KUALA LUMPUR: From an accountant to turning a tin wasteland into Sunway City, the fortune of Tan Sri Jeffrey Cheah Fook Ling, founder and executive chairman of Sunway Bhd, has more than doubled over the past year, thanks to his majority stake in the diversified conglomerate.
Sunway's shares have steadily climbed this year, reaching a record high of RM5.02 on November 25, fuelled by its ambitious healthcare expansion plans, a robust 730-hectare landbank in Iskandar Puteri, and a solid construction order book.
Cheah's wealth has surged to US$2.4 billion, earning him the 8th spot on Malaysia's 50 Richest list by Forbes Asia, up 10 places from last year. The minimum net worth to qualify for the list rose to US$320 million from US$315 million in 2023.
At 79, Cheah has established a global business empire with 13 divisions operating across 50 locations.
In Malaysia, his real estate ventures include Sunway City, a transformation of a former tin mine near Kuala Lumpur into a thriving ecosystem that serves as home, office, or classroom for 200,000 people. He replicated this success in Ipoh and is now expanding a third township in Iskandar Puteri, Johor.
Sunway's stock has surged significantly year-to-date, reflecting investor confidence in the company.
Despite Sunway's strong performance, Cheah has cashed out over RM1.55 billion in shares this year, according to an analyst who spoke on condition of anonymity.
The analyst said he is puzzled by the Cheah family's recent share disposals.
As of mid-January, the Cheah family held a 64.91 per cent equity interest in Sunway. Last month, Cheah reduced his direct and indirect stake in the company to 54.06 per cent.
Through his private vehicle, Sungei Way Corp Sdn Bhd, and personal holdings, he sold 100 million Sunway shares for RM485 million at RM4.85 per share via direct transactions on November 28.
Following the sale, his direct stake fell from 10.97 per cent to 9.98 per cent, while Sungei Way Corp's shareholding decreased from 45.41 per cent to 44.08 per cent.
Meanwhile, the Employees Provident Fund (EPF) has been actively increasing its stake in Sunway, according to Bursa Malaysia filings.
On November 25, the EPF purchased 5.4 million shares, raising its stake to 6.49 per cent. Subsequent acquisitions lifted its holding to 7.64 per cent by November 28.
"Despite the share sales by Cheah, Sunway's strong financial performance and institutional interest underscore its potential for sustained growth," the analysts told Business Times.
For the third quarter ended Sept 30, 2024, Sunway reported a net profit of RM376.08 million, more than double the RM180.3 million recorded a year ago.
Revenue grew by 31.8 per cent to RM2.03 billion, compared to RM1.54 billion in the same period last year.