AT Systematization Ready To Meet World's Demand for Medical-Grade Gloves

AT Systematization Ready To Meet World's Demand for Medical-Grade Gloves | I have been sharing a lot about the economy and stock exchange deals of late. And here's another one. 

In early June this year, little-known AT Systematization Bhd hogged the limelight after the company made an announcement that it intended to buy an industrial glove maker. At that time, though the deal has not been sealed yet and it is not buying a rubber glove business, such news has sparked frenzy buying on the company, which specializes in the industrial automation system. 

The penny stock was the most actively traded counter on that day with 519 million shares changing hands, which were more than one-third of its issued share capital of 1.49 billion. It was the highest level over the past five years.

And this week, the company made another headline when it is set to supply gloves to the United States after securing a deal recently (worth of US$150 million to US$200 million). This successful deal may be the first of many deals that AT Systematization is expected to secure after it recently acquired an industrial glove maker, Pearl Glove (Malaysia) Sdn Bhd, where AT Systematization signed a share sale agreement of buying a 100% stake in Pearl Glove amounting to RM22 million in June 2020. AT Systematization's intention of buying an industrial glove-maker has now materialized and ready to meet the current demand for medical-grade nitrile examination gloves.

Pearl Glove, which was incorporated in 2008, is a turnkey glove operator that manufactures industrial and safety gloves with three existing manufacturing lines and customers from the UK, EU, US, Turkey, Canada,Japan, Oceania, Thailand and India.

Glove products of Pearl Glove

Just like any other stock incident, a day after the company announced the deal, its shares rose by over 30% at mid-morning trade. The share increased 3.5 sen to 14.5 sen, bringing the market capitalization of the group to RM239 million. AT Systematization saw some 288.14 million shares traded, exceeding its 200-day average volume at 39.88 million. It was the most actively traded counter in the early trading session. 

In its bid to meeting the global demand for medical-grade gloves, it was reported that AT Systematization plans to spend RM180 million on expanding the capacity of the plant to produce up to 3 billion pieces of gloves within 36 months. And being 67% of the world's gloves being exported from Malaysia, AT Systematization will surely gain positive results from this venture.

As we all know, with the current trade war between some regional powers that resulting from previous donation supplies, Southeast Asia, including Malaysia stands to gain the most when it comes to the medical glove demand.

Yesterday, the stock closed at half a sen or 5.26% higher at the end of the day at 10 sen. Let's pray for another great trajectory from AT Systematization in gaining the most in meeting the global's medical glove demand.

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

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