The earnings and revenue growth were thanks to buoyant crude oil and downstream chemical prices, tighter supply from Europe caused by energy constraints, and uptick in demand from Asean re-opening.
SAC Capital is reiterating its “buy” call on Megachem Limited with a target price of 58 cents, following its recent 1HFY2022 ended June results release.
The chemicals distributor reported earnings of $4.5 million for 1HFY2022, up 18% y-o-y. Revenue, meanwhile, was up 14.1% to $75.2 million. It also declared an interim dividend of 0.8 cent per share.
