Mlabs Enters Glove Manufacturing And Healthcare Business For Growth

---

Assalamualaikum dan salam sejahtera


Mlabs Enters Glove Manufacturing and Healthcare Business for Growth

Something is brewing at Mlabs Systems Bhd! There are confirmed rumours that Mlabs is venturing into healthcare and glove manufacturing and that the business will start soon. Healthcare, including glove manufacturing are the fastest growing sectors, amid the Covid-19 pandemic. 
The total healthcare industry spending in Malaysia, which stood at RM52 billion at end-2017, is expected to exceed RM80 billion this year, fueled by increasing demand for healthcare services, and emergence of new care models beyond traditional hospital settings. The glove venture is also a lucrative business especially now when there is a global shortage for medical or nitrile gloves. More companies are getting into the production of gloves in response to the global shortage
  Mlabs has been trading actively these past few weeks. There is a strong resistance at 5 sen and we can expect the price to surge to 10 sen soon, followed by a second wave of increment. The stock closed 4.5 sen today with almost 40 million shares traded, a sign that people already know about the company's venture into glove manufacturing. Mlabs is relatively a cheap stock to invest in for long term prospects and I personally recommend a "BUY" on this counter


  Analysts said there are exciting times ahead for Mlabs, which has been focusing on growing its business despite the Covid-19 pandemic. In March this year, Mlabs announced that it will provide its video-conferencing products to Ipharmacare Malaysia Sdn Bhd to complement the latter's online pharmaceutical platform

In return, Ipharmacare will support Mlab's efforts to promote these products, which will include but not limited to video conferencing systems, messaging systems and network solutions, to its platform users and/or independent pharmacies. We believe Mlabs will be able to meet funding requirements for future expansion.    When Mlabs reported its balance sheet in December 2019, it had zero debt and cash worth RM7.1 million. Although the cash is small, Mlabs can generate additional cash by issuing news shares in the company. Mlabs is developing its business progressively and it could easily raise more money to accelerate growth in the company. 

Mlabs has announced a private placement of up to 267.4 million new ordinary shares, representing 30 per cent of the total number of issued shares in the company, to independent third-party investors to be identified later
  Based on an illustrative issue price of RM0.0243 per placement share, the gross proceeds to be raised from the proposed private placement will be utilised for working capital, among others. We are fairly impressed by the company's growth trajectory. Its revenue growth has been relatively promising and we think it will announce better earnings in the coming quarters

THE END

---