It holds the A&W franchise in Malaysia and Thailand, plans to transform its landmark A&W restaurant in Section 52, PJ into two office towers with a GDV of rm263 million in 2015.
The project will mark KUB’s maiden foray into the property market. Its subsidiary has experience in constructing schools, colleges and stadiums. In 2013, the unit contributed 6% to the group’s revenue.
KUB Malaysia is maintaining its not for sale stance on its 40% stake in A&W Malaysia Sdn Bhd after the loss making fast food chain managed to turn around itself around and made a net profit of rm1.89 million in 2013.
KUB Malaysia said it will not be selling any of its assets or divesting any of its businesses for now (July 2014). Its gearing ratio reduced to 0.28 times and a business yield of 9% in 2013.
It had dismissed reports that it is bidding to build a waste to energy incinerator in Kepong but it plans to bid for more incinerator projects in areas such as Johor, Melaka, and NS.
KUB Malaysia, in a 40:60 JV with Berjaya Corp Bjd, operates a 700 acre landfill in Bukit Tagar, Selangor, under a long term government concession.
As for its agro business, KUB Malaysia targets to grow its land bank particularly in Sabah and Sarawak from its current 20000ha to 50000ha in the next three years from 2014.
The bulk of KUB’s net profit in 2013 was driven by its agro business, which contributed rm10.36 million in net profit.
KUB Malaysia counts UMNO linked Gaya Edisi Sdn Bhd and Minister of Finance Inc as its shareholders with 29.62% and 22.55% stakes respectively.
Sources say the RM1.23 billion intra-city rail line for Iskandar Malaysia in Johor, as proposed by a private party, will be scrapped. This is because the government wants to focus on the high-speed rail system linking Kuala Lumpur and Singapore, which will likely have a stop in Iskandar Malaysia, and the Rapid Transit System from Johor Baru to Woodlands, Singapore.
Metropolitan Commuter Network (MCN), a 60:40 joint venture between Malaysia Steel Works (KL) Bhd (Masteel) and KUB Malaysia Bhd, had proposed to build the intra-city rail project.
Masteel is aiming for its 60% subsidiary MCN to start the Johor Baru Central-Woodlands shuttle train service by end 2013. That is provider MCN obtains all the necessary approvals from the Malaysian government by 1HFY2012.
Nonetheless, it is not known at this juncture if MCN’s shuttle trains service to Woodlands, which involve putting two new diesel trains into service, will be a permanent fixture. The services will be terminated or sustained as an alternative to the RTS. This will depend on future arrangements with the Singapore parties.
By 2018, Malaysia will surrender the Woodlands station and the last station under KTMB will be JB Central. Hence if MCN were to continue with its service to Singapore them it will probably have to negotiate with the Singapore authorities as the Woodlands station and probably even the rail tracks would fall under its jurisdiction.
The JB Cental-Woodlands shuttle train service was set to become operational by end 2012. It is actually part of the more extensive Johor commuter train services that MCN had originally planned to start by end 2013 or early 2014, a year after it commences the shuttle train service to Woodlands.
Besides Masteel, MCN’s other substantial shareholder is KUB which holds the remaining 40% stake. MOF owns 22.55% stake in KUB and Gaya Edisi Sdn Bhd owns 26.62% stake which is linked to UMNO.
Disclaimer:
Please note that all data given are merely blogger's opinion. It is strongly recommended that you do your own analysis and research before investing.
