Latest news with #AncomNylex
The Star
20-07-2025
- Business
- The Star
New agrochemicals, stronger exports to boost Ancom Nylex profits
PETALING JAYA: Analysts remain positive on Ancom Nylex Bhd 's earnings outlook for the financial year ending May 31, 2026 (FY26), underpinned by the commercial rollout of new agrochemicals, stronger export performance and ongoing cost optimisation initiatives. The group posted a lower net profit of RM17.07mil for the fourth quarter of financial year ended May 31, 2025 (4Q25), bringing its full-year earnings to RM64.49mil. Quarterly revenue stood at RM459.37mil, while full-year revenue totalled RM1.87bil. Despite the year-on-year decline, Hong Leong Investment Bank (HLIB) Research said the results came in slightly ahead of its expectations at 106% of its forecast, and broadly in line with consensus estimates. Looking ahead, HLIB Research said earnings growth will likely be supported by the full commercialisation of Chemical T, a new active ingredient that began production in April 2025 and is expected to reach full annual capacity of 1,000 tonnes by the second quarter of calendar year 2025. The research house maintained its 'buy' call on Ancom Nylex, with an unchanged target price of RM1.13, based on 15 times FY26 forecast earnings per share (EPS) of 7.5 sen. Kenanga Research shared a similarly positive view, projecting a 50% year-on-year increase in FY26 core EPS to 8.8 sen, up from 5.9 sen in FY25. The forecast, however, was revised lower by 9% due to delays in monosodium methanearsonate (MSMA) herbicide approvals for the Brazilian soybean market and higher-than-expected freight costs. 'FY26 earnings could have been stronger if not for the delay in regulatory approval for Brazil's soybean segment,' it said, noting that approval is now more likely in FY27. In the near term, Kenanga Research expects earnings to be supported by improved MSMA exports, steady timber preservative sales under a three-year US supply contract, and contributions from newer active ingredients. Chemical T is set to provide full-year contribution in FY26, while another compound, Chemical S, is targeted to begin contributing from FY27. The group is also expected to benefit from cost savings arising from the relocation of its Singapore tank storage facilities to Johor, although industrial chemical margins are expected to remain tight. Kenanga Research also highlighted Ancom Nylex's potential upside from the ongoing reverse takeover of Green Lagoon Technology Sdn Bhd (GLT) via its 34%-owned associate, Ancom Logistics Bhd . Upon completion in FY26, Ancom Nylex is expected to hold a 22% stake in GLT, which will contribute recurring income through an annual profit guarantee of RM8mil to RM10mil. Meanwhile, the group's issued share base rose 10% in FY25 due to private placement and conversion of Warrant B, which is expiring in September.
The Sun
18-07-2025
- Business
- The Sun
Ancom Nylex posts RM63.5 million net profit for FY25 – a ‘demanding' year
PETALING JAYA: Southeast Asia's leading fully integrated chemical group Ancom Nylex Bhd registered revenue of RM1.87 billion for the financial year ended May 31, 2025 (FY25) compared to RM2 billion a year ago. The drop was attributed mainly to softer contributions from the industrial chemicals segment, due to lower selling prices and volumes. Meanwhile, FY25 net profit came in at RM63.5 million, down from RM81.5 million last year, primarily attributed to elevated freight costs and unfavourable foreign exchange fluctuations. For the fourth quarter of FY25 (Q4'25), the group posted revenue of RM459.4 million, compared to RM487.2 million in the same quarter last year. This was predominantly due to the lower contribution from the industrial chemicals business. On a positive note, the agrichem segment delivered revenue growth of 16.1% to RM135.4 million in Q4'25, up from RM116.6 million in Q4'24, driven by higher sales. At the bottom line, Q4'Y25 net profit stood at RM17.1 million compared to RM18.4 million last year. This was primarily due to elevated production costs in the agrichem business as well as a higher effective tax rate. Managing director and group CEO Datuk Lee Cheun Wei said FY25 has been a demanding year, marked by key geopolitical events that led to elevated freight costs and unfavourable foreign exchange fluctuations, which in turn impacted the group's overall performance. He said escalating tariffs and volatile trade conditions could further impact both global and domestic economic projections, making it increasingly challenging to predict trends in raw material costs and market prices. Despite these headwinds, Malaysia's economic growth is anticipated to remain positive over the next 12 months, with potential for further advancement should global conditions stabilise, Lee noted. 'On a much brighter note, we are pleased to share that the commercial production of our new active ingredient (AI) has commenced. Production yield has been increasing steadily, and deliveries to our customers are already under way. This marks an important milestone, further strengthening our position in the value chain and cementing our role as the sole large-scale producer of AI for herbicides in Southeast Asia,' he said in a statement. Turning to Ancom's MSMA-based products, Lee said the group continues to capitalise on its position as one of only two producers globally, seizing opportunities arising from the market demand gaps. 'The overall demand for our agrichem segment remains stable. Looking ahead, we anticipate the upcoming financial year (FY26) to be a better year for us, given the promising opportunities ahead while remaining vigilant of the headwinds.' For FY25, the group has paid a first interim dividend by distributing treasury shares on a 4:100 basis, as well as a second interim dividend by distributing treasury shares on a 1:100 basis. Ancom Nylex's financial position continued to improve, with net gearing improving to 0.29 times as of the end of May 2025, compared to 0.38 times at the close of the previous financial year (end of May 2024). Total borrowings declined to RM323.1 million at the close of the financial year under review compared to RM347.6 million as at 31 May 2024. Notably, more than 85% of the total borrowings are for short-term working capital needs.
