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The below commentary is solely used for educational purposes. This is my point of view using technical analysis and fundamental analysis. The commentary should not be construed as an investment advice or any form of recommendation. If you need an investment advice, please consult a licensed investment advisor. Most important do your homework before you invest. You are liable since you are the one pressing the buy and sell button.

When the issues of alcohol positioning, I was looking for an ethanol manufacturer and I found Hexza the first ever ethanol manufacturer in Malaysia.

Recent alcohol positioning caused by suspected poisoning from contaminated alcohol in Malaysia. If the alcohol is produced by Methanol and it is a poisonous chemical derived through synthetic processes, while commercial ethanol is produced by factory fermentation of food crops.

Greater Demand for Ethanol

Methanol poisoning can be treated with fomepizole, or if unavailable, ethanol. Ethanol, is the intoxicating agent found in beer, wine and liquor. This will create awareness of the consumer and manufacturer they need to look for high quality with good GMP such as the producer of Hexza. This will indirectly will spur their business.

Company Background and Good Manufacturing Practice:

Chemical Industries (Malaya) Sdn. Bhd, a subsidiary of public-listed Hexza Corporation Berhad, commenced production in 1962, making it the first ever ethanol manufacturer in Malaysia. 

Took from Hexza website;” Since, we have grown strength to strength, its facilities had been upgraded and greatly modified. Today, our annual production stands at 8 million litres comprising a range of comprehensive ethanol products from 96% to absolute satisfying the needs of most ethyl alcohol end uses.

In 1994, we were qualified for the prestigious MS:ISO9002 certification, a well known international recognition for compliance to ISO quality system, again the first in the industry. 

Adding to our achievements, we were awarded the appreciation for compliance to Good Manufacturing Practice Standards (GMP).

In 1994, we were qualified for the prestigious MS:ISO9002 certification, a well known international recognition for compliance to ISO quality system, again the first in the industry. 

Adding to our achievements, we were awarded the appreciation for compliance to Good Manufacturing Practice Standards and Customer Service for Raw Material Supplied by a world-class multinational pharmaceutical company.”

Profit Recovery

Compared to Peers (Decent Dividend)

Based on the recent earnings of EPS of 2.9 cents and pro-rated for coming 3 months. You will get a total of EPS 11.6cents. Why? This is due to previous earnings was receivable impairment loss and one-off only. Based on today price at 0.76, PE will be 6.5.

Even the share price increased to RM1, the dividend yield still at 5% better than FD.

Technical Analysis

The daily chart has technically breakout at 76 cents. Bullish pattern form in the weekly chart with formed of the cup and handled pattern. The rest traders will know what is going to happen.

End of Sharing. Hope everyone can be benefited from this sharing. Stay tuned with me for next company sharing. 

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