Confirmed News on Sanichi-PDZ Tie-up for RM1.5 Billion Logistics Hub in Johor

Confirmed News on Sanichi-PDZ Tie-up for RM1.5 Billion Logistics Hub in Johor | Hey guys! Great news for those looking to invest in penny stocks that are trading actively across the local bourse and the two counters we are selecting this round are Sanichi Technology Bhd and PDZ Holdings Bhd. We have been saying that both PDZ and Sanichi are working together to develop an e-commerce logistics hub in Johor and this news was confirmed by the New Straits Times (NST). The NST reported today that PDZ and Sanichi are in a partnership to develop a regional e-commerce logistics hub in Johor, that may cost over RM1.5 billion.

It said the logistics hub is designated to handle activities related to transportation, separation, coordination and distribution of goods for local and international transit, and will target supply-chain players and will be similar to the one developed by China e-commerce logistics giant Alibaba Group Holding Ltd in China.

According to the NST report, it has seen a document stating that the hub is expected to be developed over 234 acres in Desaru, Kota Tinggi. It said both PDZ and Sanichi will jointly apply for approval from the relevant government agencies in Johor to develop the hub. The NST quoted Sanichi group managing director Datuk Sri Dr. Pang Chow Huat who confirmed that the company is planning to develop the e-commerce logistics hub with PDZ.

Confirmed News on Sanichi-PDZ Tie-up for RM1.5 Billion Logistics Hub in Johor

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. The e-commerce business is perhaps the most lucrative business right now because of the Covid-19 pandemic that makes more people want to shop online to protect themselves and their families from Covid-19.

PDZ may also want to build the logistics hub as it has won a RM600 million contract from a big e-commerce platform operator in China. The Chinese operator could be Alibaba Group or Tencent Holdings Ltd who currently dominate the China e-commerce market with platforms such as Taobao and JD.com Inc. And then there are talks that Malaysian billionaire Tan Sri Syed Mokhtar Albukhary could be eyeing a controlling stake in PDZ to expand his empire.

In a matter of time both these news on Syed Mokthar and the RM600 million may also be confirmed by PDZ. Let's hope soon! 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. 

The stock has risen by over  by more than 200 per cent from nine sen on July 7 to its closing price of 24 sen today, boosting its market capitalisation from RM79.79 million to RM208.35 million. The stock rose 3 sen or 14.63 per cent higher today, and a total of 581 million shares were traded today.