ANZO Won Contract To Supply Copper Millberry For A Korea Company

Congratulations to Anzo Holdings Bhd for their winning!

For readers’ information, the contract was worth RM1.3 billion! 

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Anzo will supply the copper millberry for over a period of 40 months to a steel-making group in South Korea effective this July 1.

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Picture: Anzo Managing Director and major shareholder, Datuk Eddie Chai Woon Chet, who has been instrumental in gaining new business for the company

The company inked an agreement with CSTME Resources Sdn Bhd, a local distributor in a close door ceremony here. CSTME is one of the major importer and exporter of non-ferrous materials in Malaysia, specialising mainly in copper products.

According to the agreement made, CSTME will supply 1,420 metric tonnes of copper milberry, valued at RM23,000 to South Korean-based steel company on a monthly basis. The Korean company will then use the copper for remelting into copper plates and copper products for industrial and electrical construction purpose.

As for Anzo, trading securities for the group  was suspended yesterday at the request of the company with effect from 4.22 pm, pending the announcement. The last traded price was 15 sen and it is remained untraded today.

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For the last two years, Anzo which is based in Port Klang, Selangor has been actively seeking new business from its current activity to diversify its income stream after posting losses for many quarters because of market conditions. In a recent filing with Bursa Malaysia, Anzo said it was revising the company’s business plans to mitigate any potential negative impact arising from Covid-19 that has been affected worldwide.

The company posted a revenue of RM8.37 million in the third quarter ended April 30 2020, almost SIX times more than the preceding year corresponding quarter. The group also achieved a minor pre-tax loss of RM2,000 compared to a pre-tax loss of RM1.03 million in the previous year’s corresponding quarter.

For the year to date, the company’s revenue and gross profit increased to RM15.51 million and RM1.38 million respectively and its pre-tax loss reduced by almost half, from RM2.7 million in 2019 to RM1.39 million in 2020.

A little note to highlight:

1. Anzo won RM1.3 billion contract to supply copper to a South Korean company.

2. Share price has been increasing, closing 15 sen prior to its suspension yesterday.

3. With the RM1.3 billion contract the company is expected to return to profitability this year.

4. It’s a counter to look at this year on Bursa Malaysia

With all the success, Anzo is set to record better earnings in the fourth quarter ending July 31, 2020.

 

Anzo’s Stock Traded The Highest, Making It The 7th Most Active in BURSA

 

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Trading in Anzo Holdings Bhd’s securities has been suspended at the request of the company with effect from 4.22 pm today, 24 June 2020, pending an announcement.

NO DETAILS  were provided by Anzo on the suspension.

However, sources with knowledge on the matter said that the announcement could be related to a major deal that is taking place as soon as this week, and it could be a game-changer for Anzo.

Anzo has been actively looking to diversify its business to improve its revenue stream and earnings, despite the Covid-19 pandemic.

In a recent filing with Bursa Malaysia, Anzo said it was revising the company’s business plans to mitigate any potential negative impact arising from Covid-19.  The company posted a revenue of RM8.37 million in the third quarter ended April 30 2020, almost six times more than the preceding year corresponding quarter. This was mainly due to the contribution made from the trading section of the construction division, which provided RM7.5 million (2019: nil) turnover during the quarter.  The timber division contributed only RM900,000 (2019: RM1.5 million) turnover during the period.

Anzo said that in line with the improved operating results, it had achieved a minor pre-tax loss of RM2,000 compared to a pre-tax loss of RM1.03 million in the previous year’s corresponding quarter.

For the year to date, and as a result of the improved trading business, the company’s revenue and gross profit increased to RM15.51 million and RM1.38 million respectively. As a result, its pre-tax loss reduced by almost half, from RM2.7 million in 2019 to RM1.39 million in 2020.

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Sources believe that Anzo may post better results in the fourth quarter ending July 31, 2020.  The stock closed 2 sen or 15.38 per cent higher today at 15 sen, raising its market capitalisation to RM132.78 million.

It was the SEVENTH highest traded stock volume-wise on the local stock exchange.   A total of 90.1 million shares were traded before the suspension. The closing price of 15 sen is also Anzo’s highest traded price over the last three years.

In April 2017, the stock had been trading around 40 to 50 sen range. In a filing with Bursa Malaysia on June 22, Anzo said that some foreign investors have acquired shares in the company. The company was replying to an enquiry from Bursa Malaysia following a news report.

 

Anzo Holdings Shares Its Highest Traded in 12 Months: Eyeing New Business?

With the highest traded within a period of ONE YEAR, this Malaysian’s manufacturer of high quality timber doors and markets timber products for building projects is ready for NEW business!

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The company that located in Port Klang, Selangor are expanding from their current business to more new opportunities to generate additional income for the group.

It is understood that the group is talking to several foreign investors for the plan and according to the source with knowledge on the matter:

“The shareholders are planning something for Anzo to take it to a new level. Anzo could get new investors and they may inject new business into the group” 

For readers’ information, shares of Anzo were:

  • UP 4 sen or 41.18 per cent 
  • CLOSED at 12 sen

It was one of the HIGHEST traded stocks on the local stock exchange and the closing price at 12 sen was also the highest traded in the last 12 months!

