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UGHealthcare share worth keeping?
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aspasp
Senior |
28-Feb-2022 13:40
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Is UG making Clean room glove also ?
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oli007
Member |
28-Feb-2022 13:24
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UG is doing good, but the management should pay out more dividends like Riverstone
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aspasp
Senior |
28-Feb-2022 13:11
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Small , economic of scale is not so good | ||||
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bxylqwan
Master |
28-Feb-2022 13:03
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bro, still don' t want to give up ah?
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Longtermer
Elite |
24-Feb-2022 12:21
Yells: "A disciplined investor is a wealthy investor" |
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At 26c, it is 8c trading more than 23% below NAV of 34c. If every year make 40m or about 7c , Big boss and related parties owning more than 70% should take it private. They can immediately pocket the 85m cash in the company. Hope it can come soon. |
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Richardlai
Master |
23-Feb-2022 15:51
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Every dog has a day. Guess we just have to wait for UG to wake up from its hibernation haha ! | ||||
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Longtermer
Elite |
18-Feb-2022 14:29
Yells: "A disciplined investor is a wealthy investor" |
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CIMB latest TP 2QFY6/22 in line UGHC reported 2QFY22 net profit of S$10.6m (+0.5% qoq, -67% yoy), in line with our expectations, with 1H22 net profit making up 50% of our FY22 forecast. While ASPs continued to trend downwards, this was successfully offset by higher sales volume during the quarter, helped by the recovery of its manufacturing operations which were previously impacted by Covid-related shutdown and lower mandated workforce capacity. Further volume recovery in 3QFY22F OBM model bears fruits Demand for gloves has improved, driving UGHC&rsquo s production capacity utilisation rate back to c.80% levels in Jan (bottleneck being foreign labour shortage). UGHC has further stepped up its outsourcing efforts in 3QFY22 to cater to market demand, as distribution margins have improved with end-market pricing relatively sticky, especially for customers that have smaller order quantities. Given its strong downstream distribution network, we believe UGHC will fare better vs. other OEM glove manufacturers which currently face pricing pressure amid the expanded industry supply &ndash it can choose to outsource more orders of generic SKUs to take advantage of lower ex-factory prices while focusing its production on niche products. For 3QFY22F, we expect higher sales volume to once again offset the impact of declining ASP trend, and forecast flattish qoq earnings. Plans to grow beyond disposable glove business UGHC broadened its product portfolio beyond disposable glove products with the introduction of its reusable glove products for heavy industry users in Oct 2021. It is also seeking diversification into non-glove business opportunities in the healthcare-related sector, tapping its entrenched downstream distribution infrastructure and capabilities to broaden its product portfolio. Reiterate Add Reiterate Add, with an unchanged TP of S$0.42, based on 11.2x CY23F P/E (a 30% discount to the glove sector&rsquo s historical mean). We believe that with UGHC&rsquo s significantly expanded production scale and stronger customer base in end-markets, it can achieve much better financial performance compared to pre-Covid levels even as glove pricing fully normalises. Its current valuation is undemanding at 4.6x ex-cash CY23F P/E &ndash its net cash of S$73.1m (as at end-Dec) represents 43% of its market cap. Stronger-than expected demand for gloves is a potential re-rating catalyst. Key downside risk: steeper decline in glove pricing. Dyodd..
