Sime Darby allocates RM1b capex for 2019

, Feb 21 — Sime Darby Bhd is allocating RM1 billion for capital expenditure (capex) this year.

Group chief executive officer Datuk Jeffri Salim Davidson said the capex is mainly for the upgrade and refurbishment of its motor showroom.

“As of Dec 31 last year, we have already spent RM200 million mainly for the upgrade and refurbishment of our motor showroom,” he told reporters in a briefing here today.

He added that this year’s capex was similar to last year’s allocation, which was between RM900 million and RM1 billion.

Meanwhile, Jeffri said the company plans to grow its healthcare division as the third core business after industrial and motoring.

He said the company aims to double the number of beds offered under its healthcare division to 3,000 from 1,500 within the next five years.

“We are cautiously looking at numerous opportunities to grow our healthcare business,” he said.

Nevertheless, he said any capex or borrowing to grow the healthcare business would be made by Ramsay Sime Darby Health Care Sdn Bhd, a 50:50 (JV) between Sime Darby and Ramsay Health Care Ltd.

The company has six hospitals under its network – three in and the rest in Indonesia.

Currently, industrial and motoring made up 95 per cent of Sime Darby’s top line and bottom line while logistic and healthcare division made up the rest.

Sime Darby Bhd’s net profit increased by 69.4 per cent year-on-year (y-o-y) to RM542 million for the first half of the 2019 ended Dec 31, 2018 (1H19) from RM320 million in 1H18.

Revenue for 1H19 stood at RM18.3 billion, a 7.7 per cent increase y-o-y from RM17.0 billion previously. — Bernama

Source: The Malay Mail Online

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