Friday 29 Mar 2024
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KUALA LUMPUR: Agrochemicals maker Halex Holdings Bhd’s share price performed impressively on its maiden trading day, chalking up 20% gain against its initial offer price of 78 sen.

The new stock was the second most actively traded counter on Sept 16, after KNM Group Bhd, with 62.3 million shares changing hands. The stock opened at 82 sen before rising above 95 sen in less than an hour after the opening bell.

Halex’s share price soared to a day’s high of RM1 before it finished at 94 sen.

Halex’s first-day performance is better compared with the previous two IPOs, TAS Offshore Bhd and Multi Sports Holdings Bhd, which both closed below the IPO price on the first trading day.

Halex’s managing director Yeoh Cheng Poh said the company wanted to boost its export revenue by venturing into more countries, such as the African continent and to diversify its export market.  

Currently, exports contribute about 25% of Halex’s revenue. Yeoh reveals that the company aims to expand its export contribution to revenue by a further 5% to 10%. Bangladesh is now the largest export destination for the company.

“The size of the continent will provide plenty of opportunities,” Yeoh told reporters after the company’s listing ceremony on Sept 16.

Halex’s earnings in the financial year ended Sept 30, 2009 (FY09) were affected by the sharp fall in commodity prices in the second half of last year. However, Yeoh said the outlook for FY10 looked better compared with FY09, given the rebound in commodity prices and the economic situation seems to be improving.

Halex expects double-digit growth in revenue for its FY10 lifted by better demand in the market.

“We have three core businesses and all are doing well, except for the period between October ‘08 and January ‘09 when commodity prices were down, but after that, business has picked up, so I believe 2010 would do better than 2009,” he said.

For FY09, Yeoh said the company’s revenue would be slightly lower than in FY08 as demand for agrochemical products was affected by lower palm oil prices in the first financial quarter ended Dec 31, 2008.

As for the company’s fourth-quarter performance, which ends this month, Yeoh said the company had been making profit since commodity prices stabilised, expecting better results in the last quarter. Halex’s third-quarter result recorded revenue of RM26 million with profit aftertax of RM2.6 million.

Halex recorded revenue of RM100.89 million, with net profit of RM8.6 million for FY08.

Halex’s three core businesses include agrochemicals involving insecticide, herbicide and fungicide; healthcare disposable products as well as horticulture.

The agrochemicals division generates 60% of the company’s revenue, while healthcare 34% and horticulture 6%.

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