He all in but price still drop....

Will average down when the price is right hehehe

If the contract sum of 100m is true and the margin being 20%, PG probably worth the 20m

This is the closest mention of rm100m i can find


In June, ATS announced that it was buying Pearl Glove (Malaysia) Sdn Bhd, which has a contract to produce around 500 million pieces of gloves in the next one year.

ATS, in a filing to Bursa Malaysia, did not disclose the price it was paying but sources said Pearl Glove's contract was valued at about RM100 million.

https://www.nst.com.my/business/2020/08/615577/systematization-diversifies-glove-manufacturing-business

@menort, what is the basis for the 100m valuation?

Set up agreement is expected aa lagenda has shared photos of the plant. Maybe securing sales agreement like notion or lkl will help the situation.

GG. Com

Counting down ... Zzzzz.

Wow, menort is right about PGSB. @ imignorant, any more news? I want follow ocs5858.

lagenda The link to some parts of the slides
https://klse.i3investor.com/blogs/riskon/2020-09-21-story-h1514237767-AT_SYSTEMATIZATION_Turning_into_a_penny_darling_glove_stock_in_4Q20.jsp
21/09/2020 10:06 PM

_______________________________________
@lagenda, AT produce blue and white glove?
Remember to tell the directors not to produce red glove like TG, if not the price also red red.

Make green glove, only then price will follow the color and rocket

@ocs5858 .bro, which glove counter is good? I will follow u to the moon.

An the report on AT's network is nothing new.

https://klse.i3investor.com/m/blog/Chloe_Tai_Blog/2017-12-14-story-h1452362051-AsiaBio_0150_AsiaBio_s_Investments_Bearing_Fruit_Newly_known_as_Fintec_.jsp

Many of these companies have raised funds recently in the equtiy market due to favourable condition.

The question is what will they do with the money. Will they invest into a promising biz like glove?

If the glove venture is called off or extension of acquisition of PGSB without proper explanation, shareholders should critically reassess the risk of holding this loss making counter.

If you backtrack the earlier post by one of the forumers, u will be able to see the following:

Sep 14, 2020 3:04 PM | Report Abuse

ASIABIO CAPITAL Sdn Bhd
AT : 421,600,000
Komark : 40,880,000
Focus : 509,799,792
Mlab : 75,100,000

A quick check on the QR of FinT will reveal that asiabio capital background. It is a subsidiaryb of FinT.

The current situation can go either way, the mgmt proceed with the glove biz or call off for whatever reason.

If the former is to happen, there will be a new kid on the block. AT will probably working closely with FinT for its announced intention to venture into glove. Someone probably would have knew that FinT plans to start its glove production plan in the same area as AT in perak.

Glove production is about economy of scale.

There are friendly companies e. GreenO, might be working together to source for raw mat, building supply network, marketing etc.

Not to forget, AT also intend to venture into glove machinery supplies.

AT has been funding the glove venture before PP. It will be great if someone can share how much have they paid for
1) deposit of PGSB acquisition
2) Acquisition of land from Ripcol
3) Glive machinery from Ripcol
4) Hiring of workers
5) Raw Mat
6) Professional fee for glove set

Imignorant, hahahaha...Maybe this is just the beginning of ________ .

WonderIing why the director buying shares.

Changes in Director's Interest (Section 219 of CA 2016) - DATO' NIK ISMAIL BIN DATO' NIK YUSOFF | https://www.klsescreener.com/v2/announcements/view/3231001

Some insights to TG ASP. USD70/1000pcs x1.3x1.15 in November @ 4.13(forex) = 429.21 for 1k pcs.

https://www.klsescreener.com/v2/news/view/729095

imignorant zoro_roronoa, calculation base on lazada price is not accurate because not all the money goes to their pocket

----------------------------------------

@imignorant, the price can be even lower due to glove being sold in bulk. However, asp is extended to be on up trend. We should be stand guided by management in the price and quantity.

The more burning questions will be

1) is AT able to produce glove in Q4?
2) is AT able to secure buyers for its glove?


TanSri' view on the market outlook.
https://www.nst.com.my/business/2020/06/599869/top-gloves-net-profit-more-fourfold-q3-expects-sales-double-q4

A high level calculation of the potential earning if AT successfully implementing their plan

Based on the circular the annual peoduction is roughly 3.5B glove.

Assuming Year 1, AT managed to produce and sell 1B glove and a quick check on topglove nitrile glove on lazada is rm30 for 100pcs.

As AT is new and cannot demand such high price, say at 50% discount rm15 for 100pcs.

The revenue of 1B pcs will be rm150m and at 50% of TG's PAT margin of 40%, AT's PAT will be RM30m.

The simple forward PE of TG now is 14x, apply this to AT, the market cap will be 14x30m = rm420m

This roughly translate to a share price of 20c.

Why cant the share price reflect 20c now?
The answer is there is execution risk. AT is at a very preliminary stage of production, probably at setting up the plant stage. It is too early for the price to rise.

