PETALING JAYA: TMK Chemical Bhd
has been on a purple streak of late, and the group’s corporate performance has been reflected in its share price, which has shot up by more than 24% since the start of the year.
Beginning 2026 at RM1.37 per share, its price dipped to a low of RM1.12 by March 6, but has since not looked back as it soared to RM1.69 at the close of yesterday, representing a jump of over 50% from that level in early March.
Yesterday itself saw a six-sen jump, or 3.7% from the RM1.63 close on April 24.
Speaking to StarBiz, the group’s managing director Wong Kin Wah said there was no magic formula to the total chemical services provider’s stock performance, crediting it to the delivery of consistent and strong quarter-on-quarter profit growth since the second quarter of last year (2Q25).
“This has clearly demonstrated the resilience of our business model and the effectiveness of our execution, even in a challenging environment.
“The current market dynamic – where supply is tightening while demand remains firm – has been structurally supportive for margins, and yet volume for the business has been stable,” he said.
With the group’s vertically integrated operations, extensive infrastructure, and over 35 years of entrenched customer relationships, Wong acknowledged that TMK Chemical is structurally advantaged to operate at lower costs and maintain supply reliability.
He added that these are not short-term factors, and the group’s management team believes they position it to sustain a strong performance going forward.
“We are very optimistic of 2026 results, as average selling prices (ASP) are up while volumes are intact.
“Furthermore, with better performance we expect to pay better dividends as well,” said Wong.
Notably, TMK Chemical had ended 2025 (FY25) with a strong finish, although for the full year, performance for the preceding year was still fractionally better.
For 4Q25, the group charted a net profit of RM29.3mil on a revenue of RM246.6mil, representing a margin of 11.9% for the quarter. In 4Q24, the bottom line was RM22.4mil, with a turnover of RM295.8mil, which is equivalent to a margin of 7.6%.
For FY25, TMK Chemical recorded a net profit of RM97.5mil, driven by a revenue of RM1.05bil.
“The margin expansion in 4Q25, despite softer revenue, reinforces the strength of our operating model and cost leadership.
“As we move into FY26, we are focused on scaling this advantage through our infrastructure, integration and disciplined execution,” Wong said.
At the same time, he reported that the group is seeing accelerating demand, particularly from the rare earth sector in Malaysia, which is emerging as a key structural growth driver.
Coupled with TMK Chemical’s capacity expansion at Banting Plant 2, he said the group is well-positioned to capture both volume growth and margin upside, supporting continued earnings momentum.
Commenting on the mining of rare earth elements, Wong said the sector is fundamental to high-growth industries such as electric vehicles, renewables and advanced electronics, before also pointing out that global demand is on a strong upward trajectory.
In summary, rare earth elements are a group of 17 chemically similar metals – 15 lanthanides plus scandium and yttrium – which are vital for modern technology.
Crucially, Wong believes that Malaysia is becoming a critical hub in this supply chain, especially with expansion of Australian miner Lynas Rare Earths, Ltd reinforcing non-China processing capacity.
He observed: “This creates a powerful demand pull for key inputs like hydrochloric acid and chlor-alkali products.
“We are already seeing meaningful demand uplift from end-1Q26, and we expect this to accelerate, with potential for both volume growth and ASP expansion as demand may outpace supply.”
As a leading domestic producer, Wong said TMK Chemical is strategically positioned to be a direct beneficiary of this structural trend, seeing rare earth mining as a key driver of growth in the near to medium term.
“This is especially with Plant 1 already running at full capacity and Plant 2 being expected to run at a high capacity upon commissioning, thanks to the growth in demand from rare earth elements,” he said.
At the same time, TMK Chemical deputy chairman Leong Chao Seong commented that the current oil price of between US$95 and US$100 per barrel is another tailwind to the group, as higher oil prices incentivise energy companies to ramp up exploration, drilling, and refining activities.
This increases their need for the group’s heavy industrial acids and chemical terminal services.
However, he cautioned that there is a fine balance in benefitting from increased activity in that small window, because should oil prices spike up to US$120 and beyond, this could affect overall demand and margins.
