Anzo to breach 30 sen level
Limit-up for Anzo Holdings Bhd is highly expected and the stock is expected to break the 30 sen mark today for sure looking at the movement this morning. Anzo opened at 9.00 am moving up 1.5 sen over yesterday’s closing price of 23 sen. At 9.25 am the stock hit 26 sen and we are expecting a limit-up.
The company has received a US$200 million order to supply medical gloves to the United States after the country passed another grim coronavirus milestone as the death toll from the virus climbed past 130,000 yesterday, according to a tally kept by Johns Hopkins University.
The United States has had 2,888,729 COVID-19 cases and 130,007 deaths as of midday in Washington, the university reported.
India also reported more than 23,000 new cases of coronavirus, overtaking Russia to become the country with the third-highest number of coronavirus cases in the world.
More than 11.4 million people around the world have been diagnosed with coronavirus and 538, 238 have died, according to Johns Hopkins University. Nearly 6.2 million have recovered from the disease.
Anzo is expected to supply the gloves to the United States as early as the fourth quarter of this year.
The company last week bought a glove manufacturing plant in Manjung, Perak for RM55 million.
The factory has 9 production lines that can produce up to 1.2 billion pieces of medical gloves/nitrile gloves a year. There is a possibility to increase the production lines to 15 where it will be able to produce over 2 billion pieces of rubber gloves.
It is quite possible if demand for rubber gloves increases, Anzo may expand the business by acquiring rival glove makers.
If the company does this, Anzo is set to be in the same league as Top Glove Corp Bhd, Supermax Corp Bhd and Hartalega Holdings Bhd.
No wonder a foreign global from China or Hong Kong has emerged as a substantial shareholder in Anzo. Anzo has yet to make an announcement on this and I hope soon as I am curious to know who has been buying the company’s shares.
Lately there were also reports of retail and institutional funds looking to invest in Anzo, perhaps because they want a share in the medical glove business.
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