- MegaChem (SGX:5DS)'s macro environment is stabilising. 2H24 revenue was similar y-o-y and h-o-h at S$62.3m. To recap, 2H23 continued the situation in 1H23 where we saw weak demand and the chemicals industry was in an oversupply situation where customers were destocking.
Tail-end of the fire incident.
- - Read this at SGinvestors.io -
- Going forward, there will be little financial impact from the fire.
Ex-fire, FY24 profitability was higher y-o-y and within expectations.
- Stripping out the impact of the fire, MegaChem's FY24 gross profit came in at S$31.2m or 39% higher y-o-y. Gross margin came in at a pre-fire level of 24.5%, close to our forecast of 24%.
- - Read this at SGinvestors.io -
Part of the AI future.
- Being the basic building block, chemicals are indispensable to the hardware surrounding artificial intelligence. And MegaChem is already servicing such needs. In fact, its Surface Technology business accounts for a substantial 21% of total revenue.
- Besides the AI sector, the Surface Technology business also includes the growing Data Centres and the recovering semi-con and aviation/MRO sectors.
Green jet fuels getting the attention in Singapore.
- Read more at SGinvestors.io.
