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$HRSR IPO Style Alert w/ Razor Thin Float & Acquisition News
Horrison Resources Inc. (HRSR)
Price: $4.49
Float: 3.42M
Technical Analysis
We are going back-to-back with another low-float breakout trade idea that has monster gain potential.
Just like our most recent winners, our new trade idea has tremendous upside, a razor thin float, and is operating in a market expected to boom
Please turn your immediate attention to Horrison Resources Inc. (HRSR).
HRSR is a company that engages in exploring various business, joint venture and partnership opportunities within the agriculture and timber industries which are in line with the company’s mission to green the earth and tackle climate crisis. The company is working tirelessly towards planting, developing, researching, harvesting, cultivating and growing plantations with focus on Aquilaria (also known as Agarwood) species across the Asia regions while conserving the nature habitat in a most sustainable and environmentally friendly manner possible.
A Booming Sector In The Making
The global supply of agarwood chips meets only a certain percentage of the global demand. Bulk of the supply comes from South Asian countries, as these are the only producers of agarwood chips across the globe. Agarwood chips are an important raw material used in the production of high-value perfumes and incense. Regions such as the Middle East, Europe, and North America are witnessing increasing demand for agarwood chips, as the fragrance industry is growing at an exponential rate in these regions, which requires the continues supply of agarwood chips. Fragrance products are extremely popular in the Middle East, as they possess high cultural value in daily life.
Agarwood chips are mostly used in high-value fragrances, which come under the luxury products segment. The population in the Middle East is leaning towards such luxury products, as the per capita expenditure in this region is increasing. Agarwood chips are used in the production of incense sticks as well. The demand for incense sticks is always increasing because of their high cultural value in the Middle East. Incense sticks are used as a natural air freshener, and considered a symbol of high standard of living in Middle Eastern countries.
This continuously rising demand from the fragrance industry and cultural demand from Middle Eastern countries are the main factors boosting the demand for agarwood chips across the globe.
Agarwood is an endangered species, which is protected under CITES (Convention on International Trade in Endangered Species of Wild Fauna and Flora) conservation. Producers of agarwood chips need continuous production from agarwood plants. However, the limited number of plants in leading agarwood producing countries is a major threat for the industry. To tackle this shortage, many companies have started plantation campaigns for agarwood trees. In fact, some companies are focusing on forming their own forestry for the continuous supply of agarwood.
High level of environmental and agricultural knowledge is crucial to successfully carry out agarwood plantation . Many companies are struggling to acquire the resources that are needed for plantation . Hence, companies that have all the required resources are providing the necessary help to agarwood producing companies that lack these resources. This has given rise to a new sector - plantation technology. Plantation technology providers have a great opportunity as far as agarwood plantation projects are concerned.
Agarwood is an endangered species that protected across the globe under CITES conservation due to its indiscriminate felling. The supply from agarwood forests is limited at best. Agarwood trees take around 50 to 100 years to reach full maturity. This leads to scarcity in the natural supply of agarwood, thereby affecting the production of agarwood chips.
The demand for agarwood chips is increasing around the world, and supply is limited because of the scarcity of natural resources. This gap between demand and supply has getting broader over a period of time, and continues to inflate the prices of agarwood.
HRSR recently completed a big time acquisition of this limited resource which the CEO called a success.
The Future Appears Bright For HRSR And Its Shareholders
This could easily be our next trade idea to double in price, so we suggest you start your research now, and add HRSR to the top of your watchlist immediately.
About Horrison Resources Inc. (HRSR)
Horrison Resources Inc. (HRSR) is a company that engages in exploring various business, joint venture and partnership opportunities within the agriculture and timber industries which are in line with the company’s mission to green the earth and tackle climate crisis. The company is working tirelessly towards planting, developing, researching, harvesting, cultivating and growing plantations with focus on Aquilaria species across the Asia regions while conserving the nature habitat in a most sustainable and environmentally friendly manner possible. HRSR serves customers in Hong Kong, Malaysia and Singapore. The company was listed on the OTC Markets with the ticker HRSR.
