This article first appeared in The Edge Malaysia Weekly on August 17, 2026 - August 23, 2026

AFTER years of staying under the radar, Atlan Bhd (KL:ATLAN) is betting on a new strategy to revive growth and unlock asset value.

Once known for its ZON duty-free retail operations, the group is now shifting focus to property and hospitality under new group CEO Datuk Lee Kok Khee, while retaining its automotive and duty-free businesses as part of a more streamlined portfolio.

Atlan’s sizeable landholding in Jalan Ampang, Kuala Lumpur, rising occupancy at Menara Atlan and plans to refurbish its hotel asset are among the key pieces of its new growth strategy. With more than RM200 million in net cash, the group has the financial flexibility to pursue opportunities as they arise.

For Lee, the strategy is not about dramatic transformation, but an “evolution” of the existing businesses.

“It will not be revolution, but evolution, which means we improve from what we have, unless something that is very attractive [pops up],” he tells The Edge about his business plans for Atlan.

In a surprise move, Atlan announced last Friday that Lee will step down as the group CEO from Sept 17, and will instead take on the role of group adviser. 

Prior to joining Atlan a year ago, the investment banking veteran spent 22 years at Kenanga Investment Bank Bhd (KL:KENANGA) where he gained extensive experience in equity broking, equity derivatives, investment banking, corporate finance, fintech and digital businesses. Lee’s last position at the non-bank-backed financial services firm was executive director and head of group equity business.

One of the biggest opportunities Lee sees in Atlan is its 4.6-acre land in Jalan Ampang, which houses Menara Atlan and the ZON Hotel.

“Given the development around this area and the reopening of Ombak Mall, there is tremendous potential for us to be part of the dynamic growth there,” he says.

Ombak Mall, owned by Petroliam Nasional Bhd’s development arm KLCC (Holdings) Sdn Bhd, is slated to open on Aug 28. The six-storey mall has a net lettable area of 420,000 sq ft and 120 retail lots.

To leverage surrounding developments, Atlan plans to refurbish the ZON Hotel, expanding capacity from 240 to 400 rooms and adding retail spaces. The hotel ceased operations in 2020 during the Covid-19 pandemic.

“We are reconfiguring the layout inside the building itself. There is going to be a lot of potential, and it’s going to be positioned just right for travellers around this area,” Lee says, noting that the refurbishment exercise could be completed within two years.

The refurbishment cost is still being finalised due to raw material cost volatility, he adds.

As at end-February this year, the net book value of Menara Atlan and the ZON Hotel stood at RM36.36 million.

Last year, the Corus KLCC Hotel, also located in Jalan Ampang and spanning 1.485 acres, was sold to Mah Sing Group Bhd (KL:MAHSING) by Malayan United Industries Bhd (KL:MUIIND) for RM260 million.

Within its property and hospitality segment, Atlan also owns the four-star Belle Isle Hotels in Cornwall, UK. It acquired the asset for RM58.83 million in 2022 from Belle Isle Property Ltd in a related-party transaction. Belle Isle Property is linked to Atlan executive chairman and largest shareholder Datuk Seri Adam Sani Abdullah.

In addition, Atlan has made significant progress in improving occupancy at Menara Atlan, according to Lee. “Just nine months ago, our occupancy was below 50% and today it is more than 70%, and we are going to surpass 80%. That tells you there is a lot of demand.”

Prior to the pandemic, Atlan’s duty-free retail business — which covers the trading of duty-free goods as well as dutiable and non-dutiable merchandise — was its largest revenue contributor.

However, Lee attributes the subsequent decline in the business to a slowdown in the global duty-free retail landscape, noting that larger players such as South Korea’s Lotte and Shilla have faced similar challenges.

The retail segment has operated under the “ZON” brand over the past 40 years. It is one of Malaysia’s largest multichannel duty-free and duty-paid retailing brands, serving both Malaysians and international customers across key entry and exit points in Peninsular Malaysia.

