Friday 29 Mar 2024
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This article first appeared in The Edge Financial Daily, on November 6, 2015.

 

Sanichi Technology Bhd (-ve)

SHARES of Sanichi (Fundamental: 0.9/3, Valuation: 1.5/3) climbed 11.8% to close at 9.5 sen on rising volume yesterday. 

Substantial shareholder, Mah Wee Hian, has been accumulating shares of Sanichi, since October 2014. He now owns a 10.75% stake, up from 8.65% previously.

Principally involved in the fabrication of precision plastic injection moulds, the company’s major clients — automakers including Audi AG and Volkswagen Group — contributed up to 80% of revenue in FYJune2015. 

For FY15, revenue almost doubled to RM42.8 million, thanks to increased sales from the European and Asia Pacific markets. Net profit grew by a smaller 31.3% to RM3.0 million, owing to ESOS expenses of RM6.2 million. 

Last year, Sanichi ventured into property development with the purchase of a 2.1-acre land in Klebang, Malacca. The mixed development project carries a gross development value of about RM200 million, and is expected to contribute a profit of around RM40 million over the next three years. 

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