Gopeng ... Aug10

An industry observer did not discount the possibility of a capital repayment exercise
in the form of a special dividend, or even a general offer for the plantation and cement company

Its net assets per share is RM1.52.

For the financial year ended Dec 31, 2009, Gopeng posted a net profit of RM39.88 million on the back of RM12.66 million in revenue. Earnings per share was 22.2 sen.

In its most recent results for the first quarter ended March 31, 2010, net profit stood at RM8.64 million, or 4.82 sen per share.

The company also has a reasonably clean balance sheet. As at March 2010, net debt stood at RM16.82 million with a net gearing of just 6.2%.

Incorporated in November 1983, Gopeng was also involved in Project Lebuhraya Utara-Selatan Bhd’s (PLUS) project to design, construct and maintain the road from Ipoh to Gopeng and Tapah to Bidor. It is also engaged in plantations, property development, cement and water treatment plants.

Its most valuable asset is the 35.16% stake in cement producer Perak-Hanjoong Simen Sdn Bhd, which contributes over 90% of Gopeng’s annual net profit.

The group has 417ha of newly-planted oil palm, bringing its total planted area in its Kota Bahroe Estates to 1,446ha. It had also replanted 72ha of low-yielding palms aged 25 years old, adding that more ex-mining land had been identified for the future planting of oil palm.

Its plantation division was the biggest contributor to revenue in FY09, accounting for 78% or RM9.88 million while its property division contributed the remaining 22% or RM2.77 million. However, contributions from associates, mostly from the cement plant, accounted for about 94% of net profit last year.

The company’s major shareholders, as at May 11, 2010, are its executive chairman Mohd Salleh Hashim with a 32.34% stake, Fortuna Gembira Enterprise with 19.33% and Juitaneka Sdn Bhd with 12.08%.