KUALA LUMPUR: TMK Chemical Bhd
is optimistic about stronger earnings growth in 2026, after its first-quarter net profit to March 31 (1Q26) jumped 45.1%, with momentum expected to continue into 2027 following the commencement of its plant expansion.
The inorganic chemical manufacturer saw its 1Q26 net profit jump to RM30.1mil, or 3.01 sen per share, from RM20.8mil, or 2.08 sen a year earlier, driven by higher average selling prices, improved manufacturing efficiencies and sustained margin expansion.
Quarterly revenue stood at RM241.4 mil compared with RM258 mil previously.
The latest quarter also marked TMK’s fifth consecutive quarter of earnings growth since 1Q25, underscoring the group’s strengthening market position and consistent operational execution.
Non-independent executive director and managing director, Wong Kin Wah said: “We are encouraged by the group’s continued earnings momentum, which reflects both improving
market conditions and the strength of our operational platform.”
He noted that demand for chlor-alkali products has grown stronger across our key industries, particularly within Malaysia’s growing rare earth processing sector.
“The outlook for the business remains highly positive. Rare earth processors continue to operate at high utilisation rates, driving strong demand for hydrochloric acid and other chloralkali chemicals.
“This trend is expected to continue supporting favourable pricing conditions and strong margins moving forward,” Wong said.
TMK said its Banting Plant 2, which is expected to commence full operations in 2027, remains a key component of the group’s long-term expansion strategy.
The new facility is expected to double TMK’s current chlor-alkali derivatives capacity and benefit from shared infrastructure, improving overall operating efficiencies and profit margins.
Upon commencement, the group expects Banting Plant 2 to operate at high utilisation rates, supported by sustained demand from the rare earth industry and continued industrial expansion across Malaysia.
The larger production scale and improved efficiencies are expected to enhance profitability margins and support long-term earnings growth.
Beyond the rare earth segment, TMK continues to record steady organic growth, supported by rising industrial activity and chemical consumption.
The group said its expanding capacity, diversified customer base and ongoing operational improvements will underpin future growth.
“In line with its commitment to shareholder returns, TMK is targeting a dividend payout ratio of approximately 50% of profits, supported by its improving earnings and healthy cash flow position,” TMK said.
