to step in as high costs stall land conversion for 50,000 BANTING: Some 50,000 smallholders have yet to convert their land status from rubber to oil palm plantations because of the high costs involved, says Datuk Seri Johari Abdul Ghani. The Plantation and Commodities Minister said his ministry was currently discussing with state governments to help the smallholders convert the status of their lands. 'I want state governments to re-evaluate some of the land planted with oil palm, which is still classified as rubber plantation land,' Johari told reporters after launching SD Guthrie Bhd's B30 biodiesel pilot project in Carey Island yesterday. Johari said it was crucial to aptly convert the land status according to what was being cultivated in order to obtain the Malaysian Sustainable Palm Oil (MSPO) certification in line with the European Union Deforestation Regulation standards. 'The smallholders have to pay the state governments a premium sometimes ranging from RM30,000 to RM40,000 and this does not include penalties for the delay in converting the land status,' Johari explained. One for the album: Johari (fourth from right) taking a group photo with Nik Norzrul (fourth from left) and SD Guthrie's group managing director Datuk Mohamad Helmy Othman Basha (third from left) after the launch of SD Guthrie's B30 biodiesel pilot project (below) in Carey Island. — KK SHAM/The Star In order to help the smallholders to overcome the stumbling block, Johari said negotiations would be held with the state governments involved seeking financial solutions as well as possible penalty waivers. 'Perhaps I can negotiate a waiver of the penalty charges given that the palm oil industry is very important,' said Johari, adding that a list was being compiled to identify smallholders who have yet to convert their land status. On another matter, Johari, who is also acting Natural Resources and Environmental Sustainability Minister, said amendments were being made to the National Climate Change Bill. 'It is still in draft form and I have not brought it to the Cabinet yet,' he said, adding that it is expected to be tabled in Parliament this year. According to Johari, the Bill will include every aspect of climate change. Johari said the proposed Bill will include incentives for companies that complied with climate change efforts. 'Companies will receive incentives such as carbon credits if they can prove that they are able to reduce carbon emissions,' the minister added. He said there will also be legally binding provisions in the Bill to boost encouragement among public listed companies to actively partake in efforts to attain net-zero carbon emissions by 2050. On the pilot project, Johari said it was an important move towards achieving the nation's commitment towards the global sustainability agenda. 'I welcome SD Guthrie's initiative that is part of the country's commitment to initiate sustainable energy use and the carbon reduction agenda of achieving net-zero emission by 2050,' reiterated Johari. He said biodiesel usage would reduce dependence on fossil fuels and empower smallholders. Meanwhile, SD Guthrie Bhd chairman Tan Sri Nik Norzrul Thani Nik Hassan Thani said the B30 biodiesel project was not merely the conglomerate's effort to make a switch to cleaner fuel. 'It is part of a larger Guthrie carbon reduction plan in line with the commitment to achieve net-zero goals by 2050,'' said Nik Norzrul in his speech. He added Guthrie was the very first palm oil company globally to receive the 'net-zero' target validation from the Science Based Targets initiative (SBTi) which was a significant achievement in tandem with the company's efforts. 'Hence, the launch of the B30 pilot project is reflective of our strong commitment towards contributing solutions for the climate change problems affecting the world,'' he said.
