KUALA LUMPUR (Feb 25): Samchem Holdings Bhd’s chief executive officer Ng Thin Poh is upbeat on the group’s prospects. 

Having achieved record net profit in the final quarter and financial year ended Dec 31, 2021 (4QFY21 and FY21), Ng said the next few years is set to be exciting for Samchem as it works to expand and further solidify its position as an integrated supply chain distributor, noting that its new warehouse in Pulau Indah is expected to be operational in 4QFY22.

“We have also set the wheels in motion for our expansion in Vietnam and expect its contribution to grow significantly over the next few years. Our expansion strategies coupled with long-term focus on operational excellence will drive continued growth and market penetration.

“We look forward to delivering another year of success in 2022,” he added.

Samchem’s net profit for 4QFY21 leapt 32% to RM23.92 million from RM18.11 million a year prior, underpinned by higher sales volume and average selling prices.

Earnings per share grew to 4.4 sen from 3.33 sen in 4QFY20, according to the group’s filing.

The integrated chemicals and lubricants distributor’s quarterly revenue surged 41.3% to RM430.53 million from RM304.6 million in the previous corresponding quarter, due to higher sales volume in line with the reopening of its businesses in all of the group’s key markets.

The company declared a fourth interim dividend of 1.5 sen per share for 4QFY21, bringing the total dividend per share to 4.5 sen for FY21.

On a quarter-on-quarter basis, the group’s net profit leapt 89.7% from RM12.61 million in 3QFY21, while revenue was up 57.8% versus RM272.81 million in the preceding quarter.

For FY21, Samchem posted an 83.5% jump in annual net profit to RM74.72 million from RM40.71 million in FY20, on the back of higher gross profit margin and continued improvement on operational efficiencies.

Meanwhile, annual revenue increased by 33.55% to RM1.41 billion from RM1.05 billion a year ago, due to higher average selling prices for the year-to-date under review.

In terms of its FY22 prospects, Samchem said its management will continue to focus on operational efficiencies and the expansion of new products and service offerings to improve the group’s performance.

“Barring any unforeseen circumstances, the board of directors are confident of the group’s performance for the coming financial year,” it added.

At 2:59pm on Friday, Samchem shares had risen two sen or 2.09% to 97.5 sen, giving the group a market capitalisation of RM530.4 million.