According to CGS-CIMB, Hexza has seen increased orders from its industrial customers since the outbreak of Covid-19 in February 2020. This is especially so for those involved in making sanitisers and disinfectants.
PETALING JAYA: CGS-CIMB expects Hexza Corp Bhd to benefit from a surge in demand for ethanol due to Covid-19, which is a component in sanitiser products.
According to CGS-CIMB, Hexza has seen increased orders from its industrial customers since the outbreak of Covid-19 in February 2020. This is especially so for those involved in making sanitisers and disinfectants, as the demand for these products has increased tremendously.
Alcohol-based hand sanitisers contain varying amounts and types of alcohol, often between 60% and 95%. These are usually ethanol (ethyl alcohol), isopropyl alcohol or n-propanol.
“Our channel checks with industry sources revealed that prices of industrial-grade ethanol in Malaysia have not declined. In fact, they have risen, given the strong demand to manufacture sanitising products.
“We also gather that buyers of industrial-grade ethanol find it non-economical to import ethanol from overseas due to low economies of scale, high shipping and logistics costs, as well as insufficient storage locations, ” said CGS-CIMB analyst Walter Aw in a report yesterday.
It seems that fuel-based ethanol refineries that are mainly located overseas may find it challenging to switch their product focus into industrial-grade ethanol due to requirements like higher impurities and a more complex or pharmaceutical-grade production set-up. Manufacturers and importers of ethanol are required to be licensed by the Department of Environment.
https://www.thestar.com.my/business/business-news/2020/05/05/hexzas-sanitiser-boon
