Highlights
KLSE : HEXZA       HEXZA CORPORATION BHD Main : Industrial Products
Last Price Today's Change   Day's Range   Trading Volume
1.09   +0.03 (2.83%)  1.07 - 1.10  1,825,100
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Financials


Market Cap: 219 Million

Market Cap 219 Million
NOSH 201 Million

Latest Audited Result:  30-Jun-2016

Latest Audited Result: 30-Jun-2016
Announcement Date 26-Oct-2016
Next Audited Result: 30-Jun-2017
Est. Ann. Date: 26-Oct-2017
Est. Ann. Due Date: 27-Dec-2017

Latest Quarter:  31-Dec-2016 [#2]

Latest Quarter: 31-Dec-2016 [#2]
Announcement Date 16-Feb-2017
Next Quarter: 31-Mar-2017
Est. Ann. Date: 12-May-2017
Est. Ann. Due Date: 30-May-2017
QoQ | YoY   -35.97%  |    248.15%

Annual (Unaudited) ( EPS: 7.93, P/E: 13.74 )

Revenue | NP to SH 141,432  |  15,999
RPS | P/RPS 70.11 Cent  |  1.55
EPS | P/E | EY 7.93 Cent  |  13.74  |  7.28%
DPS | DY | Payout % 4.46 Cent  |  4.09%  |  56.25%
NAPS | P/NAPS 1.09  |  1.00
YoY   13.94%
NP Margin | ROE 12.22%  |  7.27%
F.Y. | Ann. Date 30-Jun-2016  |  24-Aug-2016

TTM Result ( EPS: 14.72, P/E: 7.41 )

Revenue | NP to SH 129,232  |  29,686
RPS | P/RPS 64.06 Cent  |  1.70
EPS | P/E | EY 14.72 Cent  |  7.41  |  13.50%
DPS | DY | Payout % 4.37 Cent  |  4.01%  |  29.71%
NAPS | P/NAPS 1.17  |  0.93
QoQ | YoY   29.58%  |    83.08%
NP Margin | ROE 24.25%  |  12.58%
F.Y. | Ann. Date 31-Dec-2016  |  16-Feb-2017

Annualized Result ( EPS: 24.08, P/E: 4.53 )

Revenue | NP to SH 122,324  |  48,582
RPS | P/RPS 60.64 Cent  |  1.80
EPS | P/E | EY 24.08 Cent  |  4.53  |  22.09%
DPS | DY | Payout % -
NAPS | P/NAPS -
QoQ | YoY   -18.01%  |    129.12%
NP Margin | ROE 41.16%  |  20.68%
F.Y. | Ann. Date 31-Dec-2016  |  16-Feb-2017



Business Performance

Business Performance (By Quarter)

Trailing 4 Quarters Trailing 8 Quarters
Available Quarters 4 Quarters 8 Quarters
Continuous Quarters Of Revenue Growth 0 / 4 0.00% 0 / 8 0.00%
Total Positive Profit Years 4 / 4 100.00% 8 / 8 100.00%
Continuous Quarters Of Positive Profit 4 / 4 100.00% 8 / 8 100.00%
Continuous Quarters Of Profit Growth 0 / 4 0.00% 0 / 8 0.00%
Continuous Quarters Of Adjusted EPS Growth 0 / 4 0.00% 0 / 8 0.00%
Total Dividend Years 1 / 4 25.00% 2 / 8 25.00%
Continuous Quarters Of Dividend 0 / 4 0.00% 0 / 8 0.00%
Continuous Quarters Of Dividend Growth 0 / 4 0.00% 0 / 8 0.00%
Continuous Quarters Of Adjusted Dps Growth 0 / 4 0.00% 0 / 8 0.00%
Average ROE 3.19% 2.51%
Average Net Profit Margin 24.79% 18.19%

Business Performance (By Year)

Last 5 Financial Years Last 10 Financial Years
Available Years 5 Years 10 Years
Continuous Years Of Revenue Growth 0 / 5 0.00% 0 / 10 0.00%
Total Positive Profit Years 5 / 5 100.00% 9 / 10 90.00%
Continuous Years Of Positive Profit 5 / 5 100.00% 9 / 10 90.00%
Continuous Years Of Profit Growth 2 / 5 40.00% 2 / 10 20.00%
Continuous Years Of Adjusted EPS Growth 2 / 5 40.00% 2 / 10 20.00%
Total Dividend Years 4 / 5 80.00% 8 / 10 80.00%
Continuous Years Of Dividend 4 / 5 80.00% 4 / 10 40.00%
Continuous Years Of Dividend Growth 0 / 5 0.00% 0 / 10 0.00%
Continuous Years Of Adjusted Dps Growth 0 / 5 0.00% 0 / 10 0.00%
Average ROE 4.26% 5.11%
Average Net Profit Margin 8.03% 7.74%

