No stock can go up continuously for whatever reasons. After sometime, the price will correct .. Good share, like Hexza which has very good profit growth prospect, will continue to go up higher and higher. Never sell if the company can continue to report increasing profit every quarter.
Covid-19 thrusts chemical companies into the limelight TheStar Sat, May 09, 2020 09:00am - 6 hours ago
Among the few that are in the supply chain of chemicals that cater to consumer products are Hexza Corp Bhd, Samchem Bhd and Hextar Global Bhd.
FOR the longest time, only companies in the business of producing and distributing petrochemicals and agrochemicals hogged the limelight.
However, the Covid-19 pandemic has put the spotlight on companies that are in the business of producing and distributing chemicals that are used for personal care and cleanliness such as sanitisers and disinfectants.
The price of the raw materials used to manufacture personal healthcare products such as isopropyl alcohol (IPA) and ethanol have gone up significantly in contrast to the prices of other chemicals that are generally down.
“The price of chemicals is generally down, except for some chemicals that are used to produce personal hygiene and personal care products such as sanitisers. Prices are up due to the short supply and huge demand in the materials used to produce the hand sanitisers and cleaning products, ” says an industry official.
There are many listed companies that are in the supply chain of industrial chemicals. However, the majority cater to light and heavy industries that are in the manufacturing and production of agrochemicals and petrochemicals.
Among the few that are in the supply chain of chemicals that cater to consumer products are Hexza Corp Bhd, Samchem Bhd and Hextar Global Bhd.
The others supply to industries such as the glove companies, fertiliser producers, plastic manufacturers and various other industries.
The advantage of companies producing chemicals for industries is that the usage is wide. It involves huge volumes and demand has always been steady. For instance, those producing chemicals for the glove and plastics industries have always had demand for their products until the movement control order (MCO), where some plants scaled down operations.
In contrast, those in the supply chain of chemicals routinely used in the making of sanitisers and disinfectant products have not seen a spike in demand until the recent Covid-19 outbreak.
More places – be it hospitals, long-term care homes, schools, stores, offices, and even homes – have stepped up on cleanliness as a layer of defence against the virus, increasing demand for certain types of chemicals needed to manufacture such products.
As far as Bursa-listed stocks go, a handful of companies involved in industrial chemicals for personal care have remained largely under the radar.
Where chemicals are concerned, the market seems more familiar with companies involved in the manufacturing and distribution of agrochemicals such as Luxchem Bhd, Southern Acid Bhd, and IMASPRO Corp Bhd, while for petrochemicals, it is dominated by the big boys – PETRONAS CHEMICALS GROUP BHD and Lotte Chemical Titan Holdings BHd.
“You can term the chemical suppliers to consumers products as the back-room boys. They are low-profile, ” quips one dealer.
But these players are slowly beginning to be noticed by investors, looking for investing themes in a market that’s daunted by mostly negative news following Covid-19.
This week, Hexza saw active trading on expectations that the company would benefit from a surge in demand for ethanol, a component in sanitiser products.
In five days, the stock had shot up close to 30% to hit a one-year high of RM1.21 at the time of writing on May 6.
Hexza is involved in the manufacturing of chemicals. It specialises in two products, namely, adhesive resins, which are used in the production of wood-based goods, and the manufacturing of high-quality and low-impurity ethanol.
According to CGS-CIMB, its ethanol manufacturing facility has an annual production capacity of nine million litres and is sold to customers in two sectors. One is the drinkable sector for use in distilled alcoholic drinks. Second is the industrial sector, where raw materials of alcohol-based products are used in sanisiting and disinfecting, and cosmetics.
In a May 4 report, the research firm said Hexza expects demand and pricing for ethanol to remain strong beyond the MCO, as sanitising activities become the norm in Malaysia.
Similarly, Samchem and Hextar shares have also piqued interest, charting a steady uptrend from about a month ago.
Samchem is involved in the distribution of chemicals that are used in personal care and grooming products such as mouthwash and toothpaste, plus household care and cleaning products like detergents, multi-purpose cleaners and stain removers.
On the industry side, it serves the automotive, manufacturing, construction, paints and inks, agriculture, and oil and gas sectors.
Hextar (formerly known as Halex Holdings Bhd), meanwhile, has two divisions. While maintaining its core business of manufacturing, re-packaging and distributing agrochemicals, it has also diversified into the manufacturi
Now everybody talked about Hexza's Ethanol business, how about the RM28.54 mil court case on Myanmar Power Station issue against Tembusu Singapore in which Hexza has won the case. How much can claim back?
Anytime will reach rubberex n comfort price! Cash rich counter with at least 5 cents dividend! Who knows...they may declare a higher dividend with higher profits in view of Covid 19.....
duit kor, why are you so shy to promote Hexza leh? deleted yr comment? Do you worry about price surge too high on next week before loaded enough? I bought Comfort from Jan20 then it took 3 months for other investor to realize the power of Comfort! (around Apr20 shoot up!) So, investor will realize power of Hexza a bit early , that is May QR! 2 more weeks will high chance cross RM2.00!
In normal times, the company manufactures an average of 20,000 bottles of ethanol-based hand sanitiser a month for the domestic market, he said.
“We’ve been getting a lot of enquiries from overseas, including Southeast Asian countries as well as China and Hong Kong,” Mr Mohd Farkhan said.
“PRICES OF ETHANOL INCREASED BY UP TO FOUR TIMES”
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
.... At the ethanol manufacturing end, Chemical Industries Malaya Sdn Bhd (CIM) said the jump in its sales figures was “quite substantial”.
“We have seen a huge increase in orders since the start of February from all our customers, especially those involved in sanitisers and disinfectants,” said Mr Aureole Foong, the CEO of Hexza Corporation, CIM’s parent holding company.
READ: Do homemade hand sanitisers actually work? We ask the doctors “Sales in just the first week of February have already exceeded our monthly average over the past few months,” he added.
According to Hexza’s website, CIM’s annual production of ethanol and related alcohol products stands at 9 million litres, with 70 per cent of output going to the local market.
While strongest demand still came from local customers, CIM has also received overseas requests during this crucial period, Mr Foong said
Hope it stays above rm1.1 the next two days to fully absorb last weeks high volume. It could consolidate and move higher then on, especially with good QR results
Hexza owns 1)Apple shares which rose to US$315,up $4.88 yesterday 2)Alibaba which rose to US$205,up $4.21 yesterday. 3)Facebook which rose to US$213,up $0.83 yesterday. 4)Nvidia which rose to US$322.6, up $10.2, yesterdsy !! Thus, Hexza has made sound investment which is doing very well in current difficult period. It also has $62m cash in bank with zero borrowing !!! Hexza is producing ethanol which is in great demand now.. It is anazing that a small company like Hexza is able to own cash plus investment valued at $162m !!! Can anyone find whether there is any small klse company with this huge sum of money with zero debt ????
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
pang72
51,542 posts
Posted by pang72 > 2020-05-06 17:52 | Report Abuse
Wait the QR out...
Profit shld double