Snow plans to develop the port of Kelly Island, “Big Island Owner” SD Gajili is expected to make a profit

Financial Weekly “The Edge” previously reported that the Xuzhou Economic Development Authority (PKNS) is taking the lead in finding a contractor to take on the burden of developing Kelly Island and franchising the island's port.

Meanwhile, Bank of Malaysia Investment Bank Research released a report stating that SD Yazhli currently has 85% of the island's area, or 0.01 million1,000 hectares (about 0.02 million7182 acres) of land, and will definitely be the big winner of this development project!

“Assuming that unconverted agricultural land on the island is worth RM6 per square foot, the total value of land held by SD Gachali could reach RM7.1 billion, which is equivalent to 23% of its market value!”

On the other hand, the South Klang Valley Boulevard (SKVE) was built in 2013, making the inland more closely connected to Kelly Island. After completing the southern section of West Coast Boulevard (WCE) within 1 to 2 years, it is expected that the value of the surrounding area will be boosted.

For the large-scale industry in Kuala Lengyak in recent years, the transaction price is generally between RM6.60 and RM19.00 per square foot. This price code also confirms SD's land valuation.

As a result, Bank of Malaysia Investment Bank research and analysis shows that Kelly Island will become a new business opportunity, bringing rich rewards to SD Yazhli after the Rouxin Special Economic Zone (JSSEZ) in the south of China and the Jilin Comprehensive Green Industrial Park (KIGIP) in the north.

Furthermore, according to reports, the Kelly Island port development project is expected to be put into operation in 2030. Seen from this perspective, it is believed that the multi-billion port construction project will begin in earnest in the near future.

According to the development plan, it is proposed to build a large-scale container port on Kelly Island. Currently, construction is carried out in 4 stages. It is expected that 2060 will be fully completed, and it can handle 30 million containers per year.

The newly built port mainly uses a reclamation section, but the Xuzhou Economic Development Agency is also aiming to develop Kelly Island as a port city, which will also increase the value of the land that SD Yachili sits on.

As a result, Bank of Malaysia Investment Bank gave SD Yajili a “buy” rating, with a target price of RM4.96.