Hi guys,
Calvin used to whatspp Friends & Investors about Stocks of Interest from time to time.
But once awhile I get feed back from friends about their discovery
One Big Time Investor whataspped me about Hexza when it was around 70 sen. He asked me to consider as he saw potential in Hexza. I already knew Hexza produced alcoholic beverage so I told him nothing special except for its dividends and didn't take another look
Whoa! to my surprise Hexza suddenly gone Limit Up one day to cross Rm1.00 & closed at the High of Rm1.21
Puzzled, I went to do a further research as to why it spiked up so much. Then I found out
Hexza's ethanol which was converted into alcohlic drinks can also be used as Sanitizer to fight the Covid 19 virus
Why is it so?
See the answer
HEXZA CORPORATION BERHAD (8705-K) From Hexza latest Quarterly Report
Interim Report on Consolidated Results for the Second Quarter ended 31 December 2019 Page 10 of 13 HEXZA B3.
Prospects
As prevailing industry conditions remain challenging, our resins segment might see a downturn in both revenue and profits. However, with the current outbreak of a new coronavirus strain, the demand for our ethanol products has increased substantially. Our ethanol segment’s financial results is expected to benefit significantly which should help offset any potential downturn from the resins segment.
Hexza mentioned "Ethanol"
Ha! Ethanol is the food alcohol which Hexca converts into alcoholic beverages
Now it is used in fighting Covid 19
A further check revealed that Medical Doctors will only recommend Sanitizer with high alcoholic content from 70% to 90% to be effective against corona virus = the rest of the so-called sanitizers without high alcoholic contents are quite ineffective and therefore useless against Covid 19
So Hexza has a secret weapon = "Ethanol" alcohol
And even after Hexza jumped limit up to Rm1.21 it still rise and rise to a new record of Rm1.41
So I missed Hexza, careless me.
Aha!
One day another friend whataspped me. He said Nylex also got Ethanol. Nylex? A fimiliar name which i bought in year 2014 when Crude oil crashed. You see, Nylex being a polymer product manufacturer needs Crude oil for its products. So in year 2014 when Crude oil crashed to USD27 I instinctively bought Nylex as its Feed cost will be cheap and will save cost & also increased profit.
And i was right. Nylex doubled in price within 2 years when I sold and didn't look back
Now the idea of "ethanol?
Did I missed something. So I told my friend to call Nylex office. They confirmed under Nylex is Fernpro which produces ethanol.
And for some months they closed the factory to do upgrade. Just in time. By Mid 2019 the factory is up & running again
And my, the capacity is 11 Acres. The factory is located in Chuping, Perlis where Malaysia's Biggest Sugar Cane Plantation is located. In contrast Hexza's factory in Perak is only 10 acres
SO THE TAIKO OF ETHANOL IS NOT HEXZA BUT NYLEX
After finging the truth I whatsapped friends to buy Nylex
Surprise again. One whatspp friend called Sydney told me he knows Nylex Bosses. So I got a better understanding of the Company
At this time of writing I a still waiting for the Photos of their Fernpro Factory in Chuping, Perlis
Meanwhile I am happy to share this with all i3 forum fraternity
After buying Comfort at 88.5 sen, Supermax at Rm1,73, Luxchem at 47 sen, Adventa at 57 sen, Esceramic at 32 sen, Mtag at 39 sen, PPHB at 69 sen & Prolexus at 57.5 sen Calvin is very happy to bring you Nylex at 68.5 sen
I missed Hexza at 70 sen
Now Nylex is here at only 68.5 sen
How high and how far Nylex will go up due to its Ethanol like Hexza is yet to be seen
But from its Annual Report
Nylex used to have a revenue of Rm29 Millions and a profit of Rm2.8 millions
Let's see how much its earnings will be reflected in share price later
See
SUMMARY OF KEY FINANCIAL INFORMATION
|
|
INDIVIDUAL PERIOD
|
CUMULATIVE PERIOD
|
||||
|
CURRENT YEAR QUARTER
|
PRECEDING YEAR
CORRESPONDING QUARTER |
CURRENT YEAR TO DATE
|
PRECEDING YEAR
CORRESPONDING PERIOD |
||
|
30 Nov 2019
|
30 Nov 2018
|
30 Nov 2019
|
30 Nov 2018
|
||
|
$$'000
|
$$'000
|
$$'000
|
$$'000
|
||
| 1 | Revenue |
315,718
|
434,364
|
630,288
|
854,765
|
| 2 | Profit/(loss) before tax |
742
|
5,102
|
1,237
|
10,497
|
| 3 | Profit/(loss) for the period |
-258
|
1,443
|
-1,899
|
4,777
|
| 4 | Profit/(loss) attributable to ordinary equity holders of the parent |
270
|
209
|
-855
|
3,291
|
| 5 | Basic earnings/(loss) per share (Subunit) |
0.15
|
0.11
|
-0.48
|
1.76
|
| 6 | Proposed/Declared dividend per share (Subunit) |
0.00
|
0.00
|
0.00
|
0.00
|
|
AS AT END OF CURRENT QUARTER
|
AS AT PRECEDING FINANCIAL YEAR END
|
||||
| 7 | Net assets per share attributable to ordinary equity holders of the parent ($$) |
1.8700
|
1.8300
|
||
Definition of Subunit:
In a currency system, there is usually a main unit (base) and subunit that is a fraction amount of the main unit.
