“Being appointed the sole distributor to multiple suppliers due to its strong presence in Asia further cements Megachem’s positioning as the company of choice. Its global just-in-time delivery offering — a venture requiring precision — calls for superior inventory management and logistic capabilities coupled with a strong IT management system,” the analysts add.
SAC Capital has initiated “buy” on chemical solutions provider Megachem (SGX:5DS
) with a target price of 55 cents, highlighting the company’s sticky relationship with customers which allows for high order book visibility and studier margins.
In their report, analysts Nicole Lim Qiuni and Matthias Chan note that Megachem offers a one-stop integrated solution for its customers, leveraging on its capabilities in proprietary chemical products manufacturing, contract manufacturing and global distribution.
