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UGHealthcare
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UGHealthcare share worth keeping?
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Longtermer
Elite |
11-Dec-2021 20:50
Yells: "A disciplined investor is a wealthy investor" |
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Good read.. An update on company strategy and elaborate on their branding and OBM biz model. It will differentiate them from other glove companies. Noted that more orders are filled for Dec delivery. The company cash and receivables amount to 25c per share. So undervalued at this price imo. Dyodd.
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Alvin2042
Master |
11-Dec-2021 13:20
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TG boss already saying gloves surplus and delay expansion ....same to UG.
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Everyday
Elite |
11-Dec-2021 12:40
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Glove counters seemed to be not benefiting fr Omicron yet.... TG revenue and net profit fell alot..... UG tried hard to climb back to 3 series... The next few quarters will tell.... |
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Joelton
Supreme |
08-Dec-2021 09:29
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UG Healthcare says Omicron still in its early days, company to monitor situation
GLOVEMAKERS are now back in the spotlight, thanks to the Omicron coronavirus variant, which has sparked hopes of renewed demand and stronger average selling prices (ASPs) for gloves.
Lee Jun Yih, executive director of UG Healthcare, is not prepared to speculate about the impact the new variant will have on the company&rsquo s business though, saying that it is &ldquo still early days&rdquo .
In a recent interview with The Business Times, he said UG Healthcare is still monitoring the situation, and is unable to say for sure what the impact of the Omicron variant will be on demand, ASPs and profits.
Nevertheless, investors have already piled into the &ldquo pandemic darlings&rdquo such as glove manufacturers. On Nov 29, UG Healthcare closed at a 52-week high of S$0.425, as all Singapore-listed glove counters rallied. UG Healthcare has since pulled back slightly to close at S$0.295 on Tuesday (Dec 7), down 1.7 per cent or S$0.005.
CGS-CIMB analyst Ong Khang Chuen told BT that while it is still too early to comment on the potential impact of the new virus variant on glove stocks, he has noticed that demand for healthcare gloves has steadily improved in the later part of Q4 2021, with more distributors placing orders for delivery in December and beyond.
He attributed this to a combination of low inventories and a stabilisation of ex-factory prices that have driven up distribution margins.
Ong is still positive on UG Healthcare and Riverstone Holdings, particularly due to their resilience relative to other glovemakers.
One unique factor for UG Healthcare, he added, is its original brand manufacturer (OBM) business model, which allows the company to deal directly with end consumers in various countries and gives it the flexibility to maintain a &ldquo relatively sticky pricing profile&rdquo .
UG Healthcare&rsquo s Lee said the OBM business model means that the company controls the supply chain -- from manufacturing to logistics and distribution of gloves to customers. This model, he said, covers more than 90 per cent of UG Healthcare&rsquo s products.
&ldquo When customers have more choice of products and brand, what will win them over is, for example, brand loyalty and customer service,&rdquo he said. &ldquo We are able to reach and do marketing branding directly to the customers and users so (this) differentiates us from some of the other glove makers.&rdquo
This puts the company in a better position than its peers during periods of higher raw material prices.
Lee said it largely depends on whether glove manufacturers are able to pass on the costs through &ldquo a few layers&rdquo such as the distributors, importers and end-users. Typically, glove manufacturers avoid changing prices for customers because it &ldquo creates uncertainty&rdquo and customers may move on to another competitor, said Lee.
&ldquo There are many reasons so distributors generally try not to increase the price unless the cost doesn&rsquo t make sense anymore and (they) have no choice but to do so ... But typically, the manufacturer would try to pass on some of the costs to the distributor to buffer the cost increase.&rdquo
The OBM model also gives UG Healthcare a higher cost efficiency, as the company controls its downstream distribution logistics.
Although glove manufacturers have been dealing with a decline in glove ASPs, Lee said prices are still higher than pre-pandemic levels. UG Healthcare is also enjoying strong demand for its products, and its factories still running at &ldquo fairly high utilisation levels&rdquo .
He said prior to the Omicron variant, UG Healthcare&rsquo s customer base breakdown has typically been a 50-50 split between the medical and industrial sectors. This has served the company well, and will serve as a buffer as virus fears taper off and countries lift their restrictions eventually.
The industrial sector for UG Healthcare covers a &ldquo range of industries&rdquo , including the food and beverage (F& B) sector. Gloves are used in F& B-related areas such as food manufacturing and food distribution, and other sectors such as agriculture, automotives, tattoos and laboratories, all of which are seeing strong demand as countries learn to live with the coronavirus.
