$SAMCHEM / 5147 (SAMCHEM HOLDINGS BERHAD) ‘s Q1FY2024 Quarterly Report summary:

# Comparing current quarter (Q1FY2024) with preceding year corresponding quarter (Q1FY2023):
- Rev improved by 17% to RM 298.24 mil due to increase in sales vol.
- Gross profit increased by 32% to RM 33.85 mil.
- Administrative expenses increased by 27% to RM 17.87 mil even tho rev only improved by 17%.
- PBT rose by 7% to RM 9.13 mil due to higher sales vol and gross margins.
- PAT also rose by 8% to RM 7.06 mil
- Net profit margin deteriorated from 2.6% to 2%.
- EPS dropped from 1.20 sen to 1.12 sen.
- NOCF improved quite significantly to RM 13.07 mil from RM 2.55 mil.
- Geographical segment rev: Malaysia (52%), Vietnam (41%), Indonesia (5%), and Singapore (2%). All markets recorded better results except for the Indonesian market which saw a 30% drop in rev. The Indonesian market’s loss was widened by 275% to – RM 663 mil while the Vietnam market turned very profitable.

# Comparing current quarter (Q1FY2024) with immediate preceding quarter (Q3FY2023):

- Rev dropped by 3% to RM 298.24 mil.
- Gross profit declined by 14% to RM 33.85 mil
- Total expenses increased by 3% even tho rev is declining.
- PBT fell by 52% to RM 9.13 mil due to lower sales vol and gross profit margins.
- PAT also fell by 46% to RM 7.06 mil.
- Net profit margin declined from 3.4% to a mere 2%.

# Prospects:

- Over the past year, they have expanded their warehousing cap in both Malaysia and Vietnam, a strategic initiative poised to unlock new opportunities for growth.
- This expansion is pivotal to facilitate their penetration into new client’s segment and to broaden their product offering.
- In addition, they also aim to capitalize on the potential opportunities arising from both the shifting trends of Chinese manufacturer’s supply chain, as well as the relocation of global chemical plants to this region.
- The Board remains cautiously optimistic on a more favorable overall operating environment, particularly in the 2HFY2024.
- This outlook is bolstered by anticipated improvements in the economic landscape and heightened demand driven by increased construction and infra activities within their key markets.