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Singapore Investment


 Time for HEXIND 0161 HEXTAR INDUSTRIES BERHAD to soar after massive disappointment?

Hextar Industries Bhd rose 11.5% to close at 48 sen on May 24 on active trade, giving investors hope of a better share price performance moving forward.

Over the past year, the counter performed well as it closed 38.6% higher but still below its 52-week high of 83 sen.

That said, Hextar made a healthy climmd after touching a year low of 31 sen seen in August last year.

THe question on investor’s mind is when they can sustain the upward momentum.

If you look at YTD performance,  Hextar Group’s companies were among the top losers.

Hextar Industries hit bottom of the barrel with a 42.86% or 33 sen fall to 44 sen, while Hextar Global Bhd declined 14.47% or 11 sen to 65 sen..

However, things look to be improving for the Hextar Group, particularly Hextar Industries as demand for fertilizers and pesticides increase mainly due to the ongoing war which might affect crops.

Without good fertilizers and pesticides, food security will be a real concern.

Hextar Industries posted a net profit of RM98.1 million on revenue of RM1.29 billion for the 16-month financial period ended Dec 31, 2022.

There are no year-on-year comparative figures as the group has changed its financial year end from Aug 31 to Dec 31.

Hextar Industries, which completed its acquisition of Hextar Fertilisers Ltd (HFL) last December, said the results reflect HFL's consolidation into the group.

Hextar Industries said the the acquisition of Hextar Fertilizers Limited Group represents a strategic initiative to enhance competitiveness with access to an immediate distribution network and manufacturing facilities within Peninsular Malaysia and East Malaysia, particularly.

The revenue and customer base will be increased by tapping and leveraging on the HFL Group’s extensive and efficient distribution network.

The annual capacity of the compound fertilisers also increased by approximately 8 times from existing 75,000 metric tonnes to 679,000 metric tonnes.

What is also a boon for Hextar Industries is the healthy demand of fertilisers with the recent recovery of Crude Palm Oil price to about RM4,000 per MT.

As for its Heavy Equipment division, its heavy equipment are widely used to support the operations of mining and quarrying activities in Malaysia.

As products from quarries and mines are commonly used as building materials in the construction industry, the availability and growth in infrastructure development in Malaysia will drive the growth of mining and quarrying activities.

The company’s prospects do look promising and the recent slid in share price offers investors to partake in this upward ride.


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