KUCHING: WTK Holdings Bhd has booked an estimated RM22 million gain from the disposal of Song Logging Company Sdn Bhd, a divestment completed last Friday (Dec 5).
Song Logging — which is involved in the extraction and sale of logs and timber products — was sold for RM23.5 million in cash to Huang Qian Wen.
Established under a 1976 agreement with the Sarawak Timber Industry Development Corporation (STIDC), Song Logging has been the main contractor harvesting merchantable timber from a 114,804-hectare forest area along Batang Rejang. The logging agreement remains valid until March 24, 2030.
WTK said proceeds from the disposal will go towards trade and other payables (RM5.875 million) and working capital (RM17.625 million).
According to the Sibu-based timber and plantation group, the divestment is part of a broader exit from non-core timber assets amid persistent challenges facing the sector. The group said it aims “to allocate resources more effectively towards the plantation and food operations segments which have demonstrated stronger growth potential and profitability in recent years.” This is aligned with its strategic shift to focus on “the two more commercially sustainable and profitable business segments.”
This latest disposal follows the September 10, 2025 completion of two other sales to the same buyer, Huang, which also generated a RM22 million gain. WTK disposed of Piramid Intan Sdn Bhd (RM16 million) and Immense Fleet Sdn Bhd (RM24.35 million). PISB is active in timber extraction and sales, while IFSB undertakes timber trading, reforestation, oil palm planting and fresh fruit bunches (FFB) sales in Sarawak.
Meanwhile, WTK group managing director and CEO Dato Sri Patrick Haw Yeong has raised his stake in the company. Between Nov 28 and Dec 4, he acquired 4,589,000 shares for about RM2.94 million, lifting his interest to 33,979,100 shares (7.263%), according to Bursa Malaysia filings.
Harbour-View Realty Sdn Bhd (in liquidation) disposed of about 6.15 million WTK shares between Nov 11 and 26. These shares were held indirectly by major shareholders — brothers Datuk Sri Wong Kie Yik, the late Datuk Wong Kie Nai (estate) and Wong Kie Chie.
WTK’s share price has been actively traded, rising from 38 sen to a 52-week high of 81.5 sen on Oct 31, fuelled by investor interest after the group announced a RM555 million cash acquisition of additional oil palm plantations and a palm oil mill from WTK Realty Sdn Bhd in a related-party deal. The proposed acquisition covers Desacorp Sdn Bhd (100%), Imbok Enterprise Sdn Bhd (70%) and WTK Oil Mill Sdn Bhd (70%), and is expected to complete in 1Q 2026.
Upon completion, WTK’s planted oil palm area will jump 68.1%, increasing by 14,389 hectares to a total of 35,519 hectares.
For the week ended Dec 5, WTK’s share price rebounded 10.5 sen to 73.5 sen, recovering from a brief consolidation after retracing from its recent high.
In the third quarter ended Sept 30, 2025, WTK posted a sharp increase in net profit to RM27.4 million (3Q 2024: RM1.83 million), driven by stronger oil palm contributions despite lower revenue of RM130.8 million (RM167.6 million). The revenue decline followed the disposal of timber subsidiaries and the closure of its loss-making plywood operations.
For 9M 2025, group net profit nearly tripled to RM23.4 million (9M 2024: RM8.2 million), although revenue eased to RM425.5 million (RM500.9 million).
