Home News Stocks To Watch

Megachem holds steady amid pandemic woes; eyes Asean market with graphite venture

Lim Hui Jie
Lim Hui Jie6/11/2021 7:0 AM GMT+08  • 8 min read
Megachem holds steady amid pandemic woes; eyes Asean market with graphite venture
Investors may find a hidden gem on the SGX in Megachem, a chemicals company that has been doing well in the pandemic.
Font Resizer
Share to WhatsappShare to FacebookShare to LinkedInMore Share
Scroll to top
Follow us on Facebook and join our Telegram channel for the latest updates.

Typically, when a company’s revenue drops, its earnings drop as well — especially under the challenging circumstances facing companies and economies since the start of the pandemic early last year.

Yet, Megachem, a chemicals distributor, has proven otherwise. Given how the company has a relatively low profile, trading interest in it has been relatively muted. No trades have occurred in May, and it has a three-month average trading volume of just 890,000 shares. The company has a total of 133 million shares issued.

Francis Yau, the company’s CFO, thinks that the lack of interest in the stock is not something that can be attributed to the company. “For 18 years, we have done everything consistently. So I have come to the conclusion that the liquidity of the shares is not so much [anything to do] with the company, but it’s a market factor. I can see many companies in the stock market suffering from liquidity issues. It’s a syndrome,” says Yau in an interview with The Edge Singapore.

For more insights on corporate trends...
Sign In or Create an account to access our premium content.
Subscription Entitlements:
Less than $9 per month
Unlimited access to latest and premium articles
3 Simultaneous logins across all devices
Bonus unlimited access to online articles and virtual newspaper on The Edge Malaysia (single login)
Loading next article...
The Edge Singapore
Download The Edge Singapore App
Google playApple store play
Keep updated
Follow our social media
Subscribe to The Edge Singapore
Get credible investing ideas from our in-depth stock analysis, interviews with key executives, corporate movements coverage and their impact on the market.
© 2022 The Edge Publishing Pte Ltd. All rights reserved.