KUALA LUMPUR: Felda Global Ventures Holdings Bhd (FGV) (fundamental: 1.55; valuation: 1.20) is on track to achieve its target revenue of RM100 billion by 2020, through improved productivity and growth in its upstream businesses.
FGV group president and chief executive officer Datuk Mohd Emir Mavani Abdullah said the group will focus on improving internal production via mechanisation of its processes, while looking at securing brownfield assets.
“Our initial public offering (IPO) gross proceeds of RM4.46 billion [in 2012] is to grow the upstream portion of our business, and we are looking at brownfield assets. We are also looking at mechanisation of processes, especially with labour policies that are coming in, for example from Indonesia,” he said yesterday.
On whether the group would consider borrowing to finance acquisitions, given that it reportedly has a balance of RM400 million of its IPO proceeds left, Mohd Emir said that would depend on the kind of asset. “Our core net profit, putting aside the aspect of our land lease agreement (LLA) with the Federal Land Development Authority (Felda), is improving. So, our core function now is to stabilise our LLA with [Felda]” said Mohd Emir.
This article first appeared in The Edge Financial Daily, on March 4, 2015.