US$200 Million Glove Orders for AT Systematization; Stock to Head Upward

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US$200 Million Glove Orders for AT Systematization; Stock to Head Upward

AT Systematization Bhd has received orders for 2 billion pieces of gloves worth about US$200 million from the United States and will supply them over the next 2 years.

The United States has reported more than 3 million coronavirus cases as of Wednesday morning, with a handful of states struggling to control outbreaks of Covid-19.

The total number of cases also includes nearly 1 million people declared to have recovered. But 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.

A day after the company announced its venture into the glove business, the stock rose by more than 300 per cent, increasing from 3.5 sen to 14.5 sen.

The stock has been trading heavily since early June.Yesterday, it was up half a sen or 5.26 per cent to close the day at 10 sen.

Interest seems to be building up in AT Systematization, perhaps because word has gone around town that it has secured the US$200 million deal from the United States.

Now that we have reported this, it is quite highly the stock will inch up tomorrow. We believe that it is quite possible for the stock to touch 20 sen and move upward from there due to the orders coming in.

There also seems to be strong resistance at the 10 sen level with high volume trading everyday, indicating there is some interest in the stock. 

It looks like some party is accumulating the shares at the 9 to 10 levels. We are not sure whether it is the company's shareholders, or foreign funds are buying into the company.

There is a trend now where foreign funds are buying Malaysian stocks. These foreign investors are eyeing companies which have recently announced some major deals, or moved their business to do something more lucrative like glove manufacturing.

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