Anzo Holdings Bhd Invest RM50 Million To Buy Glove Manufacturing In Selangor

If you haven't already bought shares in timber and property group Anzo Holdings Bhd, wait no further! Based on my 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.

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.

So with the glove manufacturing deal and a RM1.3 billion contract in hand to supply copper scrap to South Korea, Anzo is in a good position to be the next giant in Malaysia and darling stock

Watch out for this stock!