PPB Group raises capex to RM565 mil for 2017

KUALA LUMPUR (Aug 29): PPB Group Bhd has raised its capital expenditure (capex) by RM164 million mainly for investments in China flour mill, bringing its total capex this year to RM565 million.

The bulk of these will be allocated for its grain and agribusiness (RM207 million) as well as film exhibition and distribution (RM207 million), managing director Lim Soon Huat said at PPB's result briefing today.

"We expect to see an additional 500 mt per day in Pasir Gudang by the fourth quarter of 2017," said Lim. He added that this would bring the local mill's capacity to 2,500 mt per day.

For the full year, the company foresees stability in the grain and agribusiness segment.

For the film exhibition and distribution business, PPB was set to open a 16-screen cinema in Paradigm Mall Johor Bahru by the fourth quarter this year, and another three more movie theatres in Vietnam, also by the fourth quarter of this year, said Golden Screen Cinemas Sdn Bhd chief executive officer Koh Mei Lee.

Golden Screen Cinemas is PPB's film exhibition and distribution business unit.

For its property segment, PPB plans to launch its mixed development project with an estimated gross development value of RM500 million in Petaling Jaya by the end of this year.

For its project Johor Southern Marina, the group is hoping to sell up to 40 units by year end amidst the challenging market sentiment in Johor.

At noon break, shares in PPB Group were down four sen or 0.24% at RM16.66, giving the group a market capitalisation of RM19.75 billion. — theedgemarkets.com

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