Sumisaujana Group Berhad (SUMI)

Company Profile: Sumisaujana Group Berhad (SUMI, 0349)

Imagine an O&G specialty chemicals company that spent 15 years quietly building relationships with clients across the Middle East, Africa, and Asia Pacific - then chose to list on Bursa Malaysia in April 2025, right as Donald Trump's tariff winds began to blow. That is the story of Sumisaujana Group Berhad.

Founded in 2010 and headquartered in Bandar Puncak Alam, Selangor, SUMI is not your ordinary chemicals company. They focus on specialty chemicals for the oil and gas industry - technically complex products, customized to the specific requirements of each project, and not easily substituted by other suppliers.

📦 Business Model: 3 Core Segments

🌍 Geographic Mix: 70%+ International

This is one of the most compelling - and risky - aspects of SUMI. The majority of their revenue comes from outside Malaysia. Key subsidiary SumiSaujana TCM Chemicals Sdn Bhd (SSTCM) has penetrated markets across:

• Asia Pacific - Malaysia, Thailand, Indonesia
• Middle East - Saudi Arabia, Oman
• Africa - multiple oil-producing nations
• Europe and Americas - niche markets

This international footprint means SUMI can grow beyond the constraints of the smaller Malaysian market. However, it also exposes the company to currency risk - when the Ringgit strengthens against the USD, MYR-denominated revenue takes a hit even when actual sales volumes increase.

🏭 Product Portfolio

Drilling Fluid Chemicals: Additives used during the drilling process - fluid loss additives, lubricants, spotting fluids, emulsifiers, wetting agents, rheology modifiers. These are mission-critical products that directly impact the safety and efficiency of drilling operations.

Production & Integrity Chemicals: Once a well is producing, these chemicals maintain productivity and pipeline integrity - corrosion inhibitors, scavengers, sand agglomeration agents, pour point depressants, demulsifiers.

Refinery Chemicals: Solvents, surfactants, lubricants for refinery operations.

Custom/Toll Manufacturing: SUMI can also produce chemicals to customer-specified formulations.

📋 Listing Details

💰 IPO Proceeds Utilization

• RM59.1 million (79.4%) - Factory acquisition in Puncak Alam, warehouse, corporate office
• RM7.6 million - R&D laboratory
• Remainder: General operating expenses and working capital

This substantial investment in physical assets signals that SUMI is serious about expanding production capacity and strengthening R&D capabilities to compete in the global specialty chemicals market.

Revenue and Profit: Recovery from a Weak Quarter

SUMI posted revenue of RM45.1 million and net profit of RM4.41 million in Q2 FY2026. Compared with a near-zero Q3 FY2025, two consecutive quarters of recovery are visible.

Trailing four quarters: NP about RM11.3 million, EPS ~0.78 sen, P/E roughly 12.8x at RM0.10. H1 FY2026: revenue RM87.3 million, NP RM6.92 million.

Q2 geography: Thailand RM15.2m, Malaysia RM12.8m, US RM5.3m, Oman RM3.2m. High international exposure means USD/RM sensitivity.

Dividends: Small but Started

SUMI declared a first interim dividend of 0.20 sen per share in May 2026 (Q1), and our database shows 0.20 sen for the Q2 row as well. Trailing 12-month payout is roughly 0.4 sen, a yield of about 4% at RM0.10 (i3investor: 4.10%, payout ratio ~51%).

No dividends were paid during FY2025 (the listing year), so the record is very short.