SumiSaujana Group Berhad (BURSA: SUMI, 0349) remains on a positive growth trajectory, with RHB Investment Bank maintaining its “Buy” call and 14 sen target price, implying around 40% upside from current levels.
The research house said the group is benefiting from stronger demand for specialty chemicals, improving margins and expanding regional sales, while inventory normalisation is expected to support cash flow recovery in the coming quarters.
Sumisaujana’s core specialty chemicals business continues to drive earnings growth. In 2QFY2026, revenue rose 22.3% year-on-year to RM45.1 million, supported by stronger sales in Malaysia, Thailand, Oman and the United States, alongside higher average selling prices. Gross profit margin improved to 34.9%, reflecting stronger operating performance.
RHB noted that the company has utilised RM68.6 million, or 92.2%, of the proceeds raised from its IPO, primarily for property acquisitions, capital expenditure and research and development initiatives. The research house believes the group is now transitioning from an investment phase into one focused on monetising its expanded capabilities.
Beyond its existing operations, Sumisaujana is pursuing new opportunities through collaborations with Topsoe and Pertamina on potential sulfuric acid-related projects, while also working with Zhangjiagang CoolisT Life Technology to develop plant-based polyols. Although these initiatives have yet to be factored into earnings forecasts, RHB believes they could provide additional upside over the longer term.
Looking ahead, RHB forecasts revenue to increase from RM188 million in FY2026 to RM222 million in FY2027, while recurring net profit is expected to grow from RM14 million to RM23 million, representing earnings growth of more than 60%.
The research house believes Sumisaujana remains well-positioned to benefit from sustained demand for specialty chemicals, expanding export markets and emerging growth initiatives, while maintaining a healthy net cash position.
