Ancom eyes earnings growth moving forward
According to Kenanga Research, this recovery is supported by a significant increase in the amount of monosodium methanearsonate (MSMA) sold, as the company highlighted during its financial results briefing for 2025.
Kenanga Research noted that 'the guidance for MSMA double-digit growth is in line with our assumptions of a 10% year-on-year uptick in 2026 (FY26), mainly on market share gains in Brazil and the United States as key Israel-based rivals face disruptions from regional geopolitical tensions.'
For FY27, a higher volume growth of 15% is estimated, as Ancom is expected to secure Brazilian regulatory approvals to market MSMA beyond sugarcane applications to larger soybean plantings, said Kenanga Research.
The brokerage firm added that the annual growth over the past five years ranged between 5% and 10%.
Meanwhile, Ancom's timber preservative and MSMA exports to the United States will enjoy a tariff exemption.
'Altogether, we expect the timber preservative order to hold quite steady over FY26 and FY27,' it noted.
It added that the group's new agrochemical artificial intelligence (AI) will start contributing in FY26 and FY27.
Kenanga Research said Ancom finally integrated a new tri-phosgenation process in its commercial production of AI 'T' in April 2025.
However, deliveries are expected only from the second quarter or even the second half of FY26 onwards due to audits and tests by customers to ensure quality and product consistency.
Despite such backloading of FY26 sales, a similar full-year benefit is still expected for AI 'T' in FY26, albeit with a difference in timing.
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