Broker: Maybank Investment Bank Berhad
Date of Report: June 25, 2025

SD Guthrie Poised for Growth: Riding Negeri Sembilan’s MVV 2.0 Wave with Major Industrial JVs

Introduction

SD Guthrie (SDG MK), formerly known as Sime Darby Plantation, is accelerating its transformation into a key industrial developer in Malaysia, leveraging its vast landbank and strategic partnerships. The company’s recent series of joint ventures (JVs) and Memorandums of Understanding (MoUs) in Negeri Sembilan and other states strongly position it to benefit from the Malaysia Vision Valley 2.0 (MVV 2.0) initiatives. This comprehensive analysis explores SD Guthrie’s new business verticals, financial outlook, risk factors, and the evolving landscape of Malaysia’s plantation and property sectors.

SD Guthrie Expands Industrial JV Portfolio in Negeri Sembilan

SD Guthrie (SDG) is intensifying its industrial park developments, particularly in Negeri Sembilan, which is fast emerging as a strategic growth corridor. The company recently announced its sixth industrial park JV: the Port Dickson Free Zone (PDFZ), marking its third JV in the MVV 2.0 area.

Recent Industrial Park MoUs and JVs

SDG and its partners have rolled out several significant industrial park deals since mid-2024, highlighting their aggressive expansion strategy:

This combined acreage is about 1% of SDG’s Peninsular Malaysia landbank of 592,000 acres, underscoring the scale and ambition of its industrial park expansion.

Port Dickson Free Zone (PDFZ): The Next Industrial Hub

SD Guthrie has formalized a Sale and Purchase Agreement (SPA) for 300 acres and a MoU for a JV to develop another 300 acres with Menteri Besar Incorporated Negeri Sembilan. The 600-acre site, situated in the Sengkang Estate within the district of Port Dickson, is strategically accessible via major highways and is earmarked for the PDFZ development.
PDFZ will be developed across from the upcoming Midport, a smart, AI-powered container port, with both projects set to transform Port Dickson into a “New Port City.” The PDFZ will offer:

• Smart warehouses
• Advanced manufacturing zones
• High-capacity utilities

Pending finalization of the masterplan (targeted for Q1 2026), infrastructure works are expected to commence in Q2 2026. Details such as JV structure, land injection cost, and government incentives are yet to be disclosed.

Strategic Importance: Benefiting from MVV 2.0

SD Guthrie is the largest private landowner in Negeri Sembilan, with an 89,000-acre landbank, positioning it as a primary beneficiary of the state’s MVV 2.0 initiatives. As more projects roll out under this economic corridor, SDG’s land values and strategic relevance are expected to increase over time.

Financial Overview and Outlook

SD Guthrie’s robust financials underscore its readiness to capitalize on recurring income streams from its new business verticals. The company aims to achieve MYR500 million in annual recurring income from these initiatives in the coming years. While the immediate financial impact from the PDFZ and other JVs will likely be recognized in 2026 onwards, the outlook remains strong.

Key Financials At-a-Glance

Key highlights include a consistent revenue uptick, healthy EBITDA margins, and a progressive reduction in net gearing, reflecting prudent capital management. The company’s recurring income from industrial park ventures is expected to drive further upside.

Balance Sheet and Cash Flow

SDG’s balance sheet remains robust, with total assets rising from MYR31.9 billion in FY23 to an estimated MYR34.4 billion in FY27. Shareholders’ equity is forecasted to grow steadily, while net gearing is set to decline significantly as recurring income and asset monetization gather pace.

Shareholding Structure

Major shareholders include:

• Permodalan Nasional Berhad: 55.1%
• EPF: 15.2%
• KWAP: 6.6%

SDG has a market capitalization of MYR31.3 billion and is a key component of the Kuala Lumpur Composite Index.

Net Asset Value (RNAV) Breakdown

SD Guthrie’s RNAV per share is calculated at MYR10.03, with a target price set at 0.55x RNAV or MYR5.52. The valuation is anchored by its extensive freehold land positions in key states:

Other RNAV components include the plantation business (MYR23.3 billion), downstream segment (MYR5.6 billion), associate/JV companies (MYR425 million), cash (MYR625 million), and adjustments for debt, perpetual sukuk, and minority interest.

Risk Factors

Investors should consider the following risks to SD Guthrie’s earnings and valuation:

• Weather anomalies impacting output growth
• Volatility in crude palm oil (CPO) prices
• Adverse policy changes by import countries
• Potentially unfavorable policies from Malaysian, Indonesian, Papua New Guinea, and EU governments
• Sharp declines in crude oil prices affecting palm biodiesel demand
• Weakness in competing oils (soybean, rapeseed)

Valuation and Analyst Recommendation

SD Guthrie is currently trading at MYR4.53 per share, with a 12-month price target of MYR5.52 (+25%). The brokerage maintains a BUY recommendation based on the company’s strong asset base, recurring income prospects from new business verticals, and strategic alignment with national development initiatives.

Conclusion

SD Guthrie’s aggressive shift toward industrial park development, particularly within the MVV 2.0 corridor, is set to unlock substantial recurring income and long-term value. With a robust financial position, extensive landbank, and strong institutional backing, SDG is well placed to ride the next wave of Malaysia’s industrial and economic transformation. Investors seeking exposure to the intersection of plantations, property, and industrial development should closely watch SD Guthrie’s unfolding growth story.

Contact Information

For further details, reach out to Maybank Investment Bank Berhad and its regional offices across Malaysia, Singapore, London, Hong Kong, Indonesia, India, Philippines, Thailand, and Vietnam.