This article first appeared in The Edge Malaysia Weekly on March 9, 2026 - March 15, 2026

TANCO Holdings Bhd (KL:TANCO) has emerged as the property developer with the third highest market capitalisation on Bursa Malaysia — and the most expensive — after a sharp rally in its share price lifted its market capitalisation close to RM10 billion.

The surge briefly propelled the company into second place earlier last week.

Shares in Tanco closed at a one-year high of RM1.63 on Tuesday (March 3), valuing the group at roughly RM10 billion and putting it marginally ahead of Sime Darby Property Bhd (KL:SIMEPROP), which was valued at RM9.52 billion.

The lead proved short-lived, however, as Tanco’s shares slipped to close at RM1.53 on Wednesday, reducing its market cap to RM9.39 billion and allowing SimeProp to reclaim second place. At RM18.7 billion, IOI Properties Group Bhd (KL:IOIPG) remains the largest listed property developer on Bursa by market cap.

Even after the pullback, Tanco’s market cap remains well ahead of listed peers such as Eco World Development Group Bhd (KL:ECOWLD) and OSK Holdings Bhd (KL:OSK), which were valued at RM6.85 billion and RM5 billion respectively at Wednesday’s close. Tanco’s market cap has also overtaken that of Alliance Bank Malaysia Bhd (KL:ABMB), the country’s smallest banking group by asset size, which stood at RM8.55 billion on Wednesday.

The run-up in the company’s share price has been striking. Tanco shares have risen 35% since the start of 2026 and more than doubled over the past 12 months. The current share price represents a premium of about 2,400% to the company’s book value of 6.11 sen per share as at Dec 31, 2025.

That performance stands in sharp contrast to the broader property sector. The Bursa Malaysia Property Index has gained 8.6% so far this year and 16% over the past year. Tanco had an 8.76% weighting in the Bursa Property Index as at March 5, 2026, while IOI Properties and SimeProp have a weighting of 16.33% and 8.79% respectively.

The rally has also pushed Tanco’s valuation metrics far beyond those of the wider sector. The company is currently trading at a trailing price-earnings ratio (PER) of 625.91 times, compared with an industry average of 11.15 times, according to Bloomberg data.

A check on AskEdge shows Tanco’s PER of 913.9 times eclipsing industry leaders SimeProp and IOI Properties’ 18.4 times and 8.2 times respectively. Put simply, at current earnings levels, an investor buying a Tanco share today would need to wait 900 years for its earnings per share and purchase price to equalise, making it the most expensive property counter on Bursa.

Tanco’s stock has rebounded strongly since hitting a 52-week low of 70.5 sen in August 2025, crossing the RM1 mark on Nov 19 last year, and has continued climbing since then. An investor who bought 1,000 shares at the low would have seen today a gain of RM825, or 117%, on his initial investment.

Bursa filings show that Tanco group managing director Datuk Seri Andrew Tan Jun Suan, 45, has been actively trading shares in the company. As at March 4, 2026, he owned a direct stake of 18.59% and an indirect stake of 34.62% through private investment vehicles TJN Capital Sdn Bhd (96.5% of the indirect shareholding) and Millennium Land Sdn Bhd (3.5%).

Despite the sharp rise in its market value, Tanco’s earnings remain relatively modest. The group had been loss-making for a decade since its financial year ended June 30, 2013 (FY2013), until it turned the corner only three years ago. Net profit fell 33.8%, however, to RM7.88 million in FY2025, from RM11.9 million in the previous year, as revenue declined 26% to RM128.46 million from RM173.53 million.

In 1HFY2026, earnings improved. Net profit more than doubled to RM4.13 million from RM1.92 million a year earlier, while revenue rose 52% to RM86.71 million from RM57.17 million.

According to the group’s 2025 annual report, construction remained its largest revenue contributor, supported by ongoing development and third-party projects. Consulting services, property management and resort operations also generated recurring income.

The annual report also lists a 349.69-acre parcel in Port Dickson earmarked for development into an integrated resort project known as Dickson Bay. The group also holds three additional plots in the same area, totalling 29.62 acres, set aside for future development. Beyond Negeri Sembilan, Tanco owns 172.88 acres of land in Terengganu intended for resort-style projects.

By comparison, IOI Properties had about 8,300 acres of land bank as at late 2025, while SimeProp owns roughly 13,800 acres. 

Tanco has commenced construction of an RM82.8 million Rumah Selangorku affordable housing project in Puchong, Selangor, which will deliver 400 residential units, along with supporting community amenities. The group has also secured a RM43.4 million subcontract from China Communications Construction (ECRL) Sdn Bhd to undertake subgrade works for the East Coast Rail Link.

