All smiles: SMG chairman Tan Sri Wong Foon Meng (centre) along with deputy chairman Tan Sri Kuan Peng Soon (fourth from left) and Chan (fourth from right) share a light moment at the AGM. With them are (from left) independent non-executive director Tan Sri Johan Jaaffar, non-independent non-executive director Datuk Wong You Fong, non-independent non-executive director Datuk Lim Cheng Ling, financial controller Tan Hon Meng, independent non-executive director Loh Chee Can, and independent non-executive director Tee Chew Lay.
PETALING JAYA: Star Media Group Bhd
(SMG) will keep its options open for viable and profitable investment opportunities looking ahead, after the completion of its successful Star Business Hub development.
The Star Business Hub project, which is located in Bukit Jelutong, Shah Alam, carries a gross development value of RM126mil, and is currently 95% completed, with three out of five units that were available being sold at the end of the financial year ended December 2024 (FY24).
The group reported that an additional unit was transacted in January this year, leaving only one unit available for sale.
Notably, the property segment has contributed a revenue of RM45.9mil and a pre-tax profit of RM17.3mil, a substantial improvement compared to a RM12.3mil revenue and pre-tax profit of RM8.1mil in FY23, attributed to higher progress billings from Star Business Hub and higher property leasing income.
SMG group chief executive Chan Seng Fatt, speaking to shareholders at the company’s AGM yesterday, reported that the publisher’s property leasing income had recorded a robust 26% increase, reaching RM7.6mil in FY24, a 27% year-on-year growth, mainly driven by higher occupancy rates at Menara Star 2, reflecting an improved demand for strategically located commercial space.
The strong performance of the property division understandably stoked shareholders’ appetite for further monetisation and property investment plans, and while the group has no immediate plans for any further property development projects, Chan reassured shareholders that the group would remain open to looking into business opportunities.
These include those within the property sector if they align with SMG’s selective criteria.
At the AGM, shareholders renewed their grant of authority to the company to purchase up to 73,856,360 of SMG shares, representing up to 10% of the issued share capital of the group.
More importantly, Chan said the grant of authority is “provisional”, before drawing attention to the point that the group has hardly carried out any share buybacks in recent years, underlining its prudence.
As at end FY24, SMG was holding cash and cash equivalents of RM362.7mil.
Explaining further, he disclosed that SMG has also been eyeing a number of industries for future investment opportunities, but among the stringent conditions imposed by the group on possible ventures include a potential return on investment of 10% per annum, which may include startups that could use the group itself as a platform to upscale.
Looking ahead, Chan said while SMG remains cautious about the immediate prospects for advertising expenditure, the group remains optimistic about the potential of the ongoing digital transformation and expanding online platforms, including subscription models, to achieve its revenue targets.
“We remain focused on harnessing technological advancements, expanding our reach and solidifying our leadership position within the media industry,” he said.
