By RUPINDER SINGH
In a transfer to reinforce its monetary resilience and cut back dependence on present companies, Hextar International Bhd has introduced plans to diversify into the enterprise of buying and selling commodities.
The proposed diversification will embody buying and selling actions in agriculture produces, power sources, metals and minerals, and valuable metals.
Presently, Hextar is engaged in numerous sectors, together with manufacturing, distribution, and company of agrochemicals, analysis and improvement actions, manufacturing, and distribution of specialty chemical substances, and funding in shares and properties for capital acquire.
Based on the corporate’s trade submitting, the monetary efficiency of the Hextar group has skilled fluctuations up to now years, with segments like agriculture dealing with difficult outlooks.
In mild of this, the corporate is exploring various enterprise alternatives to enhance its present ventures and handle dangers successfully.
The proposed diversification presents a chance for Hextar to enterprise into the buying and selling enterprise, leveraging its experience, data, and powerful relationships with farmers gained by means of its present operations.
Notably, the corporate just lately struck a take care of a subsidiary to provoke its entry into the buying and selling of agricultural produces, with a particular give attention to durian fruit.
Hextar is assured that the buying and selling enterprise, spanning commodities comparable to agriculture produces, power sources, metals and minerals, and valuable metals, holds immense potential to contribute considerably, presumably exceeding 25% of the group’s internet revenue and/or resulting in a diversion of 25% or extra of its internet belongings.
The corporate is optimistic concerning the scalability of the commodities buying and selling enterprise, which presents prospects of upper future income development.
Coupled with Hextar’s means to execute trades based mostly on prevailing and anticipated value actions, the corporate foresees promising prospects for its future development.
The proposed diversification is predicted to have a constructive influence on the group’s monetary efficiency, creating larger worth for shareholders over time.
To proceed with the proposed diversification, Hextar will search approval from its shareholders in an EGM and acquire mandatory approvals from related authorities and events.
Upon securing the approval of Hextar’s shareholders on the EGM, the proposed diversification will take impact promptly.
Hextar shares gained 6 sen or 8.11% at 80 sen at present, giving it a market capitalisation of RM3.15 billion.