TMK Chemical plans expansion on firmer demand

PETALING JAYA: TMK Chemical Bhd says its capacity expansion and sustained industrial activity and demand for its inorganic chemicals will drive future revenues.

Its expansion initiatives, including the upcoming Banting Plant 2, are expected to double its current chlor-alkali derivatives capacity by 2027.

In a filing with Bursa Malaysia, TMK added that demand in Malaysia, Singapore and Vietnam continued to strengthen in line with improving industrial activity.

“The growth of rare earth processing activities in Malaysia, particularly involving major operators requiring substantial volumes of inorganic chemicals, will provide further growth in future demand for the group’s products and services,” it stated in its filing.

For the third quarter ended Sept 30 (3Q25), TMK’s revenue rose 7.9% quarter-on-quarter (q-o-q) to RM284.6mil while net profit rose 22.8% to RM26.1mil or earnings per share (EPS) of 2.61 sen, supported by firmer demand and better factory utilisation, giving rise to improved margin.

“The group recorded further improvement in 3Q25, supported by a gradual recovery in market demand and stronger operational efficiency.

“Higher factory utilisation contributed to margin expansion, while regional demand in Malaysia, Singapore and Vietnam continued to strengthen in line with improving industrial activity,” the company’s non-independent executive director and managing director Wong Kin Wah said in a release,

He added that while global geopolitical uncertainties, exchange-rate fluctuations and industry competition remain key challenges, TMK’s focus on cost optimisation, productivity enhancement and supply chain resilience has positioned it favourably for sustained performance momentum into 2026 and 2027.

For the nine months ended Sept 30, 2025, TMK’s revenue fell 19.9% year-on-year (y-o-y) to RM806.4mil while earnings were down 23% y–o-y to RM68.2mil or EPS of 6.82 sen

The company declared an interim dividend of 2.1 sen per ordinary share, to be paid on Jan 9, 2026.