padinrose - Tips, Hobi dan Motivasi

News been spreading that Anzo set to make almost RM200 million profits from its glove making. Anzo Holdings Bhd, one of Bursa Malaysia's most actively traded stock which has been trading in high volume in recent weeks is venturing into medical gloves and is paying some RM50 million to buy up a company which produces the product.

 

There has been speculation that Anzo is actively looking to export nitrile gloves to as far as Canada, also the UK and China.

It has been looking around for glove manufacturers that want to cash out from the business and has narrowed down its search to one company which has the ability to produce over 1 billion pieces of medical gloves per annum.

Anzo is believed to be close to signing on the dotted lines to buy up the company and its assets, including land and factory.

The factory, meanwhile, has the potential for expansion should demand exceed supply. This means that Anzo may be able to also double up the production to over 2 billion pieces of the medical gloves a year.

Let's talk about the profits that Anzo will make from the glove manufacturing business. If Anzo produces 1 billion pieces of the gloves a year, it will rake in more than RM400 million in revenue. With the current market price going at USD75 for every box of 1,000 pieces, Anzo is set for a lifetime of profits. It is expected to make more than RM200 million in profits every year as long as it supplies 1 billion gloves.

Imagine if the group doubles up the production, that would give you over RM400 million in profits, putting it alongside Malaysia's current top glove makers like Top Glove, Hartalega and Kossan.

"For me, Anzo is a power group. It has strong financing capability, bankers' support and the resources to leap forward and weather the storm. The group is not sitting still with its strong and dedicated list of shareholders who all have good business sense to bring something into the group or a type of business that will only bring in profits. We are keeping a close watch on Anzo and what it will announce next," said an analyst who spoke on condition of anonymity.

Anzo recently announced to Bursa Malaysia that it had secured a RM1.3 billion contract to supply copper scrap to South Korea, via CSTME Resources Sdn Bhd, over 40 months.

Anzo, its subsidiaries and CSTME inked an agreement last week to supply copper scrap to a South Korean steel manufacturer, effective July 1.

CSTME agreed to buy birch/cliff copper scrap or berry/candy copper scrap from Anzo over 40 months. Anzo will supply up to 60,000 metric tonnes of copper scrap to CSTME at RM23,000 per metric tonne during the contract period.

CSTME, which has an AP (approved permit) license will buy the products from Anzo and export them to South Korea.