In the hospitality segment, Tanco operates the 413-room Quest Hotel Midport in Port Dickson, Negeri Sembilan. Meanwhile, under its property development division, the group is developing a high-density residential project in Puchong Perdana, Selangor, with an estimated gross development value of RM700 million.

A news item that is likely to have drawn interest to the stock in recent times is its plans for a new container port in Port Dickson. The proposed development, known as Midport, is envisioned as a “smart”, artificial intelligence-enabled container terminal occupying about 180 acres and forming part of a wider resort-city project.

The group said its 79%-owned unit Midports Holdings Sdn Bhd (MHSB) recently received planning approval from the Port Dickson Municipal Council for the proposed project.

In December 2025, Tanco signed a joint-venture agreement with CNECC Engineering (Malaysia) Sdn Bhd to pursue logistics and warehouse construction projects, and separately appointed CCCC Dredging Southeast Asia Sdn Bhd, a subsidiary of China Communications Construction Co, as engineering, procurement and construction contractor for the port’s marine works. The contract carries a potential value of up to RM3.53 billion.

MHSB has also entered into an operational management agreement with Ocean Bridge International Ports Management Co Ltd to operate the proposed port.

In an email response to The Edge, Tanco says the project has secured key federal and state approvals and is now undergoing detailed engineering work before construction can begin.

Physical construction is expected to start only after engineering work is completed and the project’s financing structure is finalised, the group says. Once work begins, the port is expected to take about 3½ years to complete.

Tanco has yet to disclose key details of the Midport development, including the number of berths and the scale of its storage facilities. The proposed port, however, appears relatively modest in comparison with the Westports 2 expansion, which carries a development cost of RM39.6 billion and is expected to double the port’s container handling capacity to 28 million 20-foot equivalent units (TEUs) a year. Meanwhile, the proposed third port on Carey Island, Selangor, has been estimated to cost RM28 billion.

Industry observers question, however, whether the Midport project can gain traction, given competition from nearby established ports such as Port Klang and the government’s plans for a third port on Carey Island. Questions also remain over how Tanco will finance the construction of the port.

Funding for the RM3.53 billion port will largely be arranged at the project level, Tanco says. “Financing options are being explored in line with established infrastructure financing principles, including aligning financing with projected cash flows, maintaining an appropriate balance between debt and equity, and seeking to achieve an efficient overall cost of capital.

“Material financing developments will be announced in line with applicable disclosure requirements as the project progresses.”

As at end-December 2025, the group had cash and bank balances of RM11.21 million and borrowings of RM55.8 million, giving it a net debt position of RM44.59 million and a net gearing ratio of 0.12 times.

According to AskEdge, Tanco’s net gearing of 0.1 times is lower than IOI Properties’ 0.9 times and SimeProp’s 0.4 times — at the higher end — but on a par with KSL Holdings Bhd (KL:KSL) at the lower end of the range.

The Midport development forms part of Tanco’s broader plans for a 480-acre resort-city project in Port Dickson.

The group says the site benefits from natural water depth and its proximity to major shipping routes along the Strait of Melaka, one of the world’s busiest maritime corridors. “These characteristics were assessed as part of the project’s feasibility and regulatory submissions, and are suitable for the development and operation of a container terminal. Together, these attributes support the feasibility of the port’s operations,” it explains.

Tanco says the Midport project is positioned as a long-term infrastructure enabler supporting industrial and logistics development in Negeri Sembilan, including the broader Malaysia Vision Valley 2.0 corridor.

“By integrating port capability with inland industrial and manufacturing activities, the project is intended to further enhance supply chain efficiency and contribute to the state’s continued development within Malaysia’s broader economic landscape,” it says.

“Beyond its gateway role, Midport is also designed to participate in regional transshipment flows in a manner that complements the broader ecosystem of ports along the Strait of Melaka.”

It notes that ports along the strait collectively handled about 75 million TEUs in 2025, underscoring the scale of activity within this maritime corridor.

“Industry sources also broadly cite significant container volumes transiting the strait annually — often referenced in the range of 100 million TEUs to 130 million TEUs — reflecting its established role in international shipping networks,” it adds.

“Port operations in this corridor are highly competitive, with shipping lines placing strong emphasis on service reliability, operational efficiency and predictable turnaround performance. Midport is therefore being developed as a modern, automated container terminal incorporating relevant digital and automation systems to support consistent and efficient operations. The development approach includes collaboration with an experienced port operator to support disciplined execution and sustain competitive service performance.”

Tanco says the planned terminal is intended to serve both domestic manufacturers and logistics operators in nearby industrial parks in Negeri Sembilan, while also targeting regional transshipment lines and broader supply chain participants moving through the busy shipping lane.

Still, the ambitious port project remains in its early stages. Whether it can be realised and justify the sharp rise in Tanco’s market value remains to be seen. 

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