Samchem to increase warehousing capacity in Malaysia, Vietnam
14 Nov 2022
Samchem Holdings Bhd is scheduled to complete its Pulau Indah and Vietnam expansion by year-end, increasing its total warehousing capacity by 38% and 58% in Malaysia and Vietnam, respectively.
“This will enable us to move into 2023 with the readiness to expand into new segments and enhance our product portfolio. Our expansion strategies, coupled with a long-term focus on operational excellence will drive future performance and market penetration,” chief executive officer Ng Thin Poh said in a statement.
The integrated chemicals and lubricants distributor remained confident of its prospects and continue to invest in long-term growth as chemicals are indispensable to many industries.
In the third quarter ended Sept 30, Samchem’s net profit tumbled 48.5% to RM6.5mil, or earnings per share of 1.19 sen against RM12.6mil, or 2.32 sen achieved a year prior.
Revenue, however, rose 6% to RM317.32mil compared to RM272.81mil achieved in the preceding year’s corresponding period due to higher volume and higher average selling prices.
For the first nine months of the year, the group’s revenue increased by 8% year-on-year to RM1.05bil and net profit was down 12.8% to RM44.3mil.
Ng said unfavourable macro conditions such as interest hikes, inflationary pressure, higher input costs, logistic disruption, and zero-Covid policy from China posed significant challenges in 3Q22.
“We view the setback in chemical demand as temporary as the market adjusts to the new economic benchmark, rationalise product prices and normalising inventory levels.
“Despite various challenges, we remained profitable and maintained strong financial resilience. This allowed us to continue rewarding our shareholders with dividends and we declared a third interim dividend of 0.6 sen per share, representing a payout ratio of 50%,” he added.
Source: The Star