Ancom Nylex upbeat on Chemical T-driven growth
Production is expected to scale up progressively, aiming for an annual capacity of 1,000 metric tonnes.
Hong Leong Investment Bank (HLIB) also noted that the registration process for MSMA use on soybean crops in Brazil is advancing as scheduled and is likely to receive approval by mid-2025.
"Its successful registration will allow the group to market MSMA products in Brazil's soybean market, allowing Ancom Nylex to tap into the tremendous addressable market that is five times larger than the sugar cane crops," it added.
HLIB stated that Ancom Nylex's results were in line with consensus expectations, meeting 99.8 per cent of consensus estimates but came in slightly above its own projections, reaching 106 per cent of its estimate.
This outperformance was largely attributed to stronger-than-expected margins in the industrial chemicals segment.
The company reported a core net profit of RM20.7 million for the fourth quarter of financial year 2025, bringing its total earnings for the year to RM64.0 million.
HLIB has maintained its 'Buy' call on the company with an unchanged target price of RM1.13.
The research house said it favours Ancom Nylex because it is the sole large‑scale producer of herbicide active ingredients (AIs) in Southeast Asia, a field with very high entry barriers and sees further earnings upside from the company's pipeline of new AIs scheduled for rollout.
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