If you haven't already bought shares in timber and property group Anzo
Holdings Bhd, wait no further! Based on analyst observation, this counter (or
shares) is going to skyrocket with the way things are going on within this
group.
According to industry sources, Anzo is now venturing into glove
manufacturing and is buying up a company that has the capability to produce
more than 1 billion pieces of nitrile gloves per annum.
More than 1 billion pieces of gloves would translate to about over RM400
million in revenue. Looking at the market price of gloves currently, which is
going as high as USD75 per box of 1,000 pieces, Anzo is expected to record a
net profit of more than RM200 million.
Anzo is said to be paying about RM50 million to buy over the glove company's
assets, including its land, factory and machinery.
"It is a done deal! Anzo was approached, they studied the proposal
and it's confirmed. Anzo makes decisions fast. When they see something that
will be profitable, they will take it," said someone close to the company.
A profit of RM200 million? Don't forget that Anzo is a property
developer and timber company, which in good times, will generate positive
earnings for the group. Furthermore, just last week Anzo announced that it had
secured a RM1.3 billion contract to supply copper scrap to a South Korean
steelmaker.
Anzo is expected to have guaranteed payment over 40 months from this
RM1.3 billion deal, which is the duration of the contract with the Korean
group.
Anzo, its subsidiaries and CSTME Resources Sdn Bhd have inked an
agreement to supply copper scrap to the South Korean group.
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 said it will buy the products from Anzo and export them to South
Korea, effective July 1, 2020.
Interestingly, CSTME, which has an AP (approved permit) license bought
up shares in Anzo and is currently a substantial shareholder in the group with
11.621 per cent stake.
Hence, with the glove manufacturing deal and a RM1.3 billion contract in
hand to supply copper scrap to South Korea, Anzo is set to be one of the darling stocks on Bursa Malaysia with all the major deals it has secured this month.
Watch out for this stock!
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