SHAH ALAM (May 22): Industrial chemicals distributor Samchem Holdings Bhd is aiming for a 5% revenue growth in financial year ending Dec 31, 2015 by securing more business from regional markets.

The firm intends to achieve the target by securing more clients across Malaysia, Vietnam, Indonesia and Cambodia, said Samchem (fundamental: 0.5; valuation: 2) chief executive officer Datuk Ng Lian Poh.

"We keep looking for new clients as well as new suppliers," Ng told reporters after the firm's annual general meeting here today.

Samchem's suppliers include ExxonMobil Chemical, Shell, BASF and Petronas Chemicals Group Bhd.

Ng said Samchem's revenue growth and cost efficiency were crucial measures to increase profitability. He said while the firm aimed to achieve revenue growth, it would focus on operational efficiency.

"More importantly, we are embarking on (achieving) efficiency and we hope that we will record good profit (going forward) like in the first quarter," he said.

For 1QFY15, Samchem reported that net profit rose to RM3.55 million from RM3.33 million a year earlier. This came on the back of higher revenue at RM155.89 million.

During FY14, net profit fell to RM6.25 million although revenue rose to RM632.35 million

Today, Ng said while Samchem would consider investment proposals, it would not pursue any merger and acquisition exercise at the moment.

He said Samchem was conducting studies to set up solvent blending facilities in Vietnam. He did not elaborate.

In Malaysia, Samchem shares had not been traded so far today. The thinly-traded stock closed at 67 sen yesterday.

(Note: The Edge Research's fundamental score reflects a company’s profitability and balance sheet strength, calculated based on historical numbers. The valuation score determines if a stock is attractively valued or not, also based on historical numbers. A score of 3 suggests strong fundamentals and attractive valuations.)