After nylex, hexza will move again

https://klse.i3investor.com/blogs/tapdance/2020-05-05-story-h1506909276-Ethanol_theme_on_an_obscure_small_cap_industry_leader.jsp

Hope it stays above rm1.1 the next two days to fully absorb last weeks high volume. It could consolidate and move higher then on, especially with good QR results

Nx hurdle 1.10, 1.32 and 1.65... Mynews outlets picking up biz during the CMCO.

RM 90sen, then 1.10 and 1.30 soon. Just like hexza... ;)

Looking good. Believe value investors are averaging for long term gains.
When the world returns to the new norm mask and sanitizers will be most in demand.
Once hospitalised patients are cured and cases drop, latex glove demand will come down and investors then start moving to hexza.

Won't happen over night but with the strong QR as an indicator signalling more IB reports, investors will take notice..

Rm1.60 near term and even rm2 soon.

I guess we will know over the next 2 days how many would pick up and ride along the uptrend.
Volume today was pretty high but there was no indication that the buyers were in to push the price higher.
Even before the last 3 days of movement, there was steady momentum gaining daily.

Started to move after the star news article and further report by CIMB.

It's not a contra goreng counter. If anyone wanted to make a quick buck, they might be disappointed. But I hope for the best..

If bank Negara drops the OPR by 50bps, the hexza will attract more interest with its strong dividend yield. There could be shifting of investments to dividend certainty stocks like hexza.

I'll wait it our for some special dividends around x'mas. :D
It's has been a joy receiving the dividends for the past 4 years

Luxchem is trading in a wide range of chemicals and are a distributor for polymer, plasticizers, chemical dispersion and cleaning agents for various industries.

Subject to trading margin, exposed to inventory holding and fx rates. Glove sector demand supports additive and other chemicals used in process.

Hextar is another company in the chemical biz but are focused on the agriculture sector, in particular oil palm. They signed a framework agreement to supply Sime Darby with various fertilisers and other chemicals used in the processing.

Hexza has been in manufacturing of resins, alcohol, ethanol, vinegar and even wine coolers for more than 30years. They manufacture and distribute their own brand.
Driver for hexza is demand from healthcare/pharmaceutical industries, wood based industries, f&b (drinks, sos/paste..) and of cause investment income and gains from their small US tech shares holdings.

Chemical industries tag on their main focus sectors for their products and key trends.

With Covid 19, the new norm, you may conclude that hexza is now linked to the consumer based healthcare play, which cast a wider net towards population use. Demand will remain strong for now and years to come.
Even with a vaccine in place, precautions must be taken, not only for Covid-19 but mutant strains of Sars and H1N1 viruses.

https://rfs.cgs-cimb.com/api/download?file=AAD7C839-533D-48CE-98C6-AFB468FE0CE1

All based on facts, nothing to bs abt this counter. Just follow the 3 principles : strong and able management, company in the right sector and right market timing (like this Covid situation, similar to glove sector) and a strong balance sheet, not burden by financing cost (like O&G highly leveraged and risky).

Usually such counters surprise and reward investors during challenging times. When there are no clouds, that's when you will pick out the brightest stars shining in the sky

3 factors why hexza might limit up before the QR.
1. Largest producer of ethanol with pharmaceutical grade. Typical margin was ard 20%, now abt 80% margin due to price increase

2. Co backed by high level of cash and liquid assets. Consistently divided of 5% over the last 3 yrs.
3. Young generation, able qualified management, connected and experienced. Think abt the tan chong family's younger generation forming billion $ startups like grab.. Etc.

From the horses mouth:

https://www.klsescreener.com/v2/news/view/672345

QR shld be stellar if ethanol price is indeed up to rm9. Wow..... Malaysia largest producer

Next week will fly again.. Most countries now placing bans on hand sanitizer exports...

https://focustaiwan.tw/society/202005010011

With the new SOP, hand sanitisers and disinfectant will be in strong demand...

Shldnt read into the loss, look at the position of the business. Can they stay a float with:
1. Cash of abt rm0. 77b plus receivables of rm1. 8b against
Trade payables+contract liabilities of rm2b and short term borrowings of rm3.1b.

Order book shrank to 13.5b.

What is their overhead burn rate, including interest?
They have 2.5b to extinguish a 5.1b fire, that position was as of their last quarter. Assume OH and interest burn, looking more like 2b to fix a 5.1b issue.

