Sanichi shares, warrants in active trade

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KUALA LUMPUR: Shares and warrants of Sanichi Technology Bhd were actively traded yesterday, emerging as the third and top most heavily-traded stocks respectively.

Sanichi shares ended the day 0.5 sen lower at 11 sen, with 96.13 million shares done. The stock was hovering between 10 sen and 11.5 sen. Its market capitalisation stood at RM91.34 million.

Its warrant, Sanichi-WC, was also actively traded, with 235.79 million shares changing hands. The share price was trading between 5.5 sen and 7 sen and closed  up 4.5 sen to 6 sen yesterday.

Sanichi managing director Datuk Dr Pang Chow Huat attributed the active trade to the maiden listing for its renounceable rights issue of 521.96 million rights shares with free detachable warrants. A total of 347.97 million warrants C were listed and quoted on the ACE Market.

“The rights issue was successfully oversubscribed by 40%,” he told The Edge Financial Daily via telephone yesterday.

On Pelaburan Mara Bhd (PMB) acquiring 53 million rights issue shares in Sanichi at 10 sen each, raising its stake to 15.33% or 80 million shares, early last month, Pang said that this signifies PMB’s confidence in Sanichi.

“They (PMB) are confident of our performance. We are a profitable company, with a good balance sheet, and we will continue to focus on our mould-making business as well as property development,” he said.

Sanichi posted a net profit of RM2.25 million for the financial year ended June 30, 2014 (FY14) from a net profit of RM906,000 in FY13. Revenue rose to RM22.41 million from RM9.3 million.

Meanwhile, Pang expects its property project in Malacca to contribute “significantly” to the group’s profit with its kick-off in the first quarter of next year.

Sanichi recently received shareholders’ approval to diversify its business into property development and investment with the acquisition of a 8,672 sq m plot of freehold land in Malacca for RM7.7 million.

According to Pang, the land will be used to develop 118 units of shop lots and 352 units of small office/home office or SoHo serviced apartments with an estimated total gross development value of RM160 million.

This article first appeared in The Edge Financial Daily, on October 2, 2014.