Risk On
AT SYSTEMATIZATION – Turning into a penny darling glove stock in 4Q20
AT is going to put to shame its non-believers when it ramps up its glove production next month, With a production capacity of 211million pcs/mth or 2.5billion pcs per annum, AT will report a profitable quarter starting from 4Q20.
Using AT's investor relations presentation slides, the company has 7 single former lines (60m pcs) and 11 double former lines (151m pcs).
Assuming average selling price (ASP) of USD60 (which is much lower than Top Glove & Supermax's ASP range of USD75-USD100), AT's revenue would be around USD150m or RM620m. This means AT is the cheapest glove stock with 28m net profit or trading at just 6x FY21 earnings. Based on its absolute penny stock price of RM0.08, I believe AT would transform into a retailer's darling dream glove stock.
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2 people like this. Showing 11 of 11 comments
After their production trial with good yield, then it can qualify to be a glove stock. Currently, it is safe only to say that that it will come into the competition with the big giants with lower productivity gains comparatively. There will be a slight profit going forward and much much more to learn from the management thereon about their growth plans. If business is so easy, then many many more companies will be set up and shooting to the sky.
Big giants already are far ahead and had their sights to leap frog his peers with huge investments yesterdays news. ! ! !
2020-09-22 10:33
Frank Tan you sound like a guy who buys stock like gambling. Where did I write earnings of 1.3b. Actually I only said RM28m based on lower ASP assumptions than Top & Super. Aiyo if u make decision on gut feel, you should not blame any stock if you lost money
2020-09-22 17:26
AK2899 instead of saying its wayang, you should drive up to the plant to verify if works have started. If it has not, then only then can u say its wayang.
The address for AT Glove Engineering Sdn Bhd
9 Janan Chepor 11/7
Kawasan Perusahaan Seramik Chepor
31200 Chemor Perak
U sound like someone who buys on rumour, gets burn then blame everyone else but yourself since u never bothered to verify it
2020-09-22 17:30
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Waiting for 5 cents only sailang... tonight US market going to crash again
2020-09-21 21:59