HEXZA CORPORATION BHD (HEXZA)

Hexza Corporation Bhd — The Chemicals Company That Trades US Tech Stocks

At first glance, Hexza Corporation Bhd looks like a quiet, old-economy chemicals manufacturer tucked away in Ipoh. But look closer and you find something genuinely unusual: a small-cap Malaysian chemicals company that currently holds 50,000 shares of ARM Holdings (Nasdaq: ARM) — one of the most important semiconductor IP companies in the world — worth approximately RM29.48 million. Before that, they sold NVIDIA shares. This is not your typical chemicals play.

Hexza has been listed on Bursa Malaysia since 1979, founded in 1969, headquartered in Ipoh, Perak, and remains firmly under the control of the founding Foong family. With a market cap of ~RM193M and virtually zero debt, Hexza sits in a curious position: a deeply asset-rich company that the market has chosen to value at a steep discount.

Business Structure

Hexza operates through 3 key subsidiaries across 5 business segments:

The Resins segment is Hexza's revenue backbone — formaldehyde-based resins are used as wood adhesives in furniture and construction. The Ethanol segment is currently undergoing a major transformation. The Investment Holding segment is where ARM Holdings and other financial assets sit.

Major Milestone: Corn-Based Ethanol Plant (July 2025) 🌽

This is the catalyst investors need to understand. In July 2025, subsidiary CIM launched Malaysia's first corn-based ethanol plant in Ipoh, Perak. Previously, the company produced ethanol from molasses (sugarcane byproduct). The shift to corn feedstock represents a more efficient, modern production approach.

More significantly, the plant also produces DDGS (Distiller's Dried Grains with Solubles) — a high-protein byproduct sold as premium animal feed. Hexza is Malaysia's first domestic DDGS producer, opening an entirely new revenue stream with no local competition.

Executive Director Foong Leon Chiew called it "an important milestone and strategic investment."

Investment Portfolio — ARM Holdings

In September 2024, Hexza acquired 50,000 shares of ARM Holdings at an average US$127.17/share, totalling RM29.48 million. With ARM trading at approximately US$148-155 in May 2026, there is an unrealised gain of roughly RM4.5-6 million.

To put this in perspective: this single US tech stock position represents approximately 15% of Hexza's entire market capitalisation. Prior to ARM, Hexza held and profitably sold NVIDIA shares (~RM22M, October 2023). A Symbotic stake was sold at a loss in September 2024 — the key event that caused FY2025 earnings to collapse.

Shariah Compliant Status ✅

Hexza is a Shariah-compliant company as classified by the Securities Commission Malaysia's Shariah Advisory Council. Muslim investors and Shariah-mandate funds can invest without restriction.

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