Next expect some contracts to be recoded and cancelled. Interesting case study. Failure is imminent but the question would be which smaller fitter mid size company will gain from this fall?

Closer to lifting of the MCO and longer operating hours for mynews. Will start jumping back above rm1 soon

Lifting MCO forces businesses to take precautions, spike in demand for PPE and hand sanitizers. Value potential for hexza far lagging.. QR in a couple or weeks should surprise everyone..

Time to buy more..

Any TP or hw big a stake they gunning for. Seems aggressive... 10m easily gets them 5% and could push the price north of 1.30

Not one shareholder but 2 sold. They may knw something and I trust its to do with the oil crash today. Brent crude is down 25% to usd19pb.

This means that once the North Sea floating platform is full would have to deliver on contract or shut down. Below their production cost, ping starting to bleed. DNEX is not geared like any other O&G company, if ping has not been sold by now, its looking pretty bleak. Dnex invested in a similar time when they bought in cheap. Would be lucky to get half of the asking price. Share price would be valued accordingly

www.entrepreneurindia.co/Document/Download/Liquid%2520Urea-Formaldehyde%2520Resin%2520Manufacturing%2520Industry-217599-.pdf&ved=2ahUKEwjSgI-x0_PoAhWazTgGHfdkAV8QFjAFegQIAhAB&usg=AOvVaw2mHbhw4MHtweOWpGOXoZsH&cshid=1587270512631' target='_blank'>https://www.google.com/url?sa=t&source=web&rct=j&url=http://www.entrepreneurindia.co/Document/Download/Liquid%2520Urea-Formaldehyde%2520Resin%2520Manufacturing%2520Industry-217599-.pdf&ved=2ahUKEwjSgI-x0_PoAhWazTgGHfdkAV8QFjAFegQIAhAB&usg=AOvVaw2mHbhw4MHtweOWpGOXoZsH&cshid=1587270512631
www.entrepreneurindia.co › ...PDF
Liquid Urea-Formaldehyde Resin Manufacturing ... - Entrepreneurindia.cO

Demand for resin products could be lower during the shutdown but malaysia produces and exports a lot of plywood and MDF. Resin is also priced based on benzene and solvent cost which is much lower now.
×************************* 2019 annual rpt ******
Our resins division is involved in the manufacturing and sale of formaldehyde-based adhesive resins for
timber-related industries. Operating out of Kuching, Hexzachem Sarawak Sdn. Bhd. is considered as one
of the biggest producers of formaldehyde-based resins in East Malaysia. Our adhesive resins are used in
the production of export quality plywood, particle boards and medium density fibre boards.
A significant amount of our Group’s earnings is also contributed by our investments. Hexza expanded its
business to Sabah via its minority stake in Norsechem (Sabah) Sdn. Berhad, which started operations
in 1985 and was the pioneer resins manufacturer in Sabah. Our investment in Norsechem (Sabah) Sdn.
Berhad has consistently delivered dividend income for the Company over the years.

******×************************

There would be pent up demand and a surge after MCO as the economy starts moving again. The resin biz was delivering OK margins the last 2 years on a decline. It could be lower but again cost could be an offset. The other thing to note is that saw Mills would prefer to convert logs to plywood where the resins are used in glue. It is also used to preserve logs from rotting, esp secondary recovery.

Hexza is cash positive and has a strong balance sheet plus they are blessed to be in the best business (ethonol) in the worst of times.
I believe the resin biz will pull through as well.

https://www.thestar.com.my/business/business-news/2020/04/18/mynews-aims-for-business-sustainability-amid-mco

Still cheap, it can move back past 1.30 anytime. Been accumulating all the way... :D

Charts are strong, I love mynews, it has legs and jumps when it wants to. Break rm1.05, nx 1.18, then 1.3....its only at half 7-11's PE..

Will be a good year for hexza.. Good earnings and hopefully add some special dividends

Shld be. That's why the price is starting to move up. Back to rm1 soon

If there is no deal and prices tank, we could see another 40% nose dive in O&G counters again. SPRNRG at 5sen after forced to take a write down in the coming results end Apr.

If trump sticks to his threats and imposes duties on imported oil to protect US jobs and the economy, there won't be a deal. Looks like its leaning towards that direction. After its the perfect solution to him keeping the usd2 trillion economic stimulus in the country further protecting the dollar when interest rates are at lows

Maybe with new blood things turn around for everyone. Am bullish and would keep collecting below 85sen. Balance sheet still very strong.

https://www.bangkokpost.com/business/1895485/sanitiser-dearth-continues

https://www.bangkokpost.com/business/1895485/sanitiser-dearth-continues

Thailand shortage, govt even dropped the excise duty. It would be super for hexza if msia adopted the same stance.

