$SAMCHEM / 5147 (SAMCHEM HOLDINGS BERHAD) ‘s Q3FY2023’s QR is out! Results are improving!

Petrochemical’s demand is back?

Apologies for the late post, as I was away for the last few days. But great movement for Samchem!
@LittleShare @boncos

# Comparing current quarter (Q3FY2023) with preceding year corresponding quarter (Q3FY2022):

- Rev increased by 2% to RM 322.53 mil due to increase in sales vol. Also 3rd consecutive quarter of rev and vol growth for the Group.
- COS even went down 2%.
- Gross profit is up 51% to RM 34.64 mil.
- Admin expenses and selling & distribution expenses were up 36% and 38% respectively even tho rev is only up by 2%.
- PBT surged 71% to RM 12.36 mil due to higher profit margins.
- PAT also surged 75% to RM 9.74 mil.
- Net profit margin improved from 2% to 2.6%.
- EPS grew from 1.19 sen to 1.56 sen.
- NOCF is slightly lower at RM 7.52 mil.
- Generated FCF.
- Geographical segment rev: MY (45%), Indo (7%), Viet (45%) and Singapore (3%)
- Rev is MY and Indo decreased by 11% and 8% respectively, but rev in Viet and Singapore both increased by 19% respectively.
- Viet turned profitable in the current quarter (was in the red in Q3FY2022).
- Declared a 3rd interim dividend of 0.6 sen per ordinary share.

# Comparing current quarter (Q3FY2023) with immediate preceding quarter (Q2FY2023):

- Rev is up by 17% to RM 322.53 mil due to improvements in both sales vol and margins.
- COS also increased by 16%.
- Gross profit rose by 23% to RM 34.64 mil.
- Admin expenses and selling & distribution expenses’s increase is in line with the increase in rev.
- PBT soared by 57% to RM 12.36 mil.
- PAT surged by 62% to RM 9.4 mil.
- Net profit margin improved from 2% to 2.6%.

# Executive Chairman’s comment:

- Samchem achieved satisfactory results, marked by increased sales vol across all key geographies despite prevailing subdues biz sentiments.
- Witnessed improving economic landscape and stabilizing biz environment in recent months.
- This shift also provided some respite, with market inventory levels normalizing, subsequently easing price competition.
- Looking ahead, hopeful for further improvements in the coming quarters, bolstered by construction and infra projects, in addition to higher activities across sectors as reflected by rising sales vol.
- The newly commissioned facility at Pulau Indah Industrial Park is currently operating at its optimum capacity.
- New facilities are also being launched in Viet.