This counter trigger smart money when it breakout from the chart below.
What are the keynotes when our analyst visit the factory as below?
AT Factory Visit on 13th November 2020
- On the 18th of November the material of glove will arrive.
- The raw materials come from Taiwan and Thailand, so there will be no shortage of raw materials. There will be 3-4 suppliers.
- On the 24th of November, they will be started testing and trial run of production.
- Expected to start production of gloves in early December
- Total of 13 production lines to produce Nitrile Glove
- Estimated sales price USD $90 per 1000pcs, spot order USD 150+-. The gloves in China sell for about USD $130
- Cost USD $22 per 1000 pcs.
- The land next to the factory belongs to FINTECH and AT will help to manage on behalf and earn management fees.
- LKL International Berhad is one of AT glove distributor, and other companies will help AT sell gloves since hot demand for medical gloves.
- The company expects to be profitable with RM180mil in 2021
The production volume will reach $2.6b in April 2021, and $3.2B gloves later.
- The company uses cash to build a glove factory and no debts involved.
- All employees are local, there will be a total of 240 employees. After completing all production lines, there will be 1,200 employees
- FDA cert is expected to be Jun Jul 2021
- CE certificate is expected to be obtained this month
Based on company estimation of $180Mil profit before tax, after tax will be $150Mil, Shares = 3,253Mil
EPS would be 4.6 cents.
Projected PE = 20
The target price of AT will be RM0.92. Potential Upside 268% based on the today closing price of RM0.25.
Real Case Supporting Evidence
Gloves still needed desperately in the US due to spike of case
All the information is available online and I compile for readers reference, this is not a buy call or sell call.