KUALA LUMPUR: TMK Chemical Bhd
’s net profit surged 91.5% to RM40.8mil in the second quarter ended June 30, 2026 (2QFY26), from RM21.3mil a year earlier, driven by stronger revenue and improved margins.
Quarterly revenue rose 17.7% to RM310.4mil from RM263.7mil in the previous corresponding quarter, mainly due to higher average selling prices. Earnings per share climbed to 4.08 sen from 2.13 sen.
“The performance was supported by continued margin expansion and growing demand from industrial sectors,” the chemical manufacturer said in a statement.
For the first half of 2026, net profit jumped 68.6% to RM70.9mil from RM42.1mil a year earlier, while revenue increased 5.8% to RM551.8mil from RM521.7mil.
TMK declared a first interim dividend of 3.6 sen per share, payable on Nov 4, representing a payout ratio of about 51% for the first half.
Non-independent executive director and managing director Wong Kin Wah said the group expected its earnings momentum to continue in the coming quarters, supported by structural demand across the industries it serves.
“Rare earth processing and semiconductors are among the fast-growing sectors supporting demand for our products, and we believe these trends will continue to create attractive opportunities for TMK,” he said.
Wong said industrial activity across the group’s key markets also remained encouraging, with manufacturing activity in Malaysia and Vietnam providing a supportive environment for chemical demand.
He said TMK expects the momentum to extend beyond 2026, supported by the commissioning of Banting Plant 2 in early 2027 and the proposed acquisition of Chemical Company of Malaysia Bhd (CCM).
TMK has announced a letter of intent for the proposed acquisition and is working towards entering into a definitive share sale agreement.
Wong said that upon completion of the expansion and proposed acquisition, TMK’s production capacity is expected to increase more than fivefold.
“As manufacturing becomes a larger part of our revenue mix, we also expect to benefit from a healthier margin profile,” he said.
Wong added that TMK remained committed to enhancing shareholder returns as its earnings and cash generation strengthened.
“Our current dividend payout is approximately 51%, and as our earnings and cash generation continue to strengthen, we will continue to enhance shareholder returns over time.”
