When two is better than one holds true for INIX

WHILE many small cap counters have taken a plunge into the glove, vaccine and personal protection equipment (PPE) sphere in search of new fortune, INIX Technologies Holdings Bhd is one better – it has not only applied to be a supplier of COVID-19 vaccines but also venture into the glove industry at the same time.

The ACE Market-listed software company’s venture into the glove industry takes off today as the group signed a share sale agreement (SSA) with L&S Gloves Sdn Bhd which signifies the completion of a 51% share acquisition in the glove manufacturer.

This, according to INIX, will translate into an immediate earnings recognition from L&S’ existing two production lines which are located in Beranang, Selangor.

“Upon completion of an additional 12 lines within 2021, the company is expected to generate an annual turnover of RM200 mil,” it pointed out in a media statement. “This is based on the glove production capacity of 1.4 billion pieces per annum.”

According to INIX’s executive director Siva Kumar Kalugasalam, the group is in the midst of commissioning an additional two production lines by February (currently 70% completed) in order to meet the growing gloves demand.

“The existing daily production gloves of L&S are sold out in advance, and delivery to customers are done on a daily basis, pointing to an adequate demand for gloves in the market,” noted Siva.

Given the strong demand that far surpassed the existing supply, INIX is looking to expand its glove production capacity, according to its chairman Tan Sri Syed Mohd Yusof Syed Nasir.

“As L&S has sufficient orders that could sustain for the next two years, we plan to expand our production capacity to 14 production lines within the next twelve months, with a total investment of not less than RM50 mil,” Tan Sri Syed Mohd Yusof said.

Currently, 97% of L&S’ production is exported to China and India with INIX being confident of tapping into the growing demand in this region and Europe going forward.

As for INIX’s vaccine venture, it is noteworthy to re-cap that the company clarified yesterday that its application for the registration with the Malaysian National Pharmaceutical Regulatory Agency (NPRA) has been submitted but is pending additional information as per the latter’s request.

This follows a controversy over a media report that it had not made an application to NPRA despite the company’s Bursa Malaysia filing on Jan 13 claiming that it had done so.

“The application was made by INIX and received by NPRA on Jan 11,” the company pointed out in a media statement. “The authority has since requested additional information in relation to the application.”

At 4.50pm, INIX was down 1.5 sen or 4/05% at 25.5 sen with 76.26 million shares traded, thus valuing the company at RM166 mil.

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