6. TAN SRI LAU CHO KUN

Flagship: Hap Seng Consolidated Bhd Group net worth: RM17.6bil THE Sabah-based tycoon saw a RM1.17bil increase in his net worth to RM17.6bil from RM16.4bil in 2016, and much of that is down to a stellar performance of Hap Seng Consolidated shares last year.

The performance of the company’s share price over the past few years shows a steady upward trajectory that is underpinned by an equally calculated rise in the profitability of the group. The group, for the nine months to end-September last year, posted a net profit of RM1bil from RM962mil in the previous period. Cho Kun is the nephew of the late Tan Sri Lau Gek Poh and much of the business is run by professional managers.

Cho Kun is the largest shareholder in Hap Seng with a 73.9% stake by virtue of the family’s stake in Gek Poh Group and Lei Shing Hong Investments.

Although Hap Seng is the largest independent distributor of Mercedes-Benz cars in Asia, which is run through the private family business, the diversified listed group on Bursa Malaysia has interests in plantations, building materials, fertilisers, automotive distribution and credit financing and has been busy in recent years.

During the year, Hap Seng was reported to have proposed to sell subsidiary Hap Seng Logistics Sdn Bhd to LSH Logistics Pvt Ltd for RM750mil and sell 10 acres of land in Tawau, Sabah for RM175.28mil to Hong Kong-based Lei Shing Hong Ltd.

Its subsidiary, Malaysian Mosaics Sdn Bhd, proposed to sell a parcel of leasehold land and buildings in Kluang, Johor to Byorion Sdn Bhd for RM97.5mil.

Hap Seng controls 53% of Hap Seng Plantations Holdings Bhd and 25% in Paos Holdings Bhd – a soap manufacturer where it is the second-largest shareholder.

As for the property business, Hap Seng has launched Hap Seng 3, a new tower in the heart of Kuala Lumpur for an estimated RM312mil. The 26-storey project is scheduled to be completed in 2019.