Limit-up for Anzo Holdings Bhd this week? There is strong possibility!
Let’s take a look at Anzo lately.
Rumour has it that Anzo will announce a new substantial shareholder this week. The shareholder is definitely somebody with strong financial backing therefore attracting strong interest in the stock lately.
The shareholder is rumoured to be from a global fund that is listed in China or Hong Kong. Wow, who is he?
There have been many changes in Anzo since the beginning of this year in terms of its business direction. The timber, property development and construction group is now into glove manufacturing and the trading of copper.
Last Friday the stock closed 18 sen after rising to 20.5, with 308 million shares traded.
Anzo was one of the most active stocks the whole of last week.
In fact Anzo has been one of the most active stocks in the past several weeks now and this trend is expected to continue.
To recap, Anzo recently secured a RM1.3 billion contract to supply copper scrap to a steel-making group in South Korea effective starting from July 1 via CSTME Resources Sdn Bhd.
This means the company is already supplying copper to South Korea and this is expected to improve its earnings this year and onward.
Anzo also bought a factory manufacturing medical and/or nitrile gloves in Manjung, Perak for RM55 million. It 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, believed to be worth about RM400 million.
Are these the reasons why the Chinese investor is buying into Anzo? It is because it wants a share in the glove business?
Glove companies around the world are ranking in high profits since the outbreak of the Covid-19. Some companies’ share price have increase by more than 500 per cent.
So if Anzo hits limit-up tomorrow, it is highly expected.
Apparently Anzo has also been getting a lot of calls lately after it announced that it ventured into glove and copper trading.
Someone whom I spoke to said he is interested to do business with Anzo because of its involvement in glove manufacturing and he wants a contract to supply to the UK market.
This is very good news for the Malaysian market which has been depressed since the beginning of this year because of the Covid-19 pandemic.
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