AT SYSTEMATIZATION COULD TRADE HIGHER AT RM1.00
Keep a look out for AT Systematization Bhd which recently joined the big boys in the glove manufacturing industry in Malaysia.
The counter, which is trading between 10 sen and 15 sen has attracted investors bringing the daily volume to over 100 million a day.
Bloomberg reported recently that investors have added a total of RM57.66 billion into seven glove counters - 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 - 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.
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.
We believe AT Systematization could also fall in the same league moving forward if and when it expands its production capacity.
The company has paid RM22 million to acquire a glove manufacturing plant and in less than a month it has sealed a contract worth US$200 million to supply up to 2 billion pieces of medical gloves to the United States.
AT Systematization is expected to supply the gloves to the United States over two years starting soon.
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.
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.
RM1.00 for AT Systematization? It can be expected because glove stocks are in the bull run.