SD Guthrie Bhd is advancing its transition from a traditional plantation-based entity towards a diversified industrial developer, underpinned by a comprehensive land monetisation strategy. Over the past year, the group has entered into a series of joint ventures, memoranda of understanding (MoUs), and land sale agreements covering over 2,387 hectares across strategic sites in Malaysia.
Industry analysts highlight that this strategy marks a deliberate effort by SD Guthrie to unlock value from its extensive land bank while aligning with national goals to attract investment, generate employment, and promote sustainable industrialisation.
“SD Guthrie owns significant tracts of plantation land nationwide. Repurposing selected plots for industrial use allows the group to monetise underutilised assets, diversify income sources, and improve capital efficiency,” said one analyst, who requested anonymity. The group’s pivot towards joint venture-led developments is particularly noteworthy, as these projects provide recurring income streams and signal a clear shift from reliance on core plantation operations.
The company is aligning its industrial projects with government-endorsed corridors such as Malaysia Vision Valley 2.0 (MVV 2.0) and Carey Island’s port-centric development, amid strong demand for industrial real estate driven by growth in e-commerce, renewable energy, logistics, and manufacturing sectors.
On 24 June 2025, SD Guthrie formalised a landmark agreement involving a 242-hectare industrial development within its Sengkang Estate in Port Dickson. The agreement, signed with Menteri Besar Incorporated Negeri Sembilan (MBINS), comprises the first two phases of the Port Dickson Free Zone (PDFZ), a flagship component of MVV 2.0. Once complete, the PDFZ will encompass 574 hectares and feature logistics hubs, warehouses, manufacturing facilities, and associated infrastructure. The site is strategically located adjacent to Tanco Holdings Bhd’s upcoming Smart AI Container Port (Midport), enhancing Negeri Sembilan’s prospects as an emerging logistics and maritime hub.
The master development plan is expected to be finalised in the first quarter of 2026, with construction targeted to begin in the following quarter. According to CIMB Securities Sdn Bhd, the site benefits from connectivity to the North-South Expressway via the Seremban–Port Dickson Highway and the Port Dickson–Linggi road network, providing seamless access to MVV 2.0.
In a separate development, SD Guthrie recently entered into a significant partnership with Sime Darby Property Bhd to jointly develop 809 hectares on Carey Island—approximately 7 per cent of the group’s 11,592-hectare landholding there. The joint venture will be structured through a special-purpose vehicle and is intended to complement existing palm oil operations while supporting the Selangor government’s industrial ambitions. The shareholding structure has not been publicly disclosed, though PNB is expected to appoint the chairman of the new SPV.
In Mukim Jimah, Negeri Sembilan, SD Guthrie formalised a key joint venture in May 2025 with Eco World Development Group Bhd and Negeri Sembilan Corporation (NS Corp) to develop 483.6 hectares. The group will retain a 30 per cent stake in the RM2.95 billion gross development value (GDV) project, with the land transacted at RM11 per square foot.
The group’s industrial expansion is not confined to central Malaysia. In Johor, it has partnered with AME Elite Consortium Bhd to develop a 259-hectare green industrial park in Kulai, which will include a dedicated solar park. Meanwhile, a partnership with TH Properties is advancing a 187.7-hectare industrial project in Bukit Pelandok, Negeri Sembilan, valued at RM220 million or RM10.89 per square foot.
In northern Malaysia, SD Guthrie and PNB launched the 404.7-hectare Kerian Integrated Green Industrial Park (KIGIP) in Perak in May 2024. With a 267-hectare solar farm, KIGIP is positioned to become one of the largest integrated green industrial zones in the region.
CIMB estimates that, assuming a conservative average land sale price of RM10 per square foot, total proceeds from the 2,387.6 hectares under agreement could reach RM2.57 billion. With a 30 per cent retained stake in joint ventures, a low cost base, and Malaysia’s 24 per cent corporate tax on gains, potential net profit could amount to RM1.3 billion—substantially surpassing the company’s annual land sale target of RM500 million.
The research house has maintained a ‘Hold’ rating on SD Guthrie with a sum-of-parts target price of RM5.06 per share.
Kenanga Research estimates the Port Dickson development alone may carry a GDV of RM1 billion to RM3 billion over a potential development horizon exceeding five years. Despite the scale of the project, Kenanga is maintaining its current earnings forecasts for FY2025 and FY2026, noting that SD Guthrie has already incorporated RM500 million in land disposal gains into its 2025 projections. The group has achieved approximately RM300 million in disposal gains year-to-date, with RM200 million remaining to meet its target.
For FY2026, Kenanga has revised its earlier disposal gain forecast upwards from RM50 million to RM200 million. However, it is keeping the core net profit forecast for FY2025 and FY2026 unchanged, citing execution timelines and earnings realisation lag.
Kenanga has reiterated its ‘Market Perform’ rating, with a target price of RM4.60. It also flagged several risks, including continued scrutiny of palm oil sustainability, labour constraints, climate variability, soft commodity pricing, and rising input costs. Nevertheless, it views SD Guthrie’s industrial property pivot as a strategically sound long-term move with potential to enhance return on equity.
“SD Guthrie remains asset-rich and resilient, with modest earnings growth. Investors may look forward to occasional extra dividends from land sales,” the research house concluded.
-NST
