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
Dolly_Chai2Hexza so-called "growth" = disposal of asset + forex gain...
in fact, the core business revenue and profit has dropped...
pls do not mislead ppl...
and i do not see a chance for improvement/growth for core business (resin - too competitive, many MDF/particleboard/plywood manufacturers are making their own resin/glue now, no need buy from player like Hexza.. that is why they recently closed down on main subsidiary) (ethanol - maybe slightly better than resin business but i do not see any management plan to expand on this.. ASP is dropping too)...
sorry but no offense.. this is what i think... i may be wrong.. just that I have to disagree with what you said...
Dolly_Chai2the recent share price hike may be due to some investors who blindly look at EPS (without understanding what this EPS has gone up - due to asset disposal mainly and some profit gain)...
but bear in mind.. in 2017, MYR weakens so much that will be bad for Hexza... why? Hexza imported its raw materials that is mainly denominated in USD... while its sales/revenues are all from Malaysia which is denominated in MYR...
Dolly_Chai2just my 2 cents... u guys better do ur own homework... dun trust me 100%
balvin71I am sticking to my TP of RM1.20, will re-evaluate over the weekend.
sakurakid4Hexza is not only doing ethanol business but investment holding as well,while weaken Ringgit go against their core business, strong USD does help their investment segment,it could be verified from the latest figures, MYS been weaken for a long time yet they have amazing forex gain which is not being derived from core business.They have explained the drop in ethanol revenue which caused by a temporary issue.
It is nothing wrong for a company trying to diversify their business instead of relying too much on a single segment which have less potential growth,just like Magni which didnt do too well while they were mainly focus on packing business,so they decide to focus on garment business instead and see how well they performing now, change of business mind is certainly a risk but not essentially a bad thing,we just have to see how the management team perform,new guy may be lack of experience but doesnt mean he is weak, every company eventually need new blood and replace the old gang,isnt it?
I dont think the recent share price up caused by people blindly follow EPS, the result been out for a while,people do awared of some of the one off gain items thus Hexza didnt sky rocketed on the very next few days after the result out but only up slowly and steady.
Wei XiduGuys hold tigh ur shares . 1.20 coming soon
kanterThe world most expansive stock Berkshire Hathaway is a textile company but income made from investment are crucial .....hence, income make from investment for hexza is still solid money that will beneficial the shareholder.
Any notion of income from other investment is not important is tantamount to so chai ! LOL
kanterLet the so chai be the so chai...let the investor in hexza pocket the gain and laughing to the bank later! LOL
kanterLet's tracking how soon hexza will hit rm1.65 !!!!
kanterLet's not a sochai by erase the question of income derived from investment is not important!
Let's focus deal with more pertinent question is the income derived from non core investment income recurring consistency ?
I am sharing with the insider information with you.....the return on capital invested in non core business in Hexza is entering in early bull cycle in tandem with the overall market sentiment (bursa is expected to string rebounce after 3 years bear cycle).
TP RM 1.65 has becoming pragmatic. I am not so chai ! LOL
hooray, Hexza announced making another RM4 millions profit from it's investment in quoted securities. Expect another set of impressive financial result in May. Good luck to all Hexza's shareholders and hold your shares tight.
balvin71That's another RM0.02 realised profit per share!
Signal Note MalI am more interested on its cash reserve of RM50 mil +. Thats is a strong indicator
Super_SKLAiya, fundamentally strong stock, with really good prospect also don't want to pick up, go play contra, and now t+4 cut head already. Whose fault? Someone played contra, forced sell, then I go in lah. What to do? I Just buy lah.
Year Low / Year High / Now CCM: 0.82 / 1.48 / 1.46, gone up 78% Hexza: 0.83 / 1.16 / 1.12, gone up 35% Nylex: 0.51 / 0.82 / 0.82, gone up 60% Samchem: 0.65 / 2.12 / 2.09, gone up 222%!
Questions: 1. Why all these counters' share prices gone up? 2. How high can it goes? 3. How many of you got the the shares when the prices were at the bottom? 4. Why Samchem's price gone up so much, while Hexza's price gone up relatively so little? 5. Which one is the best? The one that gone up so much or the one that gone up so little? 6. Which one at what price at what time?
Your answer, your choice. My answer? Very obvious lah! Wish all good luck!
My answers: 1. There're many reasons why it goes up. Eating Viagra is one (just joking, hahaha). For sure, all are making more profit, giving more dividends, and business with better prospect. The most important one could be there're people willing to pay higher price to get the share. Who are they? Why? Look at the Top-30 list and company announcement.
2. I don't know.
3. I first bought Hexza when the price was around 60, few years back. Sold some, buy some, sold some, buy some.... Now? hahaha....you guess? Not important lah, I'm just a small potato.
4. I think the 1st one is due to manipulation and the second one is more on fundamental. But I might be wrong.
5. It depends.
6. Hexza, when it's undervalued.
Ya, good luck!
Super_SKLHi bugle, tqvm for your comments! I just curious to know why a good counter like Hexza, with an expected EPS of 20 cents for FY 2017, good dividends, net cash of RM70+ mil + stock investments of RM70+ mil, but the price is just about RM1.10. If I don't "hari-harimau" on it, I don't know what else to buy anymore. Should give it some Viagra, like you said, since a lot of hari-harimau here. Hahaha...
funitecCurrent PE: 7.63; Debt/Cash=0 Current Ration much more than 2.0, in fact it is 10.8: Profit margin 22.9%. Very hard to find company with this sort of profit margin,after the GST. The beautiful part is Dividend Yield of 3.98. Cash of 36 cents+ earnings 14.8 cents= 50.8 cents. Discount this from current price 113-50=63 cents to buy Assets worthRm1.17-0.36= 81 cents Only rough estimate to b on safe side. i like chemicals.