PETALING JAYA: SDS Group Bhd
’s proposed acquisition of 35.4 acres of freehold land in Johor Baru is expected to expand its production capacity, boost logistical and operational efficiencies, and bolster long-term demand for its snack brands, TA Research says.
It said SDS’s wholly-owned subsidiary, London Bakery Sdn Bhd, has entered into a sale and purchase agreement with Kempas Green Development Sdn Bhd to acquire the land for RM101.7mil, which will be used to develop a manufacturing facility.
The deal is set to complete in the second half of 2026, subject to shareholders’ approval at an EGM to be scheduled later.
“At this stage, details of the development plan remain limited, as the group is still conducting feasibility studies on facility design and construction costs.”
TA Research considers the acquisition positive, with added floor space and production lines expected to support long-term growth for SDS’ London and Tora brands. For now, it has maintained its earnings forecasts, “buy” recommendation, and target price of 81 sen for SDS.
