KARYON (0054), potential beneficiary of surging glove production [$$bill]
This is a follow up on my previous Karyon post, link:
KARYON (0054), another under the radar Covid-19 play [$$bill]
Upon further research, I discovered more interesting details on the company.
Karyon could be seeing stronger growth due to higher demand for its stearate products which are used in the glove industry.
These stearates are used in rubber glove manfucturing as an anti-tack agent (a material used so that the rubber won’t stick)
You can Google more on how calcium stearate, zinc stearate and magnesium stearate are used in the glove industry.
This is a website of one company that explains the use of these stearate in the glove industry:
Karyon’s 100%-owned Allbright Industries (M) Sdn Bhd manufacturers metallic stearates, including calcium stearate, zinc stearate and magnesium stearate:
Karyon could well be a good proxy to the hottest sector now - Gloves.
Solid company with strong balance sheet. Cash of RM41.7mil vs. total borrowings of RM8.2mil. Net cash position of RM33.5mil (38% of RM88mil market cap). Strong operating cash flow of RM15mil in FY20.
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