Malaysian Reserve
4 days ago
- Business
- Malaysian Reserve
SD Guthrie's B30 pilot project to set national benchmark for biodiesel use
by HIDAYATH HISHAM THE launch of Malaysia's first B30 biodiesel pilot project in Carey Island is expected to serve as a national model for reducing carbon emissions and reshaping sustainability standards in the agro-business sector. Plantation and Commodities Minister Datuk Seri Johari Abdul Ghani said the initiative by SD Guthrie Bhd demonstrates how targeted collaboration between government, industry and research institutions can lead to impactful decarbonisation in the palm oil value chain. 'I am confident this B30 pilot project in Carey Island will become a national model for other plantation companies to further reduce carbon emissions and set new benchmarks for the agro-business sector,' he said when officiating the launch at SD Guthrie's Golden Hope Academy today. Johari said the transition to B30 biodiesel — a blend of 30% palm-based biodiesel and 70% petroleum diesel — supports the country's broader ambition to achieve net-zero emissions by 2050. The pilot will cover all plantation vehicles and operational machinery at SD Guthrie's Carey Island estates. 'The use of palm biodiesel will not only reduce dependency on fossil fuels but also empower smallholders and local communities involved in palm oil production,' he added. Johari said initiatives like this demonstrates Malaysia's commitment to clean energy as well as improves the reputation of palm oil as a legitimate part of the climate solution. 'It will also continue to show how palm oil can be part of the climate change solution, further strengthening the image and reputation of palm oil globally,' he said. He noted that Malaysia's biodiesel journey began in 2011 with B5, followed by phased expansions to B7, B10 and B20. The B30 pilot now marks the country's most ambitious step forward in palm biodiesel usage. Johari credited the close collaboration between SD Guthrie, the Malaysian Palm Oil Board (MPOB) and Petronas Dagangan Bhd (PDB) for bringing the project to fruition. 'This initiative reflects the strong collaboration between the public and private sectors in enhancing the competitiveness of Malaysia's palm oil industry through high-impact innovation,' he said. He added that the B30 rollout also provides a blueprint for emission reductions across multiple sectors, aligning plantation decarbonisation efforts with Malaysia's wider energy transition agenda. 'This pilot project is a significant step towards realising the nation's commitment to the global sustainability agenda,' he said. Johari hoped other plantation firms would adopt similar models, not only to improve emissions performance but to prepare Malaysia's palm oil sector for rising sustainability demands from global buyers. Meanwhile, SD Guthrie Group MD Datuk Mohamad Helmy Othman Basha said the initiative is part of the company's long-term climate strategy and builds on its recent recognition as the world's first palm oil company with net-zero targets validated by the Science-based Targets initiative (SBTi). 'The launch of our B30 biodiesel campaign is an important milestone in SD Guthrie's journey towards net-zero emissions. 'By transitioning our entire fleet of operational machinery in Carey Island to B30, we are not only reducing our greenhouse gas (GHG) emissions but also setting a new benchmark for sustainable practices in the plantation sector,' he said. The biodiesel, sourced from PDB's Melaka terminal, is expected to reduce GHG emissions by up to 23% per litre compared to conventional diesel. The pilot will also allow engine manufacturers to evaluate long-term technical performance of higher biodiesel blends. Mohamad Helmy said the pilot builds on SD Guthrie's ongoing efforts to mechanise, automate and digitalise its plantation operations. Carey Island currently hosts the company's robotics centre, biodiesel plant and Mechanisation Transformation Unit. 'Carey Island is just the beginning. Our goal is to scale this across all SD Guthrie operations to further reduce our emissions,' he said. He added that the full transition to B30 across all Guthrie estates could reduce CO2 emissions by 9,000 tonnes annually — equivalent to taking nearly 2,000 passenger vehicles off the road. The project also supports Malaysia's aspiration to increase domestic consumption of palm oil, while reducing reliance on fossil fuels. 'Together with Ministry of Plantation and Commodities (KPK), Petroliam Nasional Bhd (Petronas) and MPOB, we are demonstrating how palm oil can be part of the climate solution, supporting Malaysia's green economy transition while enhancing the efficiency and resilience of our plantations,' he said. Mohamad Helmy acknowledged that B30 carries a higher cost compared to existing biodiesel blends, but said the long-term environmental benefits outweigh short-term cost pressures. Aside from Pulau Carey, SD Guthrie has also started a smaller pilot using B20 at its Seri Pulai estate in Johor.
