Megachem Limited

Megachem Limited | Buy

Target price: 50 cents

June 21 close: 32 cents

Broker: SAC Advisors, June 26

Megachem is an integrated solutions provider for speciality chemicals.

Its key advantage lies in its wide global distribution network that offers a one-stop solution and just-in-time delivery, thanks to its sophisticated IT and supply chain management system. Unlike commodity chemicals, demand for speciality chemicals is relatively insensitive to price changes. This, coupled with Megachem's diversified customer base and industry reach, contributed to a strong track record of stable revenue and gross margins.

We expect the group to deliver top and bottom line growth in the next three years, driven by (i) a burgeoning global economy, in particular higher demand for construction, electronics and water treatment; (ii) strong demand from Asia; (iii) focus in the higher-margin biotech segment; and (iv) higher demand for contract manufacturing services.

Educator Index

Archive

2018
September
August
July
June
May
April
March
February
January