TMK Chemical Bhd managing director Wong Kin Wah — AZMAN GHANI/The Star
PETALING JAYA: TMK Chemical Bhd will continue to improve its productivity and efficiency to address external uncontrollable factors and challenges.
In a filing with Bursa Malaysia, the total chemical management company reported lower revenue and net profit for the fourth quarter ended Dec 31, 2024 (4Q24), primarily due to lower sales volume and listing expenses.
For 4Q24, the chemicals manufacturer’s net profit stood at RM22.9mil, or earnings per share of four sen, representing a decline compared to the net profit of RM29.2mil recorded in the previous quarter.
Additionally, TMK Chemical posted a lower revenue of RM293.98mil in 4Q24, down from RM348.2mil registered in 3Q24.
The group attributed the lower revenue to a decrease in sales volume from bulk shipments. TMK Chemical said the decrease in sales volume was partially offset by an increase in the average selling price.
The group added that excluding one-off expenses such as listing expenses and normalised tax expenses of approximately RM5.8mil in 4Q24, the normalised net profit would have been RM28.7mil.
TMK Chemical has proposed a final dividend of 3.5 sen per ordinary share, amounting to RM35mil, for the financial year 2024 (FY24), subject to shareholders’ approval.
Including the interim dividend of RM20.8mil paid, the total dividend payout ratio for FY24 is 50%, which is at the higher end of the company’s dividend policy of 30% to 50%.
Its managing director Wong Kin Wah said the company’s performance reflected the resilience of its business and effectiveness of its strategic execution.
“With our manufacturing segment now contributing, we are well-positioned to capture new opportunities and drive sustainable values for our stakeholders,” he said.
TMK Chemical intends to construct Banting Plant 2, in line with the company’s ongoing business expansion and growth strategy to continue enhancing its upstream manufacturing capacity for chlor-alkali derivatives.
“We will be manufacturing chlor-alkali derivatives, namely sodium hydroxide, chlorine, hydrochloric acid, sodium hypochlorite and hydrogen at our Banting Plant 2.
“The construction of our Banting Plant 2 is in anticipation of future growth in demand for chlor-alkali derivatives, supported by future growth in demand by both existing and new businesses across all the industries that we service.”
Additionally, the construction of the plant is expected to improve overall cost efficiency for TMK Chemical.
The company’s shares closed 0.72% higher yesterday at RM1.40.
