Skip to content
  • Group
    • About MARC
    • Leadership
    • Investor Relations
    • Notable Issuances
    • MARC Ratings
    • MARC Solutions
    • MARC Data
    • MARC Learning
    • Careers
  • Services
    • Credit Ratings & Related Assessments
    • Sustainability-Related Assessments
    • Economic & Fixed-Income Analysis
    • Sustainability-Related Advisory
    • Debt Advisory
    • Analytics Consulting Services
    • Subscriptions
    • Data Analytics
    • Credit Reporting
    • Learning Programmes
  • Insights
    • Rating Announcements
    • Research & Analysis
    • Views
    • MARC in the Media
    • Newsfeed
    • Latest@MARC
  • Events & CSR
    • MARCares
    • Events
  • Contact Us
    • Contact Us
    • Service Level Feedback Form
    • Publication Feedback Form
    • Whistleblowing
  • Group
    • About MARC
    • Leadership
    • Investor Relations
    • Notable Issuances
    • MARC Ratings
    • MARC Solutions
    • MARC Data
    • MARC Learning
    • Careers
  • Services
    • Credit Ratings & Related Assessments
    • Sustainability-Related Assessments
    • Economic & Fixed-Income Analysis
    • Sustainability-Related Advisory
    • Debt Advisory
    • Analytics Consulting Services
    • Subscriptions
    • Data Analytics
    • Credit Reporting
    • Learning Programmes
  • Insights
    • Rating Announcements
    • Research & Analysis
    • Views
    • MARC in the Media
    • Newsfeed
    • Latest@MARC
  • Events & CSR
    • MARCares
    • Events
  • Contact Us
    • Contact Us
    • Service Level Feedback Form
    • Publication Feedback Form
    • Whistleblowing
  • MARC Online
  • Subscribe
  • Group

    Group

    The MARC Group of Companies comprises MARC Ratings, MARC Solutions, MARC Data and MARC Learning.

    • About MARC
    • Leadership
    • Investor Relations
    • Notable Issuances
    • About MARC
    • Leadership
    • Investor Relations
    • Notable Issuances
    • MARC Ratings
    • MARC Solutions
    • MARC Data
    • MARC Learning
    • MARC Ratings
    • MARC Solutions
    • MARC Data
    • MARC Learning

    MARC Ratings

    • Rating Guide
    • Rating Process
    • Rating Symbols & Definitions
    • Rating Methodologies
    • Regulatory
    • Lead Managers

    MARC Solutions

    MARC Data

    MARC Learning

    • Careers
    • Careers
  • Services

    Services

    MARC's subsidiaries each provide distinct product offerings and services.

    • Credit Ratings & Related Assessments
    • Sustainability-Related Assessments
    • Economic & Fixed-Income Analysis
    • Credit Ratings & Related Assessments
    • Sustainability-Related Assessments
    • Economic & Fixed-Income Analysis
    • Analytics Consulting Services
    • Analytics Consulting Services
    • Subscriptions
    • Data Analytics
    • Credit Reporting
    • Learning Programmes
    • Subscriptions
    • Data Analytics
    • Credit Reporting
    • Learning Programmes
  • Insights

    Insights

    Find the vital information you need and stay up to date with the latest news from MARC.

    • Rating Announcements
    • Research & Analysis
    • Views
    • Rating Announcements
    • Research & Analysis
    • Views
    • MARC in the Media
    • Latest@MARC
    • MARC in the Media
    • Latest@MARC
  • Events & CSR

    Events & CSR

    MARC organises a diverse range of events throughout the year to engage with all stakeholders.

    • MARCares
    • Events
    • MARCares
    • Events
  • Contact Us

    Contact Us

    Let's get the conversation started - Get in touch with us!

    • Contact Us
    • Service Level Feedback Form
    • Publication Feedback Form
    • Whistleblowing
    • Contact Us
    • Service Level Feedback Form
    • Publication Feedback Form
    • Whistleblowing
MARC Online
Subscribe
Menu
  • Group
  • Services
  • Insights
  • Events & CSR
  • Contact Us
  • Group
  • Services
  • Insights
  • Events & CSR
  • Contact Us
Credit Ratings & Related Assessments
Economic & Fixed-Income Analysis
Sustainability Related
Analytics Consulting Services
Data Analytics
Credit Reporting
Learning Programme

Credit Ratings & Related Assessments

Economic & Fixed-Income Analysis

Sustainability Related

Debt Advisory

Analytics Consulting Services

Data Analytics

Credit Reporting

Learning Programme

  • Insights
  • Rating Announcements
Ratings

MARC Ratings revises Evyap Malaysia’s rating outlook to positive

8 November 2023

Access the full report here.

View Reports

Contacts

Umar Abdul Aziz
+603-2717 2962/ umar@marc.com.my

Cyndy Goh
+603-2717 2941/ cyndy@marc.com.my

Taufiq Kamal
+603-2717 2951/ taufiq@marc.com.my

MARC Ratings has affirmed its rating on Evyap Sabun Malaysia Sdn Bhd’s (Evyap Malaysia) RM500.0 million Sukuk Wakalah Programme at AA-IS. Concurrently, the rating outlook has been revised to positive from stable.

The outlook revision reflects Evyap Malaysia’s ability to maintain healthy operating performance, underpinned by strong cash flow metrics. Its vertically integrated oleochemical production facilities and well-established global customer base remain key drivers to the rating affirmation.