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Longtermer
Elite |
17-Feb-2022 11:00
Yells: "A disciplined investor is a wealthy investor" |
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CIMB: OBM model bears fruits ■ 2QFY6/22 results in line with expectations. Net profit was flattish qoq as volume recovery offset weakness in ASPs. ■ End-demand recovering well UGHC has stepped up outsourcing efforts as distribution margins improved, with end-market pricing relatively sticky. ■ We believe UGHC&rsquo s OBM model enables it to fare better than OEM peers, which currently face pricing pressure. Reiterate Add and TP of S$0.42.. |
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Longtermer
Elite |
15-Feb-2022 15:34
Yells: "A disciplined investor is a wealthy investor" |
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Brokers' take: Phillips upgrades UG Healthcare to ' buy' RHB raises TPTUE, FEB 15, 2022 - 1:02 PM
continue... He believes the company can fare better than its peers as it is a distributor to end customers and these customers pay more due to their small order quantities. UG Healthcare can also overcome competition by outsourcing more orders to third party factories to take advantage of lower factory prices. The company is experiencing greater demand for gloves from new industries such as farming and beauty as well. With the global pandemic, health awareness has also risen significantly, giving the company more exposure to emerging market customers. Meanwhile, RHB has maintained its " neutral" call on UG Healthcare with a higher target price of S$0.29. The research house said it expects the company to continue to book weaker earnings due to its lower ASP trajectory but projects price erosion to be offset by higher sales volumes, improved economies of scale and an expanded client base. UG Healthcare' s valuation is viewed as fair at a forecasted 11 times price-to-earnings ratio for FY2023, in line with the 5-year mean. RHB raised expected earnings for FY2022 by 13 per cent and for FY2023 and 24 by 9 per cent after upgrading its projected ASP for FY22 and paring down cost assumptions to reflect the latest raw material price trends. RHB believes that the original brand manufacturer (OBM) pricing remains resilient and this can soften the impact of the downward ASP pressure on the company. The brokerage noted that unlike its peers, UG Healthcare benefited from " stickier" OBM prices from Chinese producers who have continuously undercut market prices. It highlighted the company' s pricing power and resilient margins quarter-on-quarter. UG Healthcare also managed to secure several contracts with clients paying higher premium prices, RHB added. Following UG Healthcare' s recent launch of reusable gloves for industrial applications, the company has more plans to develop its non-medical segment and RHB has a positive outlook on this venture. The research team is of the opinion that as UG Healthcare aims to explore niche applications, the company would remain competitive versus its peers. Shares of UG Healthcare were trading at S$0.265, down 1.9 per cent or S$0.005 as at the midday trading break on Tuesday.
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Richardlai
Master |
15-Feb-2022 14:58
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Yes , at least now the analysts are waking up ! Hopefully the sellers stop selling ...... it should fly like an eagle. | ||||
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Everyday
Elite |
15-Feb-2022 13:11
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Brokers' take: Phillips upgrades UG Healthcare to ' buy' RHB raises TPTUE, FEB 15, 2022 - 1:02 PM
 Phillip Securities has upgraded its call on UG Healthcare to " buy" from " accumulate" with an unchanged target price of S$0.32, while RHB has raised its target price on the company to S$0.29 from S$0.27 in research reports released on Tuesday (Feb 15).
PHOTO: UG HEALTHCARE CORPORATION
PHILLIP Securities has upgraded its call on UG Healthcare to " buy" from " accumulate" with an unchanged target price of S$0.32, while RHB has raised its target price on the company to S$0.29 from S$0.27 in research reports released on Tuesday (Feb 15). This comes after the glove manufacturer posted a net profit of S$21.2 million for H1 FY2022, down 61 per cent from the year ago period on the back of a lower average selling price (ASP) and softer production volumes. Despite this, Phillips analyst Paul Chew believes that glove prices will decline at a slower pace and valuations of the company are turning more attractive. Chew projects industry glove prices will still fall in Q1 2022 but at a slower pace of around 10 per cent quarter-on-quarter instead of the previously observed 50 per cent from July to September 2021. He added that a rebound in prices will " remain elusive" because of the huge influx of nitrile capacity - the product used to make certain types of gloves - especially from China. The analyst said that he also sees value in the share price as UG Healthcare is trading below its book value of 33.8 Singapore cents and 43 per cent of the market capitalisation is net cash. |
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Everyday
Elite |
14-Feb-2022 19:58
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More money is stability for the company....share price is already low at 2 series...the only way is up....for the future....
