abcbProspect: With the recent steep hike in excise duty for locally bottled alcohol products,the alcohol industry is facing uncertainty in the future market demand for their finished products Further,the Ringgit Malaysia remains violatile and weak against US dollars.
abcbThe Group is expected to deal with cost challenges as most of its raw materials are imported.
Dolly_Chai2haha... pls read the quarterly report in more detail... our friend Patrick13 has already pointed out...
look, revenue has dropped significantly compared to preceding year's quarter and last immediate quarter... and the increase in profit is a trap : forex gain, land disposal and finance lease...
core business has actually worsened under the new young CEO...
no hope in this share to be frank
balvin71Isn't the finance lease an on-going biz, with the sell & lease back of power gen? Why discount this? Couldn't this could be a new core profitable biz? Forex gain will continue in the next few quarters, so I will not discount this. Biz is about making money and they are doing a good job. No?
cynachenYeap, finance lease with monthly 130k USD rental for 10 years, however I believe management needs to look for further growth after the drop in alcohol operations profit due to excise duty and the stubbornly weak MYR...
feilohNo dividend....No bonus...No share split like ekovest...How to push the price overnight?
Dolly_Chai2balvin71, yes, finance lease is a recurring revenue.. but the portion of this power gen is not significant to their overall revenue. and we have to really look at the overall revenue, where their core business is... and that has dropped significantly...
to me, the fundamentals are getting worse so i would skip or for those who are holding, i would advise to sell to lock in profit now...
Dolly_Chai2the hike in share price will not be sustained i think... sell before more ppl find out the fake increase of the EPS
Dolly_Chai2at first i saw someone recommended this share so i made a deeper dive into it and found out that there are too many risks and uncertainties with it... and with the recent announcement of results, it completely stops me from making any further move... just my 2 cents..
cynachen@Dolly, yes, future growth is kinda uncertain for this company now
Dolly_Chai2i am also not quite confident with the new young CEO who has a lot of negative rumors..
Super_SKLyes, u r right. Prlexus is better, go there. Hexza is not your cup of tea, why wasting so much time here?
abcbComparison of results for the second quarter of FY2017 against immediate preceding first quarter of FY2017 The Group record a decrease in revenue by 21.7% from RM34.30 million to RM26.86 million.Profit before tax was lower at RM10.74 million compared to RM15.47 million previously mainly due to gain on disposal of property,plant and equipment and non-current asset classified as held for sale of RM6.66 million recognized in the immediate preceeding quarter
bugleHi Hexza's Shareholders, you may ignore those noises made by non-shareholders.
In my previous article, I wrote "To make it short, simple calculation of the 3 items above already show a projected EPS of at least 12 cents for financial year 2017. How about the profit to be made from its ordinary businesses? That, let’s wait and see the company’s financial result in the coming quarters."
Now the second quarter financial result just came out yesterday, 6-months EPS already 12.1 cents. Above expectation, really impressive! Just expect another 4+4 cents EPS for the remaining quarters of 2017, and higher dividends then. If so, a company that is going to make 20 cents EPS a year with current share price of 1.05, what do you think?
My next article on HEXZA: From Asset Undervalued to Profit Growth Stock. Stay tuned.
zhangliangIt is not accurate, there is one off gains from disposal from earlier Q la. And this Q topline also fall. Raw materials cost largely imported. Weak MYR hard to do well.
bugleHEXZA: A Sure Profitable Company in 2017 and the Years that Follow https://klse.i3investor.com/blogs/Bugle/107246.jsp
Some said over-bought, some said not worth, some said blah blah blah...
Bugle says, I've bought not enough when it's cheap. Now it's still cheap!
zhangliangI think best to not mislead people. Company share price rise with earnings, not one off disposals gains. Look at the management prospect for 2017 in the recent QR and all will be clear. Will not comment any further....
kwang22090.39sen net cash per share..consider it's still worth to buy
mamatedehexza, financially ok, dividend also attractive...
balvin71I am still positive on HEXZA. My target price is RM1.20 before year end. Yes, ethanol biz down, this is due to new excise tariff. This is just a bump in the road. Once things stabilize, manufacturers adjust their business, revenue/biz will start to go back up. No one going to shut down the factory because of the tariff hike. Maybe not immediately back to earlier levels, but higher than current reported quarter and improve over time.
Finance lease business very profitable. This is the reason I am back into HEXZA, see my comments on Jan 15th. Yes, low revenue % to total business but high % profit to total business. I prefer profits compared to revenue. No point high revenue but no profit.
Will continue to see FOREX gain as US expected to increase interest rate. As for increase in raw material prices, it effects everyone in the industry. They will be able to pass some of the cost increase to their customers as the whole industry cannot sell at a loss or low margins.
Other positives, high net cash/cash equal. Good dividends. Low P/E. Positive Cash Flow. All the ratios look very good.
Before buying or selling, please do your own research. I own HEXZA and would like to see it go higher. :)
hornbillI brought hexza when 80 sen kept till now. This stock is for long term play I can sleep well at night.
VenFxWow, many sifus with in depth saharing in Hexza . I like this counter liaw.
VenFxHexza name always a trusted brand in quality. Hexza never tolerance on quality even during hard time. Salute ... many industrial users feel satisfy with Hexza product even at higher selling price . Another word, Hexza a pioneering the industrial chemical manufacturing.
VenFxThis nature of industry can make furthur expanding, especially the raw cost has stabilise from the Crude oil.
Dolly_Chai2paperplane is right, i dun think the "fake" EPS is sustainable... one-off gain of asset disposal and forex gain... core business (both ethanol and resin business revenue has fallen) are deteriorating...
they are a loser of weak MYR as most of their raw materials are imported while their sales are mainly in Malaysia..
some "super confident" investors here can continue to sing their songs and feel confident with this company but what i said is all fact..
in fact, they closed down a resin subsidiary recently.. and i had mentioned earlier, resin business is very competitive.. many MDF, particleboard, plywood makers are now making their own resin, and they even sell the excessive resin!
do you think their resin business will be sustainable?
and another concern is the new young CEO... do some research urself....
yangstyle10formsWhen the participant in the forum posted the CEO too young, it triggered me. I always believe age should not be used as the measurement of the individual capabilities but the experience & background more important. So I go check check
Walao er....The new CEO : MR GARY GOH SOO LIANG, Age 32
Working experience and occupation
He started his career as an investor relations consultant in Singapore and spent 3 months in Corporate Finance Department of OSK Investment Bank Berhad. Subsequently, he joined RHB Investment Bank Berhad ("RHB") in 2010 advising government-linked and corporate clients on fund raising and equity strategies. He left RHB in October 2016 as Section Head of Equity Capital Markets Department.
The captain only have experience in finance industry, how to know the chain supply & distribution?? latest earning result, he really make use his past experience for cosmetic touch up on quarterly result. Well done.
Unfortunately cosmetic touch up is not the one I'm looking for. I prefer quality earning on fundamental business - the growth on revenue & improve in earning margin.
"Words of truth are not pleasing. Pleasing words are not truthful" - Lao Tzu