RM1.5 Billion Logistics Hub Confirmed By Sanichi; Works Starting Soon?

July 13, 2020

RM1.5 Billion Logistics Hub Confirmed By Sanichi; Works Starting Soon? | PDZ Holdings Bhd, which is believed to have recently won a RM600 million contract from a big e-commerce platform operator in China, is confirmed building a regional e-commerce logistics hub in Johor, that will cost over RM1.5 billion in a partnership with Sanichi Technology Bhd.

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The logistics hub is designated to handle activities related to transportation, separation, coordination and distribution of goods for local and international transit, similar to Alibaba Group, and will target supply-chain players, reported the New Straits Times (NST) today.

The NST had sighted a document stating that the hub will be developed over 234 acres in Desaru, Kota Tinggi, and that both PDZ and Sanichi will jointly apply for approval from the relevant government agencies in Johor to develop it.

The English daily quoted Sanichi group managing director Datuk Sri Dr. Pang Chow Huat who confirmed that the company plans to develop the e-commerce logistics hub with PDZ.

Pang said the logistics hub is a mixed-development, comprising an e-commerce center, a distribution center, warehouses and a transit center and that "it will run into several billion ringgit."

He said both PDZ and Sanichi plan to develop the logistics hub to ride on the exponential growth in the e-commerce business across Asia.

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The e-commerce market value in Malaysia is said to be worth US$4 billion but this could have increased by now due to the Covid-19 pandemic as more people are buying goods online and getting the products delivered to their door. This makes logistics a lucrative business.

PDZ's move into logistics in a bigger way is timely given that online shopping will continue to expand in the coming months with new cases of coronavirus worldwide. When the number of cases increases overseas, Malaysians become more cautious and start moving less outdoors and buying products from the comfort of their home.  

Many investors are keeping a close watch on PDZ and Sanichi. The stock has been rising steadily with 1.33 billion shares traded last Wednesday and close to 950 million shares traded on Friday.

We have mentioned that PDZ will work with Sanichi to develop a regional logistics hub in Johor, costing over RM1 billion and this is true now. We also said local tycoon Tan Sri Syed Mokhtar Albukhary has been buying shares in PDZ and now we hope this is also true. Syed Mokhtar could be eyeing a controlling stake in PDZ for his own gain.

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PDZ is involved in the container liner business. According to its website, it operates six vessels that cover domestic and regional trade between Malaysia, Brunei, Singapore and Myanmar. 

On the RM600 million contract it won from a big e-commerce platform operator in China, we think it could be Alibaba Group Holding Ltd or Tencent Holdings Ltd who currently dominate the China e-commerce market with platforms such as Taobao and JD.com Inc.

The planned logistics hub in Johor by PDZ and Sanichi could pave the way for more business to come in for the company.

PDZ rose from 9 sen on July 7 to its closing price of 24 sen today. The stock rose 3 sen or 14.63 per cent higher today, and a total of 581 million shares were traded today.

Will the stock exceed 30 sen again tomorrow like it did today? Let's hope.

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3 Sahabat Setia

  1. Maknanya akan ada special hub di Malaysia untuk barang China ke? Kalau betul, maknanya lagi mudah la dari segi customer service utk barang dari CHina? gitu ke?

    Saya kurang faham..

    ReplyDelete
  2. Harap sangat la yang kos logistik dari luar tak kan terus meningkat . Adakalanya suka gak beli dari luar sebab lebih murah tapi bila kos logistik meningkat ...hurmmm harga barang pun boleh tahan

    ReplyDelete
  3. It seems a good investment on the hub. I can't imagine if the stock keep rise up.

    ReplyDelete

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