Sarawak Edible Oils sells Kidurong Gateway properties for over RM4.6mil

KUCHING: Sarawak Edible Oils Sdn Bhd (SEO) has secured sales of shophouses and semi-industrial buildings to be constructed under a mixed development project called “Kidurong Gateway” in Kemena, Bintulu for more than RM4.6mil.

The sub-subsidiary of Harbour-Link Group Bhd has entered into a sale and purchase agreement with five individuals — Wong Siong Seh, Lee Seng Chiong, Hii Kwong Wui, Lau Sii Hin and Lau Chii Hung — for the sales of three-storey shophouses and semi-industrial building for RM3.56mil in a related party transaction.

Wong, Lee, Hii and Lau Sii Hin are all Harbour-Link executive directors while Lau Chii Hung is an executive director of Harbour-Link subsidiaries.

The other purchaser is Slingtex Industries Sdn Bhd (SISB), which will pay RM1.05mil for a similar property. SISB is a wholly- owned subsidiary of Herdsen Corporation Sdn Bhd, of which Harbour-Link group managing director Yong Piaw Soon is the major shareholder.

The said properties were expected to be completed in 24 months, Harbour-Link said in a filing with Bursa Malaysia.

“The selling price for the sale of the properties was based on the prices offered to the public under Kidurong Gateway less 10% discount generally accorded to the eligible employees of Harbour-Link,” it added.

Meanwhile, Harbour-Link recorded a 29% increase in group pre-tax profit of RM12.6mil in the first quarter to Sept 30, 2013 from RM9.8mil in the corresponding period last year as revenue surged by 34% to RM135.4mil from RM100.8mil. Earnings per share improved to 4.81 sen from 3.98 sen.

Increase in cargo volume boosted the performance of the group’s shipping, marine services and others division, which recorded higher revenue of RM61.9mil from RM59.8mil while its pre-tax profit more than doubled to RM2.8mil from RM1.3mil previously.

The logistics services and equipment rental division’s revenue surged to RM48.6mil from RM32.9mil but its pre-tax profit was lower at RM6.5mil,down from RM7.9mil.

“The increase in revenue is mainly due to the completion of one of the major deliveries of the port equipment projects. The decrease in the profit is due to the deliveries and commissioning of the port equipment projects are at the beginning stage and profit will be recognised upon the tail-end of the projects,” explained Harbour-Link.

Also reporting better results was the engineering contract division that saw its revenue soared to RM24.8mil from RM8.1mil while its pre-tax profit improved to RM2.9mil from RM321,000 previously.

The company attributed the better show to the completion of most of the major projects.

Going forward, Harbour-Link said the group expected stiff competition in the domestic and regional shipping sector due to oversupply of shipping spaces from various regional players.

However, it anticipates its logistics, services, equipment rental and engineering divisions to achieve satisfactory results for the current financial year.