KUALA LUMPUR (May 5): Magni-Tech Industries Bhd (KL:MAGNI), which manufactures garments as well as flexible plastic and corrugated packaging products, is acquiring a prime parcel of beachfront land in Tanjong Bungah, Penang, for RM133.33 million in cash to support its move into property development.

Magni-Tech Industries’ substantial shareholder and executive chairman is 79-year old Penang tycoon Tan Sri Tan Kok Ping. He own  a direct 5.25% stake and a 13.95% indirect interest in the company.

The Edge Malaysia weekly first reported in its Oct 20–26, 2025 issue that the Neoh family had put the land next to the Dalat International School, which was used as a car park, up for sale.

According to Magni-Tech’s filing with Bursa Malaysia, the purchase of the 205,380 square feet freehold land, at about RM649 per square feet, will be through internally generated funds.

Its wholly-owned unit Magni Land Sdn Bhd has inked a sale and purchase agreement with Neoh Choo Ee & Company Sdn Bhd, an investment holding company controlled by the Neoh family.

It counts Datuk Dr Neoh Soon Bin, Neoh Jiuh Yih @ Liang Jiun Yih, Ratana Kupsrimongkol, Neoh Jiun Yan, Neoh Jiun Hao, Neoh Soon Chong, Neoh Soon Heng, Dr Neoh Soon Leong, Dr Neoh Koon Gee, Dr Anna Koon Hooi Grieve, Neoh Koon Eng and Dr Neoh Soon Kean as its directors.

Soon Kean is a seasoned investor and founder of Dynaquest Sdn Bhd, a Penang-based investment consulting and publication firm.

Magni-Tech said the land is surrounded by established hotels, resorts and international schools, enhancing its appeal and development potential.

The land was originally acquired by the vendor in 1973, with an audited net book value of about RM1.01 million as at Dec 31, 2025.

The acquisition is expected to be completed in the second half of this year.

As at end-January 2026, Magni-Tech had cash and bank balances of RM485.08 million and no borrowings.

For the third quarter ended Jan 31, 2026 (3QFY2026), Magni-Tech’s net profit fell 23.10% to RM30.74 million from RM39.97 million, dragged by lower contribution from its garment segment due to higher foreign exchange losses, although revenue rose to RM376.35 million from RM370.71 million on higher sales orders.

For the first nine months of FY2026, the group’s net profit declined 10.78% year-on-year to RM98.58 million from RM110.48 million, as revenue eased 5.02% to RM1.10 billion from RM1.16 billion. The group’s garment segment counts for more than 90% of its revenue and profits.

At market close on Tuesday, Magni-Tech’s share price slipped one sen or 0.53% to RM1.89, giving it a market capitalisation of RM820.17 million.