Evyap Malaysia’s production of a wide variety of oleochemical products — multi-chained fatty acids, soap noodles, glycerine, ester, and bar soaps — at its Tanjung Langsat plant with a sizeable capacity of 380,000MT p.a. underscores its position as one of the largest domestic oleochemical producers. The group is able to respond to changes in market demand through its vertically integrated facilities; it also benefits from the expertise of its Türkiye-based parent company, Evyap Group, which has a track record of over 90 years in the personal care segment, primarily in Europe and the Middle East.

For 1H2023, the utilisation rate for its primary oleochemical product, fatty acids, was high at 92.1%. Meanwhile, the 62.1% utilisation rate for its ester production with a capacity of 16,000MT p.a., was commendable, given that it was only recently set up. MARC Ratings also notes that the group has diversified its customer base, leading to a reduction in intragroup sales to 26% in 1H2023 from 50% in 2016. Its customer base covers over 100 countries.

Evyap Malaysia remains susceptible to price movements in key feedstock — palm oil, palm stearin and palm kernel oil — although the group has maintained its margin through its ability to pass through feedstock price increases to customers. The hike in natural gas price, however, had weakened its margin to 7.3% in 1H2023 (three-year average: 10.1%). With the decline in the average global natural gas price by 52.9% to US$2.8/MMBtu in 3Q2023 from 4Q2022, the margin is expected to revert to around 10% in the near term. This notwithstanding, margin pressures remain a key moderating factor to the rating. The rating agency notes that supply risk for its feedstock is mitigated by sourcing from multiple refineries close to its production facilities near Johor Port.

For 1H2023, the group recorded revenue of RM898.3 million. Cash flow from operations of RM56.2 million provides strong interest and debt coverages at 7.3x and 0.3x. Total borrowings of RM355.0 million as at end-June 2023 translates to a gross debt-to-equity ratio of 0.33x and a net cash position given considerable cash balance of RM356.9 million.

Its current capex requirement is for the ongoing construction of a RM350 million oleochemical plant in Medan, Indonesia. As the expansion will be largely funded internally with around 30% to be met by borrowings, Evyap Malaysia’s debt metrics are not expected to weaken materially. Expected to commence operations in 2025, the new plant will produce fatty acids — with capacity of around 210,000MT p.a. — glycerine, and soap noodles. The rating agency views the Indonesian operations would further strengthen Evyap Malaysia’s position in the oleochemical segment. While the expansion would entail execution risk, the rating agency draws comfort from Evyap Malaysia’s track record in developing and operating its oleochemical plant in Malaysia.

Within the next 12 months, the rating will be upgraded if Evyap Malaysia broadly maintains its cash flow and debt metrics at current levels, in particular, if gross leverage ratio remains below 0.50x. Conversely, the rating outlook will be revised to stable if group financial performance substantially weakens from expectation.

Related Report

Read More

Related Issues

Read More

Related News

Read More

You May Also Like To Read

See All
Ratings

MARC Ratings affirms OCK’s MARC-1IS and AA-IS ratings

28 May 2025

Sustainability

MARC Solutions assigns “Gold” Impact Assessment to PTP’s Sustainability Sukuk Framework

27 May 2025

Ratings

MARC Ratings maintains PTP’s AAIS rating on proposed upsize of Sukuk Murabahah Programme

27 May 2025

See All

Let’s get started.

Subscribe to our mailing list today.

Subscribe Now
Group
  • About MARC
  • Leadership
  • Investor Relations
  • Notable Issuances
  • Careers
Regulatory
  • Rating Reviews Summary
  • List of Defaults
  • List of Credit Ratings Published
  • List of Entities on Rating Watch
Services
  • Credit Ratings & Related Assessments
  • Sustainability-Related Assessments
  • Economic & Fixed-Income Analysis
  • Sustainability-Related Advisory
  • Subscriptions
  • Analytics Consulting Services
  • Data Analytics
  • Credit Reporting
  • Learning & Customised Programmes
Subsidiaries
  • MARC Ratings
  • MARC Learning
  • MARC Data
  • MARC Solutions
Insights
  • Rating Announcements
  • Research & Analysis
  • Views
  • Latest@MARC
  • MARC in the Media
Events
  • Corporate Events
  • Corporate Social Responsibility (CSR)
  • Advertise with MARC
Contact Us
  • Contact Us
  • Service Level Feedback Form
  • Publication Feedback Form
  • Whistleblowing
  • Group
    • About MARC
    • Leadership
    • Investor Relations
    • Notable Issuances
    • MARC Ratings
    • MARC Solutions
    • MARC Data
    • MARC Learning
    • Careers
  • Services
    • Credit Ratings & Related Assessments
    • Sustainability-Related Assessments
    • Economic & Fixed-Income Analysis
    • Sustainability-Related Advisory
    • Debt Advisory
    • Analytics Consulting Services
    • Subscriptions
    • Data Analytics
    • Credit Reporting
    • Learning Programmes
  • Insights
    • Rating Announcements
    • Research & Analysis
    • Views
    • MARC in the Media
    • Newsfeed
    • Latest@MARC
  • Events & CSR
    • MARCares
    • Events
  • Contact Us
    • Contact Us
    • Service Level Feedback Form
    • Publication Feedback Form
    • Whistleblowing
Terms & Conditions
Privacy Notice
Copyright Notice
Whistleblowing
PDPA Notice
© 2023 Malaysian Rating Corporation Berhad. All rights reserved.
Facebook Twitter Linkedin

Join MARC Mailing List

I would like to subscribe this mailing list. Please tick whichever is applicable
I agree/ do not agree (please tick whichever is applicable) to receive future events, conferences or marketing materials from MARC. *
Privacy Notice *
Declaration *