Part 4A: ANCOM/4758 & NYLEX / 4944 (NOW SHOWING)

Stock for 2020
 

WHO announces COVID-19 outbreak a pandemic

As World Health Orgnization (WHO) announced Covid-19 outbreak as a pandemic, glove stocks naturally became attractive to KLSE investors. Followed by healthcare related equipments such as face masks, PPE, hospital beds and inter-related medical equipments and finally the most offensive product is Sanitizers.

The above picture shows FERMPRO'S (subsidiary of NYLEX)

AFTER the new storage tanks refurbishment.

THIS IS FANTASTIC NEWS FOR NYLEX. JUST IN TIME AFTER NYLEX NEWLY REFURBISHED ITS FACTORIES IN CHUPING, PERAK.

FERMPRO (a subsidiary of NYLEX) and fully upgraded the whole ETHANOL plant with new tanks and pipings.

REMARKS: 

The benefits achieved after the whole plant refurbished

1) Completely stop all leakages by changing old pipings to brand new one.

2) Thus, the end product offers on the purity of Ethanol increased from 95.5% to 99.5%

3) Saving 40% on fuel cost

4) Overall increase by extra 5% production

AND YEARLY PRODUCTION OF ETHANOL IS 5 MILLION LITRES

Remarks: The above picture shows FERMPRO's old storage tank facilities before they were refurnished and changed into new storage tanks and new accessories storage pipings.

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The above pictures show the end commercial and consumer products made by FERMPRO (subsidiary of NYLEX) and market exclusively by their parent company, ANCOM BHD.

In Pic (From Left): 20 litres for Industrial,Spray bottle for household, 4 litres for retail

Remarks:

Sole agent exclusively by Ancom Berhad 

Manufacturer is FERMPRO wholly owned subsidiary of NYLEX.

The above picture showing the full client list of Entopest Environmental Services Sdn Bhd / subsidiary of Ancom Bhd (official qualified licensed fumigator, a legal recognition awarded by the Malaysian - Ministry of Agriculture Awards the license upon the completion of intensive course on all aspects of fumigation requirements by the Ministry of Health.

Credentials - wide spectrum of clients (Tier One Clients) from:

i. Hypermarkets - Tesco, AEON, MYDIN, Giant

ii. Banks - Maybank

iii. Universities - Taylor's University, UPM, Garden International School

iv. Corporate offices - Amway, Goodyear, KLK Oleo, Gamuda, Sunway, Gas Malaysia

v. Hotels - Le Meriden, Renaissance Hotel, Grand Hyatt, The Mines Hotel

vi. Restaurant Chains - Texas Chicken, Old Town, Secret Recipe

vii. Logistics/Warehouses - TASCO/NYK Nippon Yusen Kaisha Group, Sanyku Group Japan

viii. Medical & Healthcare - Ministry of Health Malaysia, Gleneagles Hospital, Caring, Guardian

The above pic shows Entopest is offering full sanitizing services that are compliant to the US FDA regulations for industrial and commercial usage that are effective against Corona viruses.

The above picture shows a snapshot from one of Petronas stations in Malaysia. In fact, all Petronas station toilets have Entopest Hygiene sanitizing facilities.

In short, it caters for all segments of market - from domestic to commercial.

NOTE: GLOVES, FACE MASKS & ISOLATION UNIFORMS ARE DEFENSIVE WEAPONS AGAINST COVID-19

ONLY SANITIZER WITH MAIN INGREDIENT ETHANOL CAN KILL 99.9% GERMS.

The price of Nylex RM0.84 (closing 29 May, 2020) is still at the basement of this cycle price.

Would you not be surprised that this stock like HEXZA can go limit up,

as HEXZA went limit up on 4 May, 2020 and close RM1.21 (+RM0.30)

The glove stocks have gone from the low from March 2020 to May 2020 astronomical prices.

In KLSE, you have noticed that there are very big volumes of buyers, and also big voumes of sellers on the glove stocks.

The reason is that the buyers are issuing buy orders with the understanding will go higher.

However, little did you know that the current big sellers are the ones who have bought stocks prior to March 2020 (pre-COVID season) and are currently selling at a MASSIVE PROFIT! And after this, guess which stocks will they be putting their massive gains of big RM stocks into?

Answer: The Sanitizers. 

The Specific Answer: ANCOM/4758 & NYLEX/4944

New NYLEX Investors will mimic the dog's expression as the price soars to max limit (limit up) price from Monday, 1 June 2020 onwards.

Reasons:

(i) Hexza /3298

manufactures ethanol that is the basic ingredient of hand sanitizers, commercial sanitizers.

(ii) Nylex /4944

Another potential candidate for limit up

Only 2 big manufacturers of ethanol, food grade, chemical grades in KLSE

Hexza is in Tasek, Ipoh at the main road juncture to Penang- old main trunk road. (size 10 acres)

Fempro (subsidiary of Nylex) is based in Chuping, Perlis (size is 11 acres). Almost the same size as Hexza.

Rakuten: Write up issued on 20 May 2020

Rakuten Trade: Tread carefully in times of market exuberance

Lai Ying Yi / theedgemarkets.com

May 20, 2020 15:12 pm +08

KUALA LUMPUR (May 20): Barring any drastic corporate earnings revisions, the FBM KLCI is projected to close at about 1,400 points at the end of this year in view of heightened economic headwinds, according to Rakuten Trade Sdn Bhd head of research Kenny Yee.

In a virtual market outlook briefing today, Yee said the KLCI target is based on 15 times its market price-to-earnings ratio, and further downward estimates by analysts could be the main factor derailing the target.

Rakuten’s main top pick

Rakuten Trade favours ethanol manufacturer Ancom Bhd with NYLEX, 

You would not need to use the above 3 equipments as we have done research for you.

SUMMARY

SEE RESEARCH TARGET PRICE

FOR NYLEX: 

RM 1.20 short term,

RM 1.60 mid term

FOR ANCOM: 

RM 1.10 short term,

RM 1.50 mid term

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Key Abbreviations:

1. Ancom Berhad - is the holding company of Nylex (Malaysia) Berhad and Ancom Logistics Berhad, both are listed on the Bursa Malaysia Securities Berhad Main Board and ACE Market respectively.

2. Entopest Environmental Services Sdn Bhd (wholly-owned subsidiary of Ancom Berhad)

3. Fermpro Sdn Bhd (subsidiary of Nylex Berhad) Nylex Malaysia Berhad