Sanichi Technology Bhd (+ve)
TRADING of shares in Sanichi Technology Bhd (fundamental: 1.2/3, valuation: 0.9/3) triggered our momentum algorithm yesterday for the first time this year. The counter closed half a sen or 10% lower at 4.5 sen, with 76.4 million shares traded, over six times its 200-day average volume of 12.24 million shares.
The loss-making company continued to bleed in its fourth quarter ended Dec 31, 2019 with a net loss of RM1.34 million — its fifth straight quarterly loss — albeit at a smaller volume compared with RM11.04 million a year ago, due to lower operating costs from cost-controlling measures implemented.
Revenue for the quarter also jumped more than three times to RM12.53 million from RM3.53 million a year ago, as revenue recognition in its property development segment picked up.
For the full year ended Dec 31, 2019, the company’s net loss widened to RM19.88 million from RM15.94 million a year ago, while revenue sank 31% to RM21.49 million from RM31.07 million.