Latest news with #RM459.37mil
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 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.
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.'
