The glove manufacturing
facility will be 'future ready' for the Industrial 4.0 ecosystem,
equipped with a Manufacturing Executive System (MES) to provide real
time production monitoring and control, output control and monitoring,
record retention to comply with standard regulations.
1. AT Systematization Bhd (ATS) has met tight deadline to begin glove
production, making it the first among new glove players to bring its
production into the market
2. ATS had obtained the CE certification, enabling it to tap into the export market now that the production had begun.
3. Completion of the glove factory with its production for Line 1 was in line with ATS' projected timeline earlier this year.
4. Commencement of its line 2 production in the coming weeks. In
addition to that, ATS has already begun its work on the Phase 2
manufacturing plants.
5. By June 2021, ATS is expected to reach a glove production capacity
of 2.6 billion pieces per annum based on the of 24 hours per day and 30
days per month assumption in Chemor, Perak.
6. The development has effectively put ATS in a position as a strong proxy to the robust glove demand globally.
7. It has taken slightly more than four months to build its factory
along with its state-of-the-art manufacturing capability which is the
shortest time taken for a glove manufacturing plant to be set up.
8. AT Glove will be for the long-term growth plan.
Feedback:
1. If you have been investing into this share for many months, there are a few things you may have realized by now:
i. AT Glove is real unlike the many comments stating that it isnt real
or fake and claim it will fall back or below 0.10 since beginning of
November.
ii. AT Glove started the trial a little slow by a week or two. I will admit that I was upset that they were not punctual. Nonetheless, they managed to pull it off quickly within 4 months. In normal case, it takes at least 9 months.
iii. Now that AT Glove is up, many are stating that Global gloves is
no longer in demand, Big 4 Gloves are red so AT Glove will suffer or
that Malaysia Gloves are not needed by many foreign countries anymore
due to foreign worker cases.
- Global gloves is still in demand according to my references.
- JP Morgan news has badly affected the already existing glove
counters that has been selling gloves and making money since day 1. Keep
in mind, AT Glove has yet sold a single glove but will soon make its
first glove profit out of it. Which is also another reason why AT is not
so badly affected by the Glove counters so far cause it did not make
any profit from glove yet but soon it will.
- Malaysia is still a key player when it comes to global glove demand as we control over 60% of the glove market supply.
- Only Ansell (Joint venture with Careplus) and Kimberly-Clark want to
rethink its relationship with Malaysia and this news come from FMT
website only.
2. It is going to be much harder for AT to drop below 0.20
ever since their dripping trial is a success and official news about AT
is breaking out to the public.
3. Do I think it has the potential to reach much higher? Yes, I do and many investors believe it too. Now it is 0.20 with the completion of 1st line. Imagine all 13 lines being completed in the future date. What do you think?
4. Don't read into the negative comments too much if you done
your research & analysis of the stock and you find it to be good.
In my experience, the negative comments can be convincing when many
investors are commenting it negatively as a group but so far their
negative comment prediction of the price falling drastically has only
been accurate during these two announcement events (KYY and JP Morgan)
ever since i started investing in this stock in November.
a)
KYY wrote an article titled "AT Systematization is losing support - Koon Yew Yin"
on 17th Nov which made the share drop from 0.30 to 0.25 on that day
itself. After 7 days (24th Nov), it dropped to its lowest which was
0.15. It then starts to rebound back to 0.21 until 9th December 2020.
I can assume the only one reason he has decided to post that article
was because on 11th Nov - $22m cancel acquisition of Pearl Glove by AT
group. (0.27 to 0.22)
b)
JP Morgan wrote an article titled "JP Morgan's view on glove makers conservative" on 15th December which made the price from 0.185 to 0.155 (23rd December).
5) Positive News does affect the price movement of AT shares.
10th June - Pearl Glove acquisition
Price jumped from 0.12 to 0.16 (until 16th June)
10th August - Acquire land in chemor
Price jumped from 0.10 to 0.14 (until 13 August)
28th October - Expects to make 2.6b gloves by June 2021 news
Price jump from 0.10 to 0.30 (until 17th Nov)
9th Nov - LKL partnership to distribute
Price jumped from 0.13 to 0.30 (until 17th Nov)
Note to self: Positive news will definitely push the price up.
Side note for investors on i3:
If you find any abusive or annoying comments, you can do a "Report
Abuse" on the investor. Your identity will be kept a secret.
First step, click on the user's "name"
Second step, click on "Comment".
Last step, click on "Report Abuse".
Reference:
1) https://www.dailyexpress.com.my/read/4137/gloves-demand-good-news-for-rubber/
(28 Dec 2020)
2) https://www.thestar.com.my/business/business-news/2020/12/17/global-demand-for-gloves-still-on-uptrend
(22 Dec 2020)
3) https://www.freemalaysiatoday.com/category/nation/2020/12/27/global-glove-importers-rethink-relationship-with-malaysian-manufacturer/
(27 Dec 2020)
4) https://www.malaymail.com/news/money/2020/12/28/at-systematization-opens-glove-manufacturing-facility-in-perak/1935581
(28 Dec 2020)
5) https://www.nst.com.my/business/2020/12/652800/systemization-first-newcomer-start-glove-production
(28 Dec 2020)
Some of my references are obtained in my older articles.
I do apologize for not posting here.
Do let me know what you think by commenting below.
https://klse.i3investor.com/blogs/rubberglove_y2023/2020-12-29-story-h1538429926-AT_Systemization_0072_First_Glove_Newcomer_Industrial_4_0.jsp
