KUALA LUMPUR: TMK Chemical Bhd (TMK), one of Malaysia’s leading inorganic chemical manufacturers, announced its financial results for the first quarter ended March 31, 2026 (1Q2026), delivering continued earnings growth supported by stronger margins, operational efficiencies and robust demand from the rare earth processing industry.
For 1Q2026, TMK recorded revenue of RM241.4mil, while profit before tax rose to RM35.9mil.
Net profit attributable to shareholders increased by approximately 45% year-on-year, driven by higher average selling prices, improved manufacturing efficiencies, and sustained margin expansion.
The quarter also marked TMK’s fifth consecutive quarter of earnings growth since 1Q2025, reflecting its strengthening market position and consistent operational execution.
TMK’s 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.
“Demand for chlor-alkali products grew stronger across our key industries, particularly within Malaysia’s growing rare earth processing sector.”
He added, “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 chlor-alkali chemicals.
“This trend is expected to continue supporting favourable pricing conditions and strong margins moving forward.”
TMK’s management is highly optimistic that 2026 will deliver stronger results, and this positive momentum is expected to continue into 2027 with the commencement of the group’s plant expansion.
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 will benefit from shared infrastructures, thus improving overall operating efficiencies and profitability margins.
Upon commencement, TMK expects Banting Plant 2 to operate at high utilisation levels, supported by sustained demand from the rare earth industry as well as continued industrial expansion across Malaysia.
The larger production scale and improved efficiency are expected to contribute positively towards profitability margins and long-term earnings growth.
Beyond the rare earth segment, TMK continues to experience steady organic growth across its broader customer base, supported by increasing industrial activity and rising chemical consumption volumes year-on-year.
The group remains confident that its expanding capacity, diversified customer base and ongoing operational improvements will continue to strengthen its growth trajectory. 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.