In a voluntary business update for the quarter to September 30, UG Healthcare posted net profit of S$10.6 million, down 53.3 per cent from net profit of S$22.7 million in the corresponding year-ago period.
Revenue for the quarter was down 15.5 per cent to S$60.1 million from S$71.2 million due to lower production volume, weaker ASPs for disposable gloves and softer demand on the back of customers&rsquo preference to hold lower inventory.
Looking ahead, UG Healthcare will be prepared to &ldquo explore opportunities beyond (its) disposable glove business&rdquo , for instance through reusable gloves that can be used in high-intensity industries for which disposable gloves cannot be used, said Lee.
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Everyday
Elite |
07-Dec-2021 18:35
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UG Healthcare says Omicron still in its early days, company to monitor situationTUE, DEC 07, 2021 - 4:59 PM
UPDATED TUE, DEC 07, 2021 - 5:10 PM
 UG Healthcare' s status as an original brand manufacturer (OBM) means that the company controls the supply chain from manufacturing to logistics and distribution of gloves to customers.
SPH
GLOVEMAKERS are now back in the spotlight, with the new Omicron coronavirus variant, amid hopes of renewed demand and stronger average selling prices (ASPs) for gloves. However, Lee Jun Yih, executive director of UG Healthcare (UG Healthcare) $ UGHealthcare: 8K7 -1.67% , points out that it is " still early days" , and that the company does not wish to speculate on the new virus variant. In a recent interview with The Business Times, he said UG Healthcare is still monitoring the situation, and is unable to say for sure what the impact of the Omicron variant will be on demand, ASPs and profits due to the uncertainty. Markets reacted to the Omicron news as investors piled into the " pandemic darlings" such as glove manufacturers. On Nov 29, the counter closed at a 52-week high of S$0.425, as all Singapore-listed glove counters rallied on the back of initial fears. UG Healthcare has since pulled back to trade at S$0.295 as at 4.42 pm on Tuesday. CGS-CIMB analyst Ong Khang Chuen told BT that while it is still too early to comment on the potential impact of the new virus variant on glove stocks, he has noticed that demand for healthcare gloves have steadily improved in the later part of Q4 2021, with more distributors placing orders for delivery in December and beyond. He attributed this to a combination of low inventory holdings and a stabilisation of ex-factory prices that have driven up distribution margins. |
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Sibehboeng
Master |
07-Dec-2021 15:31
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something brewing in med? updates on situation? sudden upsurge
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Richardlai
Master |
07-Dec-2021 15:26
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Yes coming back to life, picked up a toe hold haha. | ||
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Everyday
Elite |
07-Dec-2021 15:17
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UG back in 3 series..... | ||
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Richardlai
Master |
07-Dec-2021 13:54
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I am waiting for the selling to die down before picking up a bit. | ||
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boyboy61
Supreme |
07-Dec-2021 05:25
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The World Health Organisation (WHO) has said there is early evidence to suggest Omicron has an ?increased risk of reinfection? and its rapid spread in South Africa suggests it has a ?growth advantage? compared to Delta.
