Anzo To Meet Gloves Demand by The US

Anzo To Meet Gloves Demand by The US | It seems that anything that is related to medical-grade gloves is a hit nowadays. Recently, Bloomberg reported that investors have added a total of RM57.66 billion into seven glove counters - Hartalega Holdings Bhd, Top Glove Corp Bhd, Kossan Rubber Industries Bhd, Supermax Corp Bhd, Careplus Group Bhd, Rubberex Corp (M) Bhd and Comfort Gloves Bhd - since March 1 when the pandemic started in the local market. The grand total is the aggregate of the daily turnover of each glove counter based on Bloomberg data.

On July 6, the turnover of the seven glove stocks alone accounted for 43%, or RM5.07 billion, of the total turnover of local bourse — evidence that the demand for glove counters is surging. From March 1 to July 6, the turnover of RM57.66 billion among the seven stocks represents some 19.04% of the RM300.4 billion turnover on Bursa.

As it is, Anzo Holdings Bhd has just acquired the assets of Wintrade World Sdn Bhd including land and factory that has the capacity to produce up to 1.2 billion pieces of medical and nitrile gloves a year. With the number of known coronavirus increases globally, the demand of medical gloves also increases.

As of yesterday, the number of known coronavirus cases globally passed 12 million, according to the Johns Hopkins University tracker. There have been 548,799 deaths so far and 12,007,327 cases. Out of these figures,  the US, which passed 3 million cases, accounts for third of all cases and just under one in four deaths.

If these numbers are of any indication, I think the demand for medical gloves will be increasing and it seems that Anzo might have secured a US$200 million order to supply medical gloves to the United States last week. With its latest plant in Manjung that has 9 production lines, Anzo can readily produce 1.2 billion pieces of medical gloves a year (that's 100 million pieces/ month)

And if Anzo is increasing the lines to 15, Anzo will be able to produce more than 2 billion pieces of medical gloves.

How much will that be if we are to convert the figures into cash? For 1.2 billion pieces of gloves, selling as the current highest market price of USD75/ piece, Anzo could easily rake in about RM400 million in revenue.

With such good news, the stock is expected to trade positively and some are expecting it to hit limit-up this week. As it is, the volume has been high in the past few weeks.

Anzo's Achievements (the most recent ones)

Here are some of the recent achievements of Anzo Holdings Berhad.

1. Anzo recently secured an RM1.3 billion contract to supply copper scrap to a steel-making group in South Korea effective from July 1 via CSTME Resources Sdn Bhd.
2. Last week Anzo announced that it has acquired a factory manufacturing medical and/or nitrile gloves in Manjung, Perak for RM55 million.
3. Anzo bought the assets of Wintrade World Sdn Bhd including land and factory that has the capacity to produce up to 1.2 billion pieces of medical and nitrile gloves a year.

If you are looking for a stock to buy and trade, Anzo Holdings' should be on your list.

Credit: The pictures are taken from sources on the Internet. Thank you.

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