Example for the subunit as follows:
Example for the subunit as follows:
| Country | Base Unit | Subunit |
| Malaysia | Ringgit | Sen |
| United States | Dollar | Cent |
| United Kingdom | Pound | Pence |
The formula is
Rm2.8 millions / Rm270,000 x 0.15
= 10.37 sen X 0.15 = 1.55 sen
So annualised is 1.55 x 4 = 6.2 sen
Now latest closing price of Nylex is 68.5 sen
So P/E = 68.5 / 6.2
= 11.04
So here we are Nylex if everything in a simple calculation has a P/E of only 11.04
Of course like Luxchem only 20% of its chemicals are for Gloves so about 20% of its productions are in Ethanol
All Gloves P/E are now going to the stratosphere so can we attribute a P/E 30 for Nylex?
If so then the formula is
30 divides by 11.04 x 68.5 sen = Rm1.86
Is Nylex worth Rm1.86 a share with Ethanol in hot demand?
Of course we need to discount it by 30% as it is only 20% into ethanol
So Rm1.86 x.07 = Rm1.30
Is Nylex worth Rm1.30?
Yet to be seen
Since Comfort and many others have already broken P/E 30 and Harta broken P/e 55 it is very possible that Nylex will chase up Hexza at Rm1.41 (after all Nylex's factory is bigger than Hexza's)
So Nylex now 68.5 sen
A simple target price is Rm1.30
Note: TARGET PRICE HAS BEEN UNGRADED TO RM1.50 THEN RM1.80 & RM2.00
Why is it so
Glove, Face mask & Isolation gown are for protection
Only Ethanol is for attack against Virus as they put as sanitizer on your hands, disinfect hospital, office, shops, and even the entire City & Towns
So 3 (Gloves, face masks & isolation gowns) are just defensive
ETHANOL is THE ONLY OFFENSIVE WEAPON AGAINST COVID 19
Best regards
Calvin Tan Research
Please buy or sell after doing your own due diligence. In doubt please consult your Remisier or Fund Manager
CHUPING SUGAR CANE PLANTATION (BIGGEST IN MALAYSIA)
Sugar cane is converted to Ethanol
This year is 2020
Perect Eye Sight like NYLEX.
Nylex will RUN and EXCEED Hexza share price.
Note: Sugar cane is 7 times better than corn in the manufacture of Ethanol
Wrte Up by Rakuten on Nylex latest news
The other major asset being its 48.95% stake in Nylex Bhd which is in the industrial chemical business that has hit a sweet spot amidst the Covid-19 pandemic. It is experiencing surge in demand for their ethanol production, an active ingredient in sanitisers. Its business of manufacturing hand sanitisers and hygiene and sanitisation services is the new normal in the wake of gradual opening of most business post CMCO. Ancom’s foray into sanitiser production is complementary to their existing business as the margins are fairly lucrative with gross margins ranging between 25-40%.
THESE 2 PHOTOS OF NYLEX FACTORY IN CHUPING PERLIS
https://klse.i3investor.com/blogs/www.eaglevisioninvest.com/2020-05-13-story-h1507003335-NYLEX_4944_A_Surprising_Discovery_Nylex_Ethanol_Factory_is_Bigger_Than_.jsp