The company leads a team of young, qualified and well-motivated staff in executing broad policies with the collective resolve to achieve quantum leap growth of the company. Even though it has not been smooth all through, the Company as an integral part of micro and macro economies continues to sail on the sea of prosperity guided by the divine hand, the sound vision of the founders and the creativity of its managers. HRSR is a well-structured organization with well-defined roles and responsibilities for all staff. The Board and management recognized the positive contribution of staff over the years to the overall development and expansion of the company. As a result of the above and coupled with the leadership position in the industry, the company has a very robust human resources policy on staffing issues. Our human resources policy specifies attitudes such as passion, integrity, innovation and encourages open communication and cooperation.
As a dynamic company, we continue to make forays into new, profitable ventures that will not only give returns to shareholder value but create employment opportunities for young and bright graduates of various disciplines.
HRSR Capitalizes On The Booming $8 Billion Agarwood "Liquid Gold" Market With Their Latest Acquisition
In May HRSR announced the completion of their acquisition of 1,000 Aquilaria (also known as Agarwood) trees from Mr. Nee Seng, Yap as part of its effort to combine long term financial growth of the company and to tackle climate crisis.
Agarwood is a fragrant dark resinous wood which forms in the heartwood of Aquilaria spp . and Gyrinops spp . trees (large evergreens native to Southeast Asia) after they are infected by fungus. It is now rarely seen in such habitats and is now considered to be threatened with extinction worldwide.
Due to its extremely limited supply, rarity and high value, Agarwood is commonly referred to as "Liquid Gold" or the "Scent of Heaven." It is widely used as a raw material for fragrances, traditional medicine, cosmetics, religious purposes, art, and food ingredient. Agarwood is among the most commercially valuable plant species in the world. In an article published on Frontiers in Plant Science on July 16, 2019 (PMID: 31379890), it was reported that the price per kilogram of Agarwood can range from US$100 to US$100,000 depending on the quality and grades.
Oud oil distilled from the Agarwood chips is one of the world's most expensive natural commodities , selling for more than US$50,000 a kilogram. Oud oil is a key skin care ingredient with many anti-inflammatory and anti-microbial properties. In addition, Oud oil is also used as a key ingredient by all the major international fragrances companies to portray their fragrances as luxury items and status symbols. The increasing demand for organic cruelty-free cosmetics is a reason why approximately US$90 million of Oud oil was exported into the United Kingdom and Europe in 2019.
The current global market for Agarwood is estimated to be in the range of US$6–8 billion and is growing rapidly, displaying unlimited future business potential. According to Persistence Market Research, the Agarwood chips market is forecasted to reach nearly US$64 billion by the end of 2029.
The CEO of HRSR, Nee Seng, Yap (Tony Yap) explained that Agarwood is a green 'gold mine' of the future. The acquisition of Agarwood trees would deliver strong and steady long term value and ultimate growth to the company and its shareholders. The primary objectives of this acquisition are to generate income from the harvest of Agarwood trees, propagation of its benefits while conserving the Agarwood habitat in a sustainable and environmentally friendly manner, and to effectively offset the carbon footprint of our investors.
Timber investments such as Agarwood trees offer great hedge against inflation uncorrelated to either stocks or bonds thereby secure long term value of the company's portfolio. Agarwood trees allow for flexibility of harvesting more when prices are high and less when prices are low which render Agarwood trees to continue grow independent of the pace of economic activity.
Mr. Tony Yap anticipates that the benefit from the acquisition will come not only from the price of the cut Agarwood, but from the growth of the Agarwood trees themselves. The products made of and from Agarwood are still rare which indicates Agarwood will not suffer from devaluation after long term storage. As a collectible commodity, Agarwood is able to maintain its value and has low decay rate. The longer it is stored the more valuable it is. Each and every part of the tree, namely: leaf, flower, fruit, trunk, branch, skin and root, has its own value. Mr. Tony Yap is confident that the future market of Agarwood is immeasurable. Combine the aforementioned with skillful interventions of experienced managers and industry experts, the profitability and sustainability can be maximized.