Am I upset with the price? The answer is a BIg YES.

Will i wait ? Im of the same view with menort, if PG deal is aborted i will recosider unless the management has a damn good explanation they can carry the plan with alternative.

For the time being, i shall quietly wait for the 27th Sept due date and AGM.

(The calculation is highly simplified and doesn't constitute a buy call. This is merely a sharing of personal view :p )

Abortion of PG acquisition can be viewed as a red flag, putting aside non satisfactory due diligence outcome.

However, acquisition of PG is only considered as completing one of the many key milestones which has little contribution to the ummediate earnings of AT. Judging the consideration for the acquisition is rm22m, the profit for the latest financial year is unlikely to be huge.

Correction: 2018 was 14.98m and 2017 3.7m.
The question will be whether the asp of WORK can increase like the medical glove. A 10% increase based on 2018 revenue will translate to a profit of 1.5m.

This will significantly reduce the PE to lower than 15x.

PGSB's 2018 revenue was 14m and PAT 250k (PAT margin of less than 2%).

Based on 2018 financial, ATS is valuing PGSB at a PE of 90x.

PGSB financials are disclosed in the last page of the circular.

http://disclosure.bursamalaysia.com/FileAccess/apbursaweb/download?id=104378&name=EA_GA_ATTACHMENTS

Watch out for the due date for the PGSB acquisition and AGM in the coming weeks.

TG's result expected to announce on tomorrow will also help to gauge the market sentiment toward the glove sector and in turn chart the timing of m&a and fundrasing of AT.

Happy Malaysia Day.

For AT shareholders, you will need to wait longer to see a healthy return if things go accordingly.

There are a few factors might push up the share price un the shorter term
1) Completion of PG acquisition. Anyone know whether it is a profitable company?

2) New major shareholders coming onboard. Currently there are 2 major shareholders and one has announced its own venture into glove biz in the chemor, perak (pro: potential alliance/m&a con: divest its stake in AT to focus on its own venture).

3) Further investment by AT in Glove related biz e.g acquiring Ripcol. AT us acquiring land and sourcing glove manufacturing machinery from Ripcol. With this AT cab be a supplier to other "freindly" new companies venturing into glove.

The market cap is 200m, assuming a PE of 50 for a glove company, the PAT needs to be 4m.

HLT is mainly in the supply of glove machinery related biz with a small contribution from glove only managed to achieve a PAT of 5m. Of coz it has a crazy PE of 90-100.

Why should the share price move?

When there are good underlying financial fundamental to support. In AT case, there are none.

Furthermore, the current price is very likely above it financial fundamental.

The next key date will be 27 September - End date the extention of SSA for PG.

Why dont u guys seek clarification from the directors in the upcoming AGM

Lets see got show at 4 anot. Kthxbye

There is no official announcement in the market
Any sudden surge in price or volume will subject to uma. Why not just for awhile longer.

Check out comments in kl screener. Basically diversification approved. Production as planned

Silent treatment ?

@liverfol. Shall patiently await for the EGM outcome...

EGM is at 11am, the result of the voting should be concluded before lunch.

Anyone here going EGM? Pls post the update here for those cant make it

If i remember correctly, Price for PP will be determine on later date(s). EGM is for approval of diversification of business.

@starload, when economy of scale comes into play, the common shareholders/directors might form an alliance. AT can be a supplier to GO, GPA, or even FinT.

Speechless with the share price... The price will only be upward trend when there are project wins. Management has been extremely quiet since its cambodia ipo which has been trading below ipo price... Like many infra and construction counters ,this gonna be a medium holding for me. Accumulation time for now.

Hahaha... Either this is fake or somoone dont wan this to be seen

https://www.facebook.com/184302818995326/posts/778815509544051/

https://www.facebook.com/184302818995326/posts/778815509544051/

Anyone attending the EGM?

This is a glove to be counter. How to move when all the boys are dropping.

All eyes will be on TG when it is expected to announce Q4 result in mid Sept

If it beats the market concensus, next round of glove rally will come.

What is your guess rhat the profit TG need to achieve for Q4 to start the rally again?

Mine is rm1.18B :P

Let see whether the price will move back to at least to 10c next week. The PP price shldnt be lower than the SIS at 9c.

Good morning, ATian. Happy trading.

All the ingredients are in place better goreng soon. There is one big fish hidden if you go to the Green Ocean. Find it while u still can. Hohoho

@didie, i was told to go sell fish and u managed can smell the fishiness. Hohoho

A Giant in the making . GAG. Hohoho

Hohoho... The third musketeer has emerged.

Hopefully, the excitement will be longer

When the price rally @ Big 4, TA and FA are irrational. But one thing is that if one does well in SP, there will be spillover effects.

This trickled down to the 2nd liners e.g C+. Same spillover effects among themselves.

Now, there are the emergence of the 3rd liners.

If the top2 are performing, those "undervalued" 3rd liners will see tremendous upsides.

@Directperson, you will be able to see the value when there are comparison. Kudos, Inoutking.