Part 4: NYLEX / 4944 (NOW SHOWING)
Stock for 2020
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.
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
Sole agent exclusively by Ancom Berhad
Manufacturer Fermpro wholly owned subsidiary of NYLEX.
20 LITRES ARE FOR INDUSTRIAL USES
4 LITRES FOR RETAIL USES
SPRAY BOTTLE IS FOR HOUSEHOLD USES
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 RM0.785 (closing 21 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)
Reason
(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 Chuping, Perlis (size is 11 acres). Almost the same as Nylex.
Rakuten: Write up issued on 20 May 2020
Rakuten Trade: Tread carefully in times of market exuberance
Lai Ying Yi / theedgemarkets.com
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 2 equipments as we have done research for you.
SUMMARY
SEE RESEARCH TARGET PRICE:
RM 1.20 short term,
RM 1.50 mid term
Main building of the office in Shah Alam
