On Nov 21, Chemical Industries (Far East) : C05 0% non-executive and non-independent director and emeritus chairman, Lim Soo Peng, acquired 665,000 shares at 75 cents per share. With a consideration of S$498,750 the married deal increased his total interest in the industrial chemicals and property group from 48.07 per cent to 48.95 per cent.

 

On Nov 14, Chemical Industries (Far East) reported a revenue increase of 44.7 per cent, from S$34.8 million for its H1 FY22 (ended Sep 30) to S$50.3 million for its H1 FY23. This saw the group record a profit before tax of s$0.9 million in H1 FY23 compared to a loss of s$1.7 million in H1 FY22, with the H1 FY22 losses due to an impairment loss of S$.1 million recorded for property, plant and equipment in Chemical Industries (Myanmar).

 

Lim served as the chairman and managing director of the company from March 1962 through to August 2020.

Chemical Industries (Far East), which manufactures and sells chemicals, posted a 344.2 per cent jump in net profit to S$9.4 million for the second half ended March 31, 2022.

 

Revenue rose 53.7 per cent to S$50.2 million following an improvement in sales of the group&rsquo s core chlor-alkali chemical products.

 

However, the company&rsquo s gross profit margin fell to 26 per cent from 31 per cent due to rising energy prices and raw material costs, amid supply chain and logistics disruptions.

 

Nevertheless, higher other income, reduced distribution expenses due to lower piping charges, and a S$1 million credit provision due to overprovisions of prior year taxes led to a surge in net profit during the period.

 

Earnings per share was 12.38 Singapore cents compared with 2.79 Singapore cents a year ago.

 

For the full year, net profit rose 22.1 per cent to S$6.8 million while revenue increased 34.9 per cent to S$85 million.

 

The group has declared a final dividend of 1.5 Singapore cents per share, unchanged from a year ago, and a special dividend of 1.8 Singapore cents per share to commemorate the group&rsquo s 60th anniversary. The dates on which books close and dividends are paid will be advised at a later date.

 

Chemical Industries said its profitability will be impacted by the increase in energy cost, a major component of its cost of sales. Energy cost is expected to remain high in the coming months due to the Russia-Ukraine conflict.

 

Furthermore, the group continues to be affected by escalating raw material prices and shipping costs, it said.

 

Chemical Industries recently entered into a new energy contract at significantly higher rates, which take effect from Jul 1. &ldquo The board expects the group&rsquo s prospects to remain challenging in the months ahead. The group continues to look at ways to increase its sales as long as the price of imported caustic soda remains high,&rdquo it said.

 

Operations in Myanmar remain difficult as sales to its major customer remain uncertain. It is also experiencing currency volatility, and recorded an impairment loss of S$6.2 million in property, plant and equipment in Myanmar.

 

On April 8, S P Lim Holdings (SPLH) acquired 650,000 shares of Chemical Industries (Far East) for a total consideration of S$448,500 at 69.0 cents per share.

 

The married deal took the deemed interest of Chemical Industries (Far East) managing director Lim Soo Peng from 47.21 per cent to 48.07 per cent.

 

Back on Nov 2, the company reported that its H1FY21 (ended Sept 30) gross profit increased to S$8.9 million, from S$6.4 million in H1FY20.

 

The increase in gross profit was mainly due to lower cost of sales arising from a decrease in energy charges by S$2 million or 32.5 per cent in H1FY21 from H1FY20.

 

Mr Lim is also the founder of Chemical Industries (Far East).

 

As managing director, he manages and develops the businesses of the group and implements the board' s decisions and also undertakes the executive responsibilities of the group' s performance.