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KUALA LUMPUR (April 13): PTT Synergy Group Bhd (KL:PTT) is aiming to double its existing capacity as the construction firm expands its logistic business with a new purpose-built warehouse in Elmina Business Park.
The new facility that will be known as PTT Logistics Hub 2 will add about 51,000 pallet positions, roughly doubling the capacity of its existing Hub 1. All in all, the company expects another RM60 million to RM70 million in gross profit from Hub 1 and Hub 2, chief executive officer Dan Then Ikh Choo told The Edge.
Development will span about 289,000 sq ft and is targeted for completion in the second half of 2027.
Overall, the project carries an estimated gross development value of between RM320 million and RM340 million, with financing of about RM250 million provided by Bank Rakyat, which is the sole financier for the development.
PTT Synergy has already secured interest from foreign companies in the electrical and electronics sector as potential anchor tenants of the warehouse. The tenants, however, could not be identified due to non-disclosure agreements.
In the financial year ended June 2025, the company reported a gross profit of RM52.38 million before tax and other expenses.
Expanding pipeline
PTT Synergy, traditionally an earthworks and infrastructure contractor, has been actively diversifying into industrial property development over the past year by focusing on high-tech logistics facilities.
The company is currently building a pipeline of projects across Penang and Johor, as well as the Klang Valley, targeting about RM2.5 billion in project pipeline over the next two years, including a semiconductor logistics hub in Penang and a large-scale industrial development in Bukit Raja.
Deputy Investment, Trade and Industry Minister Sim Tze Tzin, who officiated the groundbreaking ceremony of the PTT Logistic Hub 2, said modern logistics infrastructure will play a central role in Malaysia’s next phase of growth.
“Investors will look around the world and find that Malaysia offers peace, stability, a young workforce and a strong policy framework. In logistical terms, Malaysia sits at the centre of the emerging global economy,” he said.
Shares of PTT Synergy were unchanged at RM1.36 at the time of writing on Monday, valuing the company at about RM626 million. Year to date, the stock has barely budged.
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