Sanichi active, up 17.65% as management upbeat on property division

KUALA LUMPUR (Nov 5): Precision plastic injection moulding fabricator Sanichi Technology Bhd's shares drew investors' interest, after the group said it aims to reap an annual profit of up to RM13 million from its maiden property project for the next three years.

The stock rose 1.5 sen or 17.65% to its three month high of 10 sen, shortly after the opening bell. But it failed to sustain the gaining momentum and erased part of its gains to trade at 9.5 sen, still up one sen or 11.76% as at 11.08am.

Some 53.86 million shares were seen traded between nine sen and 10 sen, making it the most actively-traded stock across the local bourse.

In an interview with The Edge Financial Daily recently, Sanichi's managing director Datuk Seri Dr Jacky Pang Chow Huat said the group is unperturbed by the current property slowdown and remained sanguine on its upcoming launch of its maiden property development project in Klebang, Melaka.

The project, dubbed Marina Point, is a mixed development that spans 93,345 sq ft, comprising 352 and 120 residential and commercial units, respectively.

Pang said the group is expecting an annual profit of up to RM13 million from this project, for the next three years.

“We expect to earn a profit margin of about RM40 million, the project spans three years, so if we divide it equally, we would get about RM13 million every year,” he said, adding that the calculation is still subject to auditors’ review, ultimately.

“The management is quite confident of the project. During our soft launch, we managed to secure about 20% bookings. Upon the official launch, I think it is safe to say that we can get another 50%,” he added.

Sanichi reported a net profit of RM2.99 million net profit for its financial year ended June 30, 2015 (FY15).

Aside from that, Pang also said the group is currently eyeing a piece of land, measuring 1.2ha to 1.6ha in Selangor, for the group’s second high-rise development project, and has allocated funds for the acquisition.