The TOTAL VOLUME of shares transacted was: 189 million

Congratulations for such a great achievements!

“The hike in share price shows something is up in Anzo. Looking at the trend these days where most Bursa-listed companies are diversifying and venturing into healthcare and healthcare-related industries, Anzo could be planning the same to diversify its earnings,” said the source.

Besides timber, Anzo is also involved in construction and property development, focusing on construction and interior design fit up works and related maintenance services.

In a filing with Bursa Malaysia, Anzo said it is cautious of the prospects for the current financial year as the economy continues to face various headwinds especially with the coronavirus outbreak that has affected people globally.

A broad-based slowdown in the economy is expected and the group is actively pursuing measures to manage its operating costs and revising the business plans to mitigate any potential negative impact arising from the Covid-19 pandemic.

“Therefore, Anzo will continue to focus on its operational efficiency and productivity so that satisfactory results can be achieved for the current financial year,” 

The group posted revenue of RM8.37 million in the third quarter ended April 30, 2020, almost SIX times more than the preceding year corresponding quarter. It said this was mainly due to the contribution made from the trading section of the construction division, which provided RM7.5 million turnover during the quarter.

However, the timber division was badly affected by the Movement Control Order (MCO) which came into effect in March 2020. This was evinced by its contribution of only RM0.9 million (2019: RM1.5 million) turnover during the period.

Anzo said that in line with the improved operating results, the group achieved a minor pre-tax loss of RM2,000 compared to a pre-tax loss of RM1.03 million in the previous year’s corresponding quarter.

For the year to date, as the result of the improved trading business, the group’s:

  • revenue and gross profit INCREASED to RM15.51 million and RM1.38 million respectively
  • Pre-tax loss REDUCED by almost half from: RM2.7 million in 2019 to RM1.39 million in 2020

Pearl Glove Is Now Under Property of AT Systematization

AT Systematization Bhd (ATS) has signed a Letter of Intent to acquire Pearl Glove (Malaysia) Sdn Bhd. and intends to DOUBLE UP the glove production from 500 million pieces to over 1 billion!!!

That is really a mass production!

Pearl Glove will manufacture 500 million pieces of gloves over 1 year at their plant in Kedah with the contract value is RM100 million and these gloves will be sold worldwide due to demand because of the global pandemic: Covid-19. 

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The acquisition process has been a success, subject to due diligence, regulatory and shareholder approval.

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For the information, Pearl Glove is a pioneer status Malaysian company located in Sungai Petani, Kedah. The company primarily designs, develops and manufactures industrial gloves.

Its specialty is bespoke OEM and ODM products and has been trusted by global partners for their quality, design and eco-friendly manufacturing procedures.

ATS see this move as a logical expansion in the current environment of burgeoning demand for gloves and will seek to inject further capital and expertise to manufacture medical examination nitrile gloves to boost Pearl Glove’s capacity and product suite, post its acquisition.

Accordingly, Global Market Insights have reported that industrial safety gloves alone account for a global USD5 billion market and is expected to witness a Compound Annual Growth Rate (CAGR) of seven per cent all the way to 2025, as occupational health and safety trends move towards preventive and protective measures.

Meanwhile, a recent Bloomberg commentary expects Malaysia to churn out in excess of 240 billion units of gloves this calendar year, with demand already pushing production lines to maximum capacity up till mid-2021, compared to 182 billion glove pieces in 2019. Lead times for delivery of orders have climbed from 30 days to 150 days and the demand is seemingly incessant.

The global viral pandemic, Covid-19 that has spread quickly has required immediate resources be deployed to the safety of front liners, and medical examination gloves are of paramount need. The pandemic is expected to experience a second wave as the winter months hit the northern hemisphere.

Therefore, ATS feels that by investing in a turnkey glove company and adjusting for timing to adopt new machine lines and expertise, they will be ready to supplement the requirement of continuous growth for gloves by year end 2020. Should the rise in demand be consistent, ATS will be able to participate as an OEM manufacturer of existing producers, while investing in R&D to develop its own branding and products.

With Malaysia accounting for 67% of the global market’s glove business, this acquisition will make ATS a contributory to the unprecedented boom, bringing the company to a new level.

The Board of Directors of ATS are also convinced this is the right step forward that will benefit the loyal shareholders of the Company.

Well not only the Company, it will also benefit the global gloves users too!

Permaju Glove Venturing Into Glove Manufacturing

A right move by Permaju Industries Bhd since there are global demands for the gloves for the moment.

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Permaju Industries Bhd has incorporated a wholly-owned subsidiary, Permaju Glove Sdn Bhd (PGSB) to venture into glove manufacturing riding on the global shortage of gloves.

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In a filing with Bursa Malaysia last Friday, Permaju said PGSB, incorporated on June 5 2020 is 100 percent-owned by the group. The intended principal activity of PGSB is to manufacture, distribute, buy, sell and generally deal in rubber goods for industrial and commercial purposes.

