“Megachem’s global network of warehouses and logistic supply bases in 11 countries is a competitive edge,” he notes.
SAC Capital analyst Lam Wang Kwan is keeping “buy” with an unchanged target price of 58 cents on Megachem as he sees the higher average selling prices (ASPs) for specialty chemicals to improve margins for the FY2022.
Supply chain disruption and demand uncertainty have caused Megachem’s customers to rethink their strategy for raw material procurement. Instead of bulk purchases and hold stock, they are looking to suppliers with a diversified geographical network that can deliver goods on short notice and in smaller quantity,” the analyst writes in his June 20 report.
