Latest news with #AncomNylexBhd
The Star
21-07-2025
- Business
- The Star
Ancom eyes earnings growth moving forward
PETALING JAYA: Ancom Nylex Bhd is poised for an earnings recovery, with growth expected 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.
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.
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 4Q showing declines
PETALING JAYA: Ancom Nylex Bhd has reported a lower net profit of RM17.07mil for the fourth quarter ended May 31, 2025 (4Q25) 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, it 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.
Barnama
17-07-2025
- Business
- Barnama
Ancom Nylex's Net Profit For FY2025 Slips To RM63.49 Mln
BUSINESS KUALA LUMPUR, July 17 (Bernama) -- Ancom Nylex Bhd's net profit for the financial year ended May 31, 2025 (FY2025) slipped to RM63.49 million compared to RM81.47 million recorded in FY2024. Revenue fell to RM1.87 billion from RM1.99 billion previously, the group said in a filing with Bursa Malaysia today. Ancom said the lower revenue was largely due to softer contributions from the industrial chemicals segment caused by lower selling prices and volumes, while weaker net profit was chiefly attributed to elevated freight costs and unfavourable foreign exchange (forex) fluctuations. Its managing director and group chief executive officer, Datuk Lee Cheun Wei, said FY2025 has been a demanding year, marked by key geopolitical events that led to elevated freight costs and unfavourable forex fluctuations, which in turn impacted the overall performance. 'Escalating tariffs and volatile trade conditions could further affect both global and domestic economic projections, making it increasingly challenging to anticipate 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,' he said. For the fourth quarter ended May 31, 2025 (4Q 2025), the group registered a lower net profit of RM17.071 million from RM18.44 million registered in 4Q2024, while revenue fell to RM459.4 million from RM487.2 million previously. For FY2025, the group has paid a first interim dividend by way of distribution of treasury shares on the basis of four treasury shares for every 100 shares, as well as a second interim dividend by way of distribution of treasury shares on the basis of one treasury share for every 100 shares. -- BERNAMA
