In the Klang Valley suburb of Bangi, HanaMedic Sdn Bhd’s marketing manager Nadia Azlin Adnan said the surge in demand for ethanol had driven up prices by up to four times.
“The prices started going up about two to three weeks back from RM4.50 a litre to close to RM18.
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Last QR revenue form ethanol business alone was $13.36 m with profit $4.37 m which is a whoping 32% !!.
HEXZA produced 9 mil litre in 2019 x $18 (february 2020 price above) = $162 million x 30% profit = $48 million profit.
Hexza is a fundamentally sound company that is doing well in all areas. With the natural barriers of entry for the ethanol business, strong investment returns from their overseas equity investment (Nasdaq breaking record high, fair value gain would be substantial in the next QR), strong cash position in the company coupled with a consistent min 4% DY annually, it is my humble view that Hexza has legs for upwards momentum. It meets most of my selection criteria and metrics. Slight recovery in oil price will also give improved performance for Reisin division in coming quarters to come.
School will carry out the sanitizing work everyday. Demand will be higher as other countries are battling with 2nd and 3rd waves of outbreak. FYI, Hong king schools will be closed again due to arising cases.
My patience running out but longer d accumulation stronger d breakout. Look at one of my best call of 2020, opensys! 34-38 sens 4 super long time. Now 200% d
reaching 1.26 only .. i am holding still.. my TP 2.00.. too high but I am confident it's achievable, everybody using hand sanitizers.. selling like hot cakes. and ethanol is not imported, main supplier hexza, fempro under lynez, but profit towards mother company Lynex only small.. Hexza own 100% CIM (erthanol producer) .. also bought Supermax la..huhu
Hexza EPS Qtr 2 to Qtr 3 jump from 0.7 to 3.8 ie.442%.. If conservatively 4 EPS ( RM3 per qtr) .. 12.00. Estimated TP should be 12 x PE 17 = RM2. 07.. It is an undervalue counter with no debt plus cash RM90 million..
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Posted by from1to10 > 2020-07-06 09:42 | Report Abuse
This is cash rich company. No borrowing at all. Good management