Mr. Tony Yap is a seasoned business entrepreneur who possesses great experience, skill and knowledge in the Agarwood industry. He had spent years conducting extensive studies and investigation from all around the world in the subject matter. He serves as the Chairman of Agarwood Entrepreneur Malaysia Association (Non-Governmental Organization).
The company is hopeful that this initiative will bring about various environmental, economic and social benefits, and that Agarwood trees will be valuable asset that hopefully one day can lead to steady profits which may ultimately benefit all shareholders/investors. Green investments are on the rise both in popularity and the returns they offer. Aside from company's corporate social responsibility ( CSR ) to address climate change this acquisition can create perfect asset for long-term security and wealth building. The company will continue to explore opportunities in working towards making significant contribution to the global Agarwood plantation and industry.
CEO Calls Agarwood Acquisition A Success
The Aquilaria trees are placed in a nursery facility situated in Penang, Malaysia to maintain their optimal condition and are well secured to prevent damage caused by illegal loggers or wild animals. Plantation managers and workers were hired to monitor the growth and health condition of the Aquilaria trees.
The CEO of HRSR, Mr. Yap expressed his pleasure with the results from the acquisition of the Aquilaria trees thus far. The company is currently working on a comprehensive execution plan to materialize the commercialization of Agarwoood in all its form and by-products. With skillful interventions of experienced managers, industry experts and farming technology, Mr. Yap is confident that the acquired Aquilaria trees will deliver strong and steady long term value and ultimate growth to the company and its shareholders.
Mr. Yap will seek an independent valuation and assessment of the Aquilaria trees. The valuation aims to provide shareholders with comfort and confidence in the company's future.
A GEM IN THE ROUGH — AGARWOOD
Aquilaria malaccensis is a species of plant in the Thymelaeceae family found primarily in South East Asia, such as Vietnam, Cambodia, Myanmar, Indonesia, China and Malaysia. It is recognized in many names, namely Agarwood, Jinkoh, Aloeswood, Gaharu, Eaglewood, and OUD. The term Agarwood, although widely used to refer to the members of the Aquilaria genus, more specifically refers to the resinous heartwood from the Aquilaria trees.
CHRONICLE
Reputed to be nature’s alchemy taking form, Agarwood has been lauded since the dawn of time as a gem in the rough; for religious affair, fragrance and medical treatment. For many centuries, it is the most sought-after aromatic wood, for the multidimensional uses of Agarwood range from traditional, cultural to religious offerings; it is central to Buddhist rituals, highly revered within traditional medicine for its holistic effects, and it’s lasting, musky scent considered a luxurious cultural touchstone, used widely in Western homes as body oils, fragrance and the likes. At a glance, the “Wood of the Gods” has at least a 3,000-year history, recorded in many ancient literatures and some of the earliest civilizations in Egypt, Middle East and East Asia. In China, Agarwood was first dated in the Miscellaneous Records of Famous Physicians (502-566 A.D.) as a top-grade wood and herb, and saw rapid development across the Tang and Five dynasties. Today, the old saying originating from the Ming Dynasty that goes - “an inch of Agarwood is worth an inch of gold” no longer holds true. Instead, for its rarity, luxury, opulence, and exclusivity.
A PROTECTED AND ENDANGERED SPECIES
Since the year of 1995, Agarwood-producing species is listed as a potentially threatened species of flora by the Convention of International Trade in Endangered Species of Wild Fauna and Flora (CITES), due to the heavy decline of its natural population.
HABITAT
AGARWOOD, A SEMI-PARASITE
Agarwood trees can be classified as semi-parasitic plants, for they have thousands and millions of suction cups lined up principally at root tips. These suction cups would adhere to other plants for the uptake of water and nutrients from the soil; they mainly thrive from surrounding’s elements.
