Samchem 3Q net profit almost doubled on higher sales

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KUALA LUMPUR (Nov 10): Industrial chemical distributor Samchem Holdings Bhd's net profit for the third quarter ended Sept 30, 2017 (3QFY17) almost doubled to RM6.31 million from RM3.26 million in the corresponding quarter a year ago, mainly due to higher sales.

Quarterly revenue rose 41.6% to RM242.62 million from RM171.26 million last year. Its note filed with Bursa Malaysia today said the revenue growth was mainly due to the strategic market positioning of the group in the region.

Samchem's chemical distribution and blending operations segment contributed RM239.99 million — Malaysia is the biggest market with revenue contribution of RM128.97 million. Meanwhile, its audio, video and ICT distribution operations segment registered RM2.61 million in revenue.

For 3QFY17, Samchem's board of directors has declared a second interim dividend of 1 sen per share for the financial year ending Dec 31, 2017. The payment date falls on Dec 12.

In the cumulative nine-month period of the year (9MFY17), the group recorded a net profit of RM14.7 million, up 28% from RM11.48 million in the same period a year ago, also mainly due to the aforementioned higher sales in the current year to date.

Samchem's revenue grew by 39.7% to RM676.18 million from RM483.72 million during the same period a year ago.

"Barring any unforeseen circumstances, the group and the directors expect that the group's performance will be positive for the remaining periods of the financial year ending Dec 31, 2017," it said of the prospects of the company for the rest of the year.

At market close, Samchem shares rose 1 sen or 1.03% to settle at 98.5 sen, with a market capitalisation of RM269.28 million. Year to date, the share price has grown by 38%.