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Richardlai
Master |
14-Feb-2022 16:49
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Seems many unhappy shareholders throwing out the share ... cant blame them as general market sentiment is also negative. Based on fundamentals it is a safe share to hold ....but lacks the excitement of shares like Riverstone. | ||||
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Richardlai
Master |
14-Feb-2022 10:26
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UG would be a pretty good takeover target ... with a market cap of below S$200 mil and also having a lot of cash ! But I doubt the owners would let it go so cheap. | ||||
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Richardlai
Master |
14-Feb-2022 10:07
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Frankly if UG can maintain quarterly S$10 mil profit , it is a pretty good return. S$40 mil per annum. | ||||
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desmodeus
Veteran |
14-Feb-2022 00:24
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qtr to qtr enticing😉
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Everyday
Elite |
13-Feb-2022 21:33
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This year Q3 report(Jan to Mar) may be better...no lockdown, ASP stabilising, more gloves needed for increased Omicron cases. Q4( April to June) may be even better with the start of new factory in May..... Last year was eventful....but it is over....This year is a new beginning.... |
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Longtermer
Elite |
12-Feb-2022 15:16
Yells: "A disciplined investor is a wealthy investor" |
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Dun just read headline news for UG results reported.. H1 UG results shown its performance is stabilising when comparing Q2 with Q1 2022. H1 FY22 Rev 117.3m, Net Profit 21.2m , Margin 18.1%, EPS 3.45c NAV up $210.6m or 33.8c per share Cash on hand 85.8m Q1 results: Rev 60.1m , Net Profit 10.6m, Margin 17.6%, EPS 1.72c Q2 results: Rev 57.2m, Net Profit 10.6m, Margin 18.6%, EPS 1.72c When compare yoy with FY21, the numbers look depressing. This is largely due to dropping ASPs, stalled orders, shipment delays, and lower production vol caused by MCO and 60% workforce mandate. The good thing is ASPs is likely to be stabilised by now with pandemic dragging on longer looking at the H1 results. Production is also back to normal with another 1.2b pieces commencing in May2022. Stock trading is forward looking and assume H1 is same as H2, FY22 net profit will be 42m to 43m and EPS will be about 7c At current price of 28.5c, PE is trading at 4 times At 7 times PE (30% disc), TP should be 49c which is undemanding for this cash and profit making company Mgtm optimistic on better performance due to higher demands and diversification strategy.. Despite intense competition and lower ASP, the Group remains confident to achieve better financial performance compared to pre-COVID times as heightened hygiene awareness is likely to continue to drive demand for disposable gloves. Whilst our proprietary branded disposable examination gloves remain as our mainstay products, we are mindful of the evolving business situation and will be prudent regarding any further expansion of production capacity beyond 4.6 billion pieces of gloves per annum. We will, however, continue to seek diversification in non-glove business opportunities in the healthcare related sector, tapping on our entrenched downstream distribution infrastructure and capabilities to broaden our product portfolio as well as our earnings base. This strategy allows scalability with our integrated own-brand manufacturing (&ldquo OBM&rdquo ) foundation, reinforcing the market position of our proprietary brand, expanding our customer base, and diversifying our product portfolio, which in turn, balances the Group&rsquo s risk exposure. The launch of a new range of proprietary branded reusable gloves for heavy industry users in October 2021 was a milestone for the Group, broadening our product portfolio beyond disposable glove products. This range of reusable gloves offers comprehensive hand protection against major workplace hazards in the heavy industry including chemicals, railway and energy. As a new entrant, it will take us time to establish our proprietary brand of reusable gloves with the heavy industry users &ndash a new set of customers. Nevertheless, we believe our dedication in building sustainable growth together with our stakeholders, will continue to see us through the challenges ahead.
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Everyday
Elite |
11-Feb-2022 20:34
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No news of a large order...but most of the awarded tender late last year in UK is to be supplied this year....increasing this year' s sales The new factory would be ready in May....boosting this year' s production capacity ASP expected to stabilise....no more lockdowns.....more Omicron cases...more gloves needed..diversification to reuseseable gloves etc All points to a Good Tiger year..... |
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Richardlai
Master |
11-Feb-2022 18:42
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Their second quarter result was similar to the first quarter result. | ||||
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