Key Result

Key Result

TTM Annualized Annual (Unaudited) Last 10 FY Average Last 5 FY Average
Revenue 129,232 122,324 141,432 136,015 142,025
NP to SH 29,686 48,582 15,999 10,959 10,509
Dividend 8,820 - 8,999 5,920 6,833
Adjusted EPS 14.72 24.08 7.93 5.43 5.21
Adjusted DPS 4.37 0.00 4.46 3.33 4.19

NP to SH = Net Profit Attributable to Shareholder, EPS = Earning Per Share, DPS = Dividend Per Share

All figures in '000 unless specified.

EPS & DPS's figures in Cent.


Growth

Growth (By Quarter)

LQ QoQ LQ YoY CQ YoY LQ vs Average of T4Q LQ vs Average of T8Q
Revenue -21.69% -26.71% -17.26% -16.86% -22.19%
NP to Owner -35.98% 248.69% 129.05% 27.75% 65.25%
Dividend 0.00% 0.00% 0.00% 0.00% 0.00%
Adj. EPS -35.97% 248.15% 128.90% 27.80% 65.27%
Adj. DPS 0.00% 0.00% 0.00% 0.00% 0.00%

LQ = Latest Quarter, CQ = Cumulative Quarter, T4Q = Trailing 4 Quarters, T8Q = Trailing 8 Quarters, QoQ = Quarter on Quarter, YoY = Year on Year

Growth (By Year)

T4Q vs LFY T4Q vs AL5FY T4Q vs AL10FY AQR vs LFY AQR vs AL5FY AQR vs AL10FY LFY YoY LFY vs AL5FY LFY vs AL10FY
Revenue -8.63% -9.01% -4.99% -13.51% -13.87% -10.07% -5.82% -0.42% 3.98%
NP to Owner 85.55% 182.48% 170.88% 203.66% 362.28% 343.30% 14.03% 52.24% 45.99%
Dividend -1.99% 29.06% 48.97% - % - % - % -0.23% 31.69% 52.00%
Adj. EPS 85.62% 182.53% 170.94% 203.66% 362.19% 343.22% 13.94% 52.21% 45.96%
Adj. DPS -2.02% 4.40% 31.07% - % - % - % -0.22% 6.55% 33.77%

T4Q = Trailing 4 Quarters, T8Q = Trailing 8 Quarters, AL5FY = Average of Last 5 Financial Years, AL10FY = Average of Last 10 Financial Years, LFY = Latest Financial Year AQR = Annualized Quarter Result, YoY = Year on Year

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  6 people like this.
 
