This article first appeared in The Edge Financial Daily on December 8, 2017
Halex Holdings Bhd (-ve)
SHARES in Halex Holdings Bhd (fundamental: 0.95/3, valuation: 0.3/3) triggered our stocks with momentum algorithm yesterday for the third time this year.
The counter closed up 5.5 sen or 5.53% at RM1.05 yesterday, giving it a market capitalisation of RM113.39 million. A total of 1.49 million shares changed hands, higher than its 200-day average volume of 703,045 shares.
Halex is principally involved in the formulation, contract manufacturing, distribution and agency of agrochemicals. It also manufactures and distributes healthcare disposable products, such as wet wipes, cotton-based products, sanitary towels and tissue products.
On Wednesday, Halex announced that it plans to buy Hextar Chemicals Ltd (HCL) at an indicative price of RM550 million in a bid to eliminate business competition.
Halex said the acquisition will also allow the company and its subsidiaries to expand its agrochemical business by tapping into HCL’s customer and supplier network in more than 30 countries worldwide.