Sin-Kung Logistics makes flat debut on ACE Market

From left: Sin-Kung Logistics independent director Datuk Haji Abdul Wahabi Abdullah, director Datuk Md Hassim Pardi, independent director Adam Muralidharan Abdullah, independent director Datuk Hj Mohamad Dalib, managing director Alan Ong, executive director Angeline Ong, chairwoman Tan Soo Mooi, executive director Adeline Ong, independent director Lee Lean Suan, general manager Adeline Ong, M&A Equity Holdings Bhd managing director Datuk Bill Tan and M&A Securities Sdn Bhd head of corporate finance Gary Ting.

KUALA LUMPUR: Sin-Kung Logistics Bhd made a flat debut on the ACE Market, opening at 13 sen per share, unchanged from its initial public offering (IPO) price.

The share price of the integrated logistics service provider closed at 14 sen with an intra-day high of 15.5 sen.

It was also the most active stock with 394 million shares changing hands.

Sin-Kung Logistics managing director Alan Ong said the removal of fuel subsidies would not affect the group’s trucking business.

“We will still be enjoying diesel subsidies from the Domestic Trade and Costs of Living Ministry as we are the owners of the trucks,” Ong said during a press conference after the listing ceremony.

According to Ong, the ministry, however, has not provided more details about the diesel limit that is is going to approve for the group.

Moving forward, the group’s trucking services will continue to be the group’s main revenue driver, followed by its warehousing and distribution services for 2024.

Sin-Kung Logistics is allocating RM10mil from its IPO proceeds to fund expansion of its warehousing and distribution services to meet the rising demand from manufacturing and eCommerce sectors.

The group’s new office and warehouse in the Valdor Logistics Hub in Penang, which has a total built-up area of approximately 164,000 sq ft is expected to double its current storage capacity.

Ong said the group is aiming to capitalise from the demand for logistics services to drive the group’s business as electrical and electronics (E&E) products are considered prized items and commonly transported through air freight.

The new warehouse will have a larger annual storage capacity of approximately 196,000 pallets compared with its existing warehouses in Bukit Mertajam, Butterworth, Bukit Minyak, which have annual capacities of 35,232, 2,760 and 20,820 pallets, respectively.

“This definitely benefits us as it would double the current warehouse capacity of 196,000 pallets. Some electronics companies have approached us asking about the operations of the warehouse,” Ong added.

“The new warehouse is specifically designed in a way to mimic the environment of an E&E plant as we have installed air-conditioning to ensure lower humidity and temperature for proper E&E product storage,” he said.

He said that due to the Penang state government’s efforts in zoning certain areas depending on the businesses there, the group is able to tap into an under-supplied logistics market along with benefiting from higher profit margins in storing and transporting E&E products.

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