KUCHING: WTK Holdings Bhd has completed the disposals of two wholly-owned timber companies for about RM40.35 million in cash.
The disposal completion on September 10,2025 involved the sale of 100 per cent equity interest in Piramid Intan Sdn Bhd (PISB) for RM16 million and Immense Fleet Sdn Bhd (IFSB) for about RM24.35 million to Huang Qian Wen.
PISB is principally engaged in the extraction and sales of logs and timber products in Sarawak whereas IFSB is involved in timber trading, reforestation, planting,management of oil palm plantation and sales of fresh fruit bunches (FFB).
PISB is the main contractor for Sarawak Timber Industry Development Corporation (STIDC) to log all the merchantable timber from a re-entry forest area covering 92,172 hectares within the mixed dipterocarp forest at Batang Baleh,Kapit.
Over the past three years, PISB produced 47,966 cubic metres of logs in 2022, 15,210 cubic metres in 2023, and 33,592 cubic metres in 2024, generating revenues of RM13.88 million, RM4.92 million, and RM11.3 million respectively, while incurring after-tax losses of RM3.76 million, RM371,000, and RM1.12 million.
IFSB, whose main assets are 61,749 hectares of licensed planted forests in the Oya-Kanowit-Katibas area (Sibu Division) and the Bukit Raya area (Kapit Division), produced 157,002 cubic metres of logs and 14,536 tonnes of fresh fruit bunches in 2024 but posted a wider after-tax loss of RM30.38 million compared with RM22.34 million in 2023 despite higher revenue of RM29.77 million against RM21.4 million previously.
Given the challenges faced by the timber sector,WTK said divesting from non-core timber assets will allow the group to streamline its focus and allocate resources more effectively toward sectors with long-term growth prospects,like the oil palm plantation and food operations.
“The timber segment has experienced a declining revenue contribution over recent financial years due to several factors,including soft market demand and stricter operational requirements related to timber certifications.
These challenges have reduced the timber segment’s financial viability,making its continued operation less strategic for the group’s future growth.
“Due to challenges in timber business, PISB and IFSB have incurred after-tax loss of RM5.25 million and RM51.85 million respectively for the past three financial years up to December 31,2024 (in aggregate).
Further,there is no guarantee that the logging agreement ,which is expiring on November 29,2027 will be further renewed,” it said earlier.
IFSB also owns 3,635 hectares of oil palm, which is producing lower yields of fresh fruit bunches due to soil erosion and challenging steep terrain, and is permitted to cultivate oil palm for a maximum period of 25 years.
WTK said the disposals of PISB and IFSB will allow the group to optimise its asset portfolio by shedding non core and less profitable businesses, enhancing operational efficiency and improving overall financial health, with the proceeds to be utilised as working capital within 12 months.
