WHO warns it could take up to 5 years before the coronavirus pandemic is under control. Hence the demand for sanitizer is always be there. Expect this counter to move faster cos glove counter already too far infront.. Ha Ha..
Today Nylex 3rd Q report EPS -2.10(Loss).In their Current year's Prospect, not a word mention about Ethanol???. I still prefer to BUY Hexza for the Ethanol business. For the current quarter under review, the Nylex Group registered a lower revenue of RM275.3 million, which represents a decrease of 15.4% from RM325.3 million recorded in the same period last financial year. The decline in revenue was mainly due to lower contribution from the Industrial Chemical Division. The Group managed to lower the LBT for the period to RM2.6 million, compared to LBT of RM7.7 million recorded in the corresponding period last year, attributable to higher earnings contributed by the Industrial Chemical Division and the Polymer Division. The Polymer Division posted lower revenue of RM25.1 million for the current fiscal quarter,
Today Nylex 3rd Q report EPS -2.10(Loss).In their Current year's Prospect, not a word mention about Ethanol???. I still prefer to BUY Hexza for the Ethanol business. For the current quarter under review, the Nylex Group registered a lower revenue of RM275.3 million, which represents a decrease of 15.4% from RM325.3 million recorded in the same period last financial year. The decline in revenue was mainly due to lower contribution from the Industrial Chemical Division. The Group managed to lower the LBT for the period to RM2.6 million, compared to LBT of RM7.7 million recorded in the corresponding period last year, attributable to higher earnings contributed by the Industrial Chemical Division and the Polymer Division. The Polymer Division posted lower revenue of RM25.1 million for the current fiscal quarter,
Ya, nylex doesn't look like there was any substantial ethanol play supporting the QR. I hexza's last QR, they had already indicated that the year would see positive profits brought about by the Covid19 pandemic. This was further reported by the news articles in Feb where the CEO clearly mentioned a position of being oversold in the first week for the entire month. That was just early before the MCO and when there was about 500k cases world wide. I remember top Glove at 5.90 and supermx at 1.45 then. No one understood the stock out situation... Mask was in demand then. Now everyone is jumping in to produce their own mask, allowing for better supply. So in short, ethanol being as important as a mask for personal protection cannot unfortunately be shipped around cost effectively nor can capacity be increased quickly. At least for the pharmaceutical grade hexza produces.
Most govt hospital and foreign nation tenders call for pharmaceutical grade, refined ethanol and not back yard or bio ethanol which is used as a fuel substitute just like (palm) for biodiesel.
Hexza is lagging but I trust it has legs to move up to at least 1.80. I have been accumulating for the past 4 years now and I have comfort in holding it for its dividend and future prospects.
Could be some switching play from nylex to hexza, just as we saw from hextar to hexza a few days back.
I don't expect hextar's profits to be any higher than before as CPO pricing is down and as with 2 years back, planters held back spending cost to improve yield. So imagine 2 years without full feeding the plants fertiliser... Next year crop yield shld be low and if there is economic recovery, cpo prices will rally towards April / may next year.
Hextar & nylex punters get ready to charge into HEXZA
This counter is the largest ethanol producer in Malaysia. Ethanol is the main ingredient to make hand sanitizers. As i observed there is huge consumption of hand sanitizers everywhere we go now. According to some suppliers, pricing of ethanol has gone up to 100% yet you are able to get the stocks (so lansi).
Thinking to import?? it would be hard to import because it need send to Malaysia's authorities for testing and get approval (u know malaysia efficiency lah), ports/customs were closed and the whole world also fighting for this, the selling cost wont be cheap, what if adds on import tax, ports fee and so on.
another thing to highlight is it's also benefited from lower oil price as somehow it's linked to the petrochemical products at around 50% now. Lower cost + higher selling price = profit up!!
Who will wear glove for outing everyday? only medical-linked sectors are main consumers. Normal ppl like us will wear mask and rub sanitizers only right? so buy or not buy?
Yes strong demand only production will increase which will benefit Hexza...all the restaurants, shops and offices now require usage on hand sanitizers which will be new normal not to mention individuals who have their own hand sanitizer.
Nylex's ethanol factory in Chuping, Perlis (Fermpro Sdn Bhd) has 11 acres but out of that 6 acres is molasses treatment pond. Factory and office is about 5 acres, half of Hexza's ethanol factory in Tasek, Ipoh (Chemical Industries (Malaya) Sdn Bhd (10 acres)
Today signals don't look good. Price momentum dropped and I am guessing would drop more in days to come. Hexza's QR has been delayed to 30th June (final date extension approved by bursa). Looks like won't be a raya present from hexza. Just hope the QR would doesn't paint a negative picture like than of nylex or worst that they couldn't operate from March.... :(
Dropped to 1.16...Still a little fishy why they had to make an announcement to delay the QR. They should have sorted out jan/Feb. March financial shldnt have taken much time... With better leadership now I would have expected things to be in order. Hope won't get trapped again like years back... Better make up with sterling results and a bumper dividend... Ethanol price up, us stocks up..... Hexza needs to up up and up
Suppose Hexza management are planning for something else.... Bonus issue... special dividend... etc. Since they are always take care about share holder.....
GCA sold her share on 05 May 124 and 06 May 116 for total 187,000 shares and defer QR Report announcement. Think result is not what we expected for.Sold all.Unless her selling is to accumulated more shares? When she bought the 187k shares? Why cant wait for good result if is better than market expected result?
with new management, it dont think they care about their investor....they knew the implication of delaying the QR report...just cut loss and forget this counter
Very high spread and swings... Trend doesn't look good. Nylex back to normal sane trading volume and holding up. Hextar might be consolidating before the next jump. Luxchem trending to rubber gloves... Lets see over the next few days...
without the quarter report negative sentiments on the prices will continue. volumes also looks weak. lets hope its goes up...but i do smell something rotten with the managements. Just look at the website...as if lacks of investments. I wonder if plywood business crashing their profit??
Hexza co is worth a far lor than current price . Check their report ie how many apples share they own at super low price !!!! Look at hextar result . Their result sud be equally good if not better la
Armada, b4 market open u estimated up so TP 1.28, after market open price go down so u wish dont break 1.28 soonly? haha... u make joke everywhere if not confidence just follows me VenFx, i accumulated EG RM1++ and EG-wa 0.40 since 4 years ago.
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
pang72
51,486 posts
Posted by pang72 > 2020-05-14 12:35 | Report Abuse
Glad that this morning rebound manage to clean out. Not bad