Samchem posts RM19.2mil net profit in Q2
KUALA LUMPUR (Bernama) -- Samchem Holdings Bhd’s (Samchem) net profit for the second quarter ended June 30, 2021 jumped 120 percent to RM19.24 million compared to RM8.76 million in the same period last year.
Revenue rose to RM371.56 million from RM201.09 million previously, the group said in a filing to Bursa Malaysia today.
Samchem said the increase in revenue was due to higher sales volumes from its Malaysia, Vietnam, and Singapore markets as well as higher average selling prices of chemicals.
The surge in profitability was mainly attributable to margin improvement in those same markets and lower finance costs.
Chief executive officer Ng Thin Poh said Samchem’s business has continued to demonstrate resilience amid the lockdowns and other pandemic-related challenges.
"Our strategy to have a presence in multiple markets such as Malaysia, Vietnam and Indonesia has worked favourably as we are less susceptible to the economic cycles and conditions of a particular country,” he said in a statement.
Ng said once the lockdown eases, Samchem will be commencing the construction of its warehouse in Pulau Indah, which is expected to take about a year to complete.
"This will double our storage capacity in Klang Valley and is expected to commence operations next year.
"We will be consolidating our central region blending and storage facilities into this new warehouse, which is close to the port, further increasing efficiency and extracting cost savings”, he added.