KUCHING: Sarawak Oil Palms Bhd (SOP) is leveraging on its property segment as its new source of earnings growth for the group.
Following a company visit recently, the research arm of Maybank Investment Bank Bhd (Maybank IB Research) in a report yesterday said the company’s contribution from the property division will gradually provide another source of earnings growth to SOP group in the coming years.
Nonetheless, contribution from its property division will be minimal initially while the company is expected to launch a few property developments over the medium term.
SOP is planning to launch its second property project on a 27-acre (10.9 hectare) of land located near Miri Airport and about 10km from Miri city centre in the near future.
The project, which the research firm believed could be known as Grand Residency, will comprise a gated-guarded condominium development and an office-cum retail development.
Maybank IB Research noted Grand Residency will be launched and built in stages and it will comprise 12 blocks of low-rise condominium development.
Each block has 58 units and each condominium unit has a built-up area of between 1,400 square feet and 3,200 square feet.
Meanwhile, Maybank IB Research noted the development of SOP’s maiden property project, Taman Lambir Jaya, located 46km from Miri city on a 69-acre (28 hectares) of land is progressing well.
The research firm said the development comprises both residential and commercial developments with 572 units of houses and 119 units of shophouses respectively as well as a hypermarket and a petrol station with a drive-through restaurant.
Maybank IB Research further said the residential component includes 380 units of affordable houses with the first batch expected to be completed in early next year.
On a larger picture, the research firm noted the Taman Lambir Jaya township and Grand Residency project are a prelude to SOP’s upcoming mixed township development at its Taniku estate, the company’s prime property development with a land size measuring 4,858 hectares in the next three to five years’ period.
It observed that the Taniku estate is located approximately 12km from Miri’s post office, near Miri Community College and Permy Mall as well as Miri National Youth Skill Training Institute.
As for SOP’s plantation segment, Maybank IB Research said the company is looking to further expand its donwstream operations.
After the research firm visited SOP’s 100-acre (40.46 hectare) integrated downstream complex in Kidurong Industrial Estate in Bintulu, Maybank IB Research said SOP’s longer term plan includes doubling of its palm oil refining capacity, expanding its palm kernel crushing plant which is running near full capacity and expanding into oleo-chemicals, specialty fats and consumer pack products over the long run.