On March 28, GUH Holdings Berhad (KL: GUH), a Malaysia-listed PCB manufacturer and property developer, has acquired 27.22 hectares (67.262085 acres) of freehold land in Semenyih for 71.76 million MYR (approximately 117 million CNY or 16.2 million USD).

The purchase was made through its wholly-owned subsidiary, GUH eBattery Sdn. Bhd., which specializes in battery and accumulator manufacturing. The deal was finalized with Rich Court Estate Sdn. Bhd., an investment holding company.

Strategic Expansion in Klang Valley

GUH Holdings stated that the acquisition aligns with its long-term strategy to expand its landbank and strengthen its presence in the Klang Valley. With over 30 years of experience in property development, the company has successfully built a strong brand in the southern region of Klang Valley, particularly through its township project Taman Bukit Kepayang.

The company believes that this new land acquisition represents an opportunity for future earnings growth, allowing GUH to capitalize on Malaysia's positive property market outlook despite global economic challenges. The deal will be financed through a combination of bank loans and internally generated funds. As of the end of 2024, GUH Holdings reported cash reserves of 69.43 million MYR against total borrowings of 78.91 million MYR.

Recent Developments in China

In addition to its expansion in Malaysia, GUH Holdings recently secured 195 million CNY (approximately 27 million USD or 119.83 million MYR) in compensation from the Suzhou government for the transfer of its land-use rights in China.

GUH's wholly-owned subsidiary, Suzhou Grand Sun Circuit Industry Co., Ltd. (GUH Suzhou), had been operating on a 53,324.56 sqm (573,980.8 sq ft) site in Suzhou High-Tech Zone, where it manufactured PCBs. However, due to urban redevelopment policies, the local government planned to repurpose industrial land for commercial and residential use.

This policy shift impacted GUH Suzhou's operations, leading to a worker strike in September 2020 that caused a temporary factory shutdown. Production resumed at reduced capacity in October 2020, but the facility fully ceased PCB production by December 2021.

After months of negotiations starting in July 2024, GUH Suzhou signed a compensation agreement with the Suzhou High-Tech Zone Shishan Business Innovation District Office on February 13, 2025. The compensation will be paid in four installments.

Market Performance

Shares of GUH Holdings remained at 32 sen on Friday, with a market capitalization of 90.63 million MYR. Over the past year, the stock has declined 13.5%.

With its latest land acquisition in Semenyih and compensation secured in China, GUH Holdings aims to strengthen its financial position and focus on growth in Malaysia's property sector while adjusting its international operations.