SD Guthrie’s green energy business gains traction

By the Editorial Team · Thursday, October 1, 2026

SD Guthrie Bhd is launching a 680 MWac renewable energy project through a joint venture, secured by a 21-year agreement to supply electricity to data centers of a US multinational tech company. This initiative is expected to generate steady revenue of around RM159 million annually for SD Guthrie and marks a strategic expansion into large-scale, long-term renewable energy assets.

SD Guthrie Bhd is advancing its renewable energy business with a new 680-megawatt alternating current (MWac) corporate renewable energy supply scheme (Cress) project, marking a strategic move toward large-scale, long-term contracted assets. The project is implemented through G3nerasi Kinta Sdn Bhd, a joint venture (JV) in which SD Guthrie holds a 33.5% stake alongside Gentari Renewables Sdn Bhd and Gamuda Bhd. It includes a 21-year bilateral energy supply agreement to deliver renewable electricity to data centres operated by a United States-based multinational technology company.

Research firms view the project as providing clear visibility on the growth potential of SD Guthrie’s renewable energy segment. Phillip Capital Research estimates the project can generate approximately RM10 billion in gross revenue over the contract’s duration, averaging RM476 million annually at the project level. With SD Guthrie’s share, this translates to about RM159 million in annual revenues or over RM3.35 billion cumulatively during the 21-year period.

Separately, SD Guthrie plans to dispose of 556.96 acres of freehold land in Kulai, Johor, to Sime Darby Property Bhd for RM418.5 million. Phillip Capital Research described the sale price of RM17.25 per square foot as favorable—8.35% above the appraised value of RM15.92 per square foot. The disposal is expected to yield a net gain of RM373.4 million, recognized upon completion targeted for the second quarter of the 2027 financial year. The proceeds will primarily be used to repay RM374.1 million in debt, which is projected to reduce annual interest expenses by around RM9.5 million and improve the company’s gearing ratio from 0.24 to 0.22 times.

While Phillip Capital Research maintains a “buy” recommendation on SD Guthrie with a target price of RM7.70, CIMB Research offers a more cautious view. CIMB expects the project to generate at least RM476 million in annual revenue but estimates net profit margins at 20%, translating to a net profit of RM95 million at the project level or RM32 million attributable to SD Guthrie annually. CIMB describes the development as allowing the company to unlock value from its land assets while securing recurring renewable energy income and benefiting from the expertise of its JV partners. However, it has retained a “hold” rating with a target price of RM6.86 per share.

MBSB Research emphasizes the synergy between SD Guthrie’s substantial landbank and the specialized capabilities of Gentari and Gamuda, highlighting strengthened project execution and clearer prospects for scaling its renewable energy business. The research house notes that the company is expanding beyond land rental income by co-developing, owning, and operating utility-scale solar assets through the Cress platform. MBSB Research maintains a “buy” call with a target price of RM7.65, viewing the project as a significant new growth driver for SD Guthrie.

Overall, the development reflects SD Guthrie’s effort to diversify and grow its earnings through long-term renewable energy contracts, while managing its asset portfolio to optimize financial performance.

This article was reported by synthesizing coverage from multiple independent news outlets to present a balanced, unbiased account. Read about our editorial standards. Spotted an error? Let us know.