jerret

15 Reasons Why I like Luxchem

jerret
Publish date: Wed, 21 Aug 2024, 11:53 AM

1. Luxchem plan to start setting up production plant in China, (China has 5% of company Revenue). 

2. Lexis is major contribution  of profit in FY2023.

3. Increase utilisation capacity

Luxchem Polymer Industries Sdn. Bhd - Capacity = 40,000mt, Utilisation = 68%, expect 75% in 2024

Transform Master Sdn. Bhd. - Capacity = 18,000mt, Utilisation = 65%, expect 70% in 2024

Lexis Chemical Sdn. Bhd. - Capacity = 46,800mt, Utilisation = 39%, expect 40% in 2024

4. Pay dividen regulary

5. Diversify into new market sector- Algeria

-customer expand production line in glove sector

-More glove company set up in Algeria

-low energy and labour cost

-potential for business expansion

6. Nett cash company

7. Competitive advantage-manufacturing and trading sector, quite equally contribution of yearly revenue, beside, local market, Luxchem also has export to more than 20 countries which contribute 40% of revenue

8. Product from Luxchem ie latex, rubber, fibreglass reinforced plastic, pvc are equally distributed, no single industries dominates Luxchem revenue stream.

9. Given the geopolitical tensions between the US and China, Southeast Asia has become advantageous for Western countries to source materials

10. 2026 Usa will impose Tariff to China for glove industries, this has given good sign of improvement with a gradual recovery sales

11.  China glove company may initiate production in south east asia, Luxchem will benefit from this developement

12. UPR one of product which maintain sale consistency, primary export to Vietnam and Indonesia

13. In 2024, Luxchem make acquisition of Hurco Marketing Sdn Bhd, venturing into expand the current coating sector. 

14. With substantial cash reserves, financial institutions tend to offer lower interest rates for loans to Luxchem.

15. in Malaysia, Luxchem have managed to maintain our market share. Our advantage lies in our integrated approach,i.e. production, distribution and providing financial support to our customers.

 

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