Bloomberg - HEX:MK
Yahoo - 3298 .kl
Webpage - http://www.hexza.com.my/
Company
Profile
HEXZA had involved in
property development and manufacturing of chemical product. HEXZA had
manufacture formaldehyde resins, ethyl alcohol, natural vinegar and beverage
(Enchante).
Major Product:
HEXZA revenue mainly
come from one major product which is formaldehyde based resin and ethanol.
These product contributed 91.66 % of HEXZA revenue.
Base on 2016 annual
report, HEXZA had increase in other investments from RM 46,824,851 in 2015 to
RM 63,725,550 in 2016. The major change in other investments is contributed by
share quoted outside Malaysia which is RM 22,295,885 compare to RM 2,540,847 in
2015. Other investment in Myanmar experience delays in lease rental collection.
Besides that, in 2016
HEXZA reported RM 26,787,284 in finance lease receivable. These is due to a
sale & purchase and leaseback agreement to acquire part of the equipment
for a 8 MW heavy fuel oil power generator system worth USD 6,000,000 (RM
24,168,000) from Tembusu Industries Pte Ltd. The lease commencing on July 1
2015 with a period of 10 years and monthly lease rental of USD 130,205 (RM
524,466).
HEXZA had other
receivable which had past due more than 120 days of RM 54,537.
There is decrease in
other asset from RM 20,014,468 in 2015 to RM 357,579 because in 2015 there is
progressive payment made by Tembusu Industries Ptd Ltd to acquired 8MW heavy
fuel oil generator which is RM 19,671,600.
Although the cash and
cash equivalent had decrease from RM 62,150,011 to RM 51,417,413, HEXZA managed
to increase the interest for the cash and cash equivalent which are:
1) Fixed and Short term deposit from 1.20%
- 3.60% in 2015 to 2.25% - 6.00% in 2016
2) Money market fund from 2.82% - 5.05% in 2015 to 2.75% to 5.55% in 2016.
PROS:
|
è HEXZA receive monthly rental of USD
130,205 from Tembusu Industries Pte Ltd until 2025 for leasing of 8 MW generator.
è HEXZA manage to increase the
interest rate for cash and cash equivalent.
|
CONS:
|
è
36% increase in other investments
contributed by share quoted outside Malaysia.
è
Other investment in Myamar experience delays
in lease rental collection.
è
HEXZA capitalise the rental receive from
Tembusu Industries Pte Ltd which woud overstated it asset.
è
Having other receivable which had past
due more than 120 days of RM 54,537.
|
HEXZA had no borrowing
as of 30 June 2016
PROS:
|
è HEXZA had no borrowing
|
Dividend
and Bonus Issued for the past five year
HEXZAhad constant dividend
for the past five year from 2012 – 2016 with the average dividend of RM 0.046
with the dividend yield of 4.81 %.
PROS:
|
è HEXZA had average dividend yield
of 4.81 % over the 5 year period which is higher than fix deposit
|
