Samchem plans to increase warehousing capacity

KUALA LUMPUR: Samchem Holdings Bhd is scheduled to complete its Pulau Indah, Selangor and Vietnam expansion by yearend, increasing its total warehousing capacity by 38% and 58% in Malaysia and Vietnam, respectively.

“This will enable us to move into 2023 with the readiness to expand into new segments and enhance our product portfolio. Our expansion strategies, coupled with a longterm focus on operational excellence will drive future performance and market penetration,” chief executive officer Ng Thin Poh said in a statement.

The integrated chemicals and lubricants distributor is confident of its prospects and will continue to invest in long-term growth as chemicals are indispensable to many industries, according to Ng.

In the third quarter ended Sept 30, Samchem’s net profit fell 48.5% to Rm6.5mil, or earnings per share of 1.19 sen against Rm12.6mil, or 2.32 sen achieved a year ago.

Revenue rose 6% to Rm317.32mil compared with Rm272.81mil achieved in the preceding year’s corresponding period due to higher volume and higher average selling prices.

For the first nine months of the year, the group’s revenue increased by 8% year-onyear to Rm1.05bil and net profit was down 12.8% to Rm44.3mil.

“Despite the challenges, we remained profitable. We have declared a third interim dividend of 0.6 sen per share, representing a payout ratio of 50%,” he added.