Yahoo
08-07-2025
- Business
- Yahoo
Investors in SD Guthrie Berhad (KLSE:SDG) have seen notable returns of 30% over the past three years
One simple way to benefit from the stock market is to buy an index fund. But if you pick the right individual stocks, you could make more than that. For example, the SD Guthrie Berhad (KLSE:SDG) share price is up 17% in the last three years, clearly besting the market return of around 12% (not including dividends). However, more recent returns haven't been as impressive as that, with the stock returning just 17% in the last year, including dividends. So let's investigate and see if the longer term performance of the company has been in line with the underlying business' progress. AI is about to change healthcare. These 20 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10bn in marketcap - there is still time to get in early. There is no denying that markets are sometimes efficient, but prices do not always reflect underlying business performance. One imperfect but simple way to consider how the market perception of a company has shifted is to compare the change in the earnings per share (EPS) with the share price movement. During three years of share price growth, SD Guthrie Berhad achieved compound earnings per share growth of 1.5% per year. This EPS growth is lower than the 5% average annual increase in the share price. This suggests that, as the business progressed over the last few years, it gained the confidence of market participants. That's not necessarily surprising considering the three-year track record of earnings growth. You can see below how EPS has changed over time (discover the exact values by clicking on the image). We know that SD Guthrie Berhad has improved its bottom line lately, but is it going to grow revenue? If you're interested, you could check this free report showing consensus revenue forecasts. As well as measuring the share price return, investors should also consider the total shareholder return (TSR). The TSR incorporates the value of any spin-offs or discounted capital raisings, along with any dividends, based on the assumption that the dividends are reinvested. Arguably, the TSR gives a more comprehensive picture of the return generated by a stock. We note that for SD Guthrie Berhad the TSR over the last 3 years was 30%, which is better than the share price return mentioned above. And there's no prize for guessing that the dividend payments largely explain the divergence! We're pleased to report that SD Guthrie Berhad shareholders have received a total shareholder return of 17% over one year. And that does include the dividend. That gain is better than the annual TSR over five years, which is 3%. Therefore it seems like sentiment around the company has been positive lately. In the best case scenario, this may hint at some real business momentum, implying that now could be a great time to delve deeper. It's always interesting to track share price performance over the longer term. But to understand SD Guthrie Berhad better, we need to consider many other factors. Take risks, for example - SD Guthrie Berhad has 2 warning signs (and 1 which is potentially serious) we think you should know about. But note: SD Guthrie Berhad may not be the best stock to buy. So take a peek at this free list of interesting companies with past earnings growth (and further growth forecast). Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on Malaysian exchanges. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
Malaysian Reserve
30-06-2025
- Business
- Malaysian Reserve
SD Guthrie, MBINS to jointly develop 243ha industrial park in Port Dickson
SD GUTHRIE Bhd has entered into two agreements with Mentri Besar Inc Negri Sembilan (MBINS) to unlock the development potential of 600 acres (242.81ha) of land in Port Dickson as part of the state's strategic economic initiative, the Port Dickson Free Zone (PDFZ). The agreements include a sale and purchase agreement (SPA) for 300 acres and a memorandum of understanding (MOU) to establish a joint venture (JV) on another 300 acres within SD Guthrie's Sengkang Estate in Mukim Pasir Panjang. The signing ceremony was witnessed by Negeri Sembilan Mentri Besar and MBINS chairman Datuk Seri Aminuddin Harun. Subject to the formation of the JV and finalisation of a master plan by the first quarter of 2026 (1Q26), infrastructure works for the industrial park are expected to begin in 2Q26. SD Guthrie group MD Datuk Mohamad Helmy Othman Basha said the development marks a significant step in the company's efforts to maximise land value and create new recurring income streams. 'Our collaboration with MBINS strengthens our presence in Negri Sembilan's industrial development sector. 'We're combining land monetisation with a strategic partnership, and this scalable model is something we aim to replicate across other high-potential corridors,' he said. Located near the coastal town of Pasir Panjang, the Sengkang Estate offers strategic connectivity via the Seremban-Port Dickson Highway and the North-South Expressway, placing it within the Malaysia Vision Valley 2.0 (MVV 2.0) growth corridor. PDFZ forms part of MVV 2.0's broader development blueprint, which also includes the NS High Tech Industrial Park, NS Aerospace Valley, Integrated Maritime Hub and NS Semiconductor Valley. The 600-acre industrial park will sit across from the planned Midport — a future artificial intelligence (AI)-powered smart container port — positioning Port Dickson as a key logistics and industrial hub. 'This collaboration is a manifestation of our serious commitment to sustainable, innovation-driven development. 'We're not just building an industrial park — we're laying the foundation for Port Dickson as Malaysia's next-generation smart port city,' said Aminuddin. PDFZ will offer smart warehousing, advanced manufacturing zones and high-capacity infrastructure, designed to attract investments in green technology, smart logistics and advanced manufacturing. SD Guthrie has been steadily expanding its industrial footprint in the state. Earlier this year, it partnered Eco World Development Group Bhd and NS Corp to develop Eco Business Park 7 in Mukim Jimah. The company said it is also exploring further partnerships to unlock the value of its strategic landbank. — TMR This article first appeared in The Malaysian Reserve weekly print edition
New Straits Times
28-06-2025
- Business
- 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.
