Permaju-Anzo form JV to expand Manjung glove plant for higher profits


Permaju Industries Bhd and Anzo Holdings Bhd will work together via a joint venture to fabricate and expand the latter’s glove manufacturing plant in Manjung, Perak, so it could generate more than US$400 million in revenue a year.

Anzo needs to do this soon as its order book for gloves is rising up. We expect Anzo’s existing order book of US$200 million will double soon to over US$500 million.

We have reported that Anzo has secured an order each from the United States and Europe to supply over 2 billion pieces of medical gloves, worth an estimated US$200 million. The order book for Anzo will increase as the number of coronavirus cases around the world keeps rising.

As at July 12, 2020, the number of coronavirus cases is at a staggering 12.39 million while total deaths are 557,395.

The total number of cases in the United States is 3.22 million and infections continue to inch up in the country. The United States also recorded a total death toll of 135,822.

Several other countries around the world are also hit hard by the global pandemic, including Europe and India and there is a shortage for medical gloves.

Large orders continue to come in for Malaysian glove manufacturers.

Malaysia, which is the world’s biggest producer of medical gloves, is supplying almost 70 per cent of world demand.

Local glove manufacturers, whose stocks have rallied since the beginning of the outbreak of the Covid-19 disease, are expected to get more orders in.

After the US announced the new numbers in coronavirus cases, the stocks of Malaysian glove manufacturers like Top Glove Corp Bhd, Supermax Corp Bhd and Hartalega Holdings Bhd rose significantly hitting a new high today.

Although they are big manufacturers, their current production capacity is not enough to meet global demand and this allows new players like Anzo to get a chunk of the cake.

Do keep a close watch on Anzo and Permaju. We can expect some rally or heavy movement today and next week on this news.

We have said before that Anzo is expected to hit-limit up. This is based on an analysis we got from an analyst friend who is familiar with the matter.

In fact we can say Anzo is close to hitting a limit-up as the stock has jumped from a low of 2 sen more than a month ago to 23 sen early this week.

Even Permaju is gaining momentum this week, moving from the 24.5 sen range on Monday to touch 36 sen on Wednesday (July 8).

While the market is rather quiet today, a check on Bursa shows both the stocks have high volumes today.

I am excited to see how Permaju and Anzo close today at 5 p.m.

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