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Chemical manufacturer for the textile industry, PT ChemStar Indonesia Tbk (CHEM) projects that the results of its expansion into the cosmetics and food sectors will only be felt next year. CHEM Corporate Secretary Wenty Akbar Rasjid said that currently the company is still trying to develop the textile market first. Moreover, the company's market share is only two to three percent with sales to textile factories such as Kahatex, Centex, Indorama and others. Wenty explained that the plan to expand the market to the cosmetics and food sector is because the products sold by the company can be expanded to the non-textile sector.

"For example, dyes, and what we are selling now can be expanded to the food and cosmetic industry, that's why we are looking at these industries," he explained Friday (22/7).

However, Wenty estimates that the results of this expansion will not be felt in this year's financial performance. According to him, CHEM's revenue this year is still 100% from the textile sector.

"It is estimated that next year there will be a contribution to revenue and our target for the first year is to contribute 10-20 percent of the company's total revenue," he said.

This year, CHEM is also optimistic that it can still print performance growth. His party assessed that the opportunity to increase market share was very large. "The projected market share in 5 years will be double from the current one," he said.

The company's strategy is also made easier from the fresh funds that have been obtained through the IPO. For information, in this corporate action, CHEM released 500 million new shares or 29.41% of the issued and fully paid capital.

CHEM conducted an IPO at a price of Rp 150 per share. Thus, CHEM received fresh funds of Rp 75 billion which were used to purchase land and buildings as well as working capital.

Therefore, this year the company targets a 15 percent growth in revenue this year. This means that CHEM is projected to record revenues of around Rp 103 billion by the end of the year.

In terms of profit, this new issuer targets a growth of around 14.3 percent. This estimate cannot be separated from the high demand conditions due to the supply-chain shock, aka the non-fulfillment of demand for the domestic textile industry. This is in line with the energy crisis and high logistics costs.

As an illustration, in 2021 CHEM recorded operating revenues of Rp. 89.62 billion, an increase of 13% when compared to sales in 2020 of Rp. 79.33 billion.

With this achievement, CHEM managed to record an increase in net profit of 192% on an annual basis, compared to 2020 which only grew 14%.