“We had a group reorganisation in the last quarter of 2025, where we wanted Atlan to focus on property and hospitality, while Singapore-listed Duty Free International Ltd will focus on the duty-free retail and automotive business. It’s more and more challenging on the retail side of business because there are more players,” Lee highlights.

Atlan holds a 75.53% stake in Duty Free International. Lee says the duty-free business will continue to be run efficiently, given the challenges facing the sector.

Meanwhile, he notes that the group’s automotive business continues to seek opportunities to expand its technical capabilities. “We have been very active in terms of industry and technical development. We are looking for either technical partners or joint-venture partners to extend that capability.”

While actively engaged in a programme with Perusahaan Otomobil Kedua Sdn Bhd, Atlan is also exploring opportunities with Chinese original equipment manufacturers establishing plants in Malaysia, Lee shares.

The group’s automotive component parts segment specialises in the manufacturing of metallic tubes, fuel filler neck, fuel tank modules, metal stamping parts, as well as the subassembly of instrument panels.

For its financial year 2026 ended Feb 28 (FY2026), Atlan recorded a 9.7% year-on-year decline in revenue to RM411 million from RM455.1 million a year ago, mainly due to weaker contributions from its automotive component manufacturing and duty-free retail businesses following the closure of its outlets in Johor Bahru and Langkawi, Kedah.

In FY2026, automotive was the largest revenue contributor at 54.6%, followed by duty-free retail (34%) and property & hospitality (10.3%).  

Due to the one-off RM69.6 million compulsory land acquisition compensation in FY2025, net profit for FY2026 fell to RM14.8 million from RM51.7 million a year ago. Excluding one-off items, including the RM23.3 million lease derecognition gain in FY2026, normalised profit before tax nearly doubled to RM19.4 million.

For the first quarter of FY2027 (1QFY2027), its net earnings tumbled to RM112,000 from RM3.1 million a year ago, owing to lower contributions from the automotive and duty-free retail segments.

It is worth noting that at Atlan’s recent annual general meeting (AGM), the Minority Shareholders Watch Group (MSWG) voted against a resolution seeking authority to issue shares, citing the group’s net cash position of RM201.22 million as at end-May 2026, slightly lower than RM208.2 million at end-February.

According to MSWG’s representative who attended the AGM, a company with a comfortable cash position should not be encouraged to raise cash via the issuance of new shares. The resolution was eventually passed with the support of 99.9% of shareholders.

Lee explains that the share issuance mandate would give Atlan greater flexibility to act when business opportunities arise. “It’s a question of flexibility. If an opportunity suddenly comes up, we would otherwise have to call a meeting to seek approval. We don’t want to be scrambling [for funds] when a transaction is ready.”

MSWG also voted against the re-election of long-serving independent non-executive director Mohd Jaffar Awang, although Atlan shareholders voted in favour of the resolution.

Lee says the re-election was not in breach of the Companies Act 2016.

In Malaysia, only one-fifth of listed companies have adopted the nine-year tenure limit for independent non-executive directors. If a board intends to retain an independent director beyond nine years, it has to provide justification and seek shareholders’ approval through a two-tier voting process. Tier-1 involves large shareholders while Tier-2 involves minority shareholders.

Atlan’s shareholders approved all the nine resolutions at its AGM. 

Adam Sani, a prominent businessman in the 1990s who is also known as George Lim Yong Tong @ Maung Ng We, is Atlan’s largest shareholder with a 50.4% stake held via Distinct Continent Sdn Bhd and Alpretz Capital Sdn Bhd. Berjaya Corp Bhd (KL:BJCORP) founder Tan Sri Vincent Tan Chee Yioun is also a substantial shareholder with a 17.43% stake.

Atlan, which declared a 10 sen dividend for FY2026 and a five sen interim dividend for 1QFY2027, has a 12-month trailing dividend yield of 3.9%.

Since touching a high of RM3.15 last December, Atlan’s share price has slipped 18.4% to close at RM2.57 last Wednesday for a market value of RM652 million. Its net assets per share stood at RM1.58 as at end-May this year.

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