HAP SENG CONSOLIDATED's recent acquisition of plantation land in Sabah marks the beginning of the Group's expansion drive in the northern part of the state.

" .... This acquisition is a first for HAP SENG PLANTATIONS HOLDINGS post-listing, and as we are always keen to expand acreage in Sabah. This would be our base for further plantation landbank expansion in the northern part of Sabah ...." said Group MD - EDWARD LEE MENG FOO.

In early Jun 2008, HAP SENG PLANTATIONS had announced that the Company would pay BUMILAJU CONSTRUCTION sb RM27m and assume RM15m in debts for its a 727-ha plantation land in the Kota Marudu district. While the estate was relatively small, LEE said the purchase was attractive as the land already had oil palms aged six and seven years. He added that the estate would be able to generate income for the Group by 4QCY-2008.

" .... At current crude palm oil (CPO) prices, it is not easy to buy good plantation land. While we already have a strong presence in Sabah, we want to be able to expand more in plantations ...." he said adding " .... this is an area where none of the big boys are in, so this would give us more opportunities to grow ..." after the Company's AGM on Jun 24, 2008.

FY 2008 CAPEX
HAP SENG PLANTATIONS' other land in Sabah is a 36,354 ha contiguous block located in the Lahad Datu-Sandakan area.The company will also maintain its allocation of RM80m for capex for the current financial year mainly for further acquisitions in the quarry and building materials and its plantations divisions.

ON HAP SENG CONSOL OPERATIONS
HAP SENG's - ED and Group CFO - SOON SEONG KEAT the Group had also allocated a long-term capital commitment of RM20m to RM25m for its plantations division.

QUARRY DIVISION
For the quarry division, some RM60m will be allocated as it plans to upgrade its production plants and acquire quarries. " .... The company would be on the lookout for new quarries in peninsular Malaysia ...." said SOON.

HAP SENG's Net Profit for FYE Jan 31, 2008 rose sharply from RM106.16m to RM809.98m mainly due to gains from the listing of its plantation arm.

Plantations remains a a substantial contributor to the Group's performance. There were also improvements in its other core businesses.

CREDIT FINANCING
Its credit financing division posted a 46% surge in Operating Profit to RM49.8m from RM34.2m previously.Its credit financing arm has a network of 12 branches inboth east and Peninsular Malaysia. The company's loan portfolio surged 44% to RM1.04 bil in FY08 from RM720m.

The Group recently ventured into China via its 100%-owned unit - HAP SENG CONSOLIDATED FINANCIAL LEASE AND RENTAL CHINA ltd. The unit is currently exploring opportunities in the country.(By KLSETRACKER.com)