GROWING CONDITIONS
Agarwood trees are slow-growing plants with maturing process of up to several decades. The Growth rate and degree of success of its cultivation of the fragrant wood are immensely dependent of soil, topography, climate, and proper handling.
CLIMATE
Agarwood trees are found naturally in tropical forests, and are very sensitive to climate. Temperatures below 10 °C may engender their growth to remain dormant, and at subzero temperatures young Aquilaria saplings begin to wither and eventually die-off. Hence Agarwood trees are preferably cultivated at regions with an all-year tropical climate and avoiding regions susceptible to natural disasters such as typhoon.
SOIL
Fertile soil alone may not be sufficient to cater to growing demands of Agarwood. The ideal foundation for cultivating Agarwood trees are soil that is enriched with symmetry micronutrients; stimulating direct absorption by Agarwood trees, thereby accelerate the maturity process.
TOPOGRAPHY
Sun-loving Agarwood tree requires an adequate amount of sunlight for photosynthesis, essential for facilitating growth rates. A deep body of water is fatal to Agarwood tree; roots submerging in water lead to decay, a gradual withering process.
HOST PLANTS
Sun-loving Agarwood tree requires an adequate amount of sunlight for photosynthesis, essential for facilitating growth rates. A deep body of water is fatal to Agarwood tree; roots submerging in water lead to decay, a gradual withering process.
THE KING OF AGARWOOD -KINAM
Kinam is the most priced and prominent variety of Agarwood, opulent in glutinous resins and fragrance scent and possesses anesthetic, bitter, hot and mint taste; filled with gentle and dignified scent with a touch of bitterness. The fragrance is synonymous with an aristocrat in its elegance and gracefulness. It is also known and used in Traditional Chinese medicine as herbs; believing to have the properties in curing, treating cancer and other diseases. Kinam is found in Indochina, Thailand, Cambodia, Myanmar, Laos, especially in Vietnam. According to Kyozaburo Nakata of Baieido Co.,Ltd. the name Kinam originated from the local language of the Campus of South Vietnam; the early traders of Kyara. The name derives from the combination of the Sanskrit word for black “Kala” and the Chinese word for tree “Bak” Together they formed Kalambak and later the name was changed to Kinam.
Kinam is sold in Kilogram denomination. Genuine Kinam is rare and exorbitantly priced. Genuine Kinam is known to transacted for more than USD$20,000 per Kilogram.
People Republic of China is poised becoming global largest and fastest growing single market for Agarwood. Demand for Agarwood and Agarwood products have grown exponentially in China in recent years, and are believed to be in the range of billions of American dollars.
In China, it is believed to be more than 70 000 Agarwood trees in the Guangdong Province and approximately 60 000 trees in Hainan province, with smaller quantities in some other provinces. It is reported that a large number of Agarwood plantations have been established in the last decade. Agarwood plantations can alleviate pressure on wild populations and satisfy growing market demands, with encouraging efforts being channeled into developing technology in improving the sustainable use of Agarwood-producing trees.
In the present day, the ethereal fragrance of Agarwood trees is blossoming in the South China, albeit its growth rate trailing behind tropical countries due to its cooler climate and typhoon intrusion.
Market Outlook
Agarwood Essential Oil Market 2020 Global Industry Size, Growth, Segments, Revenue, Manufacturers and 2025 Forecast Research Report
Agarwood, also known as Aloeswood is one of the most precious, rare and most expensive essential oil in existence today. The production of resin can take many years in the wild, like a good wine. Due to its huge cost and extreme rarity in the wild, trees are now cultivated and the resin is actually created artificially and then extracted by water distillation. Agarwood plantations have been developed in a number of countries, such as Sri Lanka and Malyasia as commercial crops specially to produce agar wood essential oils. Agarwood essential oil has a religious, traditional as well as cultural uses in many parts of the world.