Therefore, virologist Marc van Ranst pointed out that ?if the omicron variant is less pathogenic but with greater infectivity, allowing Omicron to replace Delta, this would be very positive.? In fact, Omicron could turn out to be ?a storm in a teacup? and may blow over within a few weeks, according to a former head of the British government?s vaccine task force |
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Everyday
Elite |
06-Dec-2021 15:31
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On the Edge of a cliff....to 2 series...... | ||
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bxylqwan
Master |
06-Dec-2021 14:58
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Just a matter of time lah The recently rally was a once in a blue moon for those stuck to get out. god knows how long you' ll have to wait before the next one comes
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Stocky901
Supreme |
06-Dec-2021 11:44
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Price then was 0.28/0.29 ? 🙄 🙄 🙄
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Everyday
Elite |
06-Dec-2021 11:43
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Longtermer
Elite |
06-Dec-2021 11:26
Yells: "A disciplined investor is a wealthy investor" |
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CIMB 2022 forecast on Gloves 3 December The recently discovered Omicron variant of Covid-19 triggered another share price rally for glovemakers over the past week, as concerns rise over another potential wave of outbreak. From our conversation with glovemakers, we gather that demand for healthcare gloves have steadily improved in late 4QCY21F, with distributors turning more active in placing orders for delivery in Dec and beyond. This was mainly due to a combination of 1) low inventory holding (distributors and end-customers have been cautious in their procurement over the past six months), and 2) stabilisation of ex-factory prices driving improvements to distribution margins. We expect the production utilisation rate of both Riverstone (RSTON SP, Add, TP: S$1.20) and UG Healthcare (UGHC SP, Add, TP: S$0.42) to return to an optimal level of c.90% by 1QCY22F. Industry ex-factory prices for nitrile healthcare gloves have declined to c.US$28-34/carton for Nov and Dec shipments, according to findings from our channel checks. This is significantly lower than the peak levels of c.US$100/carton seen in early 2Q21, though still higher than pre-pandemic pricing of c.US$20/carton, mainly due to higher raw material prices. We expect ex-factory prices to decline at a gradual pace hereon, tracking the easing of raw material prices, as ex-factory margins have returned to a more normalised level of c.20% (pre-Covid level: c.15%). Meanwhile, we expect cleanroom glove prices to remain healthy at c.US$120/carton in 4QCY21F, driven by continued strong demand by the electronics and pharmaceutical industries. We maintain Add calls on both RSTON and UGHC. While the ASP declines point to a weaker earnings profile (on a yoy basis) for glovemakers for CY22F, we continue to like RSTON and UGHC given their relative resilience vs. other glovemakers. RSTON stands out with its cleanroom capability, which contributed 20% to its volume and 50% to its gross profit pre-pandemic. UGHC is also uniquely positioned given its original brand manufacturer (OBM) business model, which allows the company a relatively sticky pricing profile as it deals directly with end-consumers in the various countries it has expanded its distribution network to. |
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Sgvale
Supreme |
06-Dec-2021 08:12
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In an update on Omicron, the Health Ministry said the viral variant appears to have a higher risk of reinfecting those who have already recovered from Covid-19
But infections have been less severe in general, with most young people suffering only mild symptoms |
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Everyday
Elite |
06-Dec-2021 07:45
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How will the glove counters react today? UG in holding steady in the 3 series.... |
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ttbanthony
Veteran |
03-Dec-2021 23:28
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The World Health Organization on Friday said the omicron Covid-19 variant has been detected in 38 countries, up from 23 two days ago, with early data suggesting the strain is more contagious than delta.
?We do see an increasing growth rate, we see increasing numbers of omicron being detected,? Maria Van Kerkhove, the WHO?s Covid-19 technical lead said during a Q&A livestreamed on the group?s social media channels Friday. ?But we have reports of omicron in 38 countries in all six WHO regions.? ?There is a suggestion that there is increased transmissibility, what we need to understand is if it?s more or less transmissible compared to delta,? Van Kerkhove said, noting that the delta variant is still dominant across the globe. Van Kerkhove said it?s still too early to understand the severity of disease caused by omicron. Early reports of mild symptoms in some of the first cases where it was identified were based on a cluster of university students who tend to be younger and experience more mild symptoms than older adults, she said. ?There was initial reports that it tended to be more mild, but it?s really too soon,? Van Kerkhove said. ?Everybody who is infected with SARS-CoV-2 regardless of what variant will always start out with a mild disease. And so maybe it will stop there with mild, some people are asymptomatic of course, but it may stop with mild disease or it may take some time.? Van Kerkove said there are increasing hospitalizations in South Africa, but public health officials haven?t seen an increased risk of death yet, but they?re waiting on more data. Dr. Mike Ryan, executive director of the WHO?s health emergency program, said public health officials initially saw mild cases with the alpha and delta variants as well. It could take two weeks to see increased mortality associated with omicron if the variant does, in fact, cause more severe disease. ?It takes time unfortunately,? Ryan said. ?We saw that as well in previous waves of this pandemic. When the incidence rate goes up, it takes a week or two for that to result in hospital admissions and deaths.? Van Kerkhove cautioned there?s a reporting bias at the moment which may obscure how virulent the variant really is. Many of the people around the world who have tested positive for omicron were healthy travelers, which could explain why the symptoms reported so far are mild. ?If you?re traveling, you?re not sick or you shouldn?t be traveling if you?re sick,? Van Kerkhove said. ?So there?s a bias in terms of what is being detected at the moment, but that will change over time.? |
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SG-Insider
Veteran |
03-Dec-2021 21:27
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回 到 解 放 前 | ||
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easywin
Supreme |
03-Dec-2021 17:11
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Because T+4, Monday will see the reversal as Omicron spreading all over the world.
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