Malay Mail
18-07-2025
- Business
- Malay Mail
Penang students can now apply for Ancom Crop Care's RM10,000 scholarship
KUALA LUMPUR, July 18 — Ancom Crop Care's scholarship programme for Penang-born students is now open for its final cycle, with applications accepted from July 18 to October 14, 2025. The scholarship, worth up to RM10,000 per student for tuition fees, is aimed at students from financially disadvantaged backgrounds in Penang. It is open to those who have secured admission to any local government or private university — excluding Medicine and Dentistry — as well as those who have applied and are still awaiting offer letters. Students currently in their second, third or final year of undergraduate study may also apply. Launched in May 2023 by Ancom Crop Care Sdn Bhd — a subsidiary of Bursa Malaysia-listed Ancom Nylex Berhad — the scholarship was officiated by Penang Chief Minister Chow Kon Yeow. This year marks the third and final round of applications under the programme. Application forms and full eligibility details are available at and To date, 41 students from various universities across Malaysia have benefited from the programme.
New Straits Times
18-07-2025
- Business
- New Straits Times
Ancom Nylex upbeat on Chemical T-driven growth
KUALA LUMPUR: Ancom Nylex Bhd's earnings prospects remain upbeat, supported by the upcoming commercialisation of Chemical T in the second quarter of 2025. 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.
The Star
17-07-2025
- Business
- The Star
Ancom Nylex reports lower 4Q profit
Ancom Nylex Bhd managing director and group CEO Datuk Lee Cheun Wei PETALING JAYA: Ancom Nylex Bhd reported a lower net profit of RM17.07mil for the fourth quarter ended May 31, 2025 (4QFY25), compared with RM18.44mil a year earlier, as revenue declined across most of its business segments. Quarterly revenue fell to RM459.37mil from RM487.24mil in the same period last year. For the full financial year, the group posted a net profit of RM63.49mil on the back of RM1.87bil in revenue, down from RM81.47mil and RM1.99bil respectively in the previous year. In a filing with Bursa Malaysia, Ancom Nylex said the industrial chemicals, logistics and polymer divisions recorded lower revenue during the quarter. Meanwhile, its investment holding and other, and agricultural chemicals division posted a jump in revenue. Despite the challenging environment, the group said it remains focused on strengthening its operations. 'Management believes that the introduction of new tank facilities will allow the group to offer greater volume and competitive pricing to our customers, while enhancing overall business activities,' it said. Managing director and group CEO Datuk Lee Cheun Wei said FY25 has been a demanding year, marked by key geopolitical events that led to elevated freight costs and unfavourable foreign exchange fluctuations, which in turn impacted our overall performance. He noted that escalating tariffs and trade volatility cloud economic outlooks, but Malaysia's growth is expected to stay positive over the next year, with upside potential if global conditions stabilise. 'On a much brighter note, we are pleased to share that the commercial production of our new active ingredient (AI) has commenced. Production yield has been picking up healthily, and deliveries to our customers are already underway. This marks an important milestone, further strengthening our position in the value chain and cementing our role as the sole large-scale producer of AI for herbicides in Southeast Asia.'
