Khazanah net worth increases by RM9.3bil to RM110.8bil

KUALA LUMPUR: Khazanah Nasional Bhd’s net worth adjusted (NWA) has improved by RM9.3bil or 9.2% to RM110.8bil as at end-2014, mainly boosted by its investments in telcos, Tenaga Nasional Bhd (TNB), healthcare and Alibaba Group Holding Ltd shares.

The fund’s portfolio NWA has gone up RM77.5bil or 3.3 times since 2004.

At its annual briefing, managing director Tan Sri Azman Mokhtar confirmed the sovereign fund’s investment in the giant Chinese technology company, and that it had taken profit on 43% of the block or shares worth RM1.7bil upon the latter’s initial public offer.

He said Khazanah had gained RM3.9bil from the investment in Alibaba, in which its cost was about RM1.3bil.

“We invested in Alibaba two to three years back in two tranches and it has grown 4.5 times,” he said, adding that it was still holding about 0.34% in Alibaba due to the e-commerce company’s prospects.

TNB was also one of the outperformers as it contributed RM4.9bil to the fund last year.

Meanwhile, its investment in Axiata Group Bhd and Telekom Malaysia Bhd contributed RM2.9bil to its portfolio as the telcos’ share prices reached new highs.

However, the aviation sector which took a hit from unfortunate events last year dragged down its portfolio by RM3.1bil.

“We have taken Malaysia Airlines private last year while Malaysia Airports Holdings Bhd felt the impact from the airline’s accidents.”

Nonetheless, the prospects in the aviation sector have improved this year as travellers’ confidence has recovered.

UEM Group’s contribution to Khazanah had also declined by RM2.2bil last year, mainly due to concerns involving the property market in Iskandar Malaysia but was positive of the long-term outlook there, he said.

He said the fund expected to receive steady dividends from the companies it invested in as they were resilient businesses while dividend payout was deemed sustainable.

Khazanah’s unaudited pre-tax profit was RM3.2bil and declared dividends of RM900mil for 2014.

Last year, the fund made 12 investments amounting to RM7.2bil and six divestments, which recorded a gain of RM3bil.

Azman said it had a few “list-able” companies in the pipeline but it was not in a hurry to list them this year as it would depend on favourable market conditions.

Among the companies that it plans to list are its leisure and tourism unit Themed Attractions and Resorts Bhd as well as property unit Medini Iskandar Malaysia Sdn Bhd.