KUALA LUMPUR: Chemicals manufacturer TMK Chemical Bhd, which is poised to make its debut on the Main Market of Bursa Malaysia this week, announced a net profit of RM29.16mil in the quarter ended Sept 30, 2024 (3QFY24).
The group reported in a filing with Bursa Malaysia a revenue of RM348.17mil and earnings per share of 35 sen in the quarter under review.
Over the cumulative nine months period to Sept 30, 2024, TMK Chemical registered a net profit of RM89.03mil on revenue of RM1.01bil.
There are no comparative figures as this is the first interim financial report announced by the group as it approaches its debut on Bursa Malaysia.
In its outlook, the group noted its performance can be affected by several key challenges such as the fluctuations in market price of inorganic chemicals, which are sensitive to domestic and international market demand and supply conditions, on-going global geopolitical conflict, recessionary risks, forex fluctuations and stiff competition.
TMK Chemicals' expansion plans were announced in the lead up to its initial public offering, including an allocation of RM90.2mil, or 23.4% of the total RM385mil in proceeds, for the construction of a new Banting plant to increase its annual manufacturing capacity for chlor-alkali derivatives.
It said the new plant will double its existing capacity to 432,000 tonnes annually upon commissioning in 2026.
"The construction of our Banting Plant 2 is in anticipation of future growth in demand for chlor-alkali derivatives supported by future growth in demand by both existing and new businesses across all the industries that we service.
"Additionally, the construction of our Banting Plant 2 will also result in better overall cost efficiency," it said.
Another RM49.5mil will be used to establish a new processing facility in Singapore, as the current facilities there are at full operational capacity.
TMK Chemical has also earmarked RM99.1mil or 25.7% of the proceeds for potential acquisitions and investments in inorganic chemicals or related industries, although specific targets have yet to be identified.
RM79.4mil of the IPO proceeds will go to working capital and RM50mil to pare down borrowings, with the remainder covering IPO-related expenses.