Superior quality agar wood is one of the most costly raw material in the world which makes agar wood essential oils among the expensive essential oil available commercially.Key demand of Agarwood Essential Oil is driven by innovative application in personal use and pharmaceutical industry. Increasing consumer preference for natural cosmetic products and high quality aromatic fragrances is driving the market growth.
The rising popularity of agarwood essential oil in aromatherapy for therapeutic effects, is creating a huge demand worldwide.
he agar wood essential oils market is highly demandable, since the consumer are more inclined towards usage of safe ingredients.
Scarcity of natural supply and the availability of chemical and synthetic substitutes can prove to be a threat for the agar wood essential oils market. Also the lack of proper regulatory support from government can further restrain agar wood essential oils market over the forecast period.
Agarwood and banking on trees
The fragrance industry holds a major share in the personal care and cosmetics industries for being used as key ingredients in the products and in recent years it has evolved to be a highly significant business itself. In 2018 the global fragrance market size was valued at USD 70.70 billion and during the forecast period of 2019-2025 it is anticipated to register a compound annual growth rate ( CAGR ) of 3.7%. The market growth is attributed to the rise in disposable income coupled with growing trend of personal grooming. US, Europe remaining the trendsetter- Brazil, China ,Japan, Middle Eastern and Southeast Asian countries are contributing largely.
Agarwood is one of the most expensive non-timber, resinous heartwood, mainly traded in three forms: woodchips, wood dust/powder, oil . It's a highly priced and extremely rare incense. Global prices of agarwood chips can be ranging from US$30-$9000 per kg depending on its resin percentage. Even the essential oil fetches similarly high prices of around US$ 30,000 per kg for high grade distilled agar oil while the wood itself is worth up to US$10,000.
Major countries producing agarwood are China, Vietnam, Australia, Indonesia, Laos, Malaysia, Mayanmar, Singapore, India, Singapore and Thailand. Although it has multifaceted use in fragrances industry but globally there are two major market regions for agarwood consumption: 1) The Middle East, countries of Arabian Peninsula and 2)North-east Asia and markets of Taiwan, South Korea and Japan.
When it comes to Bangladesh, industry insiders believe that the fragrance market in the country is now worth over BDT 100 crore where people from middle-income households and students are also opting for expensive perfumes along with rich people. Although we don't have any well-defined industry or any perfume house hailing from our country, there's a considerable number of active and potential customers who're either ready or willing to purchase a fragrance originating in Bangladesh. The only franchise perfume shop in the country is Al Haramain Perfumes Pvt Ltd, the brainchild of Md Mahtabur Rahman, a Bangladeshi expat from Sylhet.
But here exists a tremendous opportunity to create a highly profitable fragrance raw material industry in Bangladesh centring on the cultivation of-"agarwood". Currently, nearly 300 agar-based enterprises involving 25,000-30,000 workers, are producing agar chips, oil and related products in the country. The net return in these enterprises is BDT 0.8 million and per year they're exporting BDT 5.0-100 million.
Technical Analysis
HRSR Has A Razor Thin Float And Tremendous Upside Potential
Potential Bull Run In The Making
We did our very own technical analysis , and see the potential for a major move from here.
The Company has not traded that much as of late, but we have a feeling that the Street is going to start to take notice of this up-and-coming player.
As we've seen with our past winners, these low-float alerts have the tendency to move fast, and can go viral at any moment.
The Company is trading well below its 52-week high of $7.00 giving it tremendous upside potential from today's alert price.
The Bottom Line
With its low-float, HRSR is a day traders dream come true.
The Company is operating in a sector that is said to be valued at US $64 billion by the end of 2029.
The success of their recent acquisition has us bullish on the Company's future.
As we mentioned above, this could easily be our next trade idea to double in price, so we suggest you start your research now, and add it to the top of your watchlist immediately. By Viewing this Content, you Agree that you Have Read and are in Full Understanding of both our Disclaimer & Privacy Policy(*Remember to use a Stop-Loss Order to protect your gains, as well as limit possible losses.)
Best Regards,
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