Heavy gains for AT Systematization on US$200 million contract win | Hey guys! Looks like some investment group is accumulating a big block of shares in AT Systematization Bhd that is creating high volume and stabilising the stock. This morning at 9 a.m. the stock opened half a sen higher from yesterday's closing of 10 sen. By 9.15 a.m. some 35 million shares were traded. In fact the stock has been active since the beginning of June this year and moved up to as high as 16 sen.
We hear that AT Systematization, which recently bought a glove manufacturing company has received an order worth about US$200 million to supply up to 2 billion pieces of gloves to the United States over the next 2 years.The United States has been reporting an increased number of Covid-19 cases. The country reported more than 3 million coronavirus cases as of Wednesday morning, with a handful of states struggling to control outbreaks of Covid-19.
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| Heavy gains for AT Systematization on US$200 million contract win |
More than 130,000 Americans have died from Covid-19 – roughly twice the death toll of any other country, according to a tracker from Johns Hopkins University. The glove orders for AT Systematization comes less than a month after the company acquired an industrial glove maker, Pearl Glove (Malaysia) Sdn Bhd. 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.
AT Systematization announced that it had signed a share sale agreement to buy a 100 per cent stake in Pearl Glove for RM22 million last month. The following day the stock rose by more than 300 per cent, increasing from 3.5 sen to 14.5 sen. Glove counters on Bursa have been attracting big investors including foreign funds who want a share in the glove manufacturing business.
Although AT Systematization is a new player in this business it is very likely that it will grow to become one of the big boys in Malaysia. Malaysia exports around 67 per cent of the glove it manufactures to countries affected by the Covid-19 pandemic. Analysts believe that demand for gloves will continue to rise for the next two years at least so companies like AT Systematization will continue to benefit. In my opinion, no one will go wrong when they invest in glove counters.
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