KUALA LUMPUR (May 15): Sin-Kung Logistics Bhd (KL:SINKUNG), which made a flat debut on the ACE Market of Bursa Malaysia on Wednesday, plans to double its warehouse capacity with a new Penang warehouse, catering to the electrical and electronics (E&E) industry in the northern region of Peninsular Malaysia.

The integrated logistic service provider's managing director Alan Ong, who spoke at the company’s listing ceremony, said the new warehouse, known as the Valdor Office and Warehouse, is expected to be operational earlier than expected, possibly by early 2025, from its initial slated plan by the fourth quarter of 2026. 

According to Ong, some electronics companies, in the process of replenishing their inventory, have shown interest in the new warehouse. They had reached out through real estate agents to inquire if the warehouse is already committed to clients, he noted. 

The Valdor Office and Warehouse in Penang is being specifically designed for the E&E industry. The choice of location is strategic, given Penang’s growing reputation as a tech hub in Malaysia, Ong said.

Upon completion, the new facility is expected to double Sin-Kung’s current annual capacity of 192,000 pallets.

Sin-Kung plans to allocate some RM10.02 million from its initial public offering proceeds towards the warehouse. Of this, RM7 million will be used for the purchase of racking systems to furnish the property, with the remaining amount set aside to cover incidental expenses.

Currently, Sin-Kung operates five warehouses in Shah Alam and Port Klang in Selangor, as well as Bukit Mertajam, Butterworth and Bukit Minyak in Penang respectively.

In addition to providing warehouse and distribution services, Sin-Kung’s primary business is trucking services, with a focus on airport-to-airport road feeder services, as well as providing container haulage services.

For the financial year ended Dec 31, 2023 (FY2023), trucking services contributed nearly 73% of Sin-Kung’s revenue, amounting to RM37.58 million. This was followed by warehousing and distribution services, which contributed 15.7% or RM8.18 million.

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