LUXCHEM CORPORATION BERHAD

Luxchem has the following subsidiaries, which is all 100% owned:

• Luxchem Trading Sdn Bhd (LTSB)
• Luxchem Polymer Industries Sdn Bhd (LPI)
• Luxchem Vietnam Company Limited (LVCL)
• Luxchem Trading (S) Pte Ltd (LTSPL)
• Transform Master Sdn Bhd (TMSB)
• Chemplex Composite Industries (M) Sdn Bhd (CCI)
• PT Luxchem Indonesia (PTLI)

 There are two segment of businesses for the group i.e. Trading and Manufacturing

Trading





Manufacturing


FY2016 vs FY2015 Overall Results

• Revenue grow by 2.15%
• Profit before tax grow by 8.6%
• Profit after tax grow by 10.3%
• Net Profit Margin: 5.8% (2015), 6.2% (2016)

FY2016 vs FY2015 Segmentation Results

Manufacturing

• Revenue grow by 16.7%
• Profit before tax grow by 13.4%
• Profit after tax grow by 13.2%
• Net Profit Margin: 11.7% (2015), 11.4%% (2016)

Trading

• Revenue drop by 1.1%
• Profit before tax grow by 5.5%
• Profit after tax grow by 9.7%
• Net Profit Margin: 3.4% (2015), 3.8% (2016)

FY2016 vs FY2015 Revenue by Geographical Segmentation
 

• Vietnam and Indonesia has been the biggest contributor to the revenue for exports market.
• Exports growth has increased by 3%

Q1FY2017 (31 Mar 2017) Result Analysis

 

  

•  Revenue in trading segment has been pretty flat for every quarters in FY2016, ranging between RM134 mil - RM148 mil. However in 1QFY2017, revenue in trading segment improved significantly by 34.9% to RM181 mil and giving it a PBT growth of 70.9%.
• Manufacturing segment seems to have recorded a significant growth as well in q-on-q result. However, a decline of 32.6% is recorded in PBT on top of a insignificant 2.9% improvement in revenue comparing to the immediate preceding quarter (4QFY2016).  
• Nevertheless, trading segment has recorded a significant improvement compare to the immediate preceding quarter in both revenue and PBT at 22.2% and 80.1% respectively.
• No information was given on why the trading segment has achieve a significant improvement. Is this due to last year's (Jan 2016) expansion to Vietnam (via LVCL) which we are now seeing the fruits? Is this improvement in result sustainable? If the result in trading segment manage to sustain for the coming few quarters, we can potentially see the re-rating of the group's share price.  
• Notice that since the acquisition of TMSB in Apr 2016, revenue in manufacturing segment has improved to the tune of RM60+ mil (in the latest 2 quarters) from average of RM40+ mil in FY2016. 

Technical Analysis













 

• Luxchem is trading at resistance of rm1.80 currently. A breakout may see the price challenge the all time high price of rm1.94.
• Notice that share price already broke out from downtrend line on 12-May

News

• http://www.theedgemarkets.com/article/luxchem-boost-presence-indonesia-vietnam
• https://klse.i3investor.com/blogs/kenangaresearch/125439.jsp

Disclaimer: The above information is NOT a recommendation to buy or sell stocks. They are only for sharing and educational purposes only. Any trade that you undertake as a result of the above information is solely at your own risk. Please consult your own investment advisor before undertaking any investment decision.