Oriental Interest cancels RM280 million motorcycle business acquisition

Oriental Interest Bhd is dropping its proposed RM280 million purchase of two motorcycle businesses after reviewing its strategy and facing delays in regulatory approvals. The developer also reported RM25.16 million in fourth-quarter net profit, a decline of 35.9%.

The company said vendor LLSB 1980 Holdings Sdn Bhd had agreed to cancel the purchases of Chin Hin (Jitra) Sdn Bhd and CHJ Motor Holdings Sdn Bhd. Under their termination agreement, neither side has claims against the other over the deal.

First announced in July, the transaction was intended to take the developer into motorcycle retail and financing. The proposed payment comprised new shares worth RM100 million and redeemable non-convertible preference shares worth RM180 million. It was a related-party transaction because the vendor was connected to controlling shareholder LK Labuan Foundation.

For 4QFY2026, which ended Aug 31, 2026, net profit compared with RM39.26 million a year earlier. Revenue was RM179.4 million, down 20% from RM224.27 million. In its Bursa Malaysia filing, the group attributed the revenue decline mainly to reduced property development progress billings.

Annual net profit came to RM96.8 million, falling 21.1% from FY2025's RM122.75 million. Revenue decreased 20%, reaching RM680.52 million against RM850.55 million. The group said a 122% improvement in annual pre-tax profit from general construction could not compensate for lower property development earnings.

There was no fourth-quarter dividend. The full-year payout therefore stood at six sen per share, versus 20 sen for FY2025.

With the acquisition cancelled, Oriental Interest said its priorities would remain property development and construction. At end-August 2026, unbilled property sales amounted to RM635.2 million, an increase of 22% from RM520.4 million a year earlier. Its land bank measured 2,013 acres at end-August.