Heading back to rm1 soon

*red and white colors in the logo.... Missed the colors... Hahaha

Some malls are waiving rentals and even landlords are deferring collection. This situation is a perfect case for mynews management to assess their strategy for expansion. So many options open to them with wide and growing reach, they would go online, expand their ready to eat meals, value add in their stores and perhaps be like mcdees and start investing in retail commercial property. Supply chain cost will drop with lower fuel cost and the expansion of the gig economy. Their stores are flexible to innovate new food trends and incorporate Japanese, Korean, Taiwanese and even Thai concepts. Maybe they shld even consider working with Tony Fernandez's santan cafe for a perfect fit. After all they have the same red and white logo... ;)

Hexza is the largest producer. Prices have shot up. Hexza shld seriously get into the hand sanitizer biz to add value. 250ml bottle of genuine 75% Alcohol content selling for RM18 per bottle. Cost might be closer to rm6 or less. Everyone has gotten into the habit of hand sanitizing these days. The trend would stay strong.
Other products include medical wipes and swabs for disinfecting when you get the jab.

No airline which underwent a restructuring or bailout will ever be the same again. AA has JV's in other countries too don't forget,. First battle for them is with MAB, all the planes docked at klia2, got to get the govt to waive the fee, impact to MAB, / khazanah... Nx maybe soft loan from Petronas for 6 mths of fuel charges deferment. Special tax rebates and subsidies for keeping staff.... That could be the way. However aircraft lease payments might need to be deferred too. If those work, with a few hundred million of cash for ops. They might be back on their feet. However the balance sheet might not be so rosy for a while.... Tp 40sen likely

I believe if glove factories and Surgical Mask production can continue, Chem industries msia shld be running too. Shortage in the market

The current situation is supporting mynews RTE segment. I see all the roti habis everyday and noticed foreigners also buying the pasta and cold meals. If last qtr they were at 50% utilization of the RTE segment, am sure they could run higher now.

Every day CENSOF kena margin, tmrw sell down probably reach 3cent by friday

3 http://www.ethanol.com.my/ largest supplier in malaysia, owned by hexza, super profits... Hand sanitizers, cleaners, swabs, disinfectant...

http://www.ethanol.com.my/ largest supplier in malaysia, owned by hexza, super profits... Hand sanitizers, cleaners, swabs, disinfectant...

http://www.ethanol.com.my/

Mynews will move up. Turn of fortunes with the ready to eat biz - maru cafe alike family mart. I feel so good having the mynews outlet close by esp during these 2 weeks. The pasta, rice bowl and sandwiches are not too bad

Got some value at this prices. Drop due to CENSOF clearing margin. This is good. Hopefully get out of CENSOF ownership and have a new strong shareholder come on.

To preserve capital switch to hexza, will show super profits as they produce ethyl alcohol for hand sanitizers where prices are now rm30per liter from 5. Hand sanitizers contain 70% alcohol to be effective. My office uses 1 bottle per day, so imagine the demand now. Zero finance risk as they are hording case. Cash and liquid assets above current share price. Safer than the bank.... Hahaah

Oil won't stay low. The situation this time is so different that some companies might even opt to shut down ops temporarily. So the question could be if oil majors start planning ops shutdown and schedule maintenance, supply will start to drop.
Don't forget winter season starts in June for Australia. Since global warming slowed down in these recent months, winter might be cooler this time. Will be betting that this counter heads to 18sen in the 2H and maybe to 20sen by year end.

Mynews has taken a bearing and priced in the earlier slow down risk. It seems there is more upside from here to double when the correction kicks in. As tested before, it takes 2 days of trade to push this counter to rm1. Accumulate and sit tight for a 1quick recovery

https://www.thestar.com.my/business/business-news/2019/11/18/mynews-plans-aggressive-expansion

Tesco stores sold to CP grp from Thailand. https://www.thaienquirer.com/9282/cp-group-wins-bid-for-tesco-lotus-in-one-of-thailands-largest-ever-acquisitions/

They have 1900+ stores in thl and want more for msia... ;)... Mynews is interesting for them.usd500m gets them a larger reach...

*fingers crossed*

Seems CENSOF has margin obligations, shld recover

Will climb back up. Hospital biz boom