Bisnes

AT gets 2 billion glove orders from America

 

 

AT Systematization Bhd has received orders to supply up to 2 billion pieces of medical gloves or nitrile gloves to the United States, worth about US$200 million.

It is believed that the contract to supply the gloves is for two to three years.

The engineering and industrial automation firm is acquiring glove maker Pearl Glove Sdn Bhd (PGSB) for RM22 million cash and as soon as the company announced this last month, orders have been coming in.

Covid-19 cases and casualties are increasingin the United States.

The United States reported more than 60,000 cases on Tuesday, its highest single day count since the start of the pandemic.

CNN reported that the ferocious speed at which Covid-19 spreads has astounded doctors, with over 131,000 people dying from the disease since January, according to data from Johns Hopkins University.

In 35 states, the rate of new cases keeps increasing – threatening to reverse progress made during weeks of painful shutdowns and stay-at-home orders.

The United States including other nations like Europe and India are desperately looking to buy gloves from other countries and Malaysia is the largest glove producer in the world.

AT’s entry into the glove manufacturing business is timely given the fact there is no end to the Covid-19 pandemic in the near future. 

The stock closed half a sen or 5.26 per cent higher yesterday to 10 sen.

The highest the stock traded this year was 16 sen, on June 11.

We think the stock might trade higher this week following talks that it may have a deal from the United States to supply the medical gloves.

The company’s shares soared 31.82 per cent at mid-morning trade on June 29 a day after it announced that it is acquiring an industrial glove maker.

The share increased 3.5 sen to 14.5 sen, bringing the market capitalisation of the group to RM239 million.

AT saw some 288.14 million shares traded, exceeding its 200-day average volume at 39.88 million. It was the most actively traded counter in the early trading session.

The company’s immediate outlook for PGSB’s existing business as a trusted and tested OEM/ODM manufacturer of safety gloves is extremely positive as the demand for industrial safety gloves increases proportionally with improving workplace and safety practices globally.

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