Anzo Set To Be A Large Glove Maker Attracting Foreign Investors

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Anzo Set to Be a Large Glove Maker, Attracting Foreign Investors
Anzo Set to Be a Large Glove Maker, Attracting Foreign Investors | Hey guys! Anzo Holdings Bhd should announce soon that a new substantial shareholder has emerged in the group after it secured 2 deals recently, the first a RM1.3 billion contract to supply copper scrap to South Korea, and a RM55 million investment in a glove making company. While we have little details about the investor, it is believed that he is a cash-rich tycoon either from China or Hong Kong

Shares of Anzo have been actively traded these past few weeks. It has been the top 5 or top 10 most active counters for several weeks now. At 5pm today, some 310 million shares were traded and the stock was hovering around the 18 sen to 20 sen range, indicating that it is going to power up soon. The stock was trading below 5 sen early this year and today went the highest to 20.5 sen. So you can conclude what is happening in Anzo yourself

The foreign investor is looking to invest in a public-listed company in Malaysia which has the potential to expand and become a global player in various businesses. Anzo, which produces quality timber doors is a target because the current shareholders have been actively looking for new businesses to diversify. A check with Bursa Malaysia shows that the current substantial shareholder of Anzo is Datuk Eddie Chai Woon Chet, who is also the group managing director

Anzo Set to Be a Large Glove Maker, Attracting Foreign Investors

Eddie Chai has been instrumental in improving the business of Anzo, previously known as Harvest Court Industries Bhd. He has been seeking new construction contracts and property developments projects for Anzo to carry out after the change of name in 2015. We understand that Eddie Chai has been approached by Chinese investors who are eager to take a stake in the group and we hope this will take place soon

"They are purchasing the shares in Anzo in the open market. They have been monitoring Anzo for quite sometime and are surprised that the group can secure the two deals in less than a month, amid the current market conditions," said an analyst friend who declined to reveal the name of the investors

Meanwhile, on the glove business, Anzo is expected to rake in some RM150 million to RM200 million in net profit and revenue of over RM350 million or close to RM400 million from exporting 1.2 billion pieces of medical and/or nitrile gloves a year. The company which Anzo is buying is called Wintrade World Sdn Bhd and it owns land and the factory producing the medical gloves in Manjung, Perak. There are currently nine production lines churning out 100 million pieces of the medical gloves a month (1.2 billion a year). 
It is understood, the factory is located on about 10 acres. This means there is ample of room for the factory to expand and maybe add another 5-7 new production lines. With more production lines, it means Anzo will be able to produce over 2 billion pieces of the medical gloves a year, and as a result, its revenue and net profit would increase

Anzo today told Bursa Malaysia that the assets and its capacity is expected to generate substantial profits for the group

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