Vietnam Dong, RM Malaysia, and Indonesia Rupiah all went down against USD. Meaning if SAMCHEM selling their goods in the local currency, but need to buy those oil product in USD, this would impact the profit margin, unless they can pass the cost to the buyer.
However, good news is RM is strengthen against Dong and Rupiah.
Indonesia loss is eating into Malaysian profit ... It is not good .. Damn. Meanwhile, they are paying the dividend at the cost of loan ... I like dividend but I hope it is sustainable.
well, they did achieve 1 billion revenue as promised, but the profit margin is dragged down while they are expanding the business.
As stated in the quarter report, "This is mainly due to a drop in profit margin and foreign exchange losses in Indonesia as a results of the weakening of Rupiah".
They did not reveal the actual cause for loss in indonesia, hope it is temporary, and the profit will be back on track with the revenue.
Its currently undervalued as its stands,last quarter results were hardly disastrous, so hopefully it will rebound some more. Market sentiment is still a worry unfortunately.
22-Nov-2018 Insider NG THIN POH (a substantial shareholder) acquired 307,800 shares on 21-Nov-2018. 22-Nov-2018 Insider NG THIN POH (a company director) acquired 307,800 shares at 0.735 on 21-Nov-2018.
0.66sen. Assuming dividend is 3 sen per year, you get 4.5%DY. Assuming EPS is 1.66 for 4x quarter, 0.66/0.064=PE10.3. It is very attractive now.. BUY>.....
50% of SAMCHEM business from other countries (vietnam 30%, singapore and Indo 15%)
another 50% of SAMCHEM business from Malaysia
But take note, SAMCHEM hq is at Shah Alam laaaaaa helloooo, how they involve in the pollution lehhhh ??? you try use WAZE search SAMCHEM, it is locate at Shah Alam
Last quarter reports: The Group and the Directors expect that the Group’s performance for the forthcoming year ending 31 December 2019 will be positive, driven by continued cost reduction measures, increased operational efficiency and growth in sales. Price target:- RM0.77. Wait and see.
2. Samchem revenue is almost RM1 billion, with 3 main market contributors: Malaysia 50%, Vietnam 35%, Indonesia 15%. Vietnam and Indonesia are both fast growing market with huge potential given their total population is 10x of Malaysia population. This is quite significant as the company would requires to grow and capture new market given that they represent established brand.
3. The rise in crude oil will drive up the sales price of chemicals distributed by Samchem . This will lead to higher revenue in FY18 in turn leads to higher profit. In latest quarter result, their net profit increase 62% from 5.01 million a year ago. Samchem expect its performance to be positive and driven by continued cost reduction measures, increase operational efficiency and growth in sales.
New IPO: Building management systems (BMS), solar thermal systems and energy-saving services provider, Solar District Cooling Bhd aims to list on the Ace Market!
MQ Trader 332 views | 2 d ago
0:17
New IPO: The onshore and offshore support services provider for the O&G industry, Steel Hawk Bhd aims to list on the Ace Market!
MQ Trader 11606 views | 10 d ago
0:17
New IPO: The largest mini-market player and a leading groceries retailer in Malaysia, 99 Speed Mart Retail Holdings Bhd aims to list on the Main Market!
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
kevin5059
933 posts
Posted by kevin5059 > 2018-11-07 13:11 | Report Abuse
Vietnam Dong, RM Malaysia, and Indonesia Rupiah all went down against USD. Meaning if SAMCHEM selling their goods in the local currency, but need to buy those oil product in USD, this would impact the profit margin, unless they can pass the cost to the buyer.
However, good news is RM is strengthen against Dong and Rupiah.