Nextgreen fertiliser segment to underpin 2H earnings

PETALING JAYA: Nextgreen Global Bhd (NGGB) fertiliser segment is expected to drive earnings growth in the second half of financial year 2026 (2H26), supported by higher sales of its higher-margin NexBooster liquid fertiliser sales and continued deliveries of NexCompost powder fertiliser.

BIMB Research said rising NexBooster sales and growing contributions from solid fertiliser, would support profit growth.

“Fertiliser contributed RM33.7mil, or approximately 76% of group revenue, in 1H26, underscoring its importance to NGGB’s earnings outlook.

“NexBooster carries a higher gross profit margin than NexCompost. We therefore expect higher liquid fertiliser sales to remain an important driver of profit growth, complemented by growing gross profit contributions from solid fertiliser deliveries.

“NGGB’s solid fertiliser granule production line was targeted to complete testing and commissioning by October 2026, potentially generating additional revenue towards year-end. NGGB’s liquid fertiliser plant has potential annual production capacity of 30 million litres, while its solid fertiliser facility has a combined annual capacity of 30,000 tonnes across powder and granule products,” BIMB Research said.

It kept its “hold” call on NGGB with an unchanged target price of 76 sen based on 12 times forecast financial year 2027 earnings per share of 6.37 sen, citing execution risks and the absence of dividends despite encouraging growth prospects.