How do we know that the company is going make more profit in 2017 than the previous year?
First, HEXZA made an announcement on 20-10-2016 regarding the PROPOSED DISPOSAL OF LEASEHOLD INDUSTRIAL LAND AND BUILDINGS BY NORSECHEM RESINS SDN. BERHAD.
The disposal is expected to contribute to a net gain on disposal of about RM6.6 million to the Group, of which shall increase the Group’s earnings per share for the financial year ending 30th June 2017 by about 3.3 cents.
Second, from the company announcement dated 4-12-2015, reproduced as below:
The company has invested more than RM60 mil in quoted securities. From here, we know that the company will make more money from the dividends and interest income. Last year, total interest income and dividend income was about RM6.8 mil and RM3.1 mil, respectively. If we assume about the same amount to be received this year, it may contribute earning per share by about 5 cents.
Third, the Sale & Purchase and Lease Agreement of power generation system with Tembusu Industries Pte. Ltd. The monthly rental of USD130,205.00 or equivalent to RM546861.00 (assuming exchange rate = 4.2), or RM6.5 mil per year. This investment may contribute earning per share by another 3.3 cents.
To make it short, simple calculation of the 3 items above already show a projected EPS of at least 12 cents for financial year 2017. How about the profit to be made from its ordinary businesses? That, let’s wait and see the company’s financial result in the coming quarters.
Good luck to all HEXZA’s shareholders!
Just for sharing.
By Bugle
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