“The rationale of the incorporation of PGSB is to facilitate the expansion of the business activities of the group and its subsidiaries.”

Permaju’s decision to incoporated PGSB since there are surge in demand because of the deadly novel coronavirus or Covid-19 in China that started last December 2019 and has since morphed into a global pandemic. More than 7 million people have been infected and the virus has now claimed over 400,000 lives worldwide.

Permaju is involved in the distribution of Volkswagen and Ford franchises, also property development and owns big parcels of land in Sabah and Seremban, Negeri Sembilan.

Alam Puteri by Permaju
Pemaju Industries Bhd is turning from developer to glove market to meet the global shortage of gloves

In Seremban, it has more than 300 acres of land that is suitable for property development or industrial activities. The group has been mulling to use the Seremban land to undertake various businesses, including property development projects but the plans did not materialise due to the challenging market conditions. They may use the land to construct a glove manufacturing plant for its new venture.

Currently in Malaysia, the glove manufacturing business is dominated by Top Glove Glove Corp Bhd, Supermax Corp Bhd, Hartalega Holdings Bhd and Kossan Rubber Industries Bhd.

Last year, global demand for gloves was 290 billion pieces, of which 187 billion were supplied by Malaysia. The current global demand for gloves is more than 300 billion pieces, owing to the pandemic.

Analysts who spoke on condition of anonymity said that Permaju may emerge as the next big player in the market as it has strong investors’ backing to take glove manufacturing to a higher scale. They also believe that demand for gloves will continue to rise because of a shortage of gloves in major markets worldrubber gloves 3wide.

A New On-Demand Delivery App Is Here

Yessss… What a wonderful news for online sellers. Now, you can use iHantar, for express courier and also bulky goods!

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And the best thing, you can get bonuses of up to RM25 for downloads and recharge!

Developed by service provider: Vertex Technology Solutions Sdn Bhd, this new mobile application (app) offering same day pick-up and drop-off service. And besides this new app, Vertex also has a licensed e-hailing app called Ridez.

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The company’s founder, Mr. Kabeer Maand said iHantar is an on-demand same day delivery platform that allows users to place delivery requests via the mobile app. Rest assured, customers can rely on the affordable delivery platform for express courier and delivery services, bulk deliveries, essential goods, food items, groceries, medical supplies and much more than that.

“When it comes to sending an item on time, several on-demand services would probably come into your mind. Undoubtedly, one of them will soon be iHantar. We are changing the way deliveries are being done and at the same time simplifying the lives of people. In our app based world where everything can easily be done with just one-tap your finger, iHantar fits in perfectly on how delivery is done.”

The iHantar delivery app lets all users to call and hire a van, truck or motorcycle to deliver goods from the palm of your hand, with real-time tracking.

Steps on how to use iHantar app:

  1. Go to the iHantar app
  2. Tap on ‘Delivery’
  3. Then key in pick-up and drop-off locations
  4. Fill in recipient information
  5. Confirm your booking
  6. Get a driver and YEY..the item is good to go!

AND the best thing about the iHantar aps, you will be able to track the movement of the item and when it gets delivered.

Vertex is currently running a promotional campaign to attract users to the app. For users who:

  • recharge RM50 will get an additional RM5 bonus
  • recharge RM100, will get a RM15 bonus
  • recharge RM200, will enjoy a bonus of RM25

Mr. Kabeer said iHantar has several value propositions that make the product unique and stand out in the marketplace.

iHantar is affordable and offers lean fares, coupled with high-quality service and convenient service. All the drivers are also certified with no criminal background.

iHantar offers an active customer support system, advance booking service, and multiple stops facility.

“Everything will be cashless. Buying products and paying for service cashless is the new norm. It is basically a new way of doing things and we want to ensure that all our customers have this convenience. With the rapid change in market trends and consumer buying behaviour, we have to constantly deliver new products and services that meet all their requirements. Consumers are the kings of markets. All the activities of our business ends with consumers and consumer satisfaction,” he added.

According to Mr. Kabeer, the official launching of iHantar is targeted to be on June 1, 2020.

On the outlook, Mr. Kabeer is bullish on the delivery service market and the company has set out several strategies to grow the business.

“We are looking to expand into new markets to effectively grow the business. We want to be an early adopter and we need to consider every possible avenue for expansion, which may include finding new customer demographics, penetrating new markets and regions and growing a base of repeat customers. The company will also need to expand ‘What Your Service Entails’, and be able to find genuine solutions to real world problems. There are a lot of players in the market but we don’t see them as our competitors. We will launch several promotions to acquire both users and partners,” he said.

In less than a month, iHantar has been able to secure more than 1,000 service partners and he expects this number to increase by the end of this year. More than 1,000 riders across Peninsular Malaysia have also registered with the company.

About Vertex Technology Solutions Sdn Bhd

Vertex Technology Solutions was established in May 2019. It is a technology driven company aimed to provide a wide range of passenger transportation network via the Ridez mobile application and delivery of goods via iHantar.

The company’s vision is to provide economical and safer transportation and delivery access to all Malaysians with just a tap of a finger.