Valuable assets to boost DRB Hicom earnings

KUCHING: Conglomerate DRB Hicom Bhd’s (DRB Hicom) potential lies with its valuable landbanks and property development in strategic locations that could boost its future earnings.

The research arm of Public Investment Bank Bhd (Public Invest Research) in a report said DRB Hicom owns valuable properties which have note been revalued on its balance sheet.

Following a company visit, the research firm said one of DRB Hicom’s key landbanks is a 903 acres of freehold land in Tebrau, Iskandar Malaysia, Johor which will be developed into Glenmarie Heights.

Public Invest Research noted that DRB Hicom sold 614 acres out of its original 1,517-acres of landbank to Eco World Development Group Bhd (Eco World) last year for RM534.7 million.

With Eco World launching its EcoSummer and EcoSpring property projects on the land adjacent to DRB Hicom’s landbank, this would enhance the land valuation and DRB Hicom’s future development. In the meantime, Public Invest Research said DRB Hicom’s assembly plant for Proton cars is located on a 250 acres of prime land with good accessibility in Shah Alam, Selangor.

Any development on the land is unlikely within the next three years, it pointed out. This is because Proton Holdings Bhd is assembling the existing Exora and Saga models at its Shah Alam factory. Furthermore, Public Invest Research said the company is building a shopping mall in Singapore which is located at Little India with net lettable area (NLA) of 160,000 square feet.

It believed the shopping mall was worth at least US$300 million or RM780 million. Apart from that, the company also has a 368-acre freehold land in the Klang Valley currently being utilised by Holiday Inn Glenmarie and golf course.

With increased development interest in golf land in the Klang Valley, Public Invest Research said DRB Hicom’s land in Glenmarie, Shah Alam can be turned into development of sports which is golf in the future.

Additionally, other landbanks that the conglomerate has include 4,000 acre of Proton City in Perak, 200 acres of undeveloped industrial land in Peguh, Malacca and various tracts of commercial and residential land in Glenmarie and Rebak Island in Langkawi, Kedah with more than 30 acres.