PETALING JAYA: Ancom Nylex Bhd
believes it needs to remain vigilant in light of what it said would be a difficult business operating environment, stemming from heightened trade tensions and ongoing policy uncertainties.
The chemicals manufacturer said continued escalation of tariffs and unpredictable trade negotiations may further impact both global and domestic economic forecasts, compounding the difficulty of projecting inflation and export trends if tariff increases persist.
Releasing its results for its first quarter ended August 31 yesterday (1Q26), the group saw net profit surge 52% year-on-year (y-o-y) to RM20.1mil, even as revenue fell 13.2% to RM447.4mil.
Ancom Nylex said it saw revenue decreases in its investment holding, industrial chemicals, and logistic segments, while the agricultural chemicals and polymer divisions saw turnover rise, the latter attributed to improved deliveries due to higher demand.
Segmental profit improvements were registered across the group, while its investment holding division also saw net loss narrow due to lower operating costs.
Compared to the previous quarter ended May 31, net profit rose 17.6% from RM17.1mil, despite turnover sliding marginally from RM459.4mil, with Ancom Nylex crediting to improved margins to a strong performance across the group.
Looking forward, Ancom Nylex said: “Malaysia's economic growth is expected to remain positive over the next year, with additional progress possible should international conditions stabilise.
“The government’s wage-related initiatives and subsidy rationalisation efforts aim to transform the Malaysian economy, but may contribute to
short-term inflationary pressures. While inflation is forecast to increase moderately in 2026, there is an ongoing risk that cost pressures may surpass current expectations.”
It added that it remains committed to exercising prudence in managing the business under these conditions.
Notably, the group declared a dividend of one sen per share during 1Q26.