hornbill High chance there will special dividend declare profit from port klang land sale.
15/02/2017 20:04
shareinvestment7 land sale?? How come no official announcement at bursa?
15/02/2017 21:39
hornbill Last year..
16/02/2017 01:46
abcb RSI(14 days);Relative Strength Index hit to 82.75% considered overbought
16/02/2017 10:39
Chan SauWei Good qr result.. Tomorrow gap up 1.25
16/02/2017 19:05
hornbill Handsome result those sale today will regret.
16/02/2017 19:36
Patrick13 If deduct forex gain, finance lease income, disposal of land, actually the operating profit does not improve if compared to last year.
16/02/2017 20:22
Yipman gains mean gains. profit up^. :)
16/02/2017 20:42
Yipman in reverses, if give u improvement on revenue but big loss in forex like cscstel, would u continue to invest?
16/02/2017 20:47
Yipman if hexza revenue improve on next QR and maintain the forex gain then u will fly high.. so my suggestion is to continue.
16/02/2017 20:49
OnyxCapital Fantastic quarter result announced. We will the stock movement tomorrow.
16/02/2017 22:03
balvin71 Finance lease income will continue to generate good profits for remaining quarters. With US increasing interest rate, US$ will continue to go up, forex gain will continue. Only incertainty is in the ethanol division. Finance lease should be able to more than make up for the shortfall in the ethanol production.
16/02/2017 22:09
hornbill Can't imaging one day profit will more then revenue..
17/02/2017 01:05
balvin71 Last 2 quarter result already exceed whole of last financial year profit. Stock currently trading at a low P/E with a strong cash flow & good cash/cash equal. balance. I am confident at the end of the year, they will give a better dividend. My TP remains at RM1.20 by year end.
17/02/2017 08:19
cynachen "A new excise duty amendment order 2016 came into effect on 10 October 2016, whereby the excise duty on potable alcohol used in the manufacture of locally bottled alcohol is no longer paid by the distillers but levied on the finished products and to be paid by the bottlers. On top of the transfer of excise duty payment from the distillers to the bottlers, the excise duty rate has more than doubled with this new amendment order. " --> Increase profit for Hexza, or bottlers will reduce orders?
17/02/2017 08:30
abcb Review of Performance
Second quarter of FY2017 compare with Second quarter of FY2016
The Group recorded a lower of RM26.86 million as compared to RM36.65 million in the sme quarter last year.Profit before tax at RM10.74 million which was higher against RM3.83 million in the previous corresponding quarter
The performance of the operation business is as followers:
Manufacturing segment: Turnover for the quarter was lower at RM25.71 million in compared to RM35.60 million in the previous corresponding quarter.A new excise duty amendment order 2016 came into effect on 10 October 2016,whereby the excise duty on portable alcohol used in the manufacture of the locally bottles is no longer paid by distilers but levied on the finished products and to be paidby the bottlers.On top of the transfer of excise duty payment from the distilers to the bottlers.the excise duty rate has more than doubled with this new amendment order. In addition,the bottlers were seeking clarification and had to put their bottling operations on hold for approximately twa months before the revision in the standard operating producer of the Royal Malaysian Customs Department was issued.This has affected the sales of potable alcohol by the Group for twa-months period.Subsequently,the bottlers resume normal operations as at 31DEC 2016 but at a lower production level as they go through market adjustment period.This directly resulted in the droup for the ethanol division turnover by 55% and decrease in sales turnover by 23.2%
17/02/2017 08:40
abcb Resins division turnover dropped by 5.4% mainly due to a drop in average selling price and cessation of the manufacturing operation of a subsidiary company as announced previously.Profit before tax for manufacturing segment increased by RM0.63 million contributed from resins division mainly due to lower average raw material cost.
Investment segment: profit before tax was higher mainly due to the unrealized foreign exchange gain of RM4.75 million recognized in the current quarter as compared to a reversal of an unrealized foreign exchange gain of RM0.83 million in the previous corresponding period
17/02/2017 08:49
abcb Prospect:
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.
17/02/2017 08:59
abcb The Group is expected to deal with cost challenges as most of its raw materials are imported.
17/02/2017 09:13
Dolly_Chai2 haha... 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
17/02/2017 09:42
balvin71 Isn'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?
17/02/2017 10:27
cynachen Yeap, 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...
17/02/2017 11:14
feiloh Where is the gap up
17/02/2017 11:21
feiloh No dividend....No bonus...No share split like ekovest...How to push the price overnight?
17/02/2017 11:23
Dolly_Chai2 balvin71, 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...
17/02/2017 11:28
Dolly_Chai2 the hike in share price will not be sustained i think... sell before more ppl find out the fake increase of the EPS
17/02/2017 11:28
Dolly_Chai2 at 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..
17/02/2017 12:13
cynachen @Dolly, yes, future growth is kinda uncertain for this company now
17/02/2017 12:20
Dolly_Chai2 i am also not quite confident with the new young CEO who has a lot of negative rumors..
17/02/2017 13:14
Dolly_Chai2 best is to skip guys... up to you though
17/02/2017 13:14
Super_SKL yes, u r right. Prlexus is better, go there. Hexza is not your cup of tea, why wasting so much time here?
17/02/2017 14:12
abcb Comparison 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
17/02/2017 15:02
bugle Hi 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.
17/02/2017 16:39
zhangliang It 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.
17/02/2017 16:41
bugle HEXZA: 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!
17/02/2017 16:44
zhangliang I 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....
17/02/2017 17:24
kwang2209 0.39sen net cash per share..consider it's still worth to buy
17/02/2017 19:22
mamatede hexza, financially ok, dividend also attractive...
17/02/2017 20:42
balvin71 I 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. :)
18/02/2017 07:58
hornbill I brought hexza when 80 sen kept till now. This stock is for long term play I can sleep well at night.
18/02/2017 09:53
VenFx Wow, many sifus with in depth saharing in Hexza .
I like this counter liaw.
18/02/2017 11:20
VenFx Hexza 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.
18/02/2017 11:27
VenFx This nature of industry can make furthur expanding, especially the raw cost has stabilise from the Crude oil.
18/02/2017 11:32
kanter Tp at rm1.65
20/02/2017 09:39
kanter Another bp plastic....awakening from sleepy hollow
20/02/2017 09:41
hornbill 老字号。Still wait more more people to discover it.
20/02/2017 11:11
funitec Technically looks OK to me.
20/02/2017 15:41
hornbill Next quarter EPS increase another 4 to 5 sen. Yoy will increase to 18sen price definitely to shoot up further.
20/02/2017 16:24
HuatRex Don't too confident. Talk with facts.
20/02/2017 21:57
paperplane2016 Is it sustainable
20/02/2017 22:45