KUALA LUMPUR (April 28): Samchem Holdings Bhd’s net profit grew by 4.4 times to RM18.95 million for the first quarter ended March 31, 2021 (1QFY21) from RM4.33 million a year ago, thanks to an increase in sales volume and average selling price.

The better performance was also due to improved profit margin and a reduction in finance costs, the group said in a bourse filing.

It said earnings per share rose to 6.97 sen from 1.59 sen in 1QFY20.

Quarterly revenue, meanwhile, increased 28% to RM330.7 million from RM258.43 million a year ago.

On a quarter-on-quarter basis, Samchem said net profit rose 5.2% from RM18.01 million in 4QFY20, while revenue was up 8.6% from RM304.6 million.

The group has declared a first interim dividend of one sen per share.

Samchem CEO Ng Thin Poh said in statement: “We have witnessed improving average selling prices since 3QFY20 and we are optimistic that prices will remain favourable, supported by economic recovery prospects and global vaccination roll outs.”

He said the on-going global shipping container shortages exacerbated the tightness of chemicals supply in the region, adding that Samchem was able to increase its market share in the countries that it operates and secure inventories.

“We have implemented various business strategies which are expected to contribute positively in 2021 and beyond, as we scale up the value chain by providing additional value-added services to our clients.

“The next few years will be exciting for Samchem as we work to expand and further strengthen our position as an integrated supply chain distributor,” said Ng.

On prospects, Samchem said its board is positive on the group’s performance for the remaining quarters of the current financial year.

“Our performance is driven by the demand and supply balance of chemicals in our product portfolio, regional consumption and GDP growth and can be affected by exchange rate fluctuations, Covid-19 pandemic challenges, competition and disruptions to demand and supply,” the group said.

Samchem’s shares closed down four sen or 2.14% at RM1.83 today, valuing the group at RM497.76 million. Over the past year, the counter has risen 182% from 65 sen.

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