Will AT Systematization Bhd hit limit-up twice and touch RM1.00 this year?
An analyst friend whom I spoke to said that this is possible provided the company gets more orders for gloves for the rest of this year.
Last month, AT Systematization made the announcement that it bought an industrial glove maker, Pearl Glove (Malaysia) Sdn Bhd and since then demand started pouring in for the company.
Based on the sources, the company has received an order worth US$200 million to supply up to 2 billion pieces of medical gloves to the United States.
The number of known coronavirus cases globally passed 12 million on Thursday, according to the Johns Hopkins University tracker, which relies on official government data.
Reported there have been 548,799 deaths so far and 12,007,327 cases.
The US, which passed 3 million cases on Thursday, accounts for third of all cases and just under one in four deaths.
We think that AT Systematization may get more orders soon looking at this trend. Perhaps this explains why the stock has been active in the last few weeks.
This morning the counter opened half a sen higher at 10.5 sen. At 10 a.m., some 80 million shares were traded.
Bloomberg has reported interesting data about glovemakers in Malaysia.
It said that investors have shoved a total of RM57.66 billion into seven glove counters listed on Bursa Malaysia 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 per cent, or RM5.07 billion, of total turnover of local bourse — an evident that the demand for glove counters is surging.
The seven glove manufacturers are 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.
From March 1 to July 6, the turnover of RM57.66 billion among the seven stocks represents some 19.04 per cent of the RM300.4 billion turnover on Bursa.
As we believe AT Systematization could fall in the same league moving forward if it decides to expand its production capacity.
So overall, this is a good stock to watch, buy and keep long term.
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