Hexza may have a bullish breakout

Hexza is involved in the manufacture of natural vinegar; ethyl alcohol, liquefied carbon dioxide & kaoliang wine; formaldehyde & formaldehyde-based adhesives & resin (for the timber-based industry); and trading in consumer products & industrial chemicals.

Hexza’s net profit for the last 4 quarters has dropped by 0.9% to RM11.4 mil when compared to the preceding 4 quarters. This was despite a 6.4%-increase in turnover to RM138 mil. EPS has consequently eased off by 0.9% to 8.84 sen from 8.92 sen.



Based on its closing price as at the end of the morning session of RM0.64, Hexza is now trading at a PE of 7.2 times.

Chartwise, Hexza has just broken above its ascending triangle at RM0.62 level. It has already reached its first resistance of RM0.64, with next resistance levels at RM0.67 & RM0.72.



Based on the technical breakout & reasonable financial performance, Hexza should be a good trading BUY.