VIZIONE (7070) VIZIONE HOLDINGS BHD - YOU DEFINITELY MISSED THIS GREAT VALUE STOCK!
YOU DEFINITELY MISSED THIS GREAT VALUE STOCK!
Everyone is crazy about glove stocks.
Everyone is crazy about new glove entrants.
But do you know, this company ACTUALLY did takeover an already operating glove factory?
Before I jump into the company, let me share with you a small industry knowledge about gloves. For new manufacturers, the first 6 months IS NOT THAT PROFITABLE for them as it would be the period where they check out the compound mix, efficiencies, fault-testing and so forth.
So, before we all hype about so called “new glove giant” like AT, we need to look at the facts – Gloves industry is not that hard to get into, but its hard to get the latest machinery (Ripcol orders on machinery is full as hell) and raw material as of this moment.
However, this particular company had signed to acquire 51% stake in an already operating glove company, with a capacity of 500 million pieces of gloves per annum and target to triple it by next year.
Remember what I mentioned before?
New glove makers have to go through a “trial and run” period for the first 6 months. But the company that had been acquired – SSN Medical Sdn. Bhd. DO NOT HAVE TO GO THROUGH THE SAME HURDLE AS NEW PLAYERS!
If you are sharp enough (in which I presume you are, otherwise, you will not be reading this article), you would notice that this company is VIZIONE HOLDINGS BERHAD (7070).
VIZIONE (or the “Company”) had officially completed the acquisition of 51% stake in SSN Medical Sdn. Bhd., and they are looking at hitting 1.6 billion pieces of gloves per annum by next one and a half year!
VIZIONE had committed RM 5.0 Million cash to takeover the said amount of stake, but you know whats the fun part? This company comes in with RM 15 Million pre-tax profit or PBT for FYE 31st December 2021.
This is like you buying a house, and the house is paying you triple in instalment for the next year!
So what’s in it for SSN? It’s simple, SSN would leverage the position of being a subsidiary of a listed company, and VIZIONE had committed to invest an additional RM 30 Million to expand the capacity of the company to 1.6 billion pieces of gloves per annum.
WIN. WIN. SITUATION.
Here comes the fun part – half of SSN’s future capacity would be allocated for long-term contract orders, and half of it would be SPOT ORDERS. We all know that now GLOVES = GOLD. IMMEDIATE GLOVES = MORE GOLD.
SSN is now already exporting to Europe, United States, China, and South Africa. They had already a FDA license in place and unlike other companies which they have to apply for one (takes 9 – 12 months for now), SSN would be already making a handsome profit.
Here’s not all – VIZIONE current NTA is over RM 1.00, but the share price is well over it, currently standing at RM 0.430 as at 2nd December 2020.
HELLO? IF THIS IS NOT UNDERVALUED, WHAT OTHER UNDERVALUED STOCKS YOU ARE LOOKING INTO?
https://klse.i3investor.com/blogs/fundingforever/2020-12-02-story-h1537356609-YOU_DEFINITELY_MISSED_THIS_GREAT_VALUE_STOCK.jsp
