PETALING JAYA: MBSB Research expects SD Guthrie Bhd
’s landbank in Selangor to ease to 29,940 ha from 33,615 ha, following its latest memorandum of understanding (MoU) with Menteri Besar Selangor Inc (MBI) and also factoring in an earlier MoU and joint venture involving Carey Island acreage this year.
However, the effect on SD Guthrie’s total Malaysia upstream landbank of 336,575 ha remains minimal, as “the conversion area accounts for only about 1.1% based on our estimates”, said the research house in a report yesterday.
MBSB Research also remained positive on SD Guthrie’s second MoU this year with MBI to jointly develop a 2,500-acre strategic mixed-use industrial project within Sepang Estate, Selangor, adjacent to Kuala Lumpur International Airport (KLIA) Aeropolis.
“The tie-up leverages SD Guthrie’s sizeable landbank while drawing MBI’s state-linked backing, which should support the onboarding of strategic partners.”
“We believe the proposed land transformation is broadly in line with the Rancangan Selangor 1 (RS-1) framework,” said the research house.
“In our November 2023 thematic report, we noted that under Theme 1: Economy, the state government identified Ports & Logistics and Aerospace among its nine priority sectors.”
Against this backdrop, SD Guthrie appears well positioned to unlock value from its strategic landbank through the Integrated Development Region in South Selangor. Following the earlier Carey Island initiative linked to the third port proposal, the latest Sepang Estate MoU extends RS-1 strategy into the aerospace and industrial ecosystem near KLIA.
According to MBSB Research, the 2,500-acre development carries an estimated gross development value of RM20bil, with full realisation expected over a 20-year horizon.
The project is intended to complement the next phase of KLIA’s growth, supporting higher-value sectors, such as aerospace and logistics, alongside commercial and residential components.
The research house also said development of SD Guthrie’s Sepang Estate would benefit from nearby established townships such as Sunsuria City and Serenia City, existing infrastructure, and direct access via the Elite Expressway linked to North-South Expressway, strengthening its industrial and logistics appeal.
Pending further details on the development, it maintained its forecasts on SD Guthrie while keeping a “buy” call on the stock with an unchanged target price of RM6.46 per share.
Meanwhile, an analyst with a local brokerage expects a similar land monetisation structure to be adopted, broadly mirroring the EcoWorld Development Group Bhd – NS Corp Sdn Bhd alliance, with the sale and purchase (S&P) agreement likely to be concluded in the second half of financial year 2026 (2H26) to 1H27.
Upon completion of the S&P agreement, the analyst said SD Guthrie is expected to retain a 50% equity interest via SD Guthrie Land Ventures Sdn Bhd.
Hence, this will be consistent with the group’s earlier land joint-venture precedents, namely Eco Business Park 7 in Negri Sembilan and Eco Business Park 8 in Johor.
