Congratulations to Anzo Holdings Bhd for their winning!
For readers’ information, the contract was worth RM1